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PPL anticipates increasing the number of restaurants in its portfolio by approximately 3% in 2013.
SELECTED FINANCIAL HIGHLIGHTS
The following tables set out selected financial information and other data of the Company and should be read in conjunction with the consolidated financial statements of the Company. Readers should note that the 2012 results are not directly comparable to the 2011 results because of an extra day of royalty revenue received from PPL in 2012 due to the leap year and the fact that there are 690 restaurants in the 2012 Royalty Pool compared to 695 restaurants in the 2011 Royalty Pool.
(in thousands of dollars, except restaurants and per Share amounts) 2012 2011----------------------------------------------------------------------------Restaurants in Royalty Pool 690 695Same store sales growth(1) 2.7% 2.6%Days in Period 366 365----------------------------------------------------------------------------System Sales reported by restaurants in the Royalty Pool(8) $ 481,519 $ 467,880----------------------------------------------------------------------------Total Royalty on System Sales $ 31,275 $ 30,375Partnership interest expense and administrative expenses(2) (2,714) (2,916)Corporate Conversion costs(3) (350) -----------------------------------------------------------------------------Adjusted earnings available for distribution to the Company and Pizza Pizza Limited 28,211 27,459Pizza Pizza Limited's distribution(4) (8,877) (8,623)----------------------------------------------------------------------------Adjusted earnings available for distribution to the Company 19,334 18,836Interest income(5) 1,800 1,800----------------------------------------------------------------------------Adjusted earnings before income tax expense $ 21,134 $ 20,636Provision for current income taxes (3,786) (3,710)----------------------------------------------------------------------------Adjusted earnings from operations(6) $ 17,348 $ 16,926Adjusted basic earnings per Share(6) $ 0.795 $ 0.776Basic earnings per Share(7) $ 0.372 $ 0.545Distributions declared $ 15,570 $ 15,290Distributions per Share $ 0.7136 $ 0.7008Payout ratio 90% 90%---------------------------------------------------------------------------- December December 31, 2012 31, 2011----------------------------------------------------------------------------Working capital 4,562 2,754Total assets 325,735 357,293Total liabilities(9) 57,621 161,007----------------------------------------------------------------------------
(1) Same store sales growth ("SSSG") means the change in annual gross revenue of a particular Pizza Pizza or Pizza 73 restaurant as compared to sales in the previous year, where the restaurant has been open at least 13 months. Additionally, for a Pizza 73 restaurant whose restaurant territory was adjusted due to an additional restaurant, a Step-Out Payment may be added to sales to arrive at SSSG.
