Papa John's Reports First Quarter Earnings

Business Wire,  May 6, 2008  

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Conference Call

A conference call is scheduled for May 7, 2008 at 10:00 EDT to review first quarter earnings results. The call can be accessed from the company's web page at www.papajohns.com in a listen-only mode, or dial 800-487-2662 (pass code 32146248) for participation in the question and answer session. International participants may dial 706-679-8452 (pass code 32146248).

The conference call will be available for replay, including downloadable podcast, beginning May 7, 2008, at approximately noon through May 14, 2008, at midnight EDT. The replay can be accessed from the company's web page at www.papajohns.com or by dialing 800-642-1687 (pass code 32146248). International participants may dial 706-645-9291 (pass code 32146248).

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(1) Management considers EBITDA to be a meaningful indicator of operating performance from operations before depreciation, amortization, net interest and income taxes. EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and financing transactions and income taxes. While EBITDA should not be construed as a substitute for net income or a better indicator of liquidity than cash flows from operating activities, which are determined in accordance with accounting principles generally accepted in the United States ("GAAP"), it is included herein to provide additional information with respect to the ability of the company to meet its future debt service, capital expenditure and working capital requirements. EBITDA is not necessarily a measure of the company's ability to fund its cash needs and it excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. The above EBITDA calculation includes the operating results of BIBP Commodities, Inc., a variable interest entity.

(2) BIBP incurred an operating loss of $8.0 million in the first quarter of 2008, which was composed of losses associated with cheese sold to domestic company-owned restaurants and franchise restaurants of $1.9 million and $5.6 million, respectively. The remainder of the first quarter 2008 loss was primarily composed of interest expense on outstanding debt with a third-party bank and Papa John's. For the first quarter of 2007, BIBP reported an operating loss of $406,000, which was composed of a $458,000 loss associated with cheese sold to domestic company-owned restaurants, offset by income of $99,000 from sales to franchise restaurants (included a change in the minority interest liability due to BIBP's surplus status in 2006). The remainder of the loss was primarily composed of interest expense on outstanding debt with a third-party bank.

For more information about the company, please visit www.papajohns.com.

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