ANN ARBOR, Mich. -- Domino's Inc. has reported record third-quarter results for 2002, with net income of $10.8 million, a 36.2 percent increase compared to the same period last year.
The Michigan-based pizza delivery chain reported $39.8 million in earnings before interest, taxes, depreciation and amortization. That represents a 10.4 percent earnings increase compared to last year, according to a company news release.
Much of the increase, however, is attributable to lower interest costs from reduced debt, as well as lower interest rates on existing debt.
The company repaid $11.8 million of debt during the third quarter, bringing total debt repayments during the last four quarters to nearly $55 million.
Domestic same-store sales decreased .5 percent while international same-store sales jumped 4 percent. The combination pushed third-quarter system-wide sales to $879 million, 2.6 percent over the same period last year.
Domino's total revenues for the third quarter slipped 4.3 percent compared to the same period in 2001. The company attributed the drop to a decrease in domestic distribution revenues as a result of an overall reduction in food basket prices, including lower cheese prices.
Domino's chairman and CEO David A. Brandon said the company was pleased with the results. Brandon also noted that initial results from the company's third-quarter introduction of Pizza Buffalo Chicken Kickers are promising.
The company also announced the retirement of founder Thomas S. Monaghan, who had been serving as an inactive board of directors member.
Founded in 1960, Domino's operates 7,138 company-owned and franchise stores in the United States and more than 50 other countries.