Papa Johns Corp EOY 2016 Cash Position...

[zipp]

[AKA non-financial and/or uninformed people talking financials...]

The remark was made by John Schnatter about U of L's cash on hand at 10 days. And he was corrected by the interim Prez that it was 35 days. To which, Schnatter says "I rest my case..."

His company at the end of 2016 had $15.56 million "cash and cash equivalents" on its balance sheet. On its annual income statement, they showed $1.559 billion in "total costs and expenses" for 2016. Dividing the first number by the second and multiplying by 365 yields 3.64 days of cash on hand for Papa Johns to cover its expenses.

YIKES!!!!!!!

See pp. 13-14

 

[kypecos]

Sorry, Zipp. Usually agree with you on financial issues but this is an apples and oranges comparison. The PJCS expansion is a separate project and I had no idea that it was proceeding on a shoestring until Schnatter's question was reported.
BTW, have absolutely no problem with the new Board of Directors asking hard questions and exercising review of management (as opposed to the virtual ineptitude of previous Boards). The Directors will properly ask questions and people like Jurich will properly respond when requested -- don't see a problem (yet).

 

[Knucklehank1]

Sorry, Zipp. Usually agree with you on financial issues but this is an apples and oranges comparison. The PJCS expansion is a separate project and I had no idea that it was proceeding on a shoestring until Schnatter's question was reported.
BTW, have absolutely no problem with the new Board of Directors asking hard questions and exercising review of management (as opposed to the virtual ineptitude of previous Boards). The Directors will properly ask questions and people like Jurich will properly respond when requested -- don't see a problem (yet).

His concerns about cash position certainly merit discussion and certainly it would be reasonable for a Board member to question a Senior VP (of Athletics) on that type of topic. Any person that has experience on a Board or answering to a Board would feel the same.

However the other stuff he threw out there (saying Jurich is "invisible", etc) was just counter-productive and unprofessional.

 

[Knucklehank1]

[AKA non-financial and/or uninformed people talking financials...]

The remark was made by John Schnatter about U of L's cash on hand at 10 days. And he was corrected by the interim Prez that it was 35 days. To which, Schnatter says "I rest my case..."

His company at the end of 2016 had $15.56 million "cash and cash equivalents" on its balance sheet. On its annual income statement, they showed $1.559 billion in "total costs and expenses" for 2016. Dividing the first number by the second and multiplying by 365 yields 3.64 days of cash on hand for Papa Johns to cover its expenses.

YIKES!!!!!!!

See pp. 13-14

Pretty sure they have good access to short term cash revolvers, commercial paper, lines of credit, etc

 

[zipp]

Sorry, Zipp. Usually agree with you on financial issues but this is an apples and oranges comparison. The PJCS expansion is a separate project and I had no idea that it was proceeding on a shoestring until Schnatter's question was reported.
BTW, have absolutely no problem with the new Board of Directors asking hard questions and exercising review of management (as opposed to the virtual ineptitude of previous Boards). The Directors will properly ask questions and people like Jurich will properly respond when requested -- don't see a problem (yet).

I'd like to know your basis for a "shoestring budget" judgment.

And I have no problem with anyone being asked tough questions, Jurich or Schnatter. When a guy makes a remark like that out of context, he's got his underwear pulled down. I'm not apologizing for pointing out that his d!ck is shorter than Jurich's...

 

[zipp]

Pretty sure they have good access to short term cash revolvers, commercial paper, lines of credit, etc

Sure he does. And U of L may have some of the same.

You just don't go somewhere without knowing where everyone else stands, including yourself...

 

[kypecos]

However the other stuff he threw out there (saying Jurich is "invisible", etc) was just counter-productive and unprofessional.

I actually agree with this but my understanding is that Schnatter was referencing a conversation that he had with the Interim President -- to the effect that the Board had not previously exercised any independent management over the Athletics Board and/or Jurich. It's pretty obvious that Schnatter was a little worked up with what he was learning but I didn't necessarily see it as a shot at Jurich as much as a condemnation of the ineptitude of the prior Boards. His words could have been chosen more carefully but this might fall under the category of "there are new Sheriffs in town" and I see that as a good thing (so far). Doubt that Jurich will have a problem with it either b/c he is always open and responsive to the administration and especially Schnatter.

 

[Pervis_Griffith]

Sorry, Zipp. Usually agree with you on financial issues but this is an apples and oranges comparison. The PJCS expansion is a separate project and I had no idea that it was proceeding on a shoestring until Schnatter's question was reported.
BTW, have absolutely no problem with the new Board of Directors asking hard questions and exercising review of management (as opposed to the virtual ineptitude of previous Boards). The Directors will properly ask questions and people like Jurich will properly respond when requested -- don't see a problem (yet).

John Schnatter's comments were not in reference to the football stadium expansion. The comments about "10 days of cash on hand" referenced the university's cash on hand position. He brought up the stadium expansion because it is NOT in such financial condition ... it is being paid for through private donations, and not needing any state or local government assistance. But having $60 million to expand a football stadium, compared to the University being cash strapped to run all of it's operations, is where PJS got his panties in a wad.

The Board of Trustees oversees the University of Louisville. The athletic department is a separate entity, with it's own board. The U of L Foundation also has a separate board that oversees it's operations.

 

[Knucklehank1]

I think what this shows is that Papa John needs to be more clear and prepared with his comments. Was he doing the bidding of the acting president? Was he criticizing the prior board? Criticizing TJ? Should he be using a side conversation with the acting president?

 

[zipp]

If I accept Schnatter's remarks on face value, I'll be the first to acknowledge that Jurich pretty much runs his own show. And why shouldn't he? Jurich is wildly successful, and looking over his shoulder is the last thing that a Board should need or want to do--esp. a Board that has legit problems to face in other places.

It's analogous to Papa Johns being part of Yum Brands, Yum having financial issues, and Yum management wanting to start micromanaging Schnatter. Anyone think he'd have a problem with that? I do, a BIG problem.

But I don't really think Schnatter's remarks should be taken on face value... I think the poor guy's got a hard-on about something that's maybe totally unrelated. And this was his moment and forum. Probably a bad decision on his part...

 

[EasyCard]

I actually agree with this but my understanding is that Schnatter was referencing a conversation that he had with the Interim President -- to the effect that the Board had not previously exercised any independent management over the Athletics Board and/or Jurich. It's pretty obvious that Schnatter was a little worked up with what he was learning but I didn't necessarily see it as a shot at Jurich as much as a condemnation of the ineptitude of the prior Boards. His words could have been chosen more carefully but this might fall under the category of "there are new Sheriffs in town" and I see that as a good thing (so far). Doubt that Jurich will have a problem with it either b/c he is always open and responsive to the administration and especially Schnatter.

When you used your private jet to fly Jurich to Dallas to tour other stadiums for design ideas for the PJCS expansion would have been a good time to raise your concerns. Not in public forums causing division for no reason.

"What did you have for lunch today John?" is boardroom code for, why do you have alcohol breath John and You should not talk to he media after the meeting.