Oct. 13, 2009 (PR Newswire) -- ANN ARBOR, Mich., Oct. 13 /PRNewswire-FirstCall/ -- Domino's Pizza, Inc. (NYSE: DPZ), the recognized world leader in pizza delivery, today announced results for the third quarter ended September 6, 2009. Net income as-reported was up 76.6% versus the prior year, driven by gains on the extinguishment of debt, improved operating margins, lower interest expense and international store growth. Year-to-date, the Company has repurchased approximately $161 million in principal amount of its long-term debt. As of the quarter end, the Company had nearly $49 million of unrestricted cash and cash equivalents.

During the third quarter, domestic same store sales were flat while international same store sales grew 2.7%. The quarter also marked the 63rd consecutive quarter of same store sales growth in Domino's international division.

Third Quarter Highlights:

(dollars in               Third        Third    First Three First Three
millions, except        Quarter      Quarter     Quarters    Quarters
per share data)         of 2009      of 2008     of 2009     of 2008
-------      -------   ----------- -----------
Net income                 $17.8        $10.1       $56.1       $42.9

Weighted average
diluted shares       57,981,137   58,042,743  57,680,513  58,859,220

Diluted earnings per
share, as-reported        $0.31        $0.17       $0.97       $0.73
Items affecting
comparability (see
section below)           $(0.14)      $(0.05)     $(0.40)     $(0.17)
------       ------      ------      ------
Diluted earnings per
share, as adjusted        $0.17        $0.13       $0.57       $0.56
=====        =====       =====       =====

    --  Diluted EPS was $0.31 on an as-reported basis for the third quarter, up
$0.14 from the prior year period.  Excluding items affecting
comparability, diluted EPS increased $0.04, primarily due to operating
margin improvements and lower interest expense primarily from recent
debt extinguishments. This was offset in part by the negative impact of
foreign currency exchange rates on international operations.  (See the
Items Affecting Comparability section and the Comments on Regulation G
section.)

    --  Global Retail Sales were down 1.9% in the third quarter, or up 3.9% when
excluding the impact of foreign currency.

Third           Third
Quarter         Quarter
of 2009         of 2008
---------       ---------
Same store sales growth: (versus prior
year period)
Domestic Company-owned stores                  (2.0)%         (3.4)%
Domestic franchise stores                      +0.3%          (6.4)%
-------           -----
Domestic stores                                 0.0%          (6.1)%
===           =====
International stores                           +2.7%          +5.4%
=====          ======

Global retail sales growth: (versus prior
year period)
Domestic stores                                (1.6)%         (5.8)%
International stores                           (2.1)%        +14.1%
-----          -----
Total                                          (1.9)%         +2.4%
=====         ======

Global retail sales growth: (versus prior
year period, excluding foreign currency impact)
Domestic stores                                (1.6)%         (5.8)%
International stores                          +10.4%         +12.2%
-----          -----
Total                                        +  3.9%        +  1.6%
======         ======

Domestic
Company-  Domestic   Total
owned    Franchise Domestic  International
Stores    Stores    Stores      Stores     Total
--------  --------- --------  ------------- -----
Store counts:
Store count at
June 14, 2009    483      4,484     4,967         3,906     8,873
Openings            -         17        17            49        66
Closings           (2)       (45)      (47)           (6)      (53)
--        ---       ---            --       ---
Store count at
September 6,
2009             481      4,456     4,937         3,949     8,886
===      =====     =====         =====     =====
Third quarter
2009 net growth   (2)       (28)      (30)           43        13
==        ===       ===            ==        ==
Trailing four
quarters net
growth           (31)      (118)     (149)          309       160
===       ====      ====           ===       ===

David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "We did a good job of anticipating the economic downturn in the U.S. and we cut costs before the economy weakened. We have been intensely focused on controlled overhead spending throughout the past three years. As a result, we are now in a position to invest in our business; invest in our franchisees; invest in our marketing; invest in our technology; and expand our global footprint. We're making excellent progress... and we're in a great position to take full advantage of all of the opportunities we will encounter when domestic consumer spending improves and we return to a more normalized economic environment."

Brandon added, "Our proven, steady, and reliable business model consistently generates on average free cash flow in excess of $1 million per-week that we will continue to deploy in a manner that creates significant shareholder value."

Conference Call Information

The Company plans to file its quarterly report on Form 10-Q this morning. Additionally, as previously announced, Domino's Pizza, Inc. will hold a conference call today at 11:00 a.m. (Eastern) to review its third quarter 2009 financial results. The call can be accessed by dialing (888) 306-6182 (U.S./Canada) or (706) 634-4947 (International). Ask for the Domino's Pizza conference call. The call will also be available via webcast at www.dominosbiz.com. If you are unable to participate on the call, a replay will be available for thirty days by dialing (800) 642-1687 (U.S./Canada) or (706) 645-9291 (International), Conference ID 66299705. The webcast will also be archived for 30 days on www.dominosbiz.com.

Debt Repurchases

During the third quarter, the Company repurchased and retired $71.8 million in principal amount of its fixed rate senior notes; and approximately $140.0 million during the first three quarters of 2009. These activities resulted in pre-tax gains of approximately $14.3 million in the third quarter and $48.4 million for the first three quarters of 2009, which were recorded in "Other" in the Company's consolidated statements of income.

Subsequent to the third quarter of 2009, the Company repurchased and retired an additional $20.9 million in principal amount of its fixed rate senior notes, that resulted in a pre-tax gain of approximately $3.6 million which will be recorded in the fourth quarter of 2009. This $20.9 million principal amount of fixed rate senior notes is classified as a current liability in the Company's consolidated balance sheet as of September 6, 2009.

Items Affecting Comparability

The Company's reported financial results for the third quarter and first three quarters of 2009 are not comparable to the reported financial results for the prior year comparable periods. The table below presents items that affect comparability between 2009 and 2008 financial results. Management believes that including such information is critical to the understanding of the Company's comparable financial results. (See the Comments on Regulation G section).

In addition to the items noted in the table below, the Company experienced lower interest expense primarily as a result of lower debt levels. This impacts comparability to periods in the prior year.