Company Quick10K Filing
Quick10K
Domino's Pizza
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$222.45 41 $9,144
10-Q 2019-09-08 Quarter: 2019-09-08
10-Q 2019-06-16 Quarter: 2019-06-16
10-Q 2019-03-24 Quarter: 2019-03-24
10-K 2018-12-30 Annual: 2018-12-30
10-Q 2018-09-09 Quarter: 2018-09-09
10-Q 2018-06-17 Quarter: 2018-06-17
10-Q 2018-03-25 Quarter: 2018-03-25
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-10 Quarter: 2017-09-10
10-Q 2017-06-18 Quarter: 2017-06-18
10-Q 2017-03-26 Quarter: 2017-03-26
10-K 2017-01-01 Annual: 2017-01-01
10-Q 2016-09-11 Quarter: 2016-09-11
10-Q 2016-06-19 Quarter: 2016-06-19
10-Q 2016-03-27 Quarter: 2016-03-27
10-K 2016-01-03 Annual: 2016-01-03
10-Q 2015-09-06 Quarter: 2015-09-06
10-Q 2015-06-14 Quarter: 2015-06-14
10-Q 2015-03-22 Quarter: 2015-03-22
10-K 2014-12-28 Annual: 2014-12-28
10-Q 2014-09-07 Quarter: 2014-09-07
10-Q 2014-06-15 Quarter: 2014-06-15
10-Q 2014-03-23 Quarter: 2014-03-23
10-K 2013-12-29 Annual: 2013-12-29
8-K 2019-10-08 Earnings, Regulation FD, Exhibits
8-K 2019-07-31 Regulation FD, Exhibits
8-K 2019-07-16 Earnings, Exhibits
8-K 2019-04-29 Regulation FD, Exhibits
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-04-23 Shareholder Vote
8-K 2019-02-25 Regulation FD, Exhibits
8-K 2019-02-21 Earnings, Exhibits
8-K 2018-10-25 Regulation FD, Exhibits
8-K 2018-10-16 Earnings, Exhibits
8-K 2018-07-26 Regulation FD, Exhibits
8-K 2018-07-19 Earnings, Exhibits
8-K 2018-07-18 Officers, Exhibits
8-K 2018-04-24 Shareholder Vote
8-K 2018-04-09 Other Events, Exhibits
8-K 2018-02-22 Regulation FD, Exhibits
8-K 2018-01-05 Officers, Exhibits
SYY Sysco 38,245
USFD US Foods Holding 8,827
PFGC Performance Food Group 4,578
CORE Core-Mark Holding Company 1,491
CHEF Chefs' Warehouse 1,153
PRMW Primo Water 472
HFFG HF Foods Group 423
SPTN Spartannash 396
DIT Amcon Distributing 54
RAVE Rave Restaurant Group 38
DPZ 2019-09-08
Part I. Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 d813101dex311.htm
EX-31.2 d813101dex312.htm
EX-32.1 d813101dex321.htm
EX-32.2 d813101dex322.htm

Domino's Pizza Earnings 2019-09-08

DPZ 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q
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Table of Contents
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
 
FORM
10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
September 8, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                    
to
                    
Commission file number:
001-32242
 
 
Domino’s Pizza, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Delaware
 
38-2511577
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
     
30 Frank Lloyd Wright Drive
Ann Arbor, Michigan
 
48105
(Address of Principal Executive Offices)
 
(Zip Code)
(734)
930-3030
(Registrant’s Telephone Number, Including Area Code)
 
 
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of Each Class
 
Trading
Symbol
 
Name of Each Exchange
on Which Registered
Domino’s Pizza, Inc. Common Stock, $0.01 par value
 
DPZ
 
New York Stock Exchange
Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated filer
 
 
Smaller reporting company
 
             
 
 
 
 
Emerging growth company
 
​​​​​​​
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  
    No  
As of October 1, 2019, Domino’s Pizza, Inc. had 40,900,458 shares of common stock, par value $0.01 per share, outstanding.
     
 

 
Table of Contents
 
Domino’s Pizza, Inc.
TABLE OF CONTENTS
 
 
Page No.
 
PART I.
     
 
             
Item 1.
     
3
 
             
     
3
 
             
     
4
 
             
     
5
 
             
     
6
 
             
     
7
 
             
Item 2.
     
16
 
             
Item 3.
     
24
 
             
Item 4.
     
24
 
             
PART II.
     
 
             
Item 1.
     
25
 
             
Item 1A.
     
25
 
             
Item 2.
     
25
 
             
Item 3.
     
25
 
             
Item 4.
     
25
 
             
Item 5.
     
25
 
             
Item 6.
     
26
 
         
   
27
 
2
 

 
Table of Contents
 
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
                 
(In thousands)
 
September 8, 2019
   
December 30, 2018 (1)
 
Assets
   
     
 
Current assets:
   
     
 
Cash and cash equivalents
  $
66,706
    $
25,438
 
Restricted cash and cash equivalents
   
177,292
     
166,993
 
Accounts receivable, net
   
185,403
     
190,091
 
Inventories
   
51,010
     
45,975
 
Prepaid expenses and other
   
15,438
     
25,710
 
Advertising fund assets, restricted
   
109,490
     
112,744
 
                 
Total current assets
   
605,339
     
566,951
 
                 
Property, plant and equipment:
   
     
 
Land and buildings
   
41,408
     
41,147
 
Leasehold and other improvements
   
160,850
     
170,498
 
Equipment
   
241,972
     
243,654
 
Construction in progress
   
26,649
     
31,822
 
                 
   
470,879
     
487,121
 
Accumulated depreciation and amortization
   
(254,669
)    
(252,182
)
                 
Property, plant and equipment, net
   
216,210
     
234,939
 
                 
Other assets:
   
     
 
Operating lease
right-of-use
assets
   
227,495
     
—  
 
Goodwill
   
13,542
     
14,919
 
Capitalized software, net
   
71,055
     
63,809
 
Other assets
   
22,743
     
21,241
 
Deferred income taxes
   
3,888
     
5,526
 
                 
Total other assets
   
338,723
     
105,495
 
                 
Total assets
  $
1,160,272
    $
907,385
 
                 
Liabilities and stockholders’ deficit
   
     
 
Current liabilities:
   
     
 
Current portion of long-term debt
  $
35,935
    $
35,893
 
Accounts payable
   
95,657
     
92,546
 
Operating lease liabilities
   
32,203
     
—  
 
Insurance reserves
   
22,337
     
22,210
 
Dividends payable
   
27,006
     
581
 
Advertising fund liabilities
   
104,945
     
107,150
 
Other accrued liabilities
   
103,162
     
121,363
 
                 
Total current liabilities
   
421,245
     
379,743
 
                 
Long-term liabilities:
   
     
 
Long-term debt, less current portion
   
3,407,101
     
3,495,691
 
Operating lease liabilities
   
202,128
     
—  
 
Insurance reserves
   
32,858
     
31,065
 
Other accrued liabilities
   
32,589
     
40,807
 
                 
Total long-term liabilities
   
3,674,676
     
3,567,563
 
                 
Stockholders’ deficit:
   
     
 
Common stock
   
409
     
410
 
Additional
paid-in
capital
   
75
     
569
 
Retained deficit
   
(2,932,195
)    
(3,036,471
)
Accumulated other comprehensive loss
   
(3,938
)    
(4,429
)
                 
Total stockholders’ deficit
   
(2,935,649
)    
(3,039,921
)
                 
Total liabilities and stockholders’ deficit
  $
1,160,272
    $
907,385
 
                 
 
 
 
 
(1) The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
 
 
 
 
See accompanying notes.
 
3
 

 
Table of Contents
 
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
                                 
 
Fiscal Quarter Ended
   
Three Fiscal Quarters Ended
 
 
September 8,
   
September 9,
   
September 8,
   
September 9,
 
(In thousands, except per share data)
 
2019
   
2018
   
2019
   
2018
 
Revenues:
   
     
     
     
 
U.S. Company-owned stores
  $
94,575
    $
118,540
    $
323,026
    $
358,521
 
U.S. franchise royalties and fees
   
97,047
     
89,427
     
289,349
     
266,335
 
Supply chain
   
485,110
     
445,096
     
1,424,787
     
1,326,076
 
International franchise royalties and fees
   
54,586
     
50,424
     
164,145
     
154,182
 
U.S. franchise advertising
   
89,494
     
82,478
     
267,115
     
245,618
 
                                 
Total revenues
   
820,812
     
785,965
     
2,468,422
     
2,350,732
 
                                 
Cost of sales:
   
     
     
     
 
U.S. Company-owned stores
   
71,610
     
92,998
     
247,516
     
278,012
 
Supply chain
   
432,951
     
397,688
     
1,265,695
     
1,183,996
 
                                 
Total cost of sales
   
504,561
     
490,686
     
1,513,211
     
1,462,008
 
                                 
Operating margin
   
316,251
     
295,279
     
955,211
     
888,724
 
                                 
General and administrative
   
83,728
     
80,369
     
262,640
     
251,053
 
U.S. franchise advertising
   
89,494
     
82,478
     
267,115
     
245,618
 
                                 
Income from operations
   
143,029
     
132,432
     
425,456
     
392,053
 
Interest income
   
968
     
792
     
2,583
     
2,451
 
Interest expense
   
(33,752
)    
(33,976
)    
(102,672
)    
(100,389
)
                                 
Income before provision for income taxes
   
110,245
     
99,248
     
325,367
     
294,115
 
Provision for income taxes
   
23,872
     
15,153
     
53,985
     
43,785
 
                                 
Net income
  $
86,373
    $
84,095
    $
271,382
    $
250,330
 
                                 
Earnings per share:
   
     
     
     
 
Common stock - basic
  $
2.11
    $
2.02
    $
6.63
    $
5.94
 
Common stock - diluted
   
2.05
     
1.95
     
6.44
     
5.73
 
See accompanying notes.
 
4
 

 
Table of Contents
 
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                 
 
Fiscal Quarter Ended
   
Three Fiscal Quarters Ended
 
 
September 8,
   
September 9,
   
September 8,
   
September 9,
 
(In thousands)
 
2019
   
2018
   
2019
   
2018
 
Net income
  $
86,373
    $
84,095
    $
271,382
    $
250,330
 
Currency translation adjustment
   
270
     
(84
)    
491
     
(1,142
)
                                 
Comprehensive income
  $
86,643
    $
84,011
    $
271,873
    $
249,188
 
                                 
See accompanying notes.
 
5
 

 
Table of Contents
 
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                 
 
Three Fiscal Quarters Ended
 
 
September 8,
   
September 9,
 
(In thousands)
 
2019
   
2018
 
Cash flows from operating activities:
   
     
 
Net income
  $
271,382
    $
250,330
 
Adjustments to reconcile net income to net cash provided by operating activities:
   
     
 
Depreciation and amortization
   
40,982
     
35,770
 
Loss (gain) on sale/disposal of assets
   
3,141
     
(5,187
)
Amortization of debt issuance costs
   
3,288
     
6,581
 
Provision for deferred income taxes
   
1,627
     
1,737
 
Non-cash
compensation expense
   
13,269
     
15,660
 
Excess tax benefits from equity-based compensation
   
(19,670
)    
(22,722
)
Other
   
774
     
356
 
Changes in operating assets and liabilities
   
16,214
     
(25,580
)
Changes in advertising fund assets and liabilities, restricted
   
(6,411
)    
5,574
 
                 
Net cash provided by operating activities
   
324,596
     
262,519
 
                 
Cash flows from investing activities:
   
     
 
Capital expenditures
   
(42,676
)    
(65,074
)
Proceeds from sale of assets
   
9,738
     
8,213
 
Maturities of advertising fund investments, restricted
   
30,152
     
44,007
 
Purchases of advertising fund investments, restricted
   
—  
     
(50,152
)
Other
   
(351
)    
(2,357
)
                 
Net cash used in investing activities
   
(3,137
)    
(65,363
)
                 
Cash flows from financing activities:
   
     
 
Proceeds from issuance of long-term debt
   
—  
     
905,000
 
Repayments of long-term debt and finance lease obligations
   
(91,860
)    
(595,067
)
Proceeds from exercise of stock options
   
10,122
     
8,967
 
Purchases of common stock
   
(105,149
)    
(429,190
)
Tax payments for restricted stock upon vesting
   
(5,820
)    
(6,849
)
Payments of common stock dividends and equivalents
   
(53,598
)    
(46,720
)
Cash paid for financing costs
   
—  
     
(8,207
)
                 
Net cash used in financing activities
   
(246,305
)    
(172,066
)
                 
Effect of exchange rate changes on cash
   
139
     
(235
)
                 
Change in cash and cash equivalents, restricted cash and cash equivalents
   
75,293
     
24,855
 
                 
Cash and cash equivalents, beginning of period
   
25,438
     
35,768
 
Restricted cash and cash equivalents, beginning of period
   
166,993
     
191,762
 
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period
   
44,988
     
27,316
 
                 
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period
   
237,419
     
254,846
 
                 
Cash and cash equivalents, end of period
   
66,706
     
84,600
 
Restricted cash and cash equivalents, end of period
   
177,292
     
168,170
 
Cash and cash equivalents included in advertising fund assets, restricted, end of period
   
68,714
     
26,931
 
                 
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period
  $
312,712
    $
279,701
 
                 
See accompanying notes.
 
6
 

 
Table of Contents
 
Domino’s Pizza, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited; tabular amounts in thousands, except percentages, share and per share amounts)
September 8, 2019
1. Basis of Presentation and Updates to Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form
10-Q
and Rule
10-01
of Regulation
S-X.
Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended December 30, 2018 included in the Company’s 2018 Annual Report on Form
10-K,
filed with the Securities and Exchange Commission on February 21, 2019 (the “2018 Form
10-K”).
In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter ended September 8, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2019.
Updates to Significant Accounting Policies
The Company adopted Accounting Standards Codification 842,
Leases
(“ASC 842”) in the first quarter of 2019. As a result, the Company updated its significant accounting policies for leases below. Refer to Note 7 for additional information related to the Company’s lease arrangements and Note 11 for the impact of the adoption of ASC 842 on the Company’s condensed consolidated financial statements.
Leases
The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease
right-of-use
assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Company’s condensed consolidated balance sheet.
Right-of-use
assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option.
The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly-rated companies with longer term borrowings.
Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales, while interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with
non-lease
components and short-term rentals (leases with terms less than 12 months) are expensed as incurred.
 
7
 

 
Table of Contents
 
2. Segment Information
The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments.
                                                 
 
Fiscal Quarters Ended September 8, 2019 and September 9, 2018
 
 
U.S.
   
Supply
   
International
   
Intersegment
   
   
 
 
Stores
   
Chain
   
Franchise
   
Revenues
   
Other
   
Total
 
Revenues
   
     
     
     
     
     
 
2019
  $
281,116
    $
511,709
    $
54,586
    $
(26,599
)   $
—  
    $
820,812
 
2018
   
290,445
     
478,517
     
50,424
     
(33,421
)    
—  
     
785,965
 
Income from operations
   
     
     
     
     
     
 
2019
  $
80,188
    $
40,513
    $
42,281
     
N/A
    $
(19,953
)   $
143,029
 
2018
   
78,636
     
35,452
     
39,374
     
N/A
     
(21,030
)    
132,432
 
Segment Income
   
     
     
     
     
     
 
2019
  $
82,556
    $
44,432
    $
42,337
     
N/A
    $
(8,172
)   $
161,153
 
2018
   
75,721
     
38,561
     
39,416
     
N/A
     
(10,295
)    
143,403
 
       
 
Three Fiscal Quarters Ended September 8, 2019 and September 9, 2018
 
 
U.S.
   
Supply
   
International
   
Intersegment
   
   
 
 
Stores
   
Chain
   
Franchise
   
Revenues
   
Other
   
Total
 
Revenues
   
     
     
     
     
     
 
2019
  $
879,490
    $
1,513,380
    $
164,145
    $
(88,593
)   $
—  
    $
2,468,422
 
2018
   
870,474
     
1,426,943
     
154,182
     
(100,867
)    
—  
     
2,350,732
 
Income from operations
   
     
     
     
     
     
 
2019
  $
237,852
    $
123,840
    $
126,467
     
N/A
    $
(62,703
)   $
425,456
 
2018
   
227,117
     
109,319
     
120,002
     
N/A
     
(64,385
)    
392,053
 
Segment Income
   
     
     
     
     
     
 
2019
  $
248,160
    $
135,861
    $
126,628
     
N/A
    $
(27,801
)   $
482,848
 
2018
   
230,152
     
118,171
     
120,138
     
N/A
     
(29,633
)    
438,828
 
 
The following table reconciles Total Segment Income to consolidated income before provision for income taxes.
                                 
 
Fiscal Quarter Ended
   
Three Fiscal Quarters Ended
 
 
September 8,
   
September 9,
   
September 8,
   
September 9,
 
 
2019
   
2018
   
2019
   
2018
 
Total Segment Income
  $
161,153
    $
143,403
    $
482,848
    $
438,828
 
Depreciation and amortization
   
(13,132
)    
(12,460
)    
(40,982
)    
(35,770
)
(Loss) gain on sale/disposal of assets
   
(312
)    
5,706
     
(3,141
)    
5,187
 
Non-cash
compensation expense
   
(4,680
)    
(4,217
)    
(13,269
)    
(15,660
)
Recapitalization-related expenses
   
—  
     
—  
     
—  
     
(532
)
                                 
Income from operations
   
143,029
     
132,432
     
425,456
     
392,053
 
Interest income
   
968
     
792
     
2,583
     
2,451
 
Interest expense
   
(33,752
)    
(33,976
)    
(102,672
)    
(100,389
)
                                 
Income before provision for income taxes
  $
110,245
    $
99,248
    $
325,367
    $
294,115
 
                                 
 
 
 
 
3. Earnings Per Share
                                 
 
Fiscal Quarter Ended
   
Three Fiscal Quarters Ended
 
 
September 8,
   
September 9,
   
September 8,
   
September 9,
 
 
2019
   
2018
   
2019
   
2018
 
Net income available to common stockholders - basic and diluted
  $
86,373
    $
84,095
    $
271,382
    $
250,330
 
                                 
Basic weighted average number of shares
   
40,954,279
     
41,585,933
     
40,947,693
     
42,150,693
 
Earnings per share – basic
  $
2.11
    $
2.02
    $
6.63
    $
5.94
 
Diluted weighted average number of shares
   
42,040,291
     
43,067,191
     
42,158,447
     
43,675,627
 
Earnings per share – diluted
  $
2.05
    $
1.95
    $
6.44
    $
5.73
 
 
 
 
 
 
 
8
 

 
Table of Contents
 
The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2019 do not include 161,670 options to purchase common stock, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2019 each do not include 142,477 restricted performance shares, as the performance targets for these awards had not yet been met.
The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2018 do not include 76,130 and 137,156 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the three fiscal quarters of 2018 does not include 28,570 shares subject to restricted stock awards, as the effect of including these shares would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2018 each do not include 160,998 restricted performance shares, as the performance targets for these awards had not yet been met.
4. Changes in Stockholders’ Deficit
The following table summarizes changes in stockholders’ deficit for the third quarter of 2019.
 
   
   
   
   
Accumulated
 
 
   
   
Additional
   
   
Other
 
 
Common Stock
   
Paid-in
   
Retained
   
Comprehensive
 
 
Shares
   
Amount
   
Capital
   
Deficit
   
Loss
 
Balance at June 16, 2019
   
41,232,358
    $
412
    $
10,788
    $
(2,911,278
)   $
(4,208
)
Net income
   
—  
     
—  
     
—  
     
86,373
     
—  
 
Dividends declared on common stock and equivalents ($0.65 per share)
   
—  
     
—  
     
—  
     
(26,569
)    
—  
 
Issuance and cancellation of stock awards, net
   
45,479
     
—  
     
—  
     
—  
     
—  
 
Tax payments for restricted stock upon vesting
   
(12,603
)    
—  
     
(3,253
)    
—  
     
—  
 
Purchases of common stock
   
(384,338
)    
(3
)    
(12,972
)    
(80,721
)    
—  
 
Exercise of stock options
   
18,100
     
  
     
832
     
—  
     
—  
 
Non-cash
compensation expense
   
—  
     
—  
     
4,680
     
—  
     
—  
 
Currency translation adjustment
   
—  
     
—  
     
—  
     
—  
     
270
 
                                         
Balance at September 8, 2019
   
40,898,996
    $
409
    $
75
    $
(2,932,195
)   $
(3,938
)
                                         
The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2019.
 
   
   
   
   
Accumulated
 
 
   
   
Additional
   
   
Other
 
 
Common Stock
   
Paid-in
   
Retained
   
Comprehensive
 
 
Shares
   
Amount
   
Capital
   
Deficit
   
Loss
 
Balance at December 30, 2018
   
40,977,561
    $
410
    $
569
    $
(3,036,471
)   $
(4,429
)
Net income
   
—  
     
—  
     
—  
     
271,382
     
—  
 
Dividends declared on common stock and equivalents ($1.95 per share)
   
—  
     
—  
     
—  
     
(80,023
)    
—  
 
Issuance and cancellation of stock awards, net
   
50,640
     
     
—  
     
—  
     
—  
 
Tax payments for restricted stock upon vesting
   
(22,044
)    
—  
     
(5,820
)    
—  
     
—  
 
Purchases of common stock
   
(430,182
)    
(4
)    
(18,062
)    
(87,083
)    
—  
 
Exercise of stock options
   
323,021
     
3
     
10,119
     
—  
     
—  
 
Non-cash
compensation expense