Papa Murphy’s Holdings Inc. reported Thursday a 4.6-percent increase in systemwide domestic same-store sales for its third quarter ended Sept. 29.
The Vancouver, Wash.-based franchisor and operator of the Papa Murphy’s Take ‘N’ Bake Pizza chain reported a net loss of $788,000, which included a $2.1 million after-tax charge related to the refinancing of the company’s credit facility, which reduces future interest expenses by about $2.3 million per year.
The new five-year $132 million senior secured credit facility consists of a $112 million term loan and a $20 million revolving credit facility.
Adjusting for one-time costs related to the company’s May initial public offering, pro forma net income was $1.32 million, or 8 cents per share, compared with a loss of $85,000, or a loss of 1 cent per share, a year ago.
“We maintained our momentum with strong third-quarter results, which included our 15th consecutive quarter of comparable store sales growth. We continue to build upon the success of innovative product launches and strategic operational initiatives to build sustainable layers of organic sales growth and improve our execution, which in turn should enhance our store level profitability,” Ken Calwell, Papa Murphy’s president and chief executive, said in a statement.
The company upgraded its outlook for the year, projecting a same-store sales increase of 3 percent for 2014, compared with prior guidance of a 2-percent increase.
Papa Murphy’s acquired nine units in Minneapolis during the quarter for about $3.5 million, bringing the chain’s company-owned unit count to 24 locations in that market and 76 outlets overall.
Another 1,361 units were franchised at the end of the quarter, bringing the chain’s unit count to 1,437.
3Q PRO FORMA NET INCOME
Result: $1.3 million, or 8 cents per share(from -$85,000, or -1 cent per share)
3Q REVENUE
Result: $22.2 million% Increase: 16% (from $19.1 million)
3Q SAME-STORE SALES
% Increase domestic systemwide: 4.6%
% Increase corporate: 8.4%
% Increase franchised domestic: 4.4%
Source: Company report
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