Domino's to continue looking to trim debt, maintain firm cash position

By Jennifer Lanning Drey

Portland, Ore., July 22 - Domino's Pizza, Inc. will continue to explore ways to delever the company while keeping a strong cash position, David Brandon, chief executive officer of Domino's, said Wednesday during the company's second-quarter earnings conference call.

Domino's ended the second quarter with $61.7 million of unrestricted cash after repurchasing $25.0 million principal amount of its outstanding fixed-rate senior notes during the period for $12.3 million.

Year-to-date, Domino's has repurchased $88.3 million principal amount of the senior notes, including $20.0 million principal amount purchased following the close of the second quarter.

"We believe that during these uncertain times, we continue to maintain a strong cash position while demonstrating that we will opportunistically deploy our cash in a manner that drives shareholder value," Wendy Beck, chief financial officer of Domino's, said during the call.

Domino's had $1.65 billion of debt at June 14, which included $21.3 million of borrowings under its $60.0 million variable funding note facility.

Subsequent to the end of the quarter, Domino's entered into a new letter of credit agreement, under which it now has $33.5 million outstanding, Beck said.

For the quarter ended June 14, Domino's reported revenues of $316.63 million, versus revenues of $334.34 million in the comparable period of 2008.

Domestically, same-store sales were down 0.7%, while international same-store sales grew 4.1%.

"We are satisfied by our overall results, especially in light of both the economic and internal challenges during the quarter," Beck said.

Domino's is an Ann Arbor, Mich., pizza delivery company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.