Financial Highlights (Continuing Operations) & Key Operational Metrics(1)
| (Dollars in millions, except per common share data) | 2006 | 2005 | 2004 | ||||||
| Franchise revenues | $ | 82.6 | $ | 77.5 | $ | 72.8 | |||
| Total revenues(2) | $ | 153.0 | $ | 143.4 | $ | 163.9 | |||
| Income (loss) before discontinued operations and accounting change | $ | 22.2 | $ | (8.4 | ) | $ | (14.3 | ) | |
| Net Income(3) | $ | 22.4 | $ | 149.6 | $ | 24.6 | |||
| Diluted earnings per common share: Net income(4) | $ | 0.75 | $ | 5.14 | $ | 0.87 | |||
| Global system-wide sales growth(5) | 7.0% | 4.8% | 4.5% | ||||||
| Domestic system-wide same-store sales growth | 1.6% | 3.3% | 1.3% | ||||||
| New restaurant openings | 142 | 123 | 109 | ||||||
| Total restaurants | 1,878 | 1,828 | 1,825 | ||||||
- The financial information presented in the table relates to AFC's continuing operations with the exception of net income and diluted earnings per common share. The Company sold its former Church's Chicken® and Cinnabon® divisions in 2004, and results of those operations have been excluded from the above statistics. Please refer to AFC's Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations in the attached Annual Report on Form 10-K for additional information concerning financial performance.
- Total revenues for 2006 included a 53rd week which increased sales by $2.5 million. Total revenues for 2006, 2005, and 2004 included approximately $1.1 million, $2.7 million, and $12.6 million, respectively, in sales related to Popeyes franchisees that were consolidated as part of AFC's adoption of FIN 46R.
- Discontinued operations provided after-tax income of $0.2 million in 2006, $158.0 million in 2005 (all of which was associated with a gain on the sale of Church's Chicken) and provided after-tax income of $39.1 million in 2004 (principally related to the gain on the sale of Cinnabon together with Church's Chicken operating results).
- Weighted average common shares for the computation of diluted earnings per common share were 29.8 million, 29.1 million, and 28.1 million for 2006, 2005, and 2004, respectively. For 2005 and 2004, potentially dilutive employee stock options were excluded from the computation of dilutive earnings per share due to the anti-dilutive effect they would have on "loss before discontinued operations and accounting change."
- System-wide sales increase calculates combined sales of all restaurants that we operate or franchise. Sales information for franchised restaurants is provided by our franchisees. System-wide sales are unaudited. Total system-wide sales in 2006 included a 53rd week which increased system-wide sales by 1.8 percent.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brand are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: competition from other restaurant concepts and food retailers, the loss of franchisees and other business partners, labor shortages or increased labor costs, increased costs of our principal food products, changes in consumer preferences and demographic trends, as well as concerns about health or food quality, instances of avian flu or other food-borne illnesses, our ability to recover hurricane related losses from our insurers and the economic impact on consumer spending in markets affected by Hurricane Katrina, the loss of senior management and the inability to attract and retain additional qualified management personnel, limitations on our business under our 2005 Credit Facility, failure of our franchisees, a decline in the number of franchised units, a decline in our ability to franchise new units, slowed expansion into new markets, unexpected and adverse fluctuations in quarterly results, increased government regulation, adverse effects of regulatory actions arising in connection with the restatement of our previously issued financial statements, effects of increased gasoline prices, general economic conditions, supply and delivery shortages or interruptions, currency, economic and political factors that affect our international operations, inadequate protection of our intellectual property and liabilities for environmental contamination and the other risk factors detailed in our 2006 Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission. Therefore, you should not place undue reliance on any forward-looking statements.