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Papa John's restates earnings back to 2009

NEW YORK (AP) -- Papa John's International Inc. on Tuesday restated earnings back to 2009 after the pizza chain and its auditors found an error in its accounting related to a joint venture agreement.

The company also reported fourth-quarter and full-year 2012 results.

Fourth-quarter net income rose to $18.4 million, or 74 cents per share, compared with $16.8 million, or 65 cents per share, in the same quarter a year ago. Adjusted earnings were 62 cents per share, accounting for an additional week of operations in 2012 versus 2011.

Sales increased to $367.3 million from $306.2 million

Analysts expected profit of 75 cents per share on sales of $355.4 million.

Sales at stores open for at least a year rose 5.2 percent in North America and 7 percent internationally in the recent quarter.

For all of 2012 Papa John's made $66 million, or $2.58 per share, compared with $58.5 million, or $2.16 per share, in 2011. Sales rose to $1.34 billion from $1.22 billion.

The Louisville, Ky., company said in a regulatory filing Tuesday that it found a material weakness in its internal controls and it is implementing remedial measures including a review of joint venture agreements.

The company said the restatement will not impact on its revenue or cash flow.

Net income for 2011 is restated to $58.5 million, or $2.16 per share, from the previously reported $59.4 million, or $2.20 per share.

Net income for 2010 is restated to $56.1 million, or $1.99 per share, from $55.4 million, or $1.96 per share.

For 2009, the company is restating net income to $57.5 million, or $1.93 per share, from $61.2 million, or $2.06 per share.

Papa John's also restated earnings for the first three quarters of 2012. Profit for the nine months to Sept. 23 is $47.6 million, or $1.84 per share, down from $48 million, or $1.85 per share.

Trading in shares of Papa John's was halted in the after-hours session. The stock ended the regular session at $56.65, up 64 cents.