NPC Restaurant Holdings (NPCI) has reported 13.51 percent rise in profit for the quarter ended Dec. 27, 2016. The company has earned $4.29 million in the quarter, compared with $3.78 million for the same period last year.
Revenue during the quarter went up marginally by 0.25 percent to $307.97 million from $307.20 million in the previous year period. Gross margin for the quarter expanded 64 basis points over the previous year period to 72.50 percent. Total expenses were 94.89 percent of quarterly revenues, down from 95.94 percent for the same period last year. This has led to an improvement of 106 basis points in operating margin to 5.11 percent.
Operating income for the quarter was $15.75 million, compared with $12.47 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $35.77 million compared with $31.57 million in the prior year period. At the same time, adjusted EBITDA margin improved 134 basis points in the quarter to 11.61 percent from 10.28 percent in the last year period.
NPC’s president and chief executive officer Jim Schwartz said, "Despite ongoing challenges in our Pizza Hut business, we were able to execute with financial intensity delivering an increase of almost 11% in Adjusted EBITDA for the full fiscal year. For the fourth fiscal quarter, we were quite pleased with the results of our Wendy’s business, which posted comparable store sales growth of almost 1% and grew comps 6.6% on a two-year basis. The top-line sales momentum combined with favorable commodities and solid execution from our operators resulted in significant margin improvement and profit growth. Our Pizza Hut operations generated disappointing comparable store sales with a decline of 5.8% rolling over growth of 3.2% last year driven by the successful launch of the Triple Treat Box. Despite the sales decline, lower ingredient prices and favorable insurance adjustments related to improved loss trends served to maintain restaurant margins consistent with the prior year.
Operating cash flow remains almost stableCash flow from operating activities was almost stable for the quarter at $79.60 million, when compared with the previous year period The company has spent $94.32 million cash to meet investing activities during the year as against cash outgo of $53.21 million in the last year. It has incurred net capital expenditure of $60.50 million on net basis during the year, up 10.76 percent or $5.88 million from year ago.
The company has spent $4.39 million cash to carry out financing activities during the year as against cash outgo of $6.04 million in the last year period.
Cash and cash equivalents stood at $13.60 million as on Dec. 27, 2016, down 58.42 percent or $19.11 million from $32.72 million on Dec. 29, 2015.
Working capital remains negative
Working capital of NPC Restaurant Holdings was negative $68.68 million on Dec. 27, 2016 compared with negative $45.08 million on Dec. 29, 2015. Current ratio was at 0.39 as on Dec. 27, 2016, down from 0.58 on Dec. 29, 2015.
Debt remains almost stableTotal debt of NPC Restaurant Holdings remained almost stable for the quarter at $579.98 million, when compared with the last year period. Total debt was 47.65 percent of total assets as on Dec. 27, 2016, compared with 47.61 percent on Dec. 29, 2015. Interest coverage ratio improved to 1.42 for the quarter from 1.18 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
