GLENDALE, Calif., Feb. 17, 2017 /PRNewswire/ -- DineEquity, Inc.
(NYSE: DIN), the parent company of Applebee's Neighborhood Grill
& Bar® and IHOP® restaurants, today announced that chairman and
chief executive officer and interim president of the Applebee's
business unit Julia Stewart will
resign from the Company, effective March 1,
2017.
"I am honored to have led this extraordinary global company
through significant periods of growth and transformation over the
last 16 years. It has been a privilege to lead two iconic brands,
both number one in their respective categories," said Stewart. "I
am also grateful for the opportunity to have worked with such
talented and passionate executives, team members and franchisees. I
am confident in the strong roadmap that has been set forth, and
will continue to cheer for the company's success."
The board of directors has named its current lead director,
Richard Dahl, to serve as interim
chief executive officer and chairman, effective March 1, 2017, while the board of directors
conducts a search for a permanent replacement.
Mr. Dahl has served on the board of directors since February 2004 and has more than 35 years of
experience in senior management of public and private companies,
including service as chief executive officer, chief operating
officer and chief financial officer. The board appointed
Caroline Nahas as DineEquity's lead
director to replace Mr. Dahl and Douglas
Pasquale to succeed Mr. Dahl as chairman of the audit and
finance committee. Upon completion of the chief executive
officer search, the DineEquity board of directors intends to
separate the chairman and chief executive officer roles.
"For more than 16 years, Julia has been a strong and valued
leader of DineEquity and the IHOP and Applebee's brands and has
made numerous and lasting contributions to the business," said
Richard Dahl. "Under Julia's
leadership, DineEquity has become one of the largest full service,
fully franchised chains in the world. She led the successful
turnaround of IHOP early in her tenure, drove the acquisition and
re-franchising of Applebee's and transitioned DineEquity to an
asset light model. We thank Julia for her service to
DineEquity's stockholders and her unwavering commitment to
DineEquity and its franchisees."
Concurrent with this leadership transition, the Company today
released preliminary (unaudited) fourth quarter 2016 and fiscal
2016 financial results.
- GAAP net income available to common stockholders was
$21.1 million for the fourth quarter
of 2016, or earnings per diluted share of $1.18. GAAP net income available to common
stockholders was $96.6 million for
fiscal 2016, or earnings per diluted share of $5.33.
- Adjusted net income available to common stockholders was
$24.5 million, or adjusted earnings
per diluted share of $1.37, for the
fourth quarter of 2016. Adjusted net income available to common
stockholders was $108.9 million, or
adjusted earnings per diluted share of $6.01, for fiscal 2016. (See non-GAAP financial
measures below).
- Adjusted EBITDA for the twelve months ended December 31, 2016 was $275.3 million (See non-GAAP financial measures
below).
- General and administrative expenses were $37.0 million for the fourth quarter of
2016. General and administrative expenses were $148.9 million for fiscal 2016.
- IHOP's domestic system-wide comparable same restaurant sales
were negative 2.1% for the fourth quarter of 2016. IHOP's
domestic system-wide comparable same restaurant sales decreased
0.1% for fiscal 2016.
- Applebee's domestic system-wide comparable same-restaurant
sales declined 7.2% for the fourth quarter of 2016. Applebee's
domestic system-wide comparable same-restaurant sales decreased
5.0% for fiscal 2016.
DineEquity is in the process of finalizing the foregoing
information. The company intends to report definitive fourth
quarter 2016 and fiscal 2016 results and its outlook on
March 1, 2017, when it will hold its
regularly scheduled investor conference call.
"DineEquity will continue to invest in the long term success and
growth of both IHOP and Applebee's. I will be working very closely
with the Applebee's franchisees to improve performance," added Mr.
Dahl. "While a turnaround of Applebee's will not happen
immediately, the results of a comprehensive diagnostic conducted by
a world class management consulting firm has enhanced our
understanding of what has driven our recent sales trends.
More importantly, we have a go forward plan to improve performance,
and have worked with the same firm to validate our initiatives and
identify additional creative strategies to expeditiously return
Applebee's to growth."
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 18
countries and 3 U.S. territories and approximately 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," "could," "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 measure "adjusted net income available to common
stockholders (adjusted EPS)" and "Adjusted 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. The Company defines "Adjusted EBITDA"
for a given period as net income less interest expense, income
taxes, depreciation and amortization, non-cash stock-based
compensation, closure and impairment charges, gain/loss on
disposition of assets and other add-backs as defined in the debt
agreements associated with the securitized debt issued by certain
of our indirect, wholly-owned subsidiaries. Management may use
certain of these non-GAAP financial measures along with the
corresponding U.S. GAAP measures to evaluate the performance of the
business and to make certain business decisions.
Additionally, adjusted EPS is one of the metrics used in
determining payouts under the Company's annual cash incentive plan,
and Adjusted EBITDA is used to evaluate our compliance with
covenants under our debt agreements. Management believes that these
non-GAAP financial measures provide additional meaningful
information that should be considered when assessing the business
and the Company's performance compared to prior periods and the
marketplace. Adjusted EPS and Adjusted 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 U.S. GAAP.
|
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; loss on extinguishment of
debt; incremental Senior Note interest; refinancing expenses not
capitalized; the combined tax effect of the preceding adjustments,
and income tax adjustments considered unrelated to the respective
current period operations, as well as related per share
data:
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income (loss)
available to common stockholders, as
reported
|
$
|
21,059
|
|
$
|
25,000
|
|
$
|
96,605
|
|
$
|
103,523
|
Kansas City Support
Center consolidation costs(1)
|
835
|
|
2,266
|
|
6,173
|
|
5,861
|
Amortization of
intangible
assets
|
2,501
|
|
2,500
|
|
9,981
|
|
10,000
|
Closure and
impairment
charges
|
762
|
|
346
|
|
2,223
|
|
2,576
|
Non-cash interest
expense
|
818
|
|
782
|
|
3,218
|
|
3,074
|
Loss (gain) on
disposition of
assets
|
130
|
|
1,393
|
|
809
|
|
(901)
|
Net income tax
provision for above adjustments
|
(1,867)
|
|
(2,769)
|
|
(8,289)
|
|
(7,832)
|
Income tax
adjustments(2)
|
316
|
|
—
|
|
(1,686)
|
|
—
|
Net income allocated
to unvested participating restricted
stock
|
(47)
|
|
(62)
|
|
(177)
|
|
(171)
|
Net income
available to common stockholders, as
adjusted
|
$
|
24,507
|
|
$
|
29,456
|
|
$
|
108,857
|
|
$
|
116,130
|
|
|
|
|
|
|
|
|
Diluted net income
available to common stockholders per share:
|
|
|
|
|
|
|
|
Net income (loss)
available to common stockholders, as
reported
|
$
|
1.18
|
|
$
|
1.35
|
|
$
|
5.33
|
|
$
|
5.52
|
Kansas City Support
Center consolidation costs(1)
|
0.03
|
|
0.08
|
|
0.21
|
|
0.19
|
Amortization of
intangible
assets
|
0.09
|
|
0.08
|
|
0.34
|
|
0.33
|
Closure and
impairment
charges
|
0.03
|
|
0.01
|
|
0.08
|
|
0.09
|
Non-cash interest
expense
|
0.03
|
|
0.03
|
|
0.11
|
|
0.10
|
Loss (gain) on
disposition of
assets
|
0.00
|
|
0.05
|
|
0.03
|
|
(0.03)
|
Income tax
adjustments(2)
|
0.02
|
|
—
|
|
(0.09)
|
|
—
|
Net income allocated
to unvested participating restricted
stock
|
(0.00)
|
|
(0.00)
|
|
(0.01)
|
|
(0.01)
|
Rounding
|
(0.01)
|
|
(0.01)
|
|
0.01
|
|
—
|
Diluted net income
available to common stockholders per share, as
adjusted
|
$
|
1.37
|
|
$
|
1.59
|
|
$
|
6.01
|
|
$
|
6.19
|
|
|
|
|
|
|
|
|
Numerator for basic
EPS-income available to common stockholders, as
adjusted
|
$
|
24,507
|
|
$
|
29,456
|
|
$
|
108,857
|
|
$
|
116,130
|
Effect of unvested
participating restricted stock using the two-class
method
|
1
|
|
1
|
|
2
|
|
6
|
Numerator for diluted
EPS-income available to common stockholders after assumed
conversions, as
adjusted
|
$
|
24,508
|
|
$
|
29,457
|
|
$
|
108,859
|
|
$
|
116,136
|
|
|
|
|
|
|
|
|
Denominator for basic
EPS-weighted-average
shares
|
17,826
|
|
18,358
|
|
18,030
|
|
18,637
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Stock
options
|
90
|
|
117
|
|
95
|
|
131
|
Denominator for
diluted EPS-weighted-average shares and assumed
conversions
|
17,916
|
|
18,475
|
|
18,125
|
|
18,768
|
|
(1)
Includes $398 and $2,869 of lease termination costs for the
three and twelve months ended December 31, 2016, respectively,
reported in "closure and impairment charges" in the Consolidated
Statements of Comprehensive Income
|
|
(2)
Adjustments to deferred tax balances primarily due to changes in
effective state tax rate because of Support Center
consolidation.
|
|
|
NON-GAAP FINANCIAL
MEASURES
|
(In
millions)
|
(Unaudited)
|
|
Reconciliation of
U.S. GAAP net income to Adjusted EBITDA:
|
|
|
|
(in
Millions)
|
U.S. GAAP net
income
|
$
98.0
|
Interest
charges
|
73.7
|
Income
taxes
|
55.1
|
Depreciation and
amortization
|
30.6
|
Non-cash stock-based
compensation
|
10.9
|
Closure and
impairment charges
|
5.1
|
Loss on disposition
of assets
|
0.8
|
Other
|
1.1
|
Adjusted
EBITDA
|
$
275.3
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chairman-and-chief-executive-officer-julia-stewart-announces-resignation-300409423.html
SOURCE DineEquity, Inc.