2015 Q1 Form 10-Q Financial Statement

#000003069715000005 Filed on May 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1 2013 Q4
Revenue $451.8M $508.5M $592.4M
YoY Change -11.15% -15.78% -5.95%
Cost Of Revenue $305.1M $363.4M $436.4M
YoY Change -16.03% -21.15% -6.0%
Gross Profit $146.7M $145.1M $156.0M
YoY Change 1.08% 1.56% -5.82%
Gross Profit Margin 32.46% 28.53% 26.33%
Selling, General & Admin $59.70M $69.60M $77.20M
YoY Change -14.22% 6.58% 10.29%
% of Gross Profit 40.71% 47.97% 49.5%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $36.88M $42.50M $61.30M
YoY Change -13.22% -18.87% 45.61%
% of Gross Profit 25.15% 29.29% 39.3%
Operating Expenses $101.4M $113.5M $128.0M
YoY Change -10.66% -3.32% 20.19%
Operating Profit $37.91M $87.27M $28.88M
YoY Change -56.56% 288.51% -10.48%
Interest Expense $12.74M $12.99M $10.10M
YoY Change -1.93% -38.02% -184.17%
% of Operating Profit 33.61% 14.89% 34.97%
Other Income/Expense, Net $239.0K $523.0K -$2.100M
YoY Change -54.3% -123.03% 40.0%
Pretax Income $25.41M $76.54M $29.30M
YoY Change -66.81% -10027.76% 55.85%
Income Tax $7.257M $30.24M -$3.600M
% Of Pretax Income 28.56% 39.51% -12.29%
Net Earnings $27.51M $46.30M $33.07M
YoY Change -40.59% 2070.79% 25.32%
Net Earnings / Revenue 6.09% 9.11% 5.58%
Basic Earnings Per Share $0.08 $0.12 $0.08
Diluted Earnings Per Share $0.07 $0.12 $0.08
COMMON SHARES
Basic Shares Outstanding 366.6M shares 381.6M shares 391.7M shares
Diluted Shares Outstanding 373.2M shares 389.4M shares

Balance Sheet

Concept 2015 Q1 2014 Q1 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $202.9M $384.7M $580.2M
YoY Change -47.26% -10.26% 27.97%
Cash & Equivalents $202.9M $384.7M $580.2M
Short-Term Investments
Other Short-Term Assets $251.3M $253.8M $269.1M
YoY Change -0.99% 31.64% 48.26%
Inventory $7.941M $9.032M $10.23M
Prepaid Expenses
Receivables $76.40M $63.20M $62.90M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $538.4M $710.7M $922.4M
YoY Change -24.24% 2.17% 29.95%
LONG-TERM ASSETS
Property, Plant & Equipment $1.288B $1.147B $1.133B
YoY Change 12.29% -7.0% -9.37%
Goodwill $818.8M $826.7M $842.5M
YoY Change -0.96% -5.54% -3.84%
Intangibles $1.345B $1.345B $1.306B
YoY Change 0.05% 3.94% 0.33%
Long-Term Investments $70.20M $79.90M $83.20M
YoY Change -12.14% -27.95% -26.57%
Other Assets $72.90M $44.89M $43.62M
YoY Change 62.4% -6.66% -16.13%
Total Long-Term Assets $3.595B $3.443B $3.441B
YoY Change 4.42% -3.31% -4.25%
TOTAL ASSETS
Total Short-Term Assets $538.4M $710.7M $922.4M
Total Long-Term Assets $3.595B $3.443B $3.441B
Total Assets $4.134B $4.154B $4.363B
YoY Change -0.49% -2.42% 1.39%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $72.27M $60.40M $83.70M
YoY Change 19.66% 9.01% 18.18%
Accrued Expenses $123.9M $139.0M $160.1M
YoY Change -10.9% 5.1% 16.57%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $57.60M $37.80M $38.50M
YoY Change 52.38% 173.91% 198.45%
Total Short-Term Liabilities $332.6M $308.9M $349.5M
YoY Change 7.67% 13.73% 21.84%
LONG-TERM LIABILITIES
Long-Term Debt $1.392B $1.424B $1.425B
YoY Change -2.21% -1.24% -1.34%
Other Long-Term Liabilities $203.9M $206.0M $176.2M
YoY Change -1.0% 50.91% 19.4%
Total Long-Term Liabilities $203.9M $206.0M $176.2M
YoY Change -1.0% 50.91% 19.4%
TOTAL LIABILITIES
Total Short-Term Liabilities $332.6M $308.9M $349.5M
Total Long-Term Liabilities $203.9M $206.0M $176.2M
Total Liabilities $536.5M $514.9M $525.8M
YoY Change 4.2% 26.16% 21.01%
SHAREHOLDERS EQUITY
Retained Earnings -$438.6M -$464.2M -$492.2M
YoY Change -5.52% -3.4% 5.4%
Common Stock $47.04M $47.04M $47.04M
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $698.3M $668.2M $409.4M
YoY Change 4.51% 76.32% 6.93%
Treasury Stock Shares 105.1M shares 103.7M shares 77.64M shares
Shareholders Equity $1.716B $1.723B $1.929B
YoY Change
Total Liabilities & Shareholders Equity $4.134B $4.154B $4.363B
YoY Change -0.49% -2.42% 1.39%

Cashflow Statement

Concept 2015 Q1 2014 Q1 2013 Q4
OPERATING ACTIVITIES
Net Income $27.51M $46.30M $33.07M
YoY Change -40.59% 2070.79% 25.32%
Depreciation, Depletion And Amortization $36.88M $42.50M $61.30M
YoY Change -13.22% -18.87% 45.61%
Cash From Operating Activities $21.74M $14.74M $77.10M
YoY Change 47.48% -54.79% 17.17%
INVESTING ACTIVITIES
Capital Expenditures -$61.30M -$53.10M -$93.40M
YoY Change 15.44% 32.75% 31.0%
Acquisitions $1.232M $0.00
YoY Change
Other Investing Activities $151.0K -$325.0K $122.5M
YoY Change -146.46% 115.23% 642.42%
Cash From Investing Activities -$58.38M $55.72M $29.00M
YoY Change -204.77% -248.22% -152.92%
FINANCING ACTIVITIES
Cash Dividend Paid $20.20M $18.31M
YoY Change 10.34% 16.58%
Common Stock Issuance & Retirement, Net $36.96M $277.3M
YoY Change -86.67%
Debt Paid & Issued, Net $9.444M $9.900M
YoY Change -4.61% 52.17%
Cash From Financing Activities -$22.62M -$264.2M -37.60M
YoY Change -91.44% 1316.87% 251.4%
NET CHANGE
Cash From Operating Activities $21.74M $14.74M 77.10M
Cash From Investing Activities -$58.38M $55.72M 29.00M
Cash From Financing Activities -$22.62M -$264.2M -37.60M
Net Change In Cash -$59.26M -$193.7M 68.50M
YoY Change -69.41% 719.56% 22733.33%
FREE CASH FLOW
Cash From Operating Activities $21.74M $14.74M $77.10M
Capital Expenditures -$61.30M -$53.10M -$93.40M
Free Cash Flow $83.04M $67.84M $170.5M
YoY Change 22.4% -6.56% 24.36%

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CY2015Q1 us-gaap Recognition Of Deferred Revenue
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Revenues
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CY2014Q1 us-gaap Significant Changes Franchises Sold
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CY2014 us-gaap Significant Changes Franchises Sold
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CY2015Q1 us-gaap Significant Changes Franchises Sold
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275000000 USD
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36963000 USD
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CY2014Q4 wen Number Of Restaurants Classified As Assets Held For Sale
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CY2015Q1 wen Number Of Restaurants Classified As Assets Held For Sale
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CY2014Q1 wen Prior Period Reclassificationof System Optimization Remeasurement
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275000000 USD
CY2015Q1 wen Treasury Stock Value Acquired Cost Methodexcluding Commissions
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36912000 USD
CY2015Q1 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Multiemployer Pension Plan</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As further described in the Form 10-K, in December 2013, The New Bakery Co. of Ohio, Inc. (the &#8220;Bakery Company&#8221;), a 100% owned subsidiary of Wendy&#8217;s, now known as The New Bakery Company, LLC, terminated its participation in the Bakery and Confectionery Union and Industry International Pension Fund (the &#8220;Union Pension Fund&#8221;) and formally notified the plan&#8217;s trustees of its withdrawal from the plan. The Union Pension Fund administrator acknowledged the withdrawal, which required Wendy&#8217;s to assume an estimated withdrawal liability of </font><font style="font-family:inherit;font-size:10pt;">$13,500</font><font style="font-family:inherit;font-size:10pt;"> based on the applicable requirements of the Employee Retirement Income Security Act, as amended, and which was included in &#8220;Cost of sales&#8221; during the fourth quarter of 2013. As a result, Wendy&#8217;s made payments to the Union Pension Fund aggregating </font><font style="font-family:inherit;font-size:10pt;">$915</font><font style="font-family:inherit;font-size:10pt;"> during 2014 and the </font><font style="font-family:inherit;font-size:10pt;">first quarter of 2015</font><font style="font-family:inherit;font-size:10pt;"> which were recorded as a reduction to the withdrawal liability. The Bakers Local No. 57, Bakery, Confectionery, Tobacco Workers &amp; Grain Millers International Union of America, AFL-CIO (the &#8220;Union&#8221;) filed a charge with the National Labor Relations Board (the &#8220;NLRB&#8221;) related to the Bakery Company&#8217;s withdrawal from the Union Pension Fund. On July 22, 2014, The New Bakery of Zanesville, LLC (&#8220;Zanesville&#8221;), a 100% owned subsidiary of Wendy&#8217;s, and the Union entered into a settlement agreement with the NLRB.&#160; The terms of the settlement include an agreement by Zanesville and the Union to recommence negotiations. On March 27, 2015, Zanesville and the Union signed a memorandum of agreement outlining the terms for a new collective bargaining agreement, including re-entering the Union Pension Fund and signing the collective bargaining agreement on or about May 15, 2015. The terms of the collective bargaining agreement have been ratified by the Union and will be effective upon execution of the collective bargaining agreement. The Company is currently negotiating the potential sale of the Bakery Company which would result in the buyer signing the collective bargaining agreement and re-entering the Union Pension Fund. As a result, the Company concluded that its loss contingency for the pension withdrawal payments was no longer probable and, as such, reversed </font><font style="font-family:inherit;font-size:10pt;">$12,486</font><font style="font-family:inherit;font-size:10pt;"> of the outstanding withdrawal liability to &#8220;Cost of sales&#8221; during the first quarter of 2015.</font></div></div>

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