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2014

Krispy Kreme Reports Financial Results For The Fourth Quarter And Fiscal Year Ended February 3, 2013

Raises Fiscal 2014 Guidance

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WINSTON-SALEM, N.C., March 14, 2013 /PRNewswire/ -- Krispy Kreme Doughnuts, Inc. (NYSE:   KKD) (the "Company") today reported financial results for the fourth quarter and fiscal year ended February 3, 2013, and raised its guidance for fiscal 2014. 

Fiscal Year

The fourth quarter and fiscal year ended February 3, 2013 included 14 and 53 weeks, respectively, compared to 13 and 52 weeks, respectively, for the fourth quarter and fiscal year ended January 29, 2012.  Accordingly, financial results for the fiscal 2013 periods are not directly comparable to those of the corresponding fiscal 2012 periods.  The Company's fiscal year ends on the Sunday closest to January 31, which periodically results in a 53-week year. 

Fourth Quarter Fiscal 2013 Highlights Compared to the Year-Ago Period (Tables 1 and 2):

  • Revenues increased 15.9% to $118.1 million from $102.0 million
  • Operating income rose 60% to $8.5 million from $5.3 million
  • Adjusted net income increased 85% to $7.4 million ($0.11 per share) from $4.0 million ($0.06 per share); adjusted net income and adjusted EPS reflect income tax expense only to the extent currently payable in cash; adjusted net income and adjusted EPS are non-GAAP measures (see the reconciliation of all adjusted earnings measures to the related GAAP amounts in Table 6 accompanying this release)
  • Net income was $4.8 million ($0.07 per share) compared to $143.5 million ($2.01 per share) in the fourth quarter last year; net income for the fourth quarter of last year included an unusual credit of $139.6 million ($1.95 per share) from the reversal of valuation allowances on deferred income tax assets
  • Cash provided by operating activities was $21.3 million compared to $10.9 million in the fourth quarter last year

To facilitate comparisons, the following highlights compare the 13 weeks ended January 27, 2013 to the 13 weeks ended January 29, 2012:

  • Revenues increased 7.0% to $109.1 million from $102.0 million
  • Company same store sales rose 7.5%, the seventeenth consecutive quarterly increase
  • Operating income increased 35% to $7.2 million from $5.3 million
  • Adjusted net income rose 53% to $6.1 million ($0.09 per share) from $4.0 million ($0.06 per share)

Fiscal 2013 Highlights Compared to Fiscal 2012 (Tables 1 and 3):

  • Revenues increased 8.1% to $435.8 million from $403.2 million
  • Operating income rose 48% to $37.7 million from $25.6 million
  • Adjusted net income increased 54% to $34.2 million ($0.49 per share) from $22.2 million ($0.31 per share); adjusted net income and adjusted EPS reflect income tax expense only to the extent currently payable in cash and, in fiscal 2012, exclude the gain on the Company's sale of its 30% equity interest in KK Mexico
  • Net income was $20.8 million ($0.30 per share) compared to $166.3 million ($2.33 per share) last year; net income in fiscal 2012 included an unusual credit of $139.6 million ($1.95 per share) from the reversal of valuation allowances on deferred income tax assets and a $4.7 million after tax gain ($0.06 per share) on the Company's sale of its 30% equity interest in KK Mexico
  • Cash provided by operating activities was $59.3 million compared to $33.9 million in fiscal 2012

To facilitate comparisons, the following highlights compare the 52 weeks ended January 27, 2013 to the 52 weeks ended January 29, 2012:

  • Revenues increased 5.9% to $426.8 million from $403.2 million
  • Company same store sales rose 5.5%
  • Operating income increased 43% to $36.4 million from $25.6 million
  • Adjusted net income rose 49% to $32.9 million ($0.47 per share) from $22.2 million ($0.31 per share)

James H. Morgan, Chairman and Chief Executive Officer, commented:  "In the fourth quarter, Krispy Kreme not only achieved earnings at the top end of our November guidance, but also posted its best fourth quarter results since fiscal 2004.  The year as a whole also was our best since fiscal 2004, and demonstrated again the strength of our business model and affirmed our confidence in achieving our goal of sustainable and profitable growth for years to come.  Going forward, the Krispy Kreme investment thesis will no longer be predicated solely on the progress we have made in building a strong foundation for our business, but also on our ability to execute our long-term growth plans.  Based upon the strength of these results and the momentum we have carried into the new year, we are pleased to increase our fiscal 2014 earnings guidance.

"Krispy Kreme is truly blessed with four attributes most companies spend a lifetime trying to achieve:  a brand that is beloved worldwide, best-in-class products, compelling strategies, and incredibly capable and energized franchisees and team members.  We are committed to doing everything in our power to continue improving our profitability while expanding our system to 1,300 stores by fiscal 2017 through Company and domestic and international franchise development.  We are gratified by our accomplishments and are optimistic that we can build on them to achieve our long-term aspirations, and those of our shareholders." 

Results For the 13 Weeks Ended January 27, 2013 (Tables 2 and 8)

To facilitate comparisons, the following discussion compares the 13 weeks ended January 27, 2013 with the 13 weeks ended January 29, 2012.

Consolidated Results

For the 13 weeks ended January 27, 2013, revenues increased 7.0% to $109.1 million.  All four business segments reported year-over-year revenue growth.

Direct operating expenses increased to $91.0 million from $87.9 million, but as a percentage of total revenues, decreased to 83.4% from 86.2%.  General and administrative expenses increased to $8.4 million from $6.7 million in the same period last year.  General and administrative expenses in the fourth quarter of last year included a non-recurring credit of approximately $840,000.  Excluding that item, general and administrative expenses were 7.7% of revenues compared to 7.4% last year. 

Operating income rose 35% to $7.2 million from $5.3 million.

Adjusted net income was $6.1 million ($0.09 per share) compared to $4.0 million ($0.06 per share), in the fourth quarter last year.  Adjusted net income and EPS are non-GAAP measures (see the reconciliation of GAAP to adjusted earnings in Table 6 accompanying this release).

Segment Results

For the 13 weeks ended January 27, 2013, Company Stores revenues increased 9.6% to $75.2 million.  Same store sales at Company stores rose 7.5%, the seventeenth consecutive quarterly increase, driven by higher traffic.  The Company Stores segment posted operating income of $3.0 million compared to an operating loss of $0.3 million last year.

Domestic Franchise revenues increased 4.2% to $2.5 million.  Higher royalties from an 8.3% increase in sales by domestic franchisees were partially offset by a reduction in other franchise revenue.  Same store sales rose 9.6% at domestic franchise stores.  During the quarter, we added new personnel and took additional steps to begin execution of our domestic franchise expansion programs.  Domestic Franchise segment operating income was $1.3 million in the fourth quarter of both years.

International Franchise revenues increased 6.3% to $6.7 million.  Adjusted to eliminate the effects of changes in foreign exchange rates, same store sales at international franchise stores fell 7.4%, reflecting, among other things, honeymoon effects from the substantial number of international store openings in recent years, as well as cannibalization as markets develop.  International Franchise costs and expenses in the quarter included an increase of almost $200,000 compared to the prior year quarter in trademark protection costs, a provision of approximately $185,000 for potential uncollectible accounts and higher personnel and personnel-related costs to support continued and anticipated international growth.  The International Franchise segment generated operating income of $4.0 million compared to $4.2 million in the fourth quarter last year.

Total KK Supply Chain revenues (including sales to Company stores) increased 1.8% to $52.9 million.  KK Supply Chain generated operating income of $7.5 million compared to $7.1 million in the fourth quarter last year.

Fiscal 2014 Outlook

In fiscal 2014, management estimates that the Company and its domestic franchisees will each open approximately 10 Krispy Kreme shops, and that international franchisees will open approximately 75 locations.  Although the Company looks for continued organic same store sales growth in its domestic stores, international franchise same store sales will likely remain pressured by the substantial growth in international markets in recent years.

Based on these factors, management currently expects fiscal 2014 operating income in the range of $41 million to $44 million, which would represent an increase of 13% to 21% from the $36.4 million operating income for fiscal 2013 measured on a 52-week basis.  Management estimates adjusted net income will be in the range of $37 million to $40 million and adjusted EPS will range from $0.53 to $0.57 per share based on a forecasted 70 million diluted shares outstanding.

Adjusted net income and adjusted EPS are non-GAAP measures; see the reconciliation of GAAP to adjusted earnings in Table 6 accompanying this release.

Conference Call

The Company will host a conference call to review fiscal 2013 fourth quarter and annual results, as well as management's outlook for fiscal 2014, this afternoon at 4:30 p.m. (ET).  A live webcast of the conference call will be available at www.krispykreme.com.  The conference call also can be accessed over the phone by dialing (800) 901-5217 or, for international callers, by dialing (617) 786-2964.  An archived replay of the call will be available shortly after its conclusion by dialing (888) 286-8010, or (617) 801-6888 for international callers; the passcode is 17091755.  The audio replay will be available through March 21, 2013.  A transcript of the conference call also will be available on the Company's website.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products, including its signature Original Glazed® doughnut.  Headquartered in Winston-Salem, N.C., the Company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937.  Today, Krispy Kreme shops can be found in over 740 locations in 22 countries around the world.  Connect with Krispy Kreme at KrispyKreme.com and on Facebook, Foursquare, Twitter and YouTube.

Defined Terms

"Honeymoon effect" means the common pattern for many start-up restaurants in which a flurry of activity due to start-up publicity and natural curiosity is followed by a decline during which a steady repeat customer base develops.  "Cannibalization" means the tendency for new stores to become successful, in part or in whole, by "shifting" sales from existing stores in the same market. 

Information contained in this press release, other than historical information, should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management.  These statements are not statements of historical fact.  Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements.  The words "believe," "may," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive" or similar words, or the negative of these words, identify forward-looking statements.  Factors that could contribute to these differences include, but are not limited to:  the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our domestic small shop operating model; political, economic, currency and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients, and the price of motor fuel; our relationships with wholesale customers; our ability to protect our trademarks and trade secrets; changes in customer preferences and perceptions; risks associated with competition; risks related to the food service industry, including food safety and protection of personal information; compliance with government regulations relating to food products and franchising; and increased costs or other effects of new government regulations relating to healthcare benefits.  These and other risks and uncertainties, which are described in more detail in the Company's most recent Annual Report on Form 10-K and other reports and statements filed with the United States Securities and Exchange Commission, are difficult to predict, involve uncertainties that may materially affect actual results and may be beyond the Company's control, and could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.  New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company.  Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.





































TABLE 1












KRISPY KREME DOUGHNUTS, INC















CONSOLIDATED STATEMENT OF INCOME





14 Weeks Ended


13 Weeks Ended


53 Weeks Ended


52 Weeks Ended










February 3,


January 29,


February 3,


January 29,




2013


2012


2013


2012




(In thousands, except per share amounts)















Revenues

$

118,145


$

101,957


$

435,843


$

403,217

Operating expenses:













Direct operating expenses (exclusive of depreciation and














amortization expense shown below) 


98,260



87,880



362,828



346,434


General and administrative expenses 


8,778



6,673



25,089



22,188


Depreciation and amortization expense


2,653



2,002



9,891



8,235


Impairment charges and lease termination costs 


4



113



306



793

Operating income 


8,450



5,289



37,729



25,567

Interest income 


12



35



114



166

Interest expense 


(440)



(390)



(1,642)



(1,666)

Equity in losses of equity method franchisees 


(52)



(53)



(202)



(122)

Gain on sale of interest in equity method franchisee


-



-



-



6,198

Other non-operating income and (expense), net 


80



(46)



317



215

Income before income taxes 


8,050



4,835



36,316



30,358

Provision for income taxes 


3,270



(138,707)



15,537



(135,911)

Net income

$

4,780


$

143,542


$

20,779


$

166,269















Earnings per common share:













Basic 

$

0.07


$

2.06


$

0.31


$

2.40


Diluted  

$

0.07


$

2.01


$

0.30


$

2.33















Weighted average shares outstanding:













Basic 


66,864



69,542



67,624



69,145


Diluted  


69,520



71,567



69,896



71,497
















 


TABLE 2












KRISPY KREME DOUGHNUTS, INC















CONSOLIDATED STATEMENT OF ADJUSTED INCOME - 13 WEEK BASIS





14 Weeks Ended


Less - Week

Ended


13 Weeks Ended


13 Weeks Ended










February 3,


February 3,


January 27,


January 29,




2013


2013


2013


2012




(In thousands, except per share amounts)















Revenues

$

118,145


$

(9,023)


$

109,122


$

101,957

Operating expenses:













Direct operating expenses (exclusive of depreciation and














amortization expense shown below) 


98,260



(7,213)



91,047



87,880


General and administrative expenses 


8,778



(331)



8,447



6,673


Depreciation and amortization expense 


2,653



(189)



2,464



2,002


Impairment charges and lease termination costs 


4



-



4



113

Operating income 


8,450



(1,290)



7,160



5,289

Interest income 


12



-



12



35

Interest expense 


(440)



12



(428)



(390)

Equity in losses of equity method franchisees 


(52)



-



(52)



(53)

Other non-operating income and (expense), net 


80



-



80



(46)

Income before income taxes 


8,050



(1,278)



6,772



4,835

Provision for current income taxes 


681



(5)



676



855

Adjusted net income

$

7,369


 

$

(1,273)


$

6,096


$

3,980















Adjusted earnings per common share:













Basic 

$

0.11





$

0.09


$

0.06


Diluted  

$

0.11





$

0.09


$

0.06















Weighted average shares outstanding:













Basic 


66,864






66,864



69,542


Diluted  


69,520






69,520



71,567







































































Note:  The fourth quarter of fiscal 2013 contained 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2012.  The foregoing table presents fourth quarter fiscal 2013 results exclusive of results for the 14th week in order to facilitate comparison of fourth quarter fiscal 2013 results with results for the fourth quarter of fiscal 2012.















Adjusted net income and adjusted EPS are non-GAAP measures.  See the reconciliation of GAAP to adjusted earnings in Table 6.








































































TABLE 3












KRISPY KREME DOUGHNUTS, INC















CONSOLIDATED STATEMENT OF ADJUSTED INCOME - 52 WEEK BASIS





53 Weeks Ended


Less - Week

Ended


52 Weeks Ended


52 Weeks Ended










February 3,


February 3,


January 27,


January 29,




2013


2013


2013


2012




(In thousands, except per share amounts)















Revenues

$

435,843


$

(9,023)


$

426,820


$

403,217

Operating expenses:













Direct operating expenses (exclusive of depreciation and














amortization expense shown below) 


362,828



(7,213)



355,615



346,434


General and administrative expenses 


25,089



(331)



24,758



22,188


Depreciation and amortization expense 


9,891



(189)



9,702



8,235


Impairment charges and lease termination costs 


306



-



306



793

Operating income 


37,729



(1,290)



36,439



25,567

Interest income 


114



-



114



166

Interest expense 


(1,642)



12



(1,630)



(1,666)

Equity in losses of equity method franchisees 


(202)



-



(202)



(122)

Other non-operating income and (expense), net 


317



-



317



215

Income before income taxes 


36,316



(1,278)



35,038



24,160

Provision for current income taxes 


2,124



(5)



2,119



2,000

Adjusted net income

$

34,192


$

(1,273)


$

32,919


$

22,160















Adjusted earnings per common share:













Basic 

$

0.51





$

0.49


$

0.32


Diluted  

$

0.49





$

0.47


$

0.31















Weighted average shares outstanding:













Basic 


67,624






67,624



69,145


Diluted  


69,896






69,896



71,497







































































Note:  Fiscal 2013 contained 53 weeks compared to 52 weeks in fiscal 2012.  The foregoing table presents fiscal 2013 results exclusive of results for the 53rd week in order to facilitate comparison of fiscal 2013 results with results for fiscal 2012.















Adjusted net income and adjusted EPS are non-GAAP measures.  See the reconciliation of GAAP to adjusted earnings in Table 6.




























TABLE 4






KRISPY KREME DOUGHNUTS, INC.









CONSOLIDATED BALANCE SHEET













February 3,


January 29,



2013


2012




(In thousands)


                                     ASSETS

CURRENT ASSETS:






Cash and cash equivalents 

$

66,332


$

44,319

Receivables 


22,037



21,616

Receivables from equity method franchisees                         


705



655

Inventories 


15,948



16,497

Deferred income taxes


23,323



10,540

Other current assets 


6,439



3,613


Total current assets 


134,784



97,240

Property and equipment 


78,024



75,466

Investments in equity method franchisees 


-



-

Goodwill and other intangible assets 


24,195



23,776

Deferred income taxes


93,088



129,053

Other assets 


11,847



9,413


Total assets 

$

341,938


$

334,948




         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:






Current maturities of long-term debt 

$

2,148


$

2,224

Accounts payable 


12,198



10,494

Accrued liabilities 


32,330



28,800


Total current liabilities 


46,676



41,518

Long-term debt, less current maturities 


23,595



25,369

Other long-term obligations 


25,235



18,935









Commitments and contingencies














SHAREHOLDERS' EQUITY:






Preferred stock, no par value 


-



-

Common stock, no par value 


354,068



377,539

Accumulated other comprehensive loss 


(338)



(336)

Accumulated deficit 


(107,298)



(128,077)


Total shareholders' equity 


246,432



249,126



Total liabilities and shareholders' equity

$

341,938


$

334,948












TABLE 5

KRISPY KREME DOUGHNUTS, INC


CONSOLIDATED STATEMENT OF CASH FLOWS




53 Weeks Ended


52 Weeks Ended



February 3,


January 29,


2013


2012




(In thousands)

CASH FLOW FROM OPERATING ACTIVITIES:






Net income

$

20,779


$

166,269

Adjustments to reconcile net income to net cash provided by operating activities:






    Depreciation and amortization expense


9,891



8,235

    Deferred income taxes


13,413



(139,403)

    Impairment charges


-



60

    Accrued rent expense


585



465

    Loss on disposal of property and equipment


543



414

    Gain on sale of interest in equity method franchisee


-



(6,198)

    Share-based compensation


6,801



6,699

    Provision for doubtful accounts


194



(374)

    Amortization of deferred financing costs


398



422

    Equity in losses of equity method franchisees


202



122

    Other


(219)



676

Change in assets and liabilities:






    Receivables


(509)



(862)

    Inventories


560



(1,862)

    Other current and non-current assets


(1,012)



462

    Accounts payable and accrued liabilities


4,740



(168)

    Other long-term obligations


2,944



(1,096)

        Net cash provided by operating activities 


59,310



33,861

CASH FLOW FROM INVESTING ACTIVITIES:






Purchase of property and equipment


(14,218)



(11,884)

Proceeds from disposals of property and equipment


178



44

Acquisition of stores from franchisee


(915)



-

Proceeds from sale of interest in equity method franchisee


-



7,723

Escrow deposit recovery


-



1,800

Other investing activities


517



(207)

        Net cash used for investing activities


(14,438)



(2,524)

CASH FLOW FROM FINANCING ACTIVITIES:






Repayment of long-term debt


(2,346)



(8,991)

Deferred financing costs


(11)



(29)

Proceeds from exercise of stock options


247



1,036

Proceeds from exercise of warrants


9



-

Repurchase of common shares


(20,758)



(1,004)

        Net cash used for financing activities


(22,859)



(8,988)

Net increase in cash and cash equivalents


22,013



22,349

Cash and cash equivalents at beginning of year


44,319



21,970

Cash and cash equivalents at end of year

$

66,332


$

44,319

Supplemental schedule of non-cash investing and financing activities:






    Assets acquired under capital leases

$

516


$

1,197

 

 

TABLE 6

KRISPY KREME DOUGHNUTS, INC.

NON-GAAP FINANCIAL INFORMATION

The Company has net deferred income tax assets of approximately $116 million, of which approximately $76 million relates to federal and state net operating loss carryovers.  The Company's federal net operating loss carryovers total approximately $206 million.

In the quarter ended January 29, 2012, the Company reversed approximately $139.6 million of valuation allowances against its deferred income tax assets because management concluded that realization of such assets was more likely than not.  While such reversal, which was required by GAAP, increased the Company's earnings by $139.6 million in fiscal 2012, the reversal has the effect of reducing the Company's earnings beginning in fiscal 2013 as a result of an increase in the provision for income taxes.  This negative effect on earnings beginning in fiscal 2013 occurs because the reversal of the valuation allowance resulted in the recognition in fiscal 2012 of income tax benefits expected to be realized in later years; absent the reversal of the valuation allowance, any such tax benefits would have been recognized when realized in future periods upon the generation of taxable income.  Accordingly, beginning in fiscal 2013, the Company's effective income tax rate, which in fiscal 2012 and earlier years bore little or no relationship to pretax income, more closely reflects the blended federal and state income tax rates in jurisdictions in which the Company operates.

Because of the increase in the Company's effective income tax rate resulting from the reversal of a valuation allowance, the Company's income tax expense in fiscal 2013 is not comparable to income tax expense in fiscal 2012 and earlier years.  In addition, until such time as the Company's net operating loss carryovers are exhausted or expire, GAAP income tax expense is expected to substantially exceed the amount of cash income taxes payable by the Company.

In the second quarter of fiscal 2012, the Company realized a pretax gain of $6.2 million ($4.7 million after tax, or $.06 per share) on the sale of its 30% ownership interest in KK Mexico, an equity method investee.  The Company does not expect to realize similar gains in the future.

The Company's fiscal year ends on the Sunday closest to January 31, which periodically results in a 14-week fourth quarter and a 53-week year.  Fiscal 2013 contained 53 weeks, while fiscal 2012 contained 52 weeks.

The following non-GAAP financial information and related reconciliation to GAAP measures are provided to assist the reader in understanding the effects of the above transactions and events, which, except for the periodic occurrence of the 53-week year, are expected to be non-recurring, on the Company's results of operations, and to facilitate comparison of fiscal 2013 results with the Company's financial results for fiscal 2012.  In addition, the non-GAAP financial information is intended to illustrate the material difference between the Company's income tax expense and income taxes currently payable.  These non-GAAP performance measures are consistent with other measurements made by management in the operation of the business which do not consider income taxes except to the extent to which those taxes currently are payable, for example, capital allocation decisions and incentive compensation measurements that are made on a pretax basis.


 





Management's


Historical Periods




Earnings Guidance


Three Months Ended


Year Ended




Year Ending February 2, 2014


February 3,


January 29,


February 3,


January 29,




From


To


2013


2012


2013


2012




(In thousands, except per share amounts)





















Net income, as reported

$

22,000


$

23,700


$

4,780


$

143,542


$

20,779


$

166,269

Provision for deferred income taxes


15,000



16,300



2,589



(139,562)



13,413



(139,403)

Gain on sale of interest in KK Mexico


















     (net of income taxes of $1,492)


-



-



-



-



-



(4,706)

Adjusted net income

$

37,000


$

40,000



7,369



3,980



34,192



22,160

Earnings for the 14th/53rd week








(1,273)



-



(1,273)



-

Adjusted net income - 13/52 week basis







$

6,096


$

3,980


$

32,919


$

22,160




















Adjusted earnings per common share:


















     Basic

$

0.55


$

0.60


$

0.11


$

0.06


$

0.51


$

0.32

     Diluted

$

0.53


$

0.57


$

0.11


$

0.06


$

0.49


$

0.31




















Adjusted earnings per common share -


















   13/52 week basis:


















     Basic







$

0.09


$

0.06


$

0.49


$

0.32

     Diluted







$

0.09


$

0.06


$

0.47


$

0.31




















Weighted average shares outstanding:


















     Basic


67,000



67,000



66,864



69,542



67,624



69,145

     Diluted


70,000



70,000



69,520



71,567



69,896



71,497

 

 


TABLE 7












KRISPY KREME DOUGHNUTS, INC

















SEGMENT INFORMATION















14 Weeks


13 Weeks


53 Weeks


52 Weeks






Ended


Ended


Ended


Ended






February 3,


January 29,


February 3,


January 29,






2013


2012


2013


2012






(In thousands)

Revenues:













Company Stores: 














On-premises sales

$

40,430


$

32,852


$

142,918


$

126,003



Wholesale sales


40,892



35,732



153,576



145,654





Company Stores revenues 


81,322



68,584



296,494



271,657


Domestic Franchise 


2,764



2,418



10,325



9,463


International Franchise 


7,109



6,259



24,941



22,621


KK Supply Chain:














Total revenues 


57,337



51,952



215,412



206,453



Less – intersegment sales elimination 


(30,387)



(27,256)



(111,329)



(106,977)




 External KK Supply Chain revenues 


26,950



24,696



104,083



99,476





Total revenues 

$

118,145


$

101,957


$

435,843


$

403,217

















Operating income (loss):













Company Stores 

$

3,263


$

(267)


$

8,534


$

284


Domestic Franchise 


1,518



1,260



5,590



3,737


International Franchise 


4,430



4,161



17,387



15,054


KK Supply Chain 


8,269



7,086



32,450



30,160



Total segment operating income 


17,480



12,240



63,961



49,235


Unallocated general and administrative expenses 


(9,026)



(6,838)



(25,926)



(22,875)


Impairment charges and lease termination costs 


(4)



(113)



(306)



(793)



Consolidated operating income 

$

8,450


$

5,289


$

37,729


$

25,567

















Depreciation and amortization expense:













Company Stores 

$

2,221


$

1,611


$

8,142


$

6,593


Domestic Franchise 


14



54



164



219


International Franchise 


1



2



10



6


KK Supply Chain 


169



170



738



730


Corporate administration 


248



165



837



687



Total depreciation and amortization expense 

$

2,653


$

2,002


$

9,891


$

8,235

 

 

TABLE 8












KRISPY KREME DOUGHNUTS, INC

















SEGMENT INFORMATION  - 13 WEEK BASIS















14 Weeks Ended


Less - Week

Ended


13 Weeks Ended


13 Weeks Ended














February 3,


February 3,


January 27,


January 29,






2013


2013


2013


2012






(In thousands)

Revenues:













Company Stores: 














On-premises sales

$

40,430


$

(3,120)


$

37,310


$

32,852



Wholesale sales


40,892



(3,047)



37,845



35,732





Company Stores revenues 


81,322



(6,167)



75,155



68,584


Domestic Franchise 


2,764



(244)



2,520



2,418


International Franchise 


7,109



(457)



6,652



6,259


KK Supply Chain:














Total revenues 


57,337



(4,438)



52,899



51,952



Less – intersegment sales elimination 


(30,387)



2,283



(28,104)



(27,256)




 External KK Supply Chain revenues 


26,950



(2,155)



24,795



24,696





Total revenues 

$

118,145


$

(9,023)


$

109,122


$

101,957

















Operating income (loss):













Company Stores 

$

3,263


$

(280)


$

2,983


$

(267)


Domestic Franchise 


1,518



(218)



1,300



1,260


International Franchise 


4,430



(395)



4,035



4,161


KK Supply Chain 


8,269



(747)



7,522



7,086



Total segment operating income 


17,480



(1,640)



15,840



12,240


Unallocated general and administrative expenses 


(9,026)



350



(8,676)



(6,838)


Impairment charges and lease termination costs 


(4)



-



(4)



(113)



Consolidated operating income 

$

8,450


$

(1,290)


$

7,160


$

5,289

















Depreciation and amortization expense:













Company Stores 

$

2,221


$

(158)


$

2,063


$

1,611


Domestic Franchise 


14



-



14



54


International Franchise 


1



-



1



2


KK Supply Chain 


169



(12)



157



170


Corporate administration 


248



(19)



229



165



Total depreciation and amortization expense 

$

2,653


$

(189)


$

2,464


$

2,002

















































































Note:  The fourth quarter of fiscal 2013 contained 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2012.  The foregoing table presents fourth quarter fiscal 2013 results exclusive of results for the 14th week in order to facilitate comparison of fourth quarter fiscal 2013 results with results for the fourth quarter of fiscal 2012.

 

 

TABLE 9












KRISPY KREME DOUGHNUTS, INC

















SEGMENT INFORMATION - 52 WEEK BASIS















53 Weeks Ended


Less - Week

Ended


52 Weeks Ended


52 Weeks Ended














February 3,


February 3,


January 27,


January 29,






2013


2013


2013


2012






(In thousands)

Revenues:













Company Stores: 














On-premises sales

$

142,918


$

(3,120)


$

139,798


$

126,003



Wholesale sales


153,576



(3,047)



150,529



145,654





Company Stores revenues 


296,494



(6,167)



290,327



271,657


Domestic Franchise 


10,325



(244)



10,081



9,463


International Franchise 


24,941



(457)



24,484



22,621


KK Supply Chain:














Total revenues 


215,412



(4,438)



210,974



206,453



Less – intersegment sales elimination 


(111,329)



2,283



(109,046)



(106,977)




 External KK Supply Chain revenues 


104,083



(2,155)



101,928



99,476





Total revenues 

$

435,843


$

(9,023)


$

426,820


$

403,217

















Operating income (loss):













Company Stores 

$

8,534


$

(280)


$

8,254


$

284


Domestic Franchise 


5,590



(218)



5,372



3,737


International Franchise 


17,387



(395)



16,992



15,054


KK Supply Chain 


32,450



(747)



31,703



30,160



Total segment operating income 


63,961



(1,640)



62,321



49,235


Unallocated general and administrative expenses 


(25,926)



350



(25,576)



(22,875)


Impairment charges and lease termination costs 


(306)



-



(306)



(793)



Consolidated operating income 

$

37,729


$

(1,290)


$

36,439


$

25,567

















Depreciation and amortization expense:













Company Stores 

$

8,142


$

(158)


$

7,984


$

6,593


Domestic Franchise 


164



-



164



219


International Franchise 


10



-



10



6


KK Supply Chain 


738



(12)



726



730


Corporate administration 


837



(19)



818



687



Total depreciation and amortization expense 

$

9,891


$

(189)


$

9,702


$

8,235

















































































Note:  Fiscal 2013 contained 53 weeks compared to 52 weeks in fiscal 2012.  The foregoing table presents fiscal 2013 results exclusive of results for the 53rd week in order to facilitate comparison of fiscal 2013 results with results for fiscal 2012.

















 

TABLE 10

















KRISPY KREME DOUGHNUTS, INC





















SELECTED OPERATING STATISTICS























13 Weeks Ended


52 Weeks Ended






January 27,


January 29,


January 27,


January 29,





2013

2012

2013

2012















Systemwide sales (in thousands):(1)


















Company stores


$

74,680



$

68,047



$

288,079



$

269,676



Domestic Franchise stores



70,880




65,477




281,334




261,979



International Franchise stores



112,525




104,320




423,418




383,508



International Franchise stores, in constant dollars(2)


112,525




104,972




423,418




380,028










































Change in same store sales:(3)

















Company stores



7.5

%



8.3

%



5.5

%



5.2

%


Domestic Franchise stores  



9.6




7.9




6.8




6.6



International Franchise stores  



(7.3)




(8.8)




(9.0)




(6.4)



International Franchise stores, in constant dollars(2)


(7.4)




(9.5)




(8.1)




(10.8)






















Company Stores - change in same store sales: