DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's
Neighborhood Grill & Bar® and IHOP® restaurants,
today announced financial results for the third quarter of 2013.
“I am pleased with our same-restaurant sales performance in a
challenging economic environment. We are building momentum and are on
the right track with consumers. We are continuing to execute on our
strategy to differentiate both brands, driving both innovation and
change,” said Julia A. Stewart, Chairman and Chief Executive Officer of
DineEquity, Inc. “During the third quarter, we generated substantial
free cash flow, which allowed us to return significant cash to
stockholders through the combination of a cash dividend payment and
share repurchases. I am confident in our strategy for long-term success.”
Third Quarter 2013 Financial Highlights
-
Adjusted net income available to common stockholders was $21.0
million, representing adjusted earnings per diluted share of $1.10 for
the third quarter of 2013, which includes approximately $3.8 million
in non-recurring termination fees arising from the previously
disclosed bankruptcy filing by an Applebee’s franchisee. This compares
to $18.9 million, or adjusted earnings per diluted share of $1.03, for
the third quarter of 2012. The increase in adjusted net income was due
to lower cash interest expense and a decline in general and
administrative expenses. The increase was partially offset by, as
expected, lower segment profit resulting from the refranchise and sale
of 137 Applebee’s company-operated restaurants during the third and
fourth quarters of 2012, and a higher tax rate. (See “Non-GAAP
Financial Measures” below.)
-
GAAP net income available to common stockholders was $18.4 million, or
earnings per diluted share of $0.97 for the third quarter of 2013,
compared to $58.7 million, or earnings per diluted share of $3.14, for
the third quarter of 2012. The decrease in net income was primarily
due to the impact of 2012 refranchising asset sales and related lower
segment profit. These items were partially offset by lower income tax
expense, a decline in general and administrative expenses, and lower
interest expense.
-
Consolidated general and administrative expenses were $35.3 million
for the third quarter of 2013 compared to $48.7 million in the third
quarter of 2012. The decrease was primarily due to a non-recurring
$9.0 million charge recorded in the third quarter of 2012 related to
settlement of litigation that commenced prior to our acquisition of
Applebee’s and lower personnel costs.
First Nine Months of 2013 Highlights
-
Adjusted net income available to common stockholders was $62.5 million
in the first nine months of 2013, representing adjusted earnings per
diluted share of $3.26. This compares to $62.6 million, or adjusted
earnings per diluted share of $3.44, for the same period in 2012. The
decrease was primarily due to lower segment profit as a result of
refranchising and a higher tax rate. These items were partially offset
by lower cash interest expense and a decline in general and
administrative expenses. (See “Non-GAAP Financial Measures” below.)
-
GAAP net income available to common stockholders was $53.0 million in
the first nine months of 2013, or earnings per diluted share of $2.76,
compared to $104.3 million, or earnings per diluted share of $5.66 for
the same period in 2012. The decrease in net income was primarily due
to the impact of 2012 refranchising asset sales and related lower
segment profit. These items were partially offset by lower income tax
expense, a decline in general and administrative expenses, and lower
interest expense.
-
Consolidated general and administrative expenses were $105.0 million
in the first nine months of 2013 compared to $125.6 million for the
same period of 2012. The decrease was primarily due to a decline in
compensation costs and a non-recurring $9.0 million charge recorded in
the third quarter of 2012 related to settlement of litigation.
-
EBITDA was $211.9 million for the first nine months of 2013. (See
“Non-GAAP Financial Measures” below.)
-
For the first nine months of 2013, cash flows from operating
activities were $102.8 million, principal receipts from long-term
receivables were $10.3 million, capital expenditures were $4.5
million, principal payments on capital lease and financing obligations
were $7.5 million, the mandatory 1% repayment on the Term Loan
principal balance was $2.4 million, and free cash flow was $98.6
million. (See “Non-GAAP Financial Measures” below.)
Same-Restaurant Sales Performance
Third Quarter 2013
-
Applebee’s domestic system-wide same-restaurant sales decreased 0.4%
for the third quarter of 2013 compared to the same quarter of 2012.
The decrease in same-restaurant sales reflected a decline in traffic,
partially offset by an increase in average guest check.
-
IHOP’s domestic system-wide same restaurant sales increased 3.6% for
the third quarter of 2013 compared to the same quarter of 2012. The
increase in same-restaurant sales reflected a higher average guest
check, largely due to a favorable shift in product mix. The increase
was partially offset by a decline in traffic.
First Nine Months of 2013
-
Applebee’s domestic system-wide same-restaurant sales decreased 0.1%
for the first nine months of 2013 compared to the same period in 2012.
The decrease in same-restaurant sales reflected a decline in traffic,
partially offset by an increase in average guest check.
-
IHOP’s domestic system-wide same restaurant sales increased 1.7% for
the first nine months of 2013 compared to the same period in 2012. The
increase in same-restaurant sales reflected a higher average guest
check, partially offset by a decline in traffic.
Financial Performance Guidance for Fiscal 2013
-
Revised Applebee’s domestic system-wide same-restaurant sales
performance to range between negative 0.5% and positive 0.5%. This
reflects a narrowing of the range from our previous expectations of
between negative 1.5% and positive 1.5%.
-
Revised IHOP’s domestic system-wide same-restaurant sales
performance to range between positive 2.0% and positive 3.0%. This
reflects an increase from previous expectations of between negative
1.5% and positive 1.5%.
-
Revised Applebee’s franchisees to develop between 25 and 30 new
restaurants, the majority of which are expected to be opened in the
U.S. This reflects a reduction from previous expectations of between
40 and 50 new restaurants.
-
Reiterated IHOP franchisees and its area licensee to develop
between 50 and 60 new restaurants, the majority of which are expected
to be domestic openings.
-
Revised Franchise segment profit to be between $329 million and
$331 million. This reflects an increase from previous expectations of
between $312 million and $325 million.
-
Revised Company Restaurants segment profit to breakeven. This
is net of approximately $2 million of depreciation and amortization.
The profit revision reflects a reduction from previous expectations of
approximately $1 million on an annualized basis. DineEquity will
operate its remaining company-operated restaurants to primarily test
new products, operational improvements, technology, and service
platforms.
-
Revised Rental and Financing segments are expected to generate
approximately $40 million in combined profit. This reflects an
increase from previous expectations of between $34 million and $35
million in combined profit.
-
Revised expectations for consolidated general and
administrative expenses to between $142 million and $144 million,
including non-cash stock-based compensation expense and depreciation
of approximately $16 million.
-
Revised expectations for consolidated interest expense to be
approximately $101 million. Approximately $6 million is expected to be
non-cash interest expense.
-
Reiterated the income tax rate to be approximately 38%.
-
Revised consolidated cash from operations is expected to range
between $102 million and $116 million. This reflects an increase from
previous expectations of between $88 million and $102 million. The
increase is primarily due to improvements in net income and net
working capital.
-
Reiterated the structural run-off of the Company’s long-term
receivables is expected to be approximately $14 million.
-
Reiterated the principal payments on capital leases and
financing obligations will be approximately $10 million.
-
Revised consolidated capital expenditures are expected to be
approximately $7 million. This reflects a reduction from expectations
of capital expenditures between $8 million and $10 million.
-
Reiterated a mandatory annual repayment of 1% on the current
outstanding Term Loan principal balance will be $4.7 million.
-
Revised consolidated free cash flow (see "Non-GAAP Measures"
below) to range between $93 million and $108 million. This reflects an
increase from previous expectations of $77 to $93 million.
Consolidated free cash flow is defined as consolidated cash from
operations, plus principal receipts from long-term receivables, less
principal payments on capital leases and financing obligations,
consolidated capital expenditures, and the mandatory annual repayment
of 1% on our Term Loan principal balance.
-
Reiterated net income allocated to unvested participating
restricted stock is expected to total approximately $1.5 million.
-
Revised weighted average diluted shares outstanding are
expected to be approximately 19.1 million. This reflects an increase
from the prior year primarily due to the fourth quarter 2012
conversion of the Series B Convertible Preferred Stock into the
Company's common stock. No estimate is made in this number for any
potential share repurchases.
-
Adjusted earnings per diluted share for fiscal 2013 are expected to be
between $4.14 and $4.24.
Investor Conference Call Today
The Company will host an investor conference call on Tuesday, October
29, 2013, at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss
its third quarter 2013 results. To participate on the call, please dial
(888) 679-8035 and reference pass code 18020176. International callers,
please dial (617) 213-4848 and reference pass code 18020176.
Participants may also pre-register to obtain a unique pin number to join
the live call without operator assistance by visiting the following Web
site:
https://www.theconferencingservice.com/prereg/key.process?key=PGV9RUDHQ
A live webcast of the call will be available on DineEquity's Web site at www.dineequity.com,
and may be accessed by visiting Calls & Presentations under the site’s
Investors section. Participants should allow approximately ten minutes
prior to the call's start time to visit the site and download any
streaming media software needed to listen to the webcast. A telephonic
replay of the call may be accessed through 11:59 p.m. Pacific Time on
November 5, 2013 by dialing (888) 286-8010 and referencing pass code
85927053. International callers, please dial (617) 801-6888 and
reference pass code 85927053. An online archive of the webcast also will
be available on the Investors section of DineEquity's Web site.
About DineEquity, Inc.
Based in Glendale, California, DineEquity, Inc., through its
subsidiaries, franchises and operates restaurants under the Applebee’s
Neighborhood Grill & Bar and IHOP brands. With more than 3,600
restaurants combined in 19 countries, over 400 franchisees and
approximately 200,000 team members (including franchisee- and
company-operated restaurant employees), DineEquity is one of the largest
full-service restaurant companies in the world. For more information on
DineEquity, visit the Company's Web site located at www.dineequity.com.
Forward-Looking Statements
Statements contained in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. You can identify these forward-looking
statements by words such as "may," "will," "should," "expect,"
"anticipate," "believe," "estimate," "intend," "plan" and other similar
expressions. These statements involve known and unknown risks,
uncertainties and other factors, which may cause actual results to be
materially different from those expressed or implied in such statements.
These factors include, but are not limited to: the effect of general
economic conditions; the Company's indebtedness; risk of future
impairment charges; trading volatility and the price of the Company’s
common stock; the Company's results in any given period differing from
guidance provided to the public; the highly competitive nature of the
restaurant business; the Company's business strategy failing to achieve
anticipated results; risks associated with the restaurant industry;
risks associated with locations of current and future restaurants;
rising costs for food commodities and utilities; shortages or
interruptions in the supply or delivery of food; ineffective marketing
and guest relationship initiatives and use of social media; changing
health or dietary preferences; our engagement in business in foreign
markets; harm to our brands' reputation; litigation; third-party claims
with respect to intellectual property assets; environmental liability;
liability relating to employees; failure to comply with applicable laws
and regulations; failure to effectively implement restaurant development
plans; our dependence upon our franchisees; concentration of Applebee's
franchised restaurants in a limited number of franchisees; credit risk
from IHOP franchisees operating under our previous business model;
termination or non-renewal of franchise agreements; franchisees
breaching their franchise agreements; insolvency proceedings involving
franchisees; changes in the number and quality of franchisees; inability
of franchisees to fund capital expenditures; heavy dependence on
information technology; the occurrence of cyber incidents or a
deficiency in our cybersecurity; failure to execute on a business
continuity plan; inability to attract and retain talented employees;
risks associated with retail brand initiatives; failure of our internal
controls; and other factors discussed from time to time in the Company's
Annual and Quarterly Reports on Forms 10-K and 10-Q and in the Company's
other filings with the Securities and Exchange Commission. The
forward-looking statements contained in this release are made as of the
date hereof and the Company assumes no obligation to update or
supplement any forward-looking statements.
Non-GAAP Financial Measures
This news release includes references to the Company's non-GAAP
financial measures "adjusted net income available to common stockholders
(adjusted EPS)," "EBITDA," "free cash flow," and "segment EBITDA."
"Adjusted EPS" is computed for a given period by deducting from net
income (loss) available to common stockholders for such period the
effect of any closure and impairment charges, any gain or loss related
to debt extinguishment, any intangible asset amortization, any non-cash
interest expense, any debt modification costs, any one-time litigation
settlement charges, any general and administrative restructuring costs,
net of savings, any gain or loss related to the disposition of assets,
and any state income tax impact of deferred taxes due to refranchising
incurred in such period. This is presented on an aggregate basis and a
per share (diluted) basis. The Company defines "EBITDA" for a given
period as income before income taxes less interest expense, loss on
extinguishment of debt, depreciation and amortization, closure and
impairment charges, non-cash stock-based compensation, gain/loss on
disposition of assets and other charge backs as defined by its credit
agreement. "Free cash flow" for a given period is defined as cash
provided by operating activities, plus receipts from notes and equipment
contracts receivable ("long-term notes receivable"), less principal
payments on capital lease and financing obligations, the mandatory 1% of
Term Loan principal balance repayment, and capital expenditures.
"Segment EBITDA" for a given period is defined as gross segment profit
plus depreciation and amortization as well as interest charges related
to the segment. Management utilizes EBITDA for debt covenant purposes
and free cash flow to determine the amount of cash remaining for general
corporate and strategic purposes after the receipts from long-term
receivables, and the funding of operating activities, capital
expenditures and dividends. Management believes this information is
helpful to investors to determine the Company's adherence to debt
covenants and the Company's cash available for these purposes. Adjusted
EPS, EBITDA, free cash flow and segment EBITDA are supplemental non-GAAP
financial measures and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
United States generally accepted accounting principles.
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Consolidated Statements of Income
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Segment Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise and restaurant revenues
|
|
|
$
|
127,137
|
|
|
|
$
|
182,246
|
|
|
|
$
|
379,619
|
|
|
|
$
|
587,801
|
|
Rental revenues
|
|
|
30,990
|
|
|
|
30,920
|
|
|
|
92,724
|
|
|
|
92,096
|
|
Financing revenues
|
|
|
3,156
|
|
|
|
3,152
|
|
|
|
10,223
|
|
|
|
11,394
|
|
Total segment revenues
|
|
|
161,283
|
|
|
|
216,318
|
|
|
|
482,566
|
|
|
|
691,291
|
|
Segment Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise and restaurant expenses
|
|
|
44,091
|
|
|
|
95,689
|
|
|
|
130,875
|
|
|
|
313,424
|
|
Rental expenses
|
|
|
24,149
|
|
|
|
24,237
|
|
|
|
72,953
|
|
|
|
73,075
|
|
Financing expenses
|
|
|
—
|
|
|
|
15
|
|
|
|
245
|
|
|
|
1,586
|
|
Total segment expenses
|
|
|
68,240
|
|
|
|
119,941
|
|
|
|
204,073
|
|
|
|
388,085
|
|
Gross segment profit
|
|
|
93,043
|
|
|
|
96,377
|
|
|
|
278,493
|
|
|
|
303,206
|
|
General and administrative expenses
|
|
|
35,331
|
|
|
|
48,737
|
|
|
|
105,004
|
|
|
|
125,608
|
|
Interest expense
|
|
|
24,979
|
|
|
|
28,896
|
|
|
|
75,230
|
|
|
|
88,767
|
|
Amortization of intangible assets
|
|
|
3,072
|
|
|
|
3,072
|
|
|
|
9,212
|
|
|
|
9,222
|
|
Closure and impairment charges
|
|
|
(392
|
)
|
|
|
420
|
|
|
|
770
|
|
|
|
1,264
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
2,306
|
|
|
|
36
|
|
|
|
4,917
|
|
Debt modification costs
|
|
|
—
|
|
|
|
—
|
|
|
|
1,296
|
|
|
|
—
|
|
Gain on disposition of assets
|
|
|
(72
|
)
|
|
|
(73,650
|
)
|
|
|
(326
|
)
|
|
|
(89,642
|
)
|
Income before income taxes
|
|
|
30,125
|
|
|
|
86,596
|
|
|
|
87,271
|
|
|
|
163,070
|
|
Income tax provision
|
|
|
(11,395
|
)
|
|
|
(26,023
|
)
|
|
|
(33,365
|
)
|
|
|
(54,215
|
)
|
Net income
|
|
|
$
|
18,730
|
|
|
|
$
|
60,573
|
|
|
|
$
|
53,906
|
|
|
|
$
|
108,855
|
|
Net income available to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
18,730
|
|
|
|
$
|
60,573
|
|
|
|
$
|
53,906
|
|
|
|
$
|
108,855
|
|
Less: Net income allocated to unvested participating restricted stock
|
|
|
(296
|
)
|
|
|
(1,187
|
)
|
|
|
(925
|
)
|
|
|
(2,477
|
)
|
Less: Accretion of Series B Convertible Preferred Stock
|
|
|
—
|
|
|
|
(688
|
)
|
|
|
—
|
|
|
|
(2,033
|
)
|
Net income available to common stockholders
|
|
|
$
|
18,434
|
|
|
|
$
|
58,698
|
|
|
|
$
|
52,981
|
|
|
|
$
|
104,345
|
|
Net income available to common stockholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.98
|
|
|
|
$
|
3.26
|
|
|
|
$
|
2.80
|
|
|
|
$
|
5.84
|
|
Diluted
|
|
|
$
|
0.97
|
|
|
|
$
|
3.14
|
|
|
|
$
|
2.76
|
|
|
|
$
|
5.66
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,831
|
|
|
|
18,006
|
|
|
|
18,898
|
|
|
|
17,859
|
|
Diluted
|
|
|
19,085
|
|
|
|
18,924
|
|
|
|
19,166
|
|
|
|
18,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
$
|
0.75
|
|
|
|
$
|
—
|
|
|
|
$
|
2.25
|
|
|
|
$
|
—
|
|
Dividends paid per common share
|
|
|
$
|
0.75
|
|
|
|
$
|
—
|
|
|
|
$
|
2.25
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
(In thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
December 31, 2012
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
95,535
|
|
|
|
|
$
|
64,537
|
|
Receivables, net
|
|
|
|
87,276
|
|
|
|
|
128,610
|
|
Prepaid income taxes
|
|
|
|
3,619
|
|
|
|
|
16,080
|
|
Prepaid gift cards
|
|
|
|
42,840
|
|
|
|
|
50,242
|
|
Deferred income taxes
|
|
|
|
24,811
|
|
|
|
|
21,772
|
|
Other current assets
|
|
|
|
7,683
|
|
|
|
|
13,214
|
|
Total current assets
|
|
|
|
261,764
|
|
|
|
|
294,455
|
|
Long-term receivables
|
|
|
|
201,080
|
|
|
|
|
212,269
|
|
Property and equipment, net
|
|
|
|
281,432
|
|
|
|
|
294,375
|
|
Goodwill
|
|
|
|
697,470
|
|
|
|
|
697,470
|
|
Other intangible assets, net
|
|
|
|
797,061
|
|
|
|
|
806,093
|
|
Other assets, net
|
|
|
|
108,909
|
|
|
|
|
110,738
|
|
Total assets
|
|
|
|
$
|
2,347,716
|
|
|
|
|
$
|
2,415,400
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
|
$
|
4,720
|
|
|
|
|
$
|
7,420
|
|
Accounts payable
|
|
|
|
33,339
|
|
|
|
|
30,751
|
|
Gift card liability
|
|
|
|
93,198
|
|
|
|
|
161,689
|
|
Accrued employee compensation and benefits
|
|
|
|
18,063
|
|
|
|
|
22,435
|
|
Accrued interest payable
|
|
|
|
35,825
|
|
|
|
|
13,236
|
|
Current maturities of capital lease and financing obligations
|
|
|
|
11,974
|
|
|
|
|
10,878
|
|
Other accrued expenses
|
|
|
|
20,201
|
|
|
|
|
21,351
|
|
Total current liabilities
|
|
|
|
217,320
|
|
|
|
|
267,760
|
|
Long-term debt, less current maturities
|
|
|
|
1,204,998
|
|
|
|
|
1,202,063
|
|
Capital lease obligations, less current maturities
|
|
|
|
115,351
|
|
|
|
|
124,375
|
|
Financing obligations, less current maturities
|
|
|
|
51,930
|
|
|
|
|
52,049
|
|
Deferred income taxes
|
|
|
|
349,202
|
|
|
|
|
362,171
|
|
Other liabilities
|
|
|
|
98,919
|
|
|
|
|
98,177
|
|
Total liabilities
|
|
|
|
2,037,720
|
|
|
|
|
2,106,595
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, shares: 40,000,000 authorized;
September 30, 2013 - 25,308,295 issued, 19,029,164 outstanding;
December 31, 2012 - 25,362,946 issued, 19,197,899 outstanding
|
|
|
|
253
|
|
|
|
|
254
|
|
Additional paid-in-capital
|
|
|
|
270,799
|
|
|
|
|
264,342
|
|
Retained earnings
|
|
|
|
332,740
|
|
|
|
|
322,045
|
|
Accumulated other comprehensive loss
|
|
|
|
(157
|
)
|
|
|
|
(152
|
)
|
Treasury stock, at cost; shares: September 30, 2013 - 6,279,131;
December 31, 2012 - 6,165,047
|
|
|
|
(293,639
|
)
|
|
|
|
(277,684
|
)
|
Total stockholders’ equity
|
|
|
|
309,996
|
|
|
|
|
308,805
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
2,347,716
|
|
|
|
|
$
|
2,415,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
|
2013
|
|
|
|
2012
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
53,906
|
|
|
|
|
$
|
108,855
|
|
Adjustments to reconcile net income to cash flows provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
26,516
|
|
|
|
|
30,756
|
|
Non-cash interest expense
|
|
|
|
4,635
|
|
|
|
|
4,547
|
|
Loss on extinguishment of debt
|
|
|
|
36
|
|
|
|
|
4,917
|
|
Closure and impairment charges
|
|
|
|
1,166
|
|
|
|
|
991
|
|
Deferred income taxes
|
|
|
|
(16,007
|
)
|
|
|
|
(20,361
|
)
|
Non-cash stock-based compensation expense
|
|
|
|
7,081
|
|
|
|
|
8,799
|
|
Tax benefit from stock-based compensation
|
|
|
|
3,001
|
|
|
|
|
6,334
|
|
Excess tax benefit from share-based compensation
|
|
|
|
(1,985
|
)
|
|
|
|
(4,757
|
)
|
Gain on disposition of assets
|
|
|
|
(326
|
)
|
|
|
|
(89,642
|
)
|
Other
|
|
|
|
791
|
|
|
|
|
(1,768
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
41,698
|
|
|
|
|
41,422
|
|
Current income tax receivables and payables
|
|
|
|
7,232
|
|
|
|
|
12,512
|
|
Other current assets
|
|
|
|
16,054
|
|
|
|
|
7,414
|
|
Accounts payable
|
|
|
|
2,650
|
|
|
|
|
2,080
|
|
Accrued employee compensation and benefits
|
|
|
|
(4,372
|
)
|
|
|
|
(6,490
|
)
|
Gift card liability
|
|
|
|
(68,493
|
)
|
|
|
|
(62,841
|
)
|
Other accrued expenses
|
|
|
|
29,231
|
|
|
|
|
25,298
|
|
Cash flows provided by operating activities
|
|
|
|
102,814
|
|
|
|
|
68,066
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
|
(4,547
|
)
|
|
|
|
(13,477
|
)
|
Proceeds from sale of property and equipment and assets held for sale
|
|
|
|
—
|
|
|
|
|
137,449
|
|
Principal receipts from notes, equipment contracts and other
long-term receivables
|
|
|
|
10,254
|
|
|
|
|
10,276
|
|
Other
|
|
|
|
282
|
|
|
|
|
964
|
|
Cash flows provided by investing activities
|
|
|
|
5,989
|
|
|
|
|
135,212
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Borrowings under revolving credit facilities
|
|
|
|
—
|
|
|
|
|
50,000
|
|
Repayments under revolving credit facilities
|
|
|
|
—
|
|
|
|
|
(50,000
|
)
|
Repayment of long-term debt (including premiums)
|
|
|
|
(2,400
|
)
|
|
|
|
(184,237
|
)
|
Payment of debt modification costs
|
|
|
|
(1,296
|
)
|
|
|
|
—
|
|
Principal payments on capital lease and financing obligations
|
|
|
|
(7,515
|
)
|
|
|
|
(8,246
|
)
|
Repurchase of DineEquity common stock
|
|
|
|
(24,663
|
)
|
|
|
|
—
|
|
Dividends paid on common stock
|
|
|
|
(43,170
|
)
|
|
|
|
—
|
|
Repurchase of restricted stock
|
|
|
|
(3,209
|
)
|
|
|
|
(1,690
|
)
|
Proceeds from stock options exercised
|
|
|
|
5,585
|
|
|
|
|
5,443
|
|
Excess tax benefit from share-based compensation
|
|
|
|
1,985
|
|
|
|
|
4,757
|
|
Change in restricted cash
|
|
|
|
(3,122
|
)
|
|
|
|
(8,158
|
)
|
Cash flows used in financing activities
|
|
|
|
(77,805
|
)
|
|
|
|
(192,131
|
)
|
Net change in cash and cash equivalents
|
|
|
|
30,998
|
|
|
|
|
11,147
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
64,537
|
|
|
|
|
60,691
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
95,535
|
|
|
|
|
$
|
71,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
Reconciliation of (i) net income available to common stockholders
to (ii) net income available to common stockholders excluding
closure and impairment charges; loss on extinguishment of debt;
amortization of intangible assets; non-cash interest expense; debt
modification costs; a one-time litigation settlement; general and
administrative ("G&A") restructuring costs, net of savings;
gain/loss on disposition of assets; and the state income tax
impact of deferred taxes due to refranchising, all items net of
taxes (as appropriate), and related per share data:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Net income available to common stockholders, as reported
|
|
|
$
|
18,434
|
|
|
|
$
|
58,698
|
|
|
|
$
|
52,981
|
|
|
|
$
|
104,345
|
|
Closure and impairment charges
|
|
|
(392
|
)
|
|
|
420
|
|
|
|
770
|
|
|
|
1,264
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
2,306
|
|
|
|
36
|
|
|
|
4,917
|
|
Amortization of intangible assets
|
|
|
3,072
|
|
|
|
3,072
|
|
|
|
9,212
|
|
|
|
9,222
|
|
Non-cash interest expense
|
|
|
1,581
|
|
|
|
1,502
|
|
|
|
4,635
|
|
|
|
4,547
|
|
Debt modification costs
|
|
|
—
|
|
|
|
—
|
|
|
|
1,296
|
|
|
|
—
|
|
Litigation settlement
|
|
|
—
|
|
|
|
9,047
|
|
|
|
—
|
|
|
|
9,047
|
|
G&A restructuring costs, net of savings
|
|
|
—
|
|
|
|
1,269
|
|
|
|
—
|
|
|
|
1,269
|
|
Gain on disposition of assets
|
|
|
(72
|
)
|
|
|
(73,650
|
)
|
|
|
(326
|
)
|
|
|
(89,642
|
)
|
Income tax (benefit) provision
|
|
|
(1,592
|
)
|
|
|
21,652
|
|
|
|
(5,937
|
)
|
|
|
22,943
|
|
State income tax impact on deferred taxes due to refranchising
|
|
|
—
|
|
|
|
(6,258
|
)
|
|
|
—
|
|
|
|
(6,258
|
)
|
Net income allocated to unvested participating restricted stock
|
|
|
(45
|
)
|
|
|
806
|
|
|
|
(181
|
)
|
|
|
990
|
|
Net income available to common stockholders, as adjusted
|
|
|
$
|
20,986
|
|
|
|
$
|
18,864
|
|
|
|
$
|
62,486
|
|
|
|
$
|
62,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income available to common stockholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders, as reported
|
|
|
$
|
0.97
|
|
|
|
$
|
3.14
|
|
|
|
$
|
2.76
|
|
|
|
$
|
5.66
|
|
Closure and impairment charges
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.04
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
0.07
|
|
|
|
0.00
|
|
|
|
0.16
|
|
Amortization of intangible assets
|
|
|
0.10
|
|
|
|
0.10
|
|
|
|
0.30
|
|
|
|
0.30
|
|
Noncash interest expense
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
0.15
|
|
|
|
0.15
|
|
Debt modification costs
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
|
|
—
|
|
Litigation settlement
|
|
|
—
|
|
|
|
0.29
|
|
|
|
—
|
|
|
|
0.30
|
|
G&A restructuring costs, net of savings
|
|
|
—
|
|
|
|
0.04
|
|
|
|
—
|
|
|
|
0.04
|
|
Gain on disposition of assets
|
|
|
(0.00
|
)
|
|
|
(2.39
|
)
|
|
|
(0.01
|
)
|
|
|
(2.93
|
)
|
State income tax impact on deferred taxes due to refranchising
|
|
|
—
|
|
|
|
(0.33
|
)
|
|
|
—
|
|
|
|
(0.33
|
)
|
Net income allocated to unvested participating restricted stock
|
|
|
(0.00
|
)
|
|
|
0.04
|
|
|
|
(0.01
|
)
|
|
|
0.05
|
|
Rounding
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
—
|
|
Diluted net income available to common stockholders per share, as
adjusted
|
|
|
$
|
1.10
|
|
|
|
$
|
1.03
|
|
|
|
$
|
3.26
|
|
|
|
$
|
3.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator for basic EPS-income available to common stockholders, as
adjusted
|
|
|
$
|
20,986
|
|
|
|
$
|
18,864
|
|
|
|
$
|
62,486
|
|
|
|
$
|
62,644
|
|
Effect of unvested participating restricted stock using the
two-class method
|
|
|
1
|
|
|
|
18
|
|
|
|
5
|
|
|
|
73
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible Series B preferred stock
|
|
|
—
|
|
|
|
688
|
|
|
|
—
|
|
|
|
2,033
|
|
Numerator for diluted EPS-income available to common stockholders
after assumed conversions, as adjusted
|
|
|
$
|
20,987
|
|
|
|
$
|
19,570
|
|
|
|
$
|
62,491
|
|
|
|
$
|
64,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic EPS-weighted-average shares
|
|
|
18,831
|
|
|
|
18,006
|
|
|
|
18,898
|
|
|
|
17,859
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options
|
|
|
254
|
|
|
|
246
|
|
|
|
268
|
|
|
|
270
|
|
Convertible Series B preferred stock
|
|
|
—
|
|
|
|
672
|
|
|
|
—
|
|
|
|
672
|
|
Denominator for diluted EPS-weighted-average shares and assumed
conversions
|
|
|
19,085
|
|
|
|
18,924
|
|
|
|
19,166
|
|
|
|
18,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Non-GAAP Financial Measures
|
(In thousands)
|
(Unaudited)
|
|
Reconciliation of U.S. GAAP income before income taxes to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
September 30, 2013
|
U.S. GAAP income before income taxes
|
|
|
|
$
|
87,271
|
|
|
|
|
$
|
119,124
|
|
Interest charges
|
|
|
|
87,545
|
|
|
|
|
117,440
|
|
Loss on extinguishment of debt
|
|
|
|
36
|
|
|
|
|
673
|
|
Depreciation and amortization
|
|
|
|
26,516
|
|
|
|
|
35,298
|
|
Non-cash stock-based compensation
|
|
|
|
7,081
|
|
|
|
|
9,724
|
|
Closure and impairment charges
|
|
|
|
770
|
|
|
|
|
3,724
|
|
Other
|
|
|
|
3,017
|
|
|
|
|
13,163
|
|
Gain on sale of assets
|
|
|
|
(326
|
)
|
|
|
|
(13,281
|
)
|
EBITDA
|
|
|
|
$
|
211,910
|
|
|
|
|
$
|
285,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of the Company's cash provided by operating activities to
"free cash flow" (cash from operations, plus receipts from notes,
equipment contracts and other long-term receivables, less consolidated
capital expenditures, principal payments on capital leases and financing
obligations and the mandatory annual repayment of 1% of our Term Loan
principal balance):
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
|
2013
|
|
|
|
2012
|
Cash flows provided by operating activities
|
|
|
|
$
|
102,814
|
|
|
|
|
$
|
68,066
|
|
Principal receipts from long-term receivables
|
|
|
|
10,254
|
|
|
|
|
10,276
|
|
Additions to property and equipment
|
|
|
|
(4,547
|
)
|
|
|
|
(13,477
|
)
|
Principal payments on capital lease and financing obligations
|
|
|
|
(7,515
|
)
|
|
|
|
(8,246
|
)
|
Mandatory 1% of Term Loans principal balance repayment
|
|
|
|
(2,400
|
)
|
|
|
|
(5,565
|
)
|
Free cash flow
|
|
|
|
98,606
|
|
|
|
|
51,054
|
|
Dividends paid on common stock
|
|
|
|
(43,170
|
)
|
|
|
|
—
|
|
Repurchase of DineEquity common stock
|
|
|
|
(24,663
|
)
|
|
|
|
—
|
|
|
|
|
|
$
|
30,773
|
|
|
|
|
$
|
51,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Non-GAAP Financial Measures
|
(In millions)
|
(Unaudited)
|
|
Reconciliation of U.S. GAAP gross segment profit to segment EBITDA:
|
|
|
|
|
|
|
|
Three months ended September 30, 2013
|
|
|
|
Franchise - Applebee's
|
|
|
Franchise - IHOP
|
|
|
Company Restaurants
|
|
|
Rental Operations
|
|
|
Financing Operations
|
|
|
Total
|
Revenue
|
|
|
$
|
50,912
|
|
|
|
$
|
60,806
|
|
|
|
$
|
15,419
|
|
|
|
$
|
30,990
|
|
|
|
$
|
3,156
|
|
|
|
$
|
161,283
|
Expense
|
|
|
1,619
|
|
|
|
26,775
|
|
|
|
15,697
|
|
|
|
24,149
|
|
|
|
—
|
|
|
|
68,240
|
Gross segment profit
|
|
|
49,293
|
|
|
|
34,031
|
|
|
|
(278
|
)
|
|
|
6,841
|
|
|
|
3,156
|
|
|
|
93,043
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
|
2,671
|
|
|
|
—
|
|
|
|
545
|
|
|
|
3,339
|
|
|
|
—
|
|
|
|
6,555
|
Interest charges
|
|
|
—
|
|
|
|
—
|
|
|
|
92
|
|
|
|
3,846
|
|
|
|
—
|
|
|
|
3,938
|
Segment EBITDA
|
|
|
$
|
51,964
|
|
|
|
$
|
34,031
|
|
|
|
$
|
359
|
|
|
|
$
|
14,026
|
|
|
|
$
|
3,156
|
|
|
|
$
|
103,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2012
|
|
|
|
Franchise - Applebee's
|
|
|
Franchise - IHOP
|
|
|
Company Restaurants
|
|
|
Rental Operations
|
|
|
Financing Operations
|
|
|
Total
|
Revenue
|
|
|
$
|
43,771
|
|
|
|
$
|
58,903
|
|
|
|
$
|
79,572
|
|
|
|
$
|
30,920
|
|
|
|
$
|
3,152
|
|
|
|
$
|
216,318
|
Expense
|
|
|
1,129
|
|
|
|
26,019
|
|
|
|
68,541
|
|
|
|
24,237
|
|
|
|
15
|
|
|
|
119,941
|
Gross segment profit
|
|
|
42,642
|
|
|
|
32,884
|
|
|
|
11,031
|
|
|
|
6,683
|
|
|
|
3,137
|
|
|
|
96,377
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
|
2,478
|
|
|
|
—
|
|
|
|
1,645
|
|
|
|
3,362
|
|
|
|
—
|
|
|
|
7,485
|
Interest charges
|
|
|
—
|
|
|
|
—
|
|
|
|
93
|
|
|
|
4,189
|
|
|
|
—
|
|
|
|
4,282
|
Segment EBITDA
|
|
|
$
|
45,120
|
|
|
|
$
|
32,884
|
|
|
|
$
|
12,769
|
|
|
|
$
|
14,234
|
|
|
|
$
|
3,137
|
|
|
|
$
|
108,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2013
|
|
|
|
Franchise - Applebee's
|
|
|
Franchise - IHOP
|
|
|
Company Restaurants
|
|
|
Rental Operations
|
|
|
Financing Operations
|
|
|
Total
|
Revenue
|
|
|
$
|
151,868
|
|
|
|
$
|
179,710
|
|
|
|
$
|
48,041
|
|
|
|
$
|
92,724
|
|
|
|
$
|
10,223
|
|
|
|
$
|
482,566
|
Expense
|
|
|
4,551
|
|
|
|
78,173
|
|
|
|
48,151
|
|
|
|
72,953
|
|
|
|
245
|
|
|
|
204,073
|
Gross segment profit
|
|
|
147,317
|
|
|
|
101,537
|
|
|
|
(110
|
)
|
|
|
19,771
|
|
|
|
9,978
|
|
|
|
278,493
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
|
8,142
|
|
|
|
—
|
|
|
|
1,616
|
|
|
|
10,093
|
|
|
|
—
|
|
|
|
19,851
|
Interest charges
|
|
|
—
|
|
|
|
—
|
|
|
|
279
|
|
|
|
11,958
|
|
|
|
—
|
|
|
|
12,237
|
Segment EBITDA
|
|
|
$
|
155,459
|
|
|
|
$
|
101,537
|
|
|
|
$
|
1,785
|
|
|
|
$
|
41,822
|
|
|
|
$
|
9,978
|
|
|
|
$
|
310,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2012
|
|
|
|
Franchise - Applebee's
|
|
|
Franchise - IHOP
|
|
|
Company Restaurants
|
|
|
Rental Operations
|
|
|
Financing Operations
|
|
|
Total
|
Revenue
|
|
|
$
|
137,540
|
|
|
|
$
|
176,002
|
|
|
|
$
|
274,259
|
|
|
|
$
|
92,096
|
|
|
|
$
|
11,394
|
|
|
|
$
|
691,291
|
Expense
|
|
|
3,075
|
|
|
|
78,051
|
|
|
|
232,298
|
|
|
|
73,075
|
|
|
|
1,586
|
|
|
|
388,085
|
Gross segment profit
|
|
|
134,465
|
|
|
|
97,951
|
|
|
|
41,961
|
|
|
|
19,021
|
|
|
|
9,808
|
|
|
|
303,206
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
|
7,416
|
|
|
|
—
|
|
|
|
6,354
|
|
|
|
10,271
|
|
|
|
—
|
|
|
|
24,041
|
Interest charges
|
|
|
—
|
|
|
|
—
|
|
|
|
285
|
|
|
|
12,835
|
|
|
|
—
|
|
|
|
13,120
|
Segment EBITDA
|
|
|
$
|
141,881
|
|
|
|
$
|
97,951
|
|
|
|
$
|
48,600
|
|
|
|
$
|
42,127
|
|
|
|
$
|
9,808
|
|
|
|
$
|
340,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant Data
The following table sets forth, for the three and nine months ended
September 30, 2013 and 2012, the number of "Effective Restaurants" in
the Applebee’s and IHOP systems and information regarding the percentage
change in sales at those restaurants compared to the same periods in the
prior year. Sales at restaurants that are owned by franchisees and area
licensees are not attributable to the Company. However, we believe that
presentation of this information is useful in analyzing our revenues
because franchisees and area licensees pay us royalties and advertising
fees that are generally based on a percentage of their sales, and, where
applicable, rental payments under leases that may be partially based on
a percentage of their sales. Management also uses this information to
make decisions about future plans for the development of additional
restaurants as well as evaluation of current operations.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
Applebee's Restaurant Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Restaurants(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
1,986
|
|
|
|
1,871
|
|
|
|
1,998
|
|
|
|
1,861
|
|
Company
|
|
|
23
|
|
|
|
144
|
|
|
|
23
|
|
|
|
156
|
|
Total
|
|
|
2,009
|
|
|
|
2,015
|
|
|
|
2,021
|
|
|
|
2,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(b) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales percentage change(c) |
|
|
0.0
|
%
|
|
|
2.4
|
%
|
|
|
0.6
|
%
|
|
|
1.7
|
%
|
Domestic same-restaurant sales percentage change(d) |
|
|
(0.4
|
)%
|
|
|
2.0
|
%
|
|
|
(0.1
|
)%
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise(b)(e) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales percentage change(c) |
|
|
6.2
|
%
|
|
|
8.4
|
%
|
|
|
7.7
|
%
|
|
|
7.0
|
%
|
Domestic same-restaurant sales percentage change(d) |
|
|
(0.4
|
)%
|
|
|
2.2
|
%
|
|
|
(0.1
|
)%
|
|
|
1.2
|
%
|
Average weekly domestic unit sales (in thousands)
|
|
|
$
|
44.9
|
|
|
|
$
|
45.1
|
|
|
|
$
|
47.2
|
|
|
|
$
|
47.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
IHOP Restaurant Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Restaurants(a) |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
1,413
|
|
|
|
1,377
|
|
|
|
1,410
|
|
|
|
1,375
|
|
Area license
|
|
|
168
|
|
|
|
165
|
|
|
|
12
|
|
|
|
165
|
|
Company
|
|
|
12
|
|
|
|
17
|
|
|
|
167
|
|
|
|
15
|
|
Total
|
|
|
1,593
|
|
|
|
1,559
|
|
|
|
1,589
|
|
|
|
1,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(b) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales percentage change(c) |
|
|
6.1
|
%
|
|
|
0.9
|
%
|
|
|
4.2
|
%
|
|
|
1.9
|
%
|
Domestic same-restaurant sales percentage change(d) |
|
|
3.6
|
%
|
|
|
(2.0
|
)%
|
|
|
1.7
|
%
|
|
|
(1.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise(b) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales percentage change(c) |
|
|
6.2
|
%
|
|
|
0.4
|
%
|
|
|
4.3
|
%
|
|
|
1.6
|
%
|
Domestic same-restaurant sales percentage change(d) |
|
|
3.6
|
%
|
|
|
(2.0
|
)%
|
|
|
1.7
|
%
|
|
|
(1.2
|
)%
|
Average weekly domestic unit sales (in thousands)
|
|
|
$
|
35.0
|
|
|
|
$
|
33.8
|
|
|
|
$
|
34.8
|
|
|
|
$
|
34.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Area License (b) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales percentage change(c) |
|
|
7.9
|
%
|
|
|
4.0
|
%
|
|
|
5.6
|
%
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Effective Restaurants are the weighted average number of
restaurants open in a given fiscal period, adjusted to account for
restaurants open for only a portion of the period. Information is
presented for all Effective Restaurants in the Applebee’s and IHOP
systems, which includes restaurants owned by the Company as well
as those owned by franchisees and area licensees.
|
|
|
|
(b)
|
|
“System-wide” sales are retail sales at Applebee’s restaurants
operated by franchisees and IHOP restaurants operated by
franchisees and area licensees, as reported to the Company, in
addition to retail sales at company-operated restaurants. Sales at
restaurants that are owned by franchisees and area licensees are
not attributable to the Company. Unaudited reported sales for
Applebee's domestic franchise restaurants, IHOP franchise
restaurants and IHOP area license restaurants for the three and
nine months ended September 30, 2013 and 2012 were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
(In millions)
|
Reported sales (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Applebee's franchise restaurant sales
|
|
|
$
|
1,073.7
|
|
|
|
$
|
1,011.4
|
|
|
|
$
|
3,409.4
|
|
|
|
$
|
3,165.4
|
IHOP franchise restaurant sales
|
|
|
$
|
642.6
|
|
|
|
$
|
604.8
|
|
|
|
$
|
1,912.7
|
|
|
|
$
|
1,834.6
|
IHOP area license restaurant sales
|
|
|
$
|
61.8
|
|
|
|
$
|
57.3
|
|
|
|
$
|
188.0
|
|
|
|
$
|
178.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
“Sales percentage change” reflects, for each category of
restaurants, the percentage change in sales in any given fiscal
period compared to the prior fiscal period for all restaurants in
that category.
|
|
|
|
(d)
|
|
“Domestic same-restaurant sales percentage change” reflects the
percentage change in sales, in any given fiscal period, compared
to the same weeks in the prior year for domestic restaurants that
have been operated throughout both fiscal periods that are being
compared and have been open for at least 18 months. Because of new
unit openings and restaurant closures, the domestic restaurants
open throughout both fiscal periods being compared may be
different from period to period. Same-restaurant sales percentage
change does not include data on IHOP area license restaurants
located in Florida.
|
|
|
|
(e)
|
|
The sales percentage change for the three and nine months ended
September 30, 2013 and 2012 for Applebee’s franchise restaurants
was impacted by the refranchising of 154 company-operated
restaurants during 2012.
|
|
|
|
|
|
|
|
|
|
DineEquity, Inc. and Subsidiaries
|
Restaurant Data
|
|
The following table summarizes our restaurant development activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
Applebee's Restaurant Development Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
2,012
|
|
|
|
2,018
|
|
|
|
2,034
|
|
|
|
2,019
|
|
New openings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
4
|
|
|
|
5
|
|
|
|
10
|
|
|
|
14
|
|
Total new openings
|
|
|
4
|
|
|
|
5
|
|
|
|
10
|
|
|
|
14
|
|
Closings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
(34
|
)
|
|
|
(17
|
)
|
Total closings
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
(34
|
)
|
|
|
(17
|
)
|
End of period
|
|
|
2,010
|
|
|
|
2,016
|
|
|
|
2,010
|
|
|
|
2,016
|
|
Summary - end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
1,987
|
|
|
|
1,954
|
|
|
|
1,987
|
|
|
|
1,954
|
|
Company
|
|
|
23
|
|
|
|
62
|
|
|
|
23
|
|
|
|
62
|
|
Total
|
|
|
2,010
|
|
|
|
2,016
|
|
|
|
2,010
|
|
|
|
2,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
|
IHOP Restaurant Development Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
1,593
|
|
|
|
1,557
|
|
|
|
1,581
|
|
|
|
1,550
|
|
New openings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
13
|
|
|
|
12
|
|
|
|
31
|
|
|
|
27
|
|
Area license
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
1
|
|
Total new openings
|
|
|
13
|
|
|
|
12
|
|
|
|
35
|
|
|
|
28
|
|
Closings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(13
|
)
|
|
|
(11
|
)
|
Area license
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
(2
|
)
|
Total closings
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(14
|
)
|
|
|
(13
|
)
|
End of period
|
|
|
1,602
|
|
|
|
1,565
|
|
|
|
1,602
|
|
|
|
1,565
|
|
Summary - end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
|
|
|
1,421
|
|
|
|
1,383
|
|
|
|
1,421
|
|
|
|
1,383
|
|
Area license
|
|
|
168
|
|
|
|
165
|
|
|
|
168
|
|
|
|
165
|
|
Company
|
|
|
13
|
|
|
|
17
|
|
|
|
13
|
|
|
|
17
|
|
Total
|
|
|
1,602
|
|
|
|
1,565
|
|
|
|
1,602
|
|
|
|
1,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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