Attached files
| file | filename |
|---|---|
| EX-10.1 - EX-10.1 - DOMINOS PIZZA INC | d428320dex101.htm |
| EX-4.2 - EX-4.2 - DOMINOS PIZZA INC | d428320dex42.htm |
| EX-4.1 - EX-4.1 - DOMINOS PIZZA INC | d428320dex41.htm |
| 8-K - 8-K - DOMINOS PIZZA INC | d428320d8k.htm |
EXHIBIT 99.1
In the following discussion, “Holdco” refers to Domino’s Pizza, Inc., “Master Issuer” refers to Domino’s Pizza Master Issuer LLC, “DPL” or the “Manager” refers to Domino’s Pizza LLC, and, unless the context otherwise requires, “Domino’s” refers to Domino’s Pizza, Inc. and its subsidiaries on a consolidated basis prior to the consummation of the securitization transaction.
CAPITALIZATION OF HOLDCO
The following table sets forth the cash and cash equivalents and capitalization of Holdco as of March 26, 2017 (i) on an actual basis and (ii) on an as-adjusted basis to give effect to the transactions contemplated to occur on or prior to July 24, 2017 in connection with the issuance of the Series 2017-1 Senior Notes on July 24, 2017, including the repayment in full of the Series 2012-1 Senior Notes, as if such transactions occurred as of such date.
| As of March 26, 2017 | ||||||||
| (dollars in thousands) | Actual | As-Adjusted | ||||||
| (Unaudited) | ||||||||
| Cash and cash equivalents |
$ | 52,094 | $ | 1,041,842 | ||||
| Debt and capital lease obligations: |
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| Series 2015-1 Class A-1 Notes(1) |
— | — | ||||||
| Series 2017-1 Class A-1 Notes(2) |
— | — | ||||||
| Series 2012-1 Class A-2 Notes(3) |
$ | 910,252 | $ | — | ||||
| Series 2015-1 Class A-2-I Notes(4) |
493,750 | 493,750 | ||||||
| Series 2015-1 Class A-2-II Notes(4) |
790,000 | 790,000 | ||||||
| Offered Notes |
— | 1,900,000 | ||||||
| Capital lease obligations |
5,659 | 5,659 | ||||||
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| Total debt and capital lease obligations(5) |
$ | 2,199,661 | $ | 3,189,409 | ||||
| (1) | Represents amounts outstanding with respect to the Series 2015-1 Class A-1 Notes, which are variable funding notes that were issued by the Co-Issuers on October 21, 2015. The Series 2015-1 Class A-1 Notes have a maximum outstanding principal amount of $125 million and a final legal maturity of October 2045. Notwithstanding the refinancing transaction, the Series 2015-1 Class A-1 Notes have an expected repayment date of October 2020, with an option for up to two one-year renewals (subject to certain conditions, including a minimum debt service coverage ratio). All amounts outstanding under the Series 2015-1 Class A-1 Notes were repaid and the Series 2015-1 Class A-1 Notes were cancelled on July 24, 2017. |
| (2) | Represents the Series 2017-1 Class A-1 Notes, which are variable funding notes that will be issued on the July 24, 2017. The Series 2017-1 Class A-1 Notes have an initial maximum outstanding principal amount of $175 million. The Master Issuer does not anticipate drawing on the Series 2017-1 Class A-1 Notes on July 24, 2017. The Master Issuer has approximately $43.7 million in undrawn letters of credit issued under the Series 2017-1 Class A-1 Notes on July 24, 2017. |
| (3) | The Series 2012-1 Class A-2 Notes were issued by the Co-Issuers on March 15, 2012 and have a final legal maturity of January 2042. Notwithstanding the refinancing transaction, the Series 2012-1 Class A-2 Notes have an expected repayment date of January 2019. All amounts outstanding under the Series 2012-1 Class A-2 Notes were repaid (consisting of approximately $910.3 million in aggregate principal amount of Series 2012-1 Class A-2 Notes). |
| (4) | The Series 2015-1 Class A-2 Notes were issued by the Co-Issuers on October 21, 2015 and have a final legal maturity of October 2045. The Series 2015-1 Class A-2-I Notes have an expected repayment date of October 2020, and the Series 2015-1 Class A-2-II Notes have an expected repayment date of October 2025. |
| (5) | Represents gross debt and capital lease obligation amounts and is not inclusive of debt issuance costs. |
CAPITALIZATION OF THE MASTER ISSUER
The following table sets forth the cash and cash equivalents and capitalization of the Master Issuer as of March 26, 2017 (i) on an actual basis and (ii) on an as-adjusted basis to give effect to the refinancing transaction, including the repayment in full of the Series 2015-1 Senior Notes, as if such transactions occurred as of such date.
| As of March 26, 2017 | ||||||||
| (dollars in thousands) | Actual | As Adjusted | ||||||
| (Unaudited) | ||||||||
| Cash and cash equivalents |
$ | — | $ | — | ||||
| Debt: |
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| Series 2015-1 Class A-1 Notes(1) |
— | — | ||||||
| Series 2017-1 Class A-1 Notes(2) |
— | — | ||||||
| Series 2012-1 Class A-2 Notes(3) |
$ | 910,252 | $ | — | ||||
| Series 2015-1 Class A-2-I Notes(4) |
493,750 | 493,750 | ||||||
| Series 2015-1 Class A-2-II Notes(4) |
790,000 | 790,000 | ||||||
| Offered Notes |
— | 1,900,000 | ||||||
| Capital lease obligations |
5,104 | 5,104 | ||||||
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| Total debt and capital lease obligations(5) |
$ | 2,199,106 | $ | 3,188,854 | ||||
| (1) | Represents amounts outstanding with respect to the Series 2015-1 Class A-1 Notes, which are variable funding notes that were issued by the Co-Issuers on October 21, 2015. The Series 2015-1 Class A-1 Notes have a maximum outstanding principal amount of $125 million and a final legal maturity of October 2045. Notwithstanding the refinancing transaction, the Series 2015-1 Class A-1 Notes have an expected repayment date of October 2020, with an option for up to two one-year renewals (subject to certain conditions, including a minimum debt service coverage ratio). All amounts outstanding under the Series 2015-1 Class A-1 Notes were repaid and the Series 2015-1 Class A-1 Notes were cancelled on July 24, 2017. |
| (2) | Represents the Series 2017-1 Class A-1 Notes, which are variable funding notes that will be issued on July 24, 2017. The Series 2017-1 Class A-1 Notes have an initial maximum outstanding principal amount of $175 million. The Master Issuer does not anticipate drawing on the Series 2017-1 Class A-1 Notes on July 24, 2017. The Master Issuer expects to have approximately $43.7 million in undrawn letters of credit issued under the Series 2017-1 Class A-1 Notes on July 24, 2017. |
| (3) | The Series 2012-1 Class A-2 Notes were issued by the Co-Issuers on March 15, 2012 and have a final legal maturity of January 2042. Notwithstanding the refinancing transaction, the Series 2012-1 Class A-2 Notes have an expected repayment date of January 2019. All amounts outstanding under the Series 2012-1 Class A-2 Notes were repaid consisting of approximately $910.3 million in aggregate principal amount of Series 2012-1 Class A-2 Notes). |
| (4) | The Series 2015-1 Class A-2 Notes were issued by the Co-Issuers on October 21, 2015 and have a final legal maturity of October 2045. The Series 2015-1 Class A-2-I Notes have an expected repayment date of October 2020, and the Series 2015-1 Class A-2-II Notes have an expected repayment date of October 2025. |
| (5) | Represents gross debt and capital lease obligation amounts and is not inclusive of debt issuance costs. |
SELECTED HISTORICAL CONSOLIDATED FINANCIAL INFORMATION
AND OTHER DATA OF HOLDCO
The following tables present certain summary historical consolidated financial information of Holdco.
Set forth below is selected historical consolidated financial information and other data of Holdco at the dates and for the periods indicated. The selected historical financial information and other data as of December 30, 2012, December 29, 2013 and December 28, 2014 and for the fiscal years ended December 30, 2012 and December 29, 2013 have been derived from Holdco’s audited financial statements. The selected historical financial information and other data as of January 3, 2016 and January 1, 2017 and for each of the three fiscal years in the period ended January 1, 2017 have been derived from Holdco’s audited consolidated financial statements. The audited consolidated financial statements for each of the fiscal years ended December 30, 2012, December 29, 2013, December 28, 2014, January 3, 2016 and January 1, 2017 have been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm. The selected historical financial information and other data as of March 26, 2017 and for the three periods ended March 27, 2016 and March 26, 2017, have been derived from Holdco’s unaudited condensed consolidated financial statements. The selected historical financial information and other data for the trailing thirteen periods ended March 26, 2017 has been derived from Holdco’s audited consolidated financial statements for the fiscal year ended January 1, 2017 and Holdco’s unaudited condensed consolidated financial statements for the three periods ended March 26, 2017.
The selected historical consolidated financial information and other data should be read in conjunction with the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the accompanying notes included in Holdco’s annual report on Form 10-K for the fiscal year ended January 1, 2017, which is incorporated by reference herein.
| Fiscal Years Ended | Three Periods Ended | Trailing Thirteen Periods Ended March 26, 2017 |
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| (dollars in thousands) | December 30, 2012 |
December 29, 2013 |
December 28, 2014 |
January 3, 2016 |
January 1, 2017 |
March 27, 2016 |
March 26, 2017 |
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| Income Statement Data: |
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| Revenues |
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| Domestic Company-Owned Stores |
$ | 323,652 | $ | 337,414 | $ | 348,497 | $ | 396,916 | $ | 439,024 | $ | 96,443 | $ | 113,545 | $ | 456,126 | ||||||||||||||||
| Domestic Franchise |
195,000 | 212,369 | 230,192 | 272,808 | 312,260 | 68,151 | 79,901 | 324,010 | ||||||||||||||||||||||||
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| Domestic Stores |
518,652 | 549,783 | 578,689 | 669,724 | 751,284 | 164,594 | 193,446 | 780,136 | ||||||||||||||||||||||||
| Supply Chain |
1,039,830 | 1,118,873 | 1,262,523 | 1,383,161 | 1,544,345 | 335,695 | 388,553 | 1,597,203 | ||||||||||||||||||||||||
| International Franchise |
119,957 | 133,567 | 152,621 | 163,643 | 176,999 | 38,886 | 42,218 | 180,331 | ||||||||||||||||||||||||
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| Total Revenues |
1,678,439 | 1,802,223 | 1,993,833 | 2,216,528 | 2,472,628 | 539,175 | 624,217 | 2,557,670 | ||||||||||||||||||||||||
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| Cost of Sales |
1,177,101 | 1,253,249 | 1,399,067 | 1,533,397 | 1,704,937 | 371,959 | 430,401 | 1,763,379 | ||||||||||||||||||||||||
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| Operating Margin |
$ | 501,338 | $ | 548,974 | $ | 594,766 | $ | 683,131 | $ | 767,691 | $ | 167,216 | $ | 193,816 | $ | 794,291 | ||||||||||||||||
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| General and Administrative Expense |
219,007 | 235,163 | 249,405 | 277,692 | 313,649 | 68,504 | 77,782 | 322,927 | ||||||||||||||||||||||||
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| Income from Operations |
$ | 282,331 | $ | 313,811 | $ | 345,361 | $ | 405,439 | $ | 454,042 | $ | 98,712 | $ | 116,034 | $ | 471,364 | ||||||||||||||||
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| Other Financial Data: |
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| Holdco EBITDA(1) |
$ | 305,502 | $ | 339,594 | $ | 381,149 | $ | 437,873 | $ | 492,182 | $ | 106,933 | $ | 125,532 | $ | 510,781 | ||||||||||||||||
| Holdco Adjusted EBITDA(1) |
$ | 323,915 | $ | 361,948 | $ | 397,629 | $ | 456,672 | $ | 511,609 | $ | 111,917 | $ | 130,934 | $ | 530,626 | ||||||||||||||||
| Holdco Adjusted EBITDAR(1) |
$ | 363,570 | $ | 402,153 | $ | 440,610 | $ | 502,767 | $ | 561,556 | $ | 123,062 | $ | 143,458 | $ | 581,952 | ||||||||||||||||
| Depreciation and Amortization |
$ | 23,171 | $ | 25,783 | $ | 35,788 | $ | 32,434 | $ | 38,140 | $ | 8,221 | $ | 9,498 | $ | 39,417 | ||||||||||||||||
| Cash Flow Data: |
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| Net Cash Provided by Operating |
$ | 176,320 | $ | 193,989 | $ | 192,339 | $ | 291,786 | $ | 287,273 | $ | 17,148 | $ | 85,693 | $ | 355,818 | ||||||||||||||||
| Capital Expenditures |
29,267 | 40,387 | 70,093 | 63,282 | 58,555 | 10,486 | 12,444 | 60,513 | ||||||||||||||||||||||||
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| Holdco Free Cash Flow(2) |
$ | 147,053 | $ | 153,602 | $ | 122,246 | $ | 228,504 | $ | 228,718 | $ | 6,662 | $ | 73,249 | $ | 295,305 | ||||||||||||||||
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| (dollars in thousands) | As of December 30, 2012 |
As of December 29, 2013 |
As of December 28, 2014 |
As of January 3, 2016 |
As of January 1, 2017 |
As of March 26, 2017 |
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| Balance Sheets Data: |
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| Cash and Cash Equivalents(3) |
$ | 54,813 | $ | 14,383 | $ | 30,855 | $ | 133,449 | $ | 42,815 | $ | 52,094 | ||||||||||||
| Restricted Cash and Cash Equivalents |
$ | 60,015 | $ | 125,453 | $ | 120,954 | $ | 180,940 | $ | 126,496 | $ | 165,666 | ||||||||||||
| Working Capital(3) |
$ | 16,754 | $ | (28,524 | ) | $ | 41,799 | $ | 45,714 | $ | (34,321 | ) | $ | (6,470 | ) | |||||||||
| Property, Plant and Equipment, Net |
$ | 91,445 | $ | 97,584 | $ | 114,046 | $ | 131,890 | $ | 138,534 | $ | 137,824 | ||||||||||||
| Total Assets |
$ | 443,410 | $ | 496,562 | $ | 596,333 | $ | 799,845 | $ | 716,295 | $ | 742,462 | ||||||||||||
| Total Debt Net of Debt Issuance Cost(4) |
$ | 1,526,005 | $ | 1,507,750 | $ | 1,501,164 | $ | 2,240,793 | $ | 2,187,877 | $ | 2,179,558 | ||||||||||||
| Total Liabilities |
$ | 1,778,933 | $ | 1,786,764 | $ | 1,815,798 | $ | 2,600,096 | $ | 2,599,438 | $ | 2,596,153 | ||||||||||||
| (1) | Holdco EBITDA, Holdco Adjusted EBITDA and Holdco Adjusted EBITDAR are non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for more information regarding these financial measures. The following table sets forth a reconciliation of Holdco EBITDA, Holdco Adjusted EBITDA and Holdco Adjusted EBITDAR to net income. |
| (2) | Holdco Free Cash Flow is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” for more information regarding Free Cash Flow. |
| (3) | Excludes restricted cash. |
| (4) | Includes current portion. |
| Fiscal Years Ended | Three Periods Ended | Trailing Thirteen Periods Ended March 26, 2017 |
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| (dollars in thousands) | December 30, 2012 |
December 29, 2013 |
December 28, 2014 |
January 3, 2016 |
January 1, 2017 |
March 27, 2016 |
March 26, 2017 |
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| Reconciliations: |
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| Net income |
$ | 112,392 | $ | 142,985 | $ | 162,587 | $ | 192,789 | $ | 214,678 | $ | 45,451 | $ | 62,469 | $ | 231,696 | ||||||||||||||||
| Interest expense, net |
101,144 | 88,712 | 86,738 | 99,224 | 109,384 | 25,870 | 25,520 | 109,034 | ||||||||||||||||||||||||
| Provision for income taxes |
68,795 | 82,114 | 96,036 | 113,426 | 129,980 | 27,391 | 28,045 | 130,634 | ||||||||||||||||||||||||
| Depreciation and amortization |
23,171 | 25,783 | 35,788 | 32,434 | 38,140 | 8,221 | 9,498 | 39,417 | ||||||||||||||||||||||||
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| Holdco EBITDA |
$ | 305,502 | $ | 339,594 | $ | 381,149 | $ | 437,873 | $ | 492,182 | $ | 106,933 | $ | 125,532 | $ | 510,781 | ||||||||||||||||
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| Adjustments: |
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| Non-cash compensation expense |
17,621 | 21,987 | 17,587 | 17,623 | 18,564 | 4,898 | 5,220 | 18,886 | ||||||||||||||||||||||||
| Loss (gain) on disposal of assets |
540 | 367 | (1,107 | ) | 316 | 863 | 86 | 182 | 959 | |||||||||||||||||||||||
| Loss (gain) on debt retirement |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Other adjustments |
252 | — | — | 860 | — | — | — | — | ||||||||||||||||||||||||
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| Holdco Adjusted EBITDA |
$ | 323,915 | $ | 361,948 | $ | 397,629 | $ | 456,672 | $ | 511,609 | $ | 111,917 | $ | 130,934 | $ | 530,626 | ||||||||||||||||
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| Rent Expense |
39,655 | 40,205 | 42,981 | 46,095 | 49,947 | 11,145 | 12,524 | 51,326 | ||||||||||||||||||||||||
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| Holdco Adjusted EBITDAR |
$ | 363,570 | $ | 402,153 | $ | 440,610 | $ | 502,767 | $ | 561,556 | $ | 123,062 | $ | 143,458 | $ | 581,952 | ||||||||||||||||
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