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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
June 16, 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 July 9, 2019, Domino’s Pizza,
Inc. had 41,232,984 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)
 
June 16, 2019
   
December 30, 2018 (1)
 
Assets
   
     
 
Current assets:
   
     
 
Cash and cash equivalents
  $
108,259
    $
25,438
 
Restricted cash and cash equivalents
   
152,713
     
166,993
 
Accounts receivable, net
   
182,904
     
190,091
 
Inventories
   
44,281
     
45,975
 
Prepaid expenses and other
   
37,578
     
25,710
 
Advertising fund assets, restricted
   
117,712
     
112,744
 
                 
Total current assets
   
643,447
     
566,951
 
                 
Property, plant and equipment:
   
     
 
Land and buildings
   
41,385
     
41,147
 
Leasehold and other improvements
   
155,532
     
170,498
 
Equipment
   
237,088
     
243,654
 
Construction in progress
   
29,314
     
31,822
 
                 
   
463,319
     
487,121
 
Accumulated depreciation and amortization
   
(249,184
)    
(252,182
)
                 
Property, plant and equipment, net
   
214,135
     
234,939
 
                 
Other assets:
   
     
 
Operating lease
right-of-use
assets
   
211,204
     
—  
 
Goodwill
   
13,542
     
14,919
 
Capitalized software, net
   
69,629
     
63,809
 
Other assets
   
21,965
     
21,241
 
Deferred income taxes
   
3,245
     
5,526
 
                 
Total other assets
   
319,585
     
105,495
 
                 
Total assets
  $
1,177,167
    $
907,385
 
                 
Liabilities and stockholders’ deficit
   
     
 
Current liabilities:
   
     
 
Current portion of long-term debt
  $
35,919
    $
35,893
 
Accounts payable
   
82,456
     
92,546
 
Operating lease liabilities
   
30,156
     
—  
 
Insurance reserves
   
22,078
     
22,210
 
Dividends payable
   
27,355
     
581
 
Advertising fund liabilities
   
113,416
     
107,150
 
Other accrued liabilities
   
101,526
     
121,363
 
                 
Total current liabilities
   
412,906
     
379,743
 
                 
Long-term liabilities:
   
     
 
Long-term debt, less current portion
   
3,414,988
     
3,495,691
 
Operating lease liabilities
   
188,305
     
—  
 
Insurance reserves
   
33,507
     
31,065
 
Other accrued liabilities
   
31,747
     
40,807
 
                 
Total long-term liabilities
   
3,668,547
     
3,567,563
 
                 
Stockholders’ deficit:
   
     
 
Common stock
   
412
     
410
 
Additional
paid-in
capital
   
10,788
     
569
 
Retained deficit
   
(2,911,278
)    
(3,036,471
)
Accumulated other comprehensive loss
   
(4,208
)    
(4,429
)
                 
Total stockholders’ deficit
   
(2,904,286
)    
(3,039,921
)
                 
Total liabilities and stockholders’ deficit
  $
1,177,167
    $
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
   
Two Fiscal Quarters Ended
 
 
June 16,
   
June 17,
   
June 16,
   
June 17,
 
(In thousands, except per share data)
 
2019
   
2018
   
2019
   
2018
 
Revenues:
   
     
     
     
 
U.S. Company-owned stores
  $
105,001
    $
118,795
    $
228,451
    $
239,981
 
U.S. franchise royalties and fees
   
95,594
     
87,418
     
192,302
     
176,908
 
Supply chain
   
467,577
     
440,917
     
939,677
     
880,980
 
International franchise royalties and fees
   
54,975
     
51,337
     
109,559
     
103,758
 
U.S. franchise advertising
   
88,500
     
80,929
     
177,621
     
163,140
 
                                 
Total revenues
   
811,647
     
779,396
     
1,647,610
     
1,564,767
 
                                 
Cost of sales:
   
     
     
     
 
U.S. Company-owned stores
   
80,366
     
91,976
     
175,906
     
185,014
 
Supply chain
   
414,610
     
393,840
     
832,744
     
786,308
 
                                 
Total cost of sales
   
494,976
     
485,816
     
1,008,650
     
971,322
 
                                 
Operating margin
   
316,671
     
293,580
     
638,960
     
593,445
 
                                 
General and administrative
   
89,248
     
86,506
     
178,912
     
170,684
 
U.S. franchise advertising
   
88,500
     
80,929
     
177,621
     
163,140
 
                                 
Income from operations
   
138,923
     
126,145
     
282,427
     
259,621
 
Interest income
   
922
     
1,179
     
1,615
     
1,659
 
Interest expense
   
(33,866
)    
(36,127
)    
(68,920
)    
(66,413
)
                                 
Income before provision for income taxes
   
105,979
     
91,197
     
215,122
     
194,867
 
Provision for income taxes
   
13,620
     
13,789
     
30,113
     
28,632
 
                                 
Net income
  $
92,359
    $
77,408
    $
185,009
    $
166,235
 
                                 
Earnings per share:
   
     
     
     
 
Common stock - basic
  $
2.25
    $
1.84
    $
4.52
    $
3.92
 
Common stock - diluted
   
2.19
     
1.78
     
4.38
     
3.78
 
 
 
 
 
See accompanying notes.
 
4
 

 
Table of Contents
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                 
 
Fiscal Quarter Ended
   
Two Fiscal Quarters Ended
 
 
June 16,
   
June 17,
   
June 16,
   
June 17,
 
(In thousands)
 
2019
   
2018
   
2019
   
2018
 
Net income
  $
92,359
    $
77,408
    $
185,009
    $
166,235
 
Currency translation adjustment
   
(16
)    
(603
)    
221
     
(1,058
)
                                 
Comprehensive income
  $
92,343
    $
76,805
    $
185,230
    $
165,177
 
                                 
 
 
 
See accompanying notes.
 
5
 

 
Table of Contents
Domino’s Pizza, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
                 
 
Two Fiscal Quarters Ended
 
 
June 16,
   
June 17,
 
(In thousands)
 
2019
   
2018
 
Cash flows from operating activities:
   
     
 
Net income
  $
185,009
    $
166,235
 
Adjustments to reconcile net income to net cash provided by operating activities:
   
     
 
Depreciation and amortization
   
27,850
     
23,310
 
Loss on sale/disposal of assets
   
2,829
     
519
 
Amortization of debt issuance costs
   
2,198
     
5,469
 
Provision for deferred income taxes
   
2,276
     
1,484
 
Non-cash
compensation expense
   
8,589
     
11,443
 
Excess tax benefits from equity-based compensation
   
(18,446
)    
(15,318
)
Other
   
550
     
111
 
Changes in operating assets and liabilities
   
(10,713
)    
(50,165
)
Changes in advertising fund assets and liabilities, restricted
   
1,411
     
11,624
 
                 
Net cash provided by operating activities
   
201,553
     
154,712
 
                 
Cash flows from investing activities:
   
     
 
Capital expenditures
   
(25,708
)    
(37,290
)
Proceeds from sale of assets
   
8,161
     
323
 
Maturities of advertising fund investments, restricted
   
15,152
     
29,007
 
Purchases of advertising fund investments, restricted
   
—  
     
(35,152
)
Other
   
(132
)    
(672
)
                 
Net cash used in investing activities
   
(2,527
)    
(43,784
)
                 
Cash flows from financing activities:
   
     
 
Proceeds from issuance of long-term debt
   
—  
     
905,000
 
Repayments of long-term debt and finance lease obligations
   
(82,886
)    
(586,133
)
Proceeds from exercise of stock options
   
9,290
     
5,206
 
Purchases of common stock
   
(11,453
)    
(320,067
)
Tax payments for restricted stock upon vesting
   
(2,567
)    
(2,318
)
Payments of common stock dividends and equivalents
   
(26,680
)    
(23,538
)
Cash paid for financing costs
   
—  
     
(8,207
)
                 
Net cash used in financing activities
   
(114,296
)    
(30,057
)
                 
Effect of exchange rate changes on cash
   
111
     
(132
)
                 
Change in cash and cash equivalents, restricted cash and cash equivalents
   
84,841
     
80,739
 
                 
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
   
108,259
     
157,788
 
Restricted cash and cash equivalents, end of period
   
152,713
     
144,970
 
Cash and cash equivalents included in advertising fund assets, restricted, end of period
   
61,288
     
32,827
 
                 
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period
  $
322,260
    $
335,585
 
                 
 
 
 
 
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)
June 16, 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 June 16, 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 or general and administrative expense, 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 June 16, 2019 and June 17, 2018
 
 
U.S.
 
 
Supply
 
 
International
 
 
Intersegment
 
 
 
 
 
 
Stores
 
 
Chain
 
 
Franchise
 
 
Revenues
 
 
Other
 
 
Total
 
Revenues
   
     
     
     
     
     
 
2019
  $
289,095
    $
495,989
    $
54,975
    $
(28,412
)   $
—  
    $
  811,647
 
2018
   
287,142
     
474,471
     
51,337
     
(33,554
)    
—  
     
779,396
 
Income from operations
   
     
     
     
     
     
 
2019
  $
77,050
    $
41,305
    $
41,432
     
N/A
    $
(20,864
)   $
138,923
 
2018
   
73,193
     
36,494
     
39,104
     
N/A
     
(22,646
)    
126,145
 
Segment Income
   
     
     
     
     
     
 
2019
  $
82,006
    $
45,382
    $
41,491
     
N/A
    $
(9,235
)   $
159,644
 
2018
   
76,087
     
39,454
     
39,150
     
N/A
     
(10,241
)    
144,450
 
 
 
 
 
 
Two Fiscal Quarters Ended June 16, 2019 and June 17, 2018
 
 
U.S.
 
 
Supply
 
 
International
 
 
Intersegment
 
 
 
 
 
 
Stores
 
 
Chain
 
 
Franchise
 
 
Revenues
 
 
Other
 
 
Total
 
Revenues
   
     
     
     
     
     
 
2019
  $
598,374
    $
1,001,670
    $
109,559
    $
(61,993
)   $
—  
    $
1,647,610
 
2018
   
580,029
     
948,426
     
103,758
     
(67,446
)    
—  
     
1,564,767
 
Income from operations
   
     
     
     
     
     
 
2019
  $
157,664
    $
83,327
    $
84,186
     
N/A
    $
  (42,750
)   $
282,427
 
2018
   
148,481
     
73,866
     
80,628
     
N/A
     
(43,354
)    
259,621
 
Segment Income
   
     
     
     
     
     
 
2019
  $
165,604
    $
91,429
    $
84,290
     
N/A
    $
(19,628
)   $
321,695
 
2018
   
154,431
     
79,610
     
80,721
     
N/A
     
(19,337
)    
295,425
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table reconciles Total Segment Income to consolidated income before provision for income taxes.
                                 
 
Fiscal Quarter Ended
 
 
Two Fiscal Quarters Ended
 
 
June 16,
 
 
June 17,
 
 
June 16,
 
 
June 17,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Total Segment Income
  $
159,644
    $
144,450
    $
321,695
    $
295,425
 
Depreciation and amortization
   
(14,060
)    
(12,240
)    
(27,850
)    
(23,310
)
Loss on sale/disposal of assets
   
(2,680
)    
(154
)    
(2,829
)    
(519
)
Non-cash
compensation expense
   
(3,981
)    
(5,379
)    
(8,589
)    
(11,443
)
Recapitalization-related expenses
   
—  
     
(532
)    
—  
     
(532
)
                                 
Income from operations
   
138,923
     
126,145
     
282,427
     
259,621
 
Interest income
   
922
     
1,179
     
1,615
     
1,659
 
Interest expense
   
(33,866
)    
(36,127
)    
(68,920
)    
(66,413
)
                                 
Income before provision for income taxes
  $
105,979
    $
91,197
    $
215,122
    $
194,867
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
3. Earnings Per Share
                                 
 
Fiscal Quarter Ended
   
Two Fiscal Quarters Ended
 
 
June 16,
 
 
June 17,
 
 
June 16,
 
 
June 17,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Net income available to common stockholders - basic and diluted
  $
92,359
    $
77,408
    $
185,009
    $
166,235
 
                                 
Basic weighted average number of shares
   
41,023,269
     
42,044,035
     
40,944,400
     
42,433,073
 
Earnings per share – basic
  $
2.25
    $
1.84
    $
4.52
    $
3.92
 
Diluted weighted average number of shares
   
42,236,507
     
43,582,996
     
42,219,649
     
43,981,253
 
Earnings per share – diluted
  $
2.19
    $
1.78
    $
4.38
    $
3.78
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
 

 
Table of Contents
The denominators used in calculating diluted earnings per share for the second quarter and two fiscal quarters of 2019 each do not include 71,180 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 second quarter and two fiscal quarters of 2019
each do not include
93,412
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 common stock for the second quarter and two fiscal quarters of 2018 do not include
68,760
and
90,670
options, respectively, 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 second quarter and two fiscal quarters of 2018 
each do not include 116,624 
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 second quarter of 2019.
                                         
 
   
   
   
   
Accumulated
 
 
   
   
Additional
   
   
Other
 
 
Common Stock
   
Paid-in
   
Retained
   
Comprehensive
   
 
Shares
   
Amount
   
Capital
   
Deficit
   
Loss
 
Balance at March 24, 2019
   
41,083,890
    $
411
    $
5,464
    $  
(2,976,848
)   $
(4,192
)
Net income
   
—  
     
—  
     
—  
     
92,359
     
—  
 
Dividends declared on common stock and equivalents ($
0.65
per share)
   
—  
     
—  
     
—  
     
(26,789
)    
—  
 
Issuance and cancellation of stock awards, net
   
(3,079
)    
—  
     
—  
     
—  
     
—  
 
Tax payments for restricted stock upon vesting
   
(377
)    
—  
     
(100
)    
—  
     
—  
 
Purchases of common stock
   
(12,295
)    
(1
)    
(3,308
)    
—  
     
—  
 
Exercise of stock options
   
164,219
     
2
     
4,751
     
—  
     
—  
 
Non-cash
compensation expense
   
—  
     
—  
     
3,981
     
—  
     
—  
 
Currency translation adjustment
   
—  
     
—  
     
—  
     
—  
     
(16
)
                                         
Balance at June 16, 2019
   
41,232,358
    $
412
    $
10,788
    $  
(2,911,278
)   $
(4,208
)
                                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table summarizes changes in stockholders
deficit for the two 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
   
—  
     
—  
     
—  
     
185,009
     
—  
 
Dividends declared on common stock and equivalents ($
1.30
per share)
   
—  
     
—  
     
—  
     
(53,454
)    
—  
 
Issuance and cancellation of stock awards, net
   
5,161
     
     
—  
     
—  
     
—  
 
Tax payments for restricted stock upon vesting
   
(9,441
)    
—  
     
(2,567
)    
—  
     
—  
 
Purchases of common stock
   
(45,844
)    
(1
)    
(5,090
)    
(6,362
)    
—  
 
Exercise of stock options
   
304,921
     
3
     
9,287
     
—