GLENDALE, Calif., May 5, 2016 /PRNewswire/ -- DineEquity, Inc.
(NYSE: DIN), the parent company of Applebee's Neighborhood Grill
& Bar® and IHOP® restaurants, today
announced financial results for the first quarter of fiscal
2016.
"We continued to generate strong free cash flow in the first
quarter and returned the majority of it to our shareholders. We're
aggressively executing our plan to get Applebee's back on track,
including the most transformative platform launch in the brand's
history in the coming weeks. We remain focused on building on
IHOP's momentum through the implementation of several strategic
initiatives that address all aspects of enhancing the guest
experience," said Julia A. Stewart,
Chairman and Chief Executive Officer of DineEquity, Inc.
Ms. Stewart concluded, "We are confident in the steps currently
being taken to drive positive and sustainable sales and traffic at
both brands, while remaining committed to returning the majority of
free cash flow to our shareholders."
First Quarter of Fiscal 2016 Financial Results
- Adjusted net income available to common stockholders was
$29.1 million, or adjusted earnings
per diluted share of $1.58, for the
first quarter of 2016. This compares to $31.1 million, or adjusted earnings per diluted
share of $1.64, for the same period
of 2015. The decline in adjusted net income was mainly due to
the expected increase in general and administrative expenses and
the impact on gross profit from the sale of the remaining
Applebee's company-operated restaurants in the third quarter of
2015. The decline was partially offset by fewer weighted
average shares outstanding. (See "Non-GAAP Financial Measures"
below.)
- GAAP net income available to common stockholders was
$25.2 million for the first quarter
of 2016, or earnings per diluted share of $1.37. This compares to net income
available to common stockholders of $28.0
million, or earnings per diluted share of $1.47, for the first quarter of 2015. The
decline was primarily due to the expected increase in general and
administrative expenses and the impact on gross profit from the
sale of the remaining Applebee's company-operated restaurants in
the third quarter of 2015. These items were partially offset
by fewer weighted average shares outstanding and a decline in
closure and impairment charges.
- General and administrative expenses were $39.4 million for the first quarter of
2016. This compares to $34.2
million for the same period of 2015. The expected
increase was mainly due to $2.1
million of non-recurring costs associated with the
consolidation of our restaurant support center announced on
September 3, 2015, higher personnel
costs and an increase in costs for travel in the first quarter of
2016 compared to the first quarter of 2015.
Same-Restaurant Sales Performance
First Quarter of Fiscal 2016
- IHOP's domestic system-wide same restaurant sales increased
1.5% for the first quarter of 2016 compared to the same period in
2015.
- Applebee's domestic system-wide same-restaurant sales decreased
3.7% for the first quarter of 2016 compared to the first quarter of
2015.
Financial Performance Guidance for Fiscal 2016
DineEquity reiterates its financial performance guidance
for fiscal 2016 contained in the press release issued
on February 24, 2016.
Investor Conference Call Today
DineEquity will host a conference call to discuss its results on
the same day at 11:00 a.m. Eastern
Time/ 8:00 a.m. Pacific
Time. To participate on the call, please dial (888)
771-4371 and reference passcode 42367792. International callers,
please dial (847) 585-4405 and reference passcode 42367792.
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 from 10:30 a.m. Pacific Time on May 5, 2016 through 8:59
p.m. Pacific Time on May 12,
2016 by dialing (888) 843-7419 and referencing passcode
42367792#. International callers, please dial (630) 652-3042
and reference passcode 42367792#. An online archive of the
webcast will also be available on Calls & Presentations under
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 3,700 restaurants combined in 20
countries and U.S. territories and over 400 franchisees, 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; fourth-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)," "free cash flow," and "segment
EBITDA." "Adjusted EPS" is computed for a given period by
deducting from net income or 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 gain or loss
related to the disposition of assets, and other items deemed not
reflective of current operations. This is presented on an
aggregate basis and a per share (diluted) basis. "Free cash
flow" for a given period is defined as cash provided by operating
activities, plus receipts from notes and equipment contracts
receivable, less capital expenditures. Management utilizes
free cash flow to determine the amount of cash remaining for
general corporate and strategic purposes and for the return of cash
to stockholders pursuant to our capital allocation strategy, after
the receipts from notes and equipment contracts receivable, and the
funding of operating activities, capital expenditures and debt
service. 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
and free cash flow 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
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
Franchise and
restaurant revenues
|
|
$
|
129,786
|
|
|
$
|
141,818
|
|
|
Rental
revenues
|
|
31,409
|
|
|
31,402
|
|
|
Financing
revenues
|
|
2,329
|
|
|
2,594
|
|
|
Total
revenues
|
|
163,524
|
|
|
175,814
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Franchise and
restaurant expenses
|
|
40,869
|
|
|
52,026
|
|
|
Rental
expenses
|
|
23,231
|
|
|
23,490
|
|
|
Financing
expenses
|
|
—
|
|
|
12
|
|
|
Total cost of
revenues
|
|
64,100
|
|
|
75,528
|
|
|
Gross
profit
|
|
99,424
|
|
|
100,286
|
|
|
General and
administrative expenses
|
|
39,424
|
|
|
34,230
|
|
|
Interest
expense
|
|
15,366
|
|
|
15,646
|
|
|
Amortization of
intangible assets
|
|
2,480
|
|
|
2,500
|
|
|
Closure and
impairment charges, net
|
|
435
|
|
|
1,827
|
|
|
Loss (gain) on
disposition of assets
|
|
614
|
|
|
(9)
|
|
|
Income before income
tax provision
|
|
41,105
|
|
|
46,092
|
|
|
Income tax
provision
|
|
(15,562)
|
|
|
(17,680)
|
|
|
Net
income
|
|
$
|
25,543
|
|
|
$
|
28,412
|
|
|
Net income
available to common stockholders:
|
|
|
|
|
|
Net income
|
|
$
|
25,543
|
|
|
$
|
28,412
|
|
|
Less: Net income
allocated to unvested participating restricted stock
|
|
(382)
|
|
|
(372)
|
|
|
Net income available
to common stockholders
|
|
$
|
25,161
|
|
|
$
|
28,040
|
|
|
|
|
|
|
|
Net income
available to common stockholders per share:
|
|
|
|
|
|
Basic
|
|
$
|
1.38
|
|
|
$
|
1.49
|
|
|
Diluted
|
|
$
|
1.37
|
|
|
$
|
1.47
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
|
18,260
|
|
|
18,870
|
|
|
Diluted
|
|
18,373
|
|
|
19,019
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.92
|
|
|
$
|
0.875
|
|
|
Dividends paid per
common share
|
|
$
|
0.92
|
|
|
$
|
0.875
|
|
|
|
DineEquity, Inc. and
Subsidiaries
Consolidated
Balance Sheets
(In thousands,
except share and per share amounts)
|
|
|
|
March
31,
2016
|
|
December 31,
2015
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
140,330
|
|
|
$
|
144,785
|
|
|
Receivables,
net
|
|
97,871
|
|
|
139,206
|
|
|
Restricted
cash
|
|
36,927
|
|
|
32,528
|
|
|
Prepaid gift card
costs
|
|
37,202
|
|
|
46,792
|
|
|
Prepaid income
taxes
|
|
—
|
|
|
5,186
|
|
|
Other current
assets
|
|
4,737
|
|
|
4,212
|
|
|
Total current
assets
|
|
317,067
|
|
|
372,709
|
|
|
Long-term
receivables, net
|
|
155,360
|
|
|
160,695
|
|
|
Property and
equipment, net
|
|
214,206
|
|
|
219,580
|
|
|
Goodwill
|
|
697,470
|
|
|
697,470
|
|
|
Other intangible
assets, net
|
|
770,447
|
|
|
772,949
|
|
|
Deferred rent
receivable
|
|
89,438
|
|
|
90,030
|
|
|
Other non-current
assets, net
|
|
18,204
|
|
|
18,417
|
|
|
Total
assets
|
|
$
|
2,262,192
|
|
|
$
|
2,331,850
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
|
34,438
|
|
|
$
|
55,019
|
|
|
Gift card
liability
|
|
119,162
|
|
|
167,657
|
|
|
Accrued employee
compensation and benefits
|
|
14,140
|
|
|
25,085
|
|
|
Dividends
payable
|
|
17,011
|
|
|
17,082
|
|
|
Income taxes
payable
|
|
14,258
|
|
|
—
|
|
|
Current maturities of
capital lease and financing obligations
|
|
14,447
|
|
|
14,320
|
|
|
Accrued
advertising
|
|
16,209
|
|
|
8,758
|
|
|
Accrued interest
payable
|
|
4,287
|
|
|
4,257
|
|
|
Other accrued
expenses
|
|
12,078
|
|
|
6,251
|
|
|
Total current
liabilities
|
|
246,030
|
|
|
298,429
|
|
|
Long-term debt,
net
|
|
1,280,264
|
|
|
1,279,473
|
|
|
Capital lease
obligations, less current maturities
|
|
81,143
|
|
|
84,781
|
|
|
Financing
obligations, less current maturities
|
|
42,360
|
|
|
42,395
|
|
|
Deferred income
taxes, net
|
|
262,004
|
|
|
269,469
|
|
|
Deferred rent
payable
|
|
68,817
|
|
|
69,397
|
|
|
Other non-current
liabilities
|
|
21,269
|
|
|
20,683
|
|
|
Total
liabilities
|
|
2,001,887
|
|
|
2,064,627
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.01
par value, shares: 40,000,000 authorized; March 31, 2016 -
25,166,732 issued, 18,409,845 outstanding; December 31, 2015 -
25,186,048 issued, 18,535,027 outstanding
|
|
252
|
|
|
252
|
|
|
Additional
paid-in-capital
|
|
287,601
|
|
|
286,952
|
|
|
Retained
earnings
|
|
360,483
|
|
|
351,923
|
|
|
Accumulated other
comprehensive loss
|
|
(106)
|
|
|
(107)
|
|
|
Treasury stock, at
cost; shares: March 31, 2016 - 6,756,887; December 31, 2015 -
6,651,021
|
|
(387,925)
|
|
|
(371,797)
|
|
|
Total stockholders'
equity
|
|
260,305
|
|
|
267,223
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,262,192
|
|
|
$
|
2,331,850
|
|
|
|
DineEquity, Inc. and
Subsidiaries
Consolidated
Statements of Cash Flows
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
25,543
|
|
|
$
|
28,412
|
|
|
Adjustments to
reconcile net income to cash flows provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
8,074
|
|
|
7,815
|
|
|
Non-cash interest
expense
|
|
791
|
|
|
755
|
|
|
Deferred income
taxes
|
|
(4,700)
|
|
|
(6,702)
|
|
|
Non-cash stock-based
compensation expense
|
|
3,192
|
|
|
2,432
|
|
|
Tax benefit from
stock-based compensation
|
|
2,537
|
|
|
4,696
|
|
|
Excess tax benefit
from stock-based compensation
|
|
(862)
|
|
|
(4,526)
|
|
|
Closure and
impairment charges
|
|
435
|
|
|
1,827
|
|
|
Loss (gain) on
disposition of assets
|
|
614
|
|
|
(9)
|
|
|
Other
|
|
1,048
|
|
|
31
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable,
net
|
|
116
|
|
|
(2,742)
|
|
|
Current income tax
receivables and payables
|
|
16,918
|
|
|
18,665
|
|
|
Gift card receivables
and payables
|
|
(12,820)
|
|
|
5,623
|
|
|
Other current
assets
|
|
(520)
|
|
|
(1,638)
|
|
|
Accounts
payable
|
|
(5,069)
|
|
|
1,034
|
|
|
Accrued employee
compensation and benefits
|
|
(10,945)
|
|
|
(14,810)
|
|
|
Accrued interest
payable
|
|
30
|
|
|
(10,229)
|
|
|
Other current
liabilities
|
|
13,112
|
|
|
10,496
|
|
|
Cash flows provided
by operating activities
|
|
37,494
|
|
|
41,130
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Additions to property
and equipment
|
|
(839)
|
|
|
(2,617)
|
|
|
Principal receipts
from notes, equipment contracts and other long-term
receivables
|
|
4,206
|
|
|
4,442
|
|
|
Other
|
|
(105)
|
|
|
(40)
|
|
|
Cash flows provided
by investing activities
|
|
3,262
|
|
|
1,785
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Principal payments on
capital lease and financing obligations
|
|
(3,385)
|
|
|
(3,165)
|
|
|
Repurchase of common
stock
|
|
(20,004)
|
|
|
(15,003)
|
|
|
Dividends paid on
common stock
|
|
(17,049)
|
|
|
(16,598)
|
|
|
Tax payments for
restricted stock upon vesting
|
|
(2,116)
|
|
|
(2,961)
|
|
|
Proceeds from stock
options exercised
|
|
880
|
|
|
8,206
|
|
|
Excess tax benefit
from stock-based compensation
|
|
862
|
|
|
4,526
|
|
|
Change in restricted
cash
|
|
(4,399)
|
|
|
11,561
|
|
|
Other
|
|
—
|
|
|
(15)
|
|
|
Cash flows used in
financing activities
|
|
(45,211)
|
|
|
(13,449)
|
|
|
Net change in cash
and cash equivalents
|
|
(4,455)
|
|
|
29,466
|
|
|
Cash and cash
equivalents at beginning of period
|
|
144,785
|
|
|
104,004
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
140,330
|
|
|
$
|
133,470
|
|
|
|
NON-GAAP FINANCIAL
MEASURES
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Reconciliation of net
income available to common stockholders to net income available to
common stockholders, as adjusted for the following items: Kansas
City Support Center consolidation costs; amortization of intangible
assets; closure and impairment charges; non-cash interest expense;
gain or loss on disposition of assets; and the combined tax effect
of the preceding adjustments, as well as related per share
data:
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
Net income available
to common stockholders, as reported
|
|
$
|
25,161
|
|
|
$
|
28,040
|
|
|
Kansas City Support
Center consolidation costs
|
|
2,066
|
|
|
—
|
|
|
Amortization of
intangible assets
|
|
2,480
|
|
|
2,500
|
|
|
Closure and
impairment charges
|
|
435
|
|
|
1,827
|
|
|
Non-cash interest
expense
|
|
791
|
|
|
755
|
|
|
Loss (gain) on
disposition of assets
|
|
614
|
|
|
(9)
|
|
|
Income tax
provision
|
|
(2,427)
|
|
|
(1,928)
|
|
|
Net income allocated
to unvested participating restricted stock
|
|
(61)
|
|
|
(43)
|
|
|
Net income available
to common stockholders, as adjusted
|
|
$
|
29,059
|
|
|
$
|
31,142
|
|
|
|
|
|
|
|
Diluted net income
available to common stockholders per share:
|
|
|
|
|
|
Net income available
to common stockholders, as reported
|
|
$
|
1.37
|
|
|
$
|
1.47
|
|
|
Kansas City Support
Center consolidation costs
|
|
0.07
|
|
|
—
|
|
|
Amortization of
intangible assets
|
|
0.08
|
|
|
0.08
|
|
|
Closure and
impairment charges
|
|
0.01
|
|
|
0.06
|
|
|
Non-cash interest
expense
|
|
0.03
|
|
|
0.02
|
|
|
Loss (gain) on
disposition of assets
|
|
0.02
|
|
|
(0.00)
|
|
|
Net income allocated
to unvested participating restricted stock
|
|
(0.00)
|
|
|
(0.00)
|
|
|
Rounding
|
|
—
|
|
|
0.01
|
|
|
Diluted net income
available to common stockholders per share, as adjusted
|
|
$
|
1.58
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
Numerator for basic
EPS-income available to common stockholders, as adjusted
|
|
$
|
29,059
|
|
|
$
|
31,142
|
|
|
Effect of unvested
participating restricted stock using the two-class
method
|
|
1
|
|
|
—
|
|
|
Numerator for diluted
EPS-income available to common stockholders after assumed
conversions, as adjusted
|
|
$
|
29,060
|
|
|
$
|
31,142
|
|
|
|
|
|
|
|
Denominator for basic
EPS-weighted-average shares
|
|
18,260
|
|
|
18,870
|
|
|
Dilutive effect of
stock options
|
|
113
|
|
|
149
|
|
|
Denominator for
diluted EPS-weighted-average shares and assumed
conversions
|
|
18,373
|
|
|
19,019
|
|
|
|
DineEquity, Inc. and
Subsidiaries
Non-GAAP Financial
Measures
(Unaudited)
|
|
|
Reconciliation of the
Company's cash provided by operating activities to "free cash flow"
(cash provided by operating activities, plus receipts from notes
and equipment contracts receivable, less additions to property and
equipment). We believe this information is helpful to investors to
determine our cash available for general corporate purposes and for
the return of cash to stockholders pursuant to our capital
allocation strategy, and is the same measure used by management for
these purposes.
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(In
millions)
|
|
Cash flows provided
by operating activities
|
|
$
|
37.5
|
|
|
$
|
41.1
|
|
|
Receipts from notes
and equipment contracts receivable
|
|
2.1
|
|
|
2.6
|
|
|
Additions to property
and equipment
|
|
(0.8)
|
|
|
(2.6)
|
|
|
Free cash
flow
|
|
38.8
|
|
|
41.1
|
|
|
Dividends paid on
common stock
|
|
(17.0)
|
|
|
(16.6)
|
|
|
Repurchase of
DineEquity common stock
|
|
(20.0)
|
|
|
(15.0)
|
|
|
|
$
|
1.8
|
|
|
$
|
9.5
|
|
|
|
DineEquity, Inc. and
Subsidiaries
Non-GAAP Financial
Measures
(In
thousands)
(Unaudited)
|
|
|
Reconciliation of
U.S. GAAP gross profit to segment EBITDA:
|
|
|
|
Three months ended
March 31, 2016
|
|
|
Franchise -
Applebee's
|
|
Franchise -
IHOP
|
|
Company
Restaurants
|
|
Rental
Operations
|
|
Financing
Operations
|
|
Total
|
|
Revenue
|
|
$
|
51,085
|
|
|
$
|
73,889
|
|
|
$
|
4,812
|
|
|
$
|
31,409
|
|
|
$
|
2,329
|
|
|
$
|
163,524
|
|
|
Expense
|
|
1,885
|
|
|
33,772
|
|
|
5,212
|
|
|
23,231
|
|
|
—
|
|
|
64,100
|
|
|
Gross
profit
|
|
49,200
|
|
|
40,117
|
|
|
(400)
|
|
|
8,178
|
|
|
2,329
|
|
|
99,424
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
2,596
|
|
|
—
|
|
|
111
|
|
|
3,142
|
|
|
—
|
|
|
5,849
|
|
|
Interest
charges
|
|
—
|
|
|
—
|
|
|
96
|
|
|
3,110
|
|
|
—
|
|
|
3,206
|
|
|
Segment
EBITDA
|
|
$
|
51,796
|
|
|
$
|
40,117
|
|
|
$
|
(193)
|
|
|
$
|
14,430
|
|
|
$
|
2,329
|
|
|
$
|
108,479
|
|
|
|
|
Three months ended
March 31, 2015
|
|
|
Franchise -
Applebee's
|
|
Franchise -
IHOP
|
|
Company
Restaurants
|
|
Rental
Operations
|
|
Financing
Operations
|
|
Total
|
|
Revenue
|
|
$
|
52,431
|
|
|
$
|
72,111
|
|
|
$
|
17,276
|
|
|
$
|
31,402
|
|
|
$
|
2,594
|
|
|
$
|
175,814
|
|
|
Expense
|
|
1,596
|
|
|
33,921
|
|
|
16,509
|
|
|
23,490
|
|
|
12
|
|
|
75,528
|
|
|
Gross
profit
|
|
50,835
|
|
|
38,190
|
|
|
767
|
|
|
7,912
|
|
|
2,582
|
|
|
100,286
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/amortization
|
|
2,592
|
|
|
—
|
|
|
189
|
|
|
3,224
|
|
|
—
|
|
|
6,005
|
|
|
Interest
charges
|
|
—
|
|
|
—
|
|
|
99
|
|
|
3,501
|
|
|
—
|
|
|
3,600
|
|
|
Segment
EBITDA
|
|
$
|
53,427
|
|
|
$
|
38,190
|
|
|
$
|
1,055
|
|
|
$
|
14,637
|
|
|
$
|
2,582
|
|
|
$
|
109,891
|
|
|
Restaurant
Data
|
|
|
The following table
sets forth, for the three months ended March 31, 2016 and 2015, 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
|
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
Applebee's
Restaurant Data
|
|
|
|
|
|
Effective
Restaurants(a)
|
|
|
|
|
|
Franchise
|
|
2,030
|
|
|
1,992
|
|
|
Company
|
|
—
|
|
|
23
|
|
|
Total
|
|
2,030
|
|
|
2,015
|
|
|
|
|
|
|
|
System-wide(b)
|
|
|
|
|
|
Sales percentage
change(c)
|
|
(4.0)
|
%
|
|
3.6
|
%
|
|
Domestic
same-restaurant sales percentage change(d)
|
|
(3.7)
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
Franchise(b)
|
|
|
|
|
|
Sales percentage
change(c)
|
|
(3.0)
|
%
|
|
3.6
|
%
|
|
Domestic
same-restaurant sales percentage change(d)
|
|
(3.7)
|
%
|
|
2.9
|
%
|
|
Average weekly
domestic unit sales (in thousands)
|
|
$
|
48.7
|
|
|
$
|
51.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
IHOP Restaurant
Data
|
|
|
|
|
|
Effective
Restaurants(a)
|
|
|
|
|
|
Franchise
|
|
1,507
|
|
|
1,470
|
|
|
Area
license
|
|
165
|
|
|
167
|
|
|
Company
|
|
11
|
|
|
12
|
|
|
Total
|
|
1,683
|
|
|
1,649
|
|
|
|
|
|
|
|
System-wide(b)
|
|
|
|
|
|
Sales percentage
change(c)
|
|
2.2
|
%
|
|
6.2
|
%
|
|
Domestic
same-restaurant sales percentage change(d)
|
|
1.5
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
Franchise(b)
|
|
|
|
|
|
Sales percentage
change(c)
|
|
2.5
|
%
|
|
6.0
|
%
|
|
Domestic
same-restaurant sales percentage change(d)
|
|
1.4
|
%
|
|
4.8
|
%
|
|
Average weekly
domestic unit sales (in thousands)
|
|
$
|
37.7
|
|
|
$
|
37.7
|
|
|
|
|
|
|
|
Area License
(b)
|
|
|
|
|
|
Sales percentage
change(c)
|
|
0.4
|
%
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 franchisees and area licensees as
well as those owned by the Company.
|
|
(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 months ended March 31, 2016 and 2015 were
as follows:
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
(In millions)
|
|
Reported sales
(unaudited)
|
|
|
|
|
|
Applebee's domestic
franchise restaurant sales
|
|
$
|
1,189.0
|
|
|
$
|
1,226.0
|
|
|
IHOP franchise
restaurant sales
|
|
738.9
|
|
|
$
|
721.2
|
|
|
IHOP area license
restaurant sales
|
|
75.3
|
|
|
$
|
75.0
|
|
|
Total
|
|
$
|
2,003.2
|
|
|
$
|
2,022.2
|
|
|
|
|
(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.
|
|
|
DineEquity, Inc. and Subsidiaries
Restaurant Data
(unaudited)
|
|
|
The following table
summarizes our restaurant development activity:
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
Applebee's
Restaurant Development Activity
|
|
|
|
|
|
Summary -
beginning of period:
|
|
|
|
|
|
Franchise
|
|
2,033
|
|
|
1,994
|
|
|
Company
restaurants
|
|
—
|
|
|
23
|
|
|
Total
Applebee's restaurants, beginning of period
|
|
2,033
|
|
|
2,017
|
|
|
Franchise restaurants
opened:
|
|
|
|
|
|
Domestic
|
|
5
|
|
|
4
|
|
|
International
|
|
1
|
|
|
2
|
|
|
Total franchise
restaurants opened
|
|
6
|
|
|
6
|
|
|
Franchise restaurants
closed:
|
|
|
|
|
|
Domestic
|
|
(6)
|
|
|
(4)
|
|
|
International
|
|
(4)
|
|
|
(5)
|
|
|
Total franchise
restaurants closed
|
|
(10)
|
|
|
(9)
|
|
|
Net franchise
restaurant (reduction) development
|
|
(4)
|
|
|
(3)
|
|
|
Summary - end of
period:
|
|
|
|
|
|
Franchise
|
|
2,029
|
|
|
1,991
|
|
|
Company
restaurants
|
|
—
|
|
|
23
|
|
|
Total Applebee's
restaurants, end of period
|
|
2,029
|
|
|
2,014
|
|
|
|
|
IHOP Restaurant
Development Activity
|
|
|
|
|
|
Summary -
beginning of period:
|
|
|
|
|
|
Franchise
|
|
1,507
|
|
|
1,472
|
|
|
Area
license
|
|
165
|
|
|
167
|
|
|
Company
|
|
11
|
|
|
11
|
|
|
Total IHOP
restaurants, beginning of period
|
|
1,683
|
|
|
1,650
|
|
|
Franchise/area
license restaurants opened:
|
|
|
|
|
|
Domestic
franchise
|
|
6
|
|
|
6
|
|
|
Domestic area
license
|
|
—
|
|
|
1
|
|
|
International
franchise
|
|
1
|
|
|
—
|
|
|
Total franchise/area
license restaurants opened
|
|
7
|
|
|
7
|
|
|
Franchise/area
license restaurants closed:
|
|
|
|
|
|
Domestic
franchise
|
|
(3)
|
|
|
(6)
|
|
|
Domestic area
license
|
|
(1)
|
|
|
(1)
|
|
|
International
franchise
|
|
(2)
|
|
|
—
|
|
|
Total franchise/area
license restaurants closed
|
|
(6)
|
|
|
(7)
|
|
|
Net franchise/area
license restaurant development
|
|
1
|
|
|
—
|
|
|
Refranchised from
Company restaurants
|
|
—
|
|
|
1
|
|
|
Franchise restaurants
reacquired by the Company
|
|
—
|
|
|
(3)
|
|
|
Net franchise/area
license restaurant additions (reductions)
|
|
1
|
|
|
(2)
|
|
|
Summary - end of
period
|
|
|
|
|
|
Franchise
|
|
1,509
|
|
|
1,470
|
|
|
Area
license
|
|
164
|
|
|
167
|
|
|
Company
|
|
11
|
|
|
13
|
|
|
Total IHOP
restaurants, end of period
|
|
1,684
|
|
|
1,650
|
|
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SOURCE DineEquity, Inc.