Tag: Featured

Pies in the sky: CEO Schnatter discloses plan to sell up to $36M worth of Papa John’s shares

The pizza giant’s founder and CEO, John Schnatter, notified the Securities and Exchange Commission that he’d adopted a stock trading plan today under which he may sell up to 480,000 company shares, a block worth $36.4 million at today’s closing price of $75.75.

In a late-afternoon filing with the SEC disclosing the plan, Schnatter didn’t provide any more details, such as a timetable for when he would sell and in what amounts.

Company executives often adopt these “10b5-1” plans, named for the SEC rule that governs insider trading. The plans are often approved by a company’s board of directors, and require an executive to sell a certain number of shares at fixed intervals to avoid any appearance they’re trading on inside information.

Today’s filing came after stock markets closed. In extended trading, PZZA shares hardly fluttered, indicating Wall Street wasn’t concerned. That’s not surprising. Even if Schnatter had sold all 480,000 shares today, he’d still own about 10 million, including those subject to options — a stake equal to 26.3% of all outstanding shares. He would still be the company’s single-biggest stockholder, with a total stake worth $758 million.

The filing was noteworthy for another reason. Without explaining why, Papa John’s said it would not disclose any future 10b5-1 plans that might be adopted by other officers or directors. Nor will it report any changes or termination of any publicly announced trading plan, including Schnatter’s, except to the extent required by law.

Schnatter’s plan follows an especially busy month of trading for the executive. Since Aug. 5, he’s sold more than 138,000 shares for $10.5 million; chart, below.

John Schnatter stock trades table August 2016

Follow the money: A trail of footnotes and government documents leads to Insider Louisville’s front door

By Jim Hopkins
Boulevard Publisher

In business journalism, some of the most interesting news shows up in fine-print footnotes in documents companies file with government agencies. Hospital and nursing giant Kindred Healthcare is great example. Last spring in a statement to stockholders, it disclosed two special payments to top executives: $6 million to then-executive vice chairman Paul Diaz in connection with his leaving the CEO’s job, and $250,000 to Chief Financial Officer Steven Farberto help him escape a high-profile dispute with a Glenview neighbor. But to uncover that, you had to follow three different footnotes on a table showing how much they got paid overall.

Insider Louisville logoThis leads me to another footnote, of sorts — one that appeared on a story today at Insider Louisville, the online news site launched in 2010, and to a document I’ve run across at the Securities and Exchange Commission. Together, they open a window on who’s investing in Louisville’s news media at a time when the once-dominant Courier-Journal has been losing influence amid steep staff cutbacks, shifting the balance of power in Kentucky’s biggest city. They underscore the importance of news outlets everywhere telling readers who’s behind the scenes, and about any conflicts of interest owners may pose for their publication. (I’ve got disclosures of my own.)

This morning, at the bottom of a long story about the Humana Foundation, Insider Louisville editors added this disclosure: “One of the five directors of the Humana Foundation is David A. Jones Jr., an investor of Insider Louisville.”

David A. Jones Jr.
Jones

Jones is one of Louisville’s more influential residents. He’s on the board of directors of Humana itself, and his father, David A. Jones Sr., is a co-founder of the insurance giant. Jones Jr. is a partner at Chrysalis Ventures, the Louisville venture-capital firm he founded in 1993, and he’s chairman of the elected seven-person board overseeing the Jefferson County Public Schools. (Here’s Chrysalis’s portfolio of company investments; it doesn’t show Insider Louisville, which suggests this was a personal investment.)

Tom Cottingham
Cottingham

To be sure, close readers of Insider Louisville have known Jones was an investor for several years. In August 2014, owner Tom Cottingham told readers he’d brought in three new minority investors he knew from a prior venture: Jones; Doug Cobb, the former Greater Louisville Inc. CEO, and Jon Pyles, now the site’s vice president of marketing. The story — which carried only a “staff” byline — didn’t say how much they’d invested, nor the exact size of their stake. Cottingham said he remained the majority holder.

Douglas Cobb
Cobb

Now, though, an SEC document filed in April offers more clues about the publication’s investors, whom we learned this summer include a prominent heiress to the glittering Brown-Forman whiskey fortune. I can’t find any mention of the regulatory filing on Insider Louisville’s website, nor in any other media outlet in Louisville. My readers may well correct me after I publish this post; in any case, this is certainly the first time I’m writing about it.

The April 12 document shows that Insider Louisville LLC raised $975,000 from 12 investors in a $1.5 million stock offering that drew the first investment March 31. It didn’t identify the investors by name, however, and it didn’t say how big their stakes were. The first $450,000 was to pay down an undisclosed amount of debt, according to the document; anything left over would go to any of its directors: Jones, Cottingham, and a third named Jamie Wilson. (Who’s Wilson? I haven’t figured that out; maybe one of my readers knows.)

Minimum investment: $25K

Continue reading “Follow the money: A trail of footnotes and government documents leads to Insider Louisville’s front door”

More fashionable (and cool!) than ever: Louisville to seaside R.I. for a $12,000 weekend getaway

An occasional look at premium travel from Louisville.

Labor Day traditionally brings the summer to a close, and next weekend’s Louisville weather forecast calls for a scorcher, with temperatures rising to a steamy 90 degrees. Along with a presidential campaign that seems hotter by the minute, it’s time to scadadle — in style.

Todd Oldham
Oldham

Let’s follow the example of Gilded Age one-percenters, and head for a fresh summer getaway in Rhode Island. (That’s where telecommuting Boulevard Publisher Jim Hopkins is working right now.) Along the way, we’ll stop at the fabulous Rhode Island School of Design Museum in Providence for the new Todd Oldham fashion retrospective; that’s one of the designer’s more exuberant gowns in the photo, top. The exhibit runs through Sept. 11. Here’s our itinerary:

When: Friday to Tuesday. Airline: Delta. Route: Louisville to Detroit to Providence; total travel time is four hours, including a 40-minute layover in Detroit. We’ll then take a 42-mile scenic car ride to our final destination: Watch Hill. How much: $780 per ticket, for economy to Detroit, then premium economy to Providence. Delta reservations.

But with all the money we’ve saved without flying first/business, we can easily afford to stay at one of New England’s premier seaside resorts: Ocean House in Watch Hill. Part of the Relais & Chateaux group, Ocean House opened in 2010 as a meticulous re-creation of the original property lost to time and neglect. The present resort has 49 rooms and 18 suites.

Ocean House
The resort overlooks an emerald-green croquet lawn.

Our choice: The Spa Suite, with spectacular Atlantic Ocean views from its private 600 square-foot terrace. Price: about $9,500 for four nights, subject to availability. Plus, it’s just 10 seconds as the champagne cork flies to pop superstar Taylor Swift’s $18 million summer estate.

spa-suite-tile
The Spa Suite’s sitting area is an airy aerie.
Bottom line

Add meals and generous tips for staff maintaining amenities including the wear-only-white croquet green, and we’re looking at a $12,000 weekend for two.

Slime time: In the genteel world of old-money philanthropy, pizza king Schnatter is busting loose

By Jim Hopkins
Boulevard Publisher

When Tom Jurich chases the money John Schnatter gives to charity every year, it’s the ever-prowling cats that pose competition.

No — not those ones. I’m referring to the snow leopard and other big cats at Louisville Zoo, just five miles from Papa John’s Cardinal Stadium, the University of Louisville colossus about to undergo a $55 million renovation that athletics director Jurich wants done in just two years.

Schnatter, 54, loves U of L. He’s donated more than $20 million to the 22,000-student school over the past decade, winning naming rights for his Louisville-based pizza chain for decades to come. (And Schnatter’s a Ball State graduate, to boot.)

Papa John's logoBut he also likes other charities — especially the zoo, according to the most recent IRS tax returns for his John H. Schnatter Family Foundation, which filed its 2015 return only last week. The returns show the foundation gave $111,000 to the zoo in 2012-2015; only one other recipient — U of L — got more, among the dozens of charities Schnatter and his wife Annette support. And that was on top of $1.1 million they donated to the zoo in 2008. To be sure, the zoo was just barely ahead of No. 3 on the foundation’s gift list (keep reading).

The returns offer an inside look at how one of the city’s richest couples — we’re talking $800 million — positions themselves in a pecking order where the right kind of philanthropy is the ticket to top-drawer society. This much is clear: the Schnatters don’t give a flying fig about old-money Louisville. They’re passing on virtually all the usual suspects: the Speed Museum, Actors Theatre, Kentucky Opera, the Fund for the Arts — cultural war horses favored by more established families like the Browns and their 150-year-old whiskey fortune, or the Binghams and their faded media empire from 1918.

Instead, the Schnatters devoted their relatively modest $1.9 million to 86 charities over the four years I examined, focused heavily on helping children and veterans; animal welfare and — crucially, for anxious development officers — advancing John Schnatter’s growing interest in free enterprise and limited government.

But he’s never been old money, anyway.

1980s: bustin’ out

After graduating from Ball State University in 1983, Schnatter started Papa John’s in a broom closet at his father’s tavern, Mike’s Lounge, which he famously saved from ruin with $2,800 he got selling his prized 1972 Camaro. Nearly 32 years and many millions of pies later, he stars in his own TV commercials blanketing the air, proving he’s not above getting dirty to make a sale — literally. In a Sony Pictures marketing tie-in this summer, he played a slimed Ghostbuster pizza delivery guy; that’s a still photo, top of page. (Can you imagine Brown-Forman Chairman George Garvin Brown IV dressed as a dancing mint julep for an Old Forester spot? Neither can I.)

Tom Jurich
Jurich

No matter. Schnatter’s laughing all the way  to the bank. Today, Papa John’s has more than 4,700 restaurants in 38 countries and territories. Its 22,000 employees include 750 in Louisville. And his stake in the $2.8 billion behemoth just soared past $800 million for the first time. That’s a lot of loot that’s arrived relatively fast. On a split-adjusted basis, Papa John’s stock has increased six-fold in the past five years alone. The question over at U of L: How much of that will Jurich wrangle for his $55 million stadium project? Continue reading “Slime time: In the genteel world of old-money philanthropy, pizza king Schnatter is busting loose”

Ali Center to salute McCain, Gossett, three others at annual awards ceremony

The Muhammad Ali Center said today it would honor leaders from the worlds of philanthropy, entertainment, and business at the fourth annual Muhammad Ali Humanitarian Awards, Sept. 17 in Louisville.

Muhammad Ali
In 1967.

This year’s will be the first since the Louisville native, prize fighter and globally famous humanitarian Muhammad Ali died, in June in Phoenix, after a decades-long battle against Parkinson’s disease. He was buried a week later at Cave Hill Cemetery during a funeral that drew luminaries from government, politics and entertainment across the world.

He and his wife Lonnie co-founded the Ali Center, which opened in November 2005, and attended each of the previous year’s Muhammad Ali Humanitarian Awards. She will speak at this year’s ceremony, and present several of the awards. The honorees:

  • Philanthropist and businesswoman Cindy Hensley McCain (top photo, left) will receive the Muhammad Ali Humanitarian Award for Lifetime Achievement; she is the wife of Arizona Sen. John McCain.
  • Academy Award-winning actor and humanitarian Louis Gossett Jr. (top, right) will get the Muhammad Ali Humanitarian Award for Education.
  • Tony Award-winning actress, singer and activist Sheryl Lee Ralph will receive the Muhammad Ali Humanitarian Award for Global Citizenship.
  • Grammy Award-winning singer/songwriter and humanitarian Jon Secada will be honored with the Muhammad Ali Humanitarian of the Year Award.
  • John Rosenberg of Prestonburg, Ky., an attorney and founding director of the Appalachian Research and Defense Fund of Kentucky, will get the the Muhammad Ali Kentucky Humanitarian Award.

Here are the detailed biographies of the honorees provided by the Ali Center: Continue reading “Ali Center to salute McCain, Gossett, three others at annual awards ceremony”

Pizza king Schnatter leads 10 Kentuckians kicking $100K into state Republican party’s coffers

The Papa John’s founder and CEO John Schnatter and his wife Annette headlined a group of well-heeled donors to the state Republican Party last month, boosting its treasury by $151,000 and possibly pushing it even further ahead of the Democratics, according to its monthly Federal Election Commission report filed yesterday.

The party had $1.6 million on hand at the end of the month, after spending $188,000, the report said.

The Democrats have not filed their July report yet. But in June, they raised just $48,000 to the Republicans’ $155,000. That left the Democrats with only $48,000 in the bank.

The Schnatters and just eight other $10,000 donors accounted for 66% of all the party’s receipts during in July, underscoring the role of a handful of wealthy residents in this year’s elections. Among them, Schnatter especially can afford do be generous: His stake in the pizza chain he founded in 1984 soared above $800 million less than two weeks ago after a run-up in the stock’s price.

The others $10,000 Republican donors were:

  • John W. Landrum of Harrodsburg, retired.
  • Henry R. Saufley III, owner, Builders Supply.
  • Pam Stephens of Russell Springs, bookkeeper and accountant at Stephens Pipe and Steele.
  • James Stuckert of Prospect, partner at investment firm Hilliard Lyons, Diane Stuckert, retired.
  • E. Duncan Taylor of Lexington, horse breeder, Taylor Made Farms.
  • William Wilburn of Eubank, president, Cumberland Security Bank, and Sherry Wilburn, a homemaker.