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NPC runs loss on acquisition expenses
March 25, 2007
OVERLAND PARK, Kan. – Comparable-store sales at Pizza Hutfranchisee NPC International Inc. rose 1.1 percent for the fourth quarter ended Dec. 26. Comps were flat for the year.
NPC International is the world's largest Pizza Hut franchisee, operating 873 Pizza Hut restaurants and delivery units in 24 states.
NPC's product sales for the fourth quarter were $154.4 million, up 5.5 percent compared with product sales of $146.4 million for the fourth quarter of 2005. Product sales for the year were $602 million, up slightly from product sales of $596.9 million the previous year.
Fourth-quarter net income was $400,000, compared with net income of $13.6 million for the 2005 fourth quarter. For the year, NPC recorded a net loss of $2.7 million compared with net income of $47.3 million for 2005.
NPC's 2006 net income was reduced by $24.3 million due to transaction expenses related to the acquisition of the company by Merrill Lynch Global Private Equity, and by $14.4 million in increased interest expenses associated with the deal's financing. Merrill Lynch Global Private Equity acquired NPC in May 2006.
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