NPC International: 'Ample' liquidity, $68 million cash at quarter-end

By Lisa Kerner

Charlotte, N.C., Aug. 5 - NPC International, Inc. chief financial officer Troy Cook said the company's leverage at quarter-end was "a very manageable 3.73 times consolidated EBITDA," and its cash balances continued to build, "increasing over $42 million from the prior year-end to almost $68 million at the end of our second quarter."

Cook made his comments on Monday during the company's quarterly earnings conference call.

"And, of course, we had ample liquidity at quarter-end, with borrowing capacity of $81.7 million on our $100 million revolver - that's net of $18.3 million in issued and outstanding letters of credit and cash of $67.8 million," he added.

The cash reserves were tapped after quarter-end to fund NPC's entry into the Wendy's franchise system for about $20 million.

Cash and cash equivalents at June 25 were $67.8 million, compared to $36.5 million in the prior-year period and $25.5 million at Dec. 25.

Adjusted EBITDA was down 3.5% at $33.2 million. Net income was up $5.1 million, to $8.1 million for the quarter.

Year to date, adjusted EBITDA was down 1.7% at $71.8 million, and net income was up $9.3 million to $21.3 million.

NPC is an Overland Park, Kan.-based Pizza Hut franchisee. The company's subsidiary, NPC Quality Burgers, Inc., is a recent franchisee to join the Wendy's system.

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