Dunkin' Brands Reports First Quarter 2012 Results -- Revenue up 9.5% and adjusted operating income up 19.8%

-- Dunkin' Donuts U.S. comp store sales increase 7.2%

-- Baskin-Robbins U.S. comp store sales increase 9.4%

CANTON, Mass., April 26, 2012 /PRNewswire/ -- Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), today reported results for the first quarter ended March 31, 2012. "We're pleased with the performance of the business in the first quarter during which we had continued strong revenue and operating income growth. Our core Dunkin' Donuts U.S. segment is thriving with 7.2 percent comp store sales growth and accelerating net development compared to the first quarter of 2011," said Nigel Travis, Chief Executive Officer, Dunkin' Brands Group, Inc., and President, Dunkin' Donuts U.S. "We also recently announced several exciting strategic developments including an agreement with The Coca-Cola Company to serve its products in Dunkin' Donuts and Baskin-Robbins restaurants in the U.S., an agreement with NBA star LeBron James to serve as a brand ambassador in select Southeast Asia markets for both brands, and signing a partnership with Dallas Cowboys Owner Jerry Jones and Hall of Fame quarterback Troy Aikman to develop Dunkin' Donuts restaurants in the Dallas/Fort Worth region."

 

Consolidated Key
Highlights















($ in millions, except per share data)


Quarter 1


Increase (Decrease)



2012

2011


$/#

%








System-wide Sales Growth


10.9%

5.4%




DD U.S. Comparable Store Sales Growth


7.2%

2.8%




BR U.S. Comparable Store Sales Growth


9.4%

0.5%




DD International Comparable Store Sales Growth


2.3%





BR International Comparable Store Sales Growth


7.6%





Consolidated Net POD Development1


82

94


(12)

-12.8%

DD Global PODs at period end


10,121

9,805


316

3.2%

BR Global PODs at period end


6,755

6,482


273

4.2%

Consolidated Global PODs at period end


16,876

16,287


589

3.6%








Revenues


$152.4

139.2


13.2

9.5%

Operating Income


55.2

44.8


10.4

23.1%

Adjusted Operating Income2


63.0

52.6


10.4

19.8%

Net Income (Loss)


26.0

(1.7)


27.7

 n/a 

Adjusted Net Income2


30.6

9.5


21.1

221.6%

Earnings (Loss) Per Share - Basic and Diluted







Class L - basic and diluted


 n/a 

$  0.85


 n/a 

 n/a 

Common - basic


$  0.22

(0.51)


0.73

 n/a 

Common - diluted


0.21

(0.51)


0.72

 n/a 

Diluted Adjusted Earnings per Pro Forma Common







    Share2


$  0.25

0.10


0.15

150.0%

Pro Forma Weighted Average Number of Common







    Shares – Diluted (in millions)


121.3

97.4


23.9

24.6%

(amounts and percentages may not recalculate due to rounding)






















1 Total DD U.S net development for the quarter was 45; total BR International net development for the quarter was 49; DD International and BR U.S. had declining store bases during the quarter.

2 Adjusted operating income and adjusted net income are non-GAAP measures reflecting operating income and net income adjusted for amortization of intangible assets, impairment charges, and other non-recurring charges, net of the tax impact of such adjustments in the case of adjusted net income. Diluted adjusted earnings per pro forma common share is a non-GAAP measure, calculated using adjusted net income, and gives effect to the conversion of Class L common stock as if the conversion were completed at the beginning of the respective fiscal period. Please refer to "Non-GAAP Measures and Statistical Data," "Dunkin' Brands Group, Inc. Non-GAAP Reconciliations," and "Dunkin' Brands Group, Inc. Diluted Adjusted Earnings per Pro Forma Common Share" for further detail.

 

Worldwide system-wide sales growth in the first quarter was primarily attributable to Dunkin' Donuts U.S. comparable store sales growth (which includes stores open 54 weeks or more), global store development, and growth in Baskin-Robbins international sales.

Dunkin' Donuts U.S. comparable store sales gains in the first quarter were driven by increased average ticket and higher traffic resulting from strong beverage sales growth including gains across all cold beverages; differentiated breakfast and afternoon sandwich offerings such as the Angus Steak, Egg and Cheese Breakfast Sandwich and the Turkey, Bacon and Cheddar, and Ham and Cheese Bakery Sandwiches; sales of Dunkin' Donuts K-Cup portion packs; and the "What Are You Drinkin'" marketing campaign.  

Baskin-Robbins U.S. comparable store sales growth was driven by new product news around Valentine's Day Cake Bites, a new "More Flavors, More Fun" advertising campaign, and improved operational execution.

In the first quarter, Dunkin' Brands franchisees and licensees opened 82 net new restaurants across the globe. This includes 45 net new Dunkin' Donuts U.S. locations and 49 net new Baskin-Robbins International locations. Both Baskin-Robbins U.S. and Dunkin' Donuts International experienced declining store counts in the first quarter. Additionally, Dunkin' Donuts U.S. franchisees remodeled 108 restaurants during the quarter.

Revenues grew by 9.5 percent compared to the first quarter of 2011, primarily from increased royalty income driven by the increase in system-wide sales.

Operating income and adjusted operating income increased $10.4 million, or 23.1 percent, and $10.4 million, or 19.8 percent, respectively, from the first quarter of 2011 primarily as a result of the increase in revenues and higher income from our joint ventures.

Net income and adjusted net income increased by $27.7 million and $21.1 million, respectively, compared to the first quarter of 2011 as a result of the increase in operating income and a decrease in interest expense associated with the refinancings completed last year and the repayment of our debt with the proceeds from our initial public offering.

Company Updates & Fiscal Year 2012 Targets

On March 5, 2012, the Company's Board of Directors approved the initiation of a quarterly cash dividend with the first quarter cash dividend of $0.15 per share paid on March 28, 2012 to shareholders of record as of the close of business on March 19, 2012. The Company today announced that the Board of Directors declared a second quarter cash dividend of $0.15 per share, payable on May 16, 2012 to shareholders of record as of the close of business on May 7, 2012.

Additionally, as described below, the Company is increasing certain targets and reaffirming others that it has previously provided regarding its 2012 performance.

  • It expects Dunkin' Donuts U.S. comparable store sales growth to be in the range of 4 to 5 percent and Baskin-Robbins U.S. comparable store sales growth to be in the range of 2 to 4 percent.
  • The Company continues to target opening 550 to 650 net new units globally. It expects that Dunkin' Donuts U.S. will add between 260 and 280 net new restaurants and Baskin-Robbins U.S. will close between 60 and 80 restaurants.  Internationally, the Company continues to target 350 to 450 net new units between the two brands.
  • The Company is increasing its range for revenue growth to between 7 and 8 percent with adjusted operating income growth of between 12 and 14 percent. The targets for revenue and adjusted operating income growth are based on a 52-week year in 2011.
  • The Company is increasing its range for adjusted earnings per share to $1.21 to $1.24 which would represent 29 to 32 percent growth over $0.94 adjusted earnings per share in 2011.

"The fundamentals of the business are extremely strong, and we remain laser-focused on our strategic imperatives -- operational excellence, brand-differentiating product innovation and world-class marketing," said Neil Moses, Dunkin' Brands Chief Financial Officer. "We remain committed to delivering on our financial targets for the year and to enhancing shareholder value."

Conference Call

As previously announced, Dunkin' Brands will be holding a conference call today at 8:00 am ET hosted by Chief Executive Officer, Nigel Travis, and Chief Financial Officer, Neil Moses. The dial-in number is (866) 393-1607 or (914) 495-8556, conference number 70918022.  Dunkin' Brands will broadcast the conference call live over the Internet at http://investor.dunkinbrands.com. A replay of the conference call will be available on the Company's website at http://investor.dunkinbrands.com

The Company's consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of cash flows and other additional information have been provided with this press release. This information should be reviewed in conjunction with this press release.

Forward-Looking Statements

Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations.  Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "would," and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.   By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  These risk and uncertainties include, but are not limited to: the ongoing level of profitability of franchisees and licensees; changes in working relationships with our franchisees and licensees and the actions of our franchisees and licensees; our master franchisees' relationships with sub-franchisees; the strength of our brand in the markets in which we compete; changes in competition within the quick-service restaurant segment of the food industry; changes in consumer behavior resulting from changes in technologies or alternative methods of delivery; economic and political conditions in the countries where we operate; our substantial indebtedness; our ability to protect our intellectual property rights; consumer preferences, spending patterns and demographic trends; the success of our growth strategy and international development; changes in commodity and food prices, particularly coffee, dairy products and sugar, and other operating costs; shortages of coffee; failure of our network and information technology systems; interruptions or shortages in the supply of products to our franchisees and licensees; the impact of food borne-illness or food safety issues or adverse public or media opinions regarding the health effects of consuming our products; our ability to collect royalty payments from our franchisees and licensees; the ability of our franchisees and licensees to open new restaurants and keep existing restaurants in operation; our ability to retain key personnel; any inability to protect consumer credit card data and catastrophic events.

Forward-looking statements reflect management's analysis as of the date of this press release.  Important factors that could cause actual results to differ materially from our expectations are more fully described in our other filings with the Securities and Exchange Commission, including under the section headed "Risk Factors" in our most recent annual report on Form 10-K. Except as required by applicable law, we do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Measures and Statistical Data

In addition to the GAAP financial measures set forth in this press release, the Company has included certain non-GAAP measurements, adjusted operating income, adjusted net income, and diluted adjusted earnings per pro forma common share, which present operating results on a basis adjusted for certain items and/or reflecting the conversion of our previously outstanding Class L common stock into shares of common stock. The Company uses these non-GAAP measures as key performance measures for the purpose of evaluating performance internally. We also believe these non-GAAP measures provide our investors with useful information regarding our historical operating results. These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Use of the terms adjusted operating income, adjusted net income, and diluted adjusted earnings per pro forma common share may differ from similar measures reported by other companies.  Adjusted operating income and adjusted net income are reconciled from the respective measures determined under GAAP in the attached table "Dunkin' Brands Group, Inc. Non-GAAP Reconciliation."

On August 1, 2011, the Company completed an initial public offering in which the Company sold 22,250,000 shares of common stock at an initial public offering price of $19.00 per share. Immediately prior to the offering, each share of the Company's Class L common stock converted into 2.4338 shares of common stock. The number of common shares used in the calculation of diluted adjusted earnings per pro forma common share for the three months ended March 26, 2011 gives effect to the conversion of all outstanding shares of Class L common stock at the conversion factor of 2.4338 common shares for each Class L share, as if the conversion was completed at the beginning of the fiscal period. The calculation of diluted adjusted earnings per pro forma common share also includes the dilutive effect of common restricted shares and stock options, using the treasury stock method. Diluted adjusted earnings per pro forma common share is calculated using adjusted net income, as defined above. See the attached table "Dunkin' Brands Group, Inc. Diluted Adjusted Earnings per Pro Forma Common Share" for further detail.

Additionally, the Company has included metrics such as system-wide sales growth and comparable store sales growth, which are commonly used statistical measures in the quick-service restaurant industry and are important to understanding Company performance.

The Company uses "System-wide sales growth" to refer to the percentage change in sales at both franchisee- and company-owned restaurants from the comparable period of the prior year. Changes in system-wide sales are driven by changes in average comparable store sales and changes in the number of restaurants.

The Company uses "DD U.S. comparable store sales growth," "BR U.S. comparable store sales growth" and "International comparable store sales growth," which are calculated by including only sales from franchisee- and company-owned restaurants that have been open at least 54 weeks and that have reported sales in the current and comparable prior year week. 

About Dunkin' Brands

With more than 16,800 points of distribution in nearly 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of 2011, Dunkin' Brands' nearly 100 percent franchised business model included more than 10,000 Dunkin' Donuts restaurants and more than 6,700 Baskin-Robbins restaurants. For the full-year 2011, the company had franchisee-reported sales of approximately $8.3 billion. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.

  

































Three months ended








March 31,


March 26,


Increase (Decrease)



Dunkin' Donuts U.S.


2012


2011


$

%




($ in thousands except as otherwise noted)



Comparable store sales growth


7.2%


2.8%






Systemwide sales growth


11.5%


5.3%






Franchisee reported sales (in millions)


$   1,446.2


1,299.0


147.3

11.3%













Revenues:










Royalty income


$    77,852


69,305


8,547

12.3%



Franchise fees


6,206


5,210


996

19.1%



Rental income


21,675


20,664


1,011

4.9%



Other revenues


5,321


3,329


1,992

59.8%



Total revenues


$  111,054


98,508


12,546

12.7%













Segment profit


$    79,941


70,707


9,234

13.1%













Points of distribution


7,060


6,799


261

3.8%



Gross openings


65


52


13

25.0%



Net openings


45


27


18

66.7%















Three months ended








March 31,


March 26,


Increase (Decrease)



Dunkin' Donuts International


2012


2011


$

%




($ in thousands except as otherwise noted)



Comparable store sales growth


2.3%








Systemwide sales growth


4.8%


10.0%






Franchisee reported sales (in millions)


$      160.5


153.1


7.3

4.8%













Revenues:










Royalty income


$      3,458


3,106


352

11.3%



Franchise fees


271


673


(402)

-59.7%



Rental income


45


85


(40)

-47.1%



Other revenues


174


5


169

3380.0%



Total revenues


$      3,948


3,869


79

2.0%













Segment profit


$      3,161


3,181


(20)

-0.6%













Points of distribution


3,061


3,006


55

1.8%



Gross openings


95


84


11

13.1%



Net openings (closings)


(7)


18


(25)

-138.9%















Three months ended








March 31,


March 26,


Increase (Decrease)



Baskin Robbins U.S.


2012


2011


$

%




($ in thousands except as otherwise noted)



Comparable store sales growth


9.4%


0.5%






Systemwide sales growth


10.8%


0.4%






Franchisee reported sales (in millions)


$      114.0


102.9


11.1

10.8%













Revenues:










Royalty income


$      5,814


5,108


706

13.8%



Franchise fees


170


376


(206)

-54.8%



Rental income


1,043


1,218


(175)

-14.4%



Sales of ice cream products


948


906


42

4.6%



Other revenues


1,877


1,843


34

1.8%



Total revenues


$      9,852


9,451


401

4.2%













Segment profit


$      5,457


4,475


982

21.9%













Points of distribution


2,488


2,559


(71)

-2.8%



Gross openings


6


9


(3)

-33.3%



Net closings


(5)


(26)


21

-80.8%















Three months ended








March 31,


March 26,


Increase (Decrease)



Baskin Robbins International


2012


2011


$

%




($ in thousands except as otherwise noted)



Comparable store sales growth


7.6%








Systemwide sales growth


11.6%


5.1%






Franchisee reported sales (in millions)


$      263.0


235.8


27.2

11.6%













Revenues:










Royalty income


$      2,007


1,836


171

9.3%



Franchise fees


266


345


(79)

-22.9%



Rental income


149


151


(2)

-1.3%



Sales of ice cream products


21,775


21,810


(35)

-0.2%



Other revenues


44


114


(70)

-61.4%



Total revenues


$    24,241


24,256


(15)

-0.1%













Segment profit


$      7,282


7,987


(705)

-8.8%













Points of distribution


4,267


3,923


344

8.8%



Gross openings


115


135


(20)

-14.8%



Net openings


49


75


(26)

-34.7%



  








Fiscal year totals may not recalculate due to rounding










Q1

Q2

Q3

Q4

Fiscal Year


Dunkin' Donuts U.S.

2011

2011

2011

2011

2011



($ in thousands except as otherwise noted)


Comparable store sales growth

2.8%

3.8%

6.0%

7.4%

5.1%


Systemwide sales growth

5.3%

6.0%

8.3%

17.4%

9.4%


Franchisee reported sales (in millions)

$     1,299.0

1,463.2

1,501.5

1,655.6

5,919.2









Revenues:







Royalty income

$      69,305

78,321

80,659

88,918

317,203


Franchise fees

5,210

5,580

9,653

9,462

29,905


Rental income

20,664

22,665

22,259

21,002

86,590


Other revenues

3,329

3,660

4,295

4,510

15,794


Total revenues

$      98,508

110,226

116,866

123,892

449,492









Segment profit

$      70,707

82,605

88,992

92,004

334,308









Points of distribution

6,799

6,838

6,895

7,015

7,015


Gross openings

52

71

91

160

374


Net openings

27

39

57

120

243










Q1

Q2

Q3

Q4

Fiscal Year


Dunkin' Donuts International

2011

2011

2011

2011

2011



($ in thousands except as otherwise noted)


Systemwide sales growth

10.0%

10.3%

13.7%

2.9%

9.1%


Franchisee reported sales (in millions)

$        153.1

162.4

161.5

159.6

636.7









Revenues:







Royalty income

$        3,106

3,191

3,175

3,185

12,657


Franchise fees

673

567

405

649

2,294


Rental income

85

79

49

45

258


Other revenues

5

(6)

40

5

44


Total revenues

$        3,869

3,831

3,669

3,884

15,253









Segment profit

$        3,181

3,150

2,496

2,701

11,528









Points of distribution

3,006

3,029

3,005

3,068

3,068


Gross openings

84

82

70

105

341


Net openings (closings)

18

23

(24)

63

80










Q1

Q2

Q3

Q4

Fiscal Year


Baskin Robbins U.S.

2011

2011

2011

2011

2011



($ in thousands except as otherwise noted)


Comparable store sales growth

0.5%

-2.8%

1.7%

5.8%

0.5%


Systemwide sales growth

0.4%

-5.3%

-0.5%

11.1%

0.2%


Franchisee reported sales (in millions)

$        102.9

150.5

149.3

98.9

501.7









Revenues:







Royalty income

$        5,108

7,509

7,488

5,072

25,177


Franchise fees

376

299

357

239

1,271


Rental income

1,218

1,184

1,180

962

4,544


Sales of ice cream products

906

1,022

947

905

3,780


Other revenues

1,843

2,808

2,451

1,581

8,683


Total revenues

$        9,451

12,822

12,423

8,759

43,455









Segment profit

$        4,475

7,101

7,140

2,877

21,593









Points of distribution

2,559

2,546

2,528

2,493

2,493


Gross openings

9

13

12

15

49


Net closings

(26)

(13)

(18)

(35)

(92)










Q1

Q2

Q3

Q4

Fiscal Year


Baskin Robbins International

2011

2011

2011

2011

2011



($ in thousands except as otherwise noted)


Systemwide sales growth

5.1%

15.6%

13.2%

10.9%

11.7%


Franchisee reported sales (in millions)

$        235.8

352.2

389.5

308.8

1,286.3









Revenues:







Royalty income

$        1,836

2,292

2,489

1,805

8,422


Franchise fees

345

380

336

532

1,593


Rental income

151

153

157

155

616


Sales of ice cream products

21,810

24,203

24,644

25,631

96,288


Other revenues

114

(89)

44

(101)

(32)


Total revenues

$      24,256

26,939

27,670

28,022

106,887









Segment profit

$        7,987

10,279

14,276

10,302

42,844









Points of distribution

3,923

4,014

4,097

4,218

4,218


Gross openings

135

148

126

162

571


Net openings

75

91

83

121

370


 












DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)









Three months ended









March 31,


March 26,









2012


2011












Revenues:







Franchise fees and royalty income


$

96,044


85,959


Rental income



22,939


22,131


Sales of ice cream products



22,723


22,716


Other revenues



10,666


8,407






Total revenues



152,372


139,213

Operating costs and expenses:







Occupancy expenses - franchised restaurants



12,920


12,288


Cost of ice cream products



16,818


15,124


General and administrative expenses, net



57,840


53,886


Depreciation



6,189


6,126


Amortization of other intangible assets



6,865


7,082


Impairment charges



9


653






Total operating costs and expenses



100,641


95,159

Equity in net income of joint ventures:



3,464


782






Operating income



55,195


44,836

Other income (expense):







Interest income



118


115


Interest expense



(16,696)


(33,882)


Loss on debt extinguishment and refinancing transactions




(11,007)


Other gains, net



60


476






Total other expense



(16,518)


(44,298)






Income before income taxes



38,677


538

Provision for income taxes



12,763


2,261






Net income (loss) including noncontrolling interests



25,914


(1,723)






Net loss attributable to noncontrolling interests



(36)







Net income (loss) attributable to Dunkin' Brands Group, Inc.


$

25,950


(1,723)







Earnings (loss) per share:







Class L - basic and diluted



n/a

$

0.85


Common - basic


$

0.22


(0.51)


Common - diluted



0.21


(0.51)

 

DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)









March 31,


December 31,

Assets


2012


2011

Current assets:







Cash and cash equivalents


$

206,005


246,715


Accounts, notes, and other receivables, net



44,798


58,787


Other current assets



104,051


100,972






Total current assets



354,854


406,474

Property and equipment, net



184,920


185,360

Investments in joint ventures



157,374


164,636

Goodwill and other intangible assets, net



2,391,607


2,398,211

Other assets



69,206


69,337






Total assets


$

3,157,961


3,224,018

        Liabilities, Common Stock, and Stockholders' Equity





Current liabilities:







Current portion of long-term debt


$

16,000


14,965


Accounts payable



7,662


9,651


Other current liabilities



232,242


291,924






Total current liabilities



255,904


316,540

Long-term debt, net



1,446,072


1,453,344

Deferred income taxes, net



575,111


578,660

Other long-term liabilities



131,536


129,538






Total long-term liabilities



2,152,719


2,161,542












Total stockholders' equity



749,338


745,936






Total liabilities, common stock, and stockholders' equity


$

3,157,961


3,224,018












 












DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)









Three months ended









March 31,


March 26,









2012


2011

Cash flows from operating activities:






Net income (loss) including noncontrolling interests

$

25,914


(1,723)


Adjustments to reconcile net income (loss) to net cash provided by operating






    activities:








Depreciation and amortization


13,054


13,208




Loss on debt extinguishment and refinancing transactions



11,007




Deferred income taxes


(3,649)


726




Equity in net income of joint ventures


(3,464)


(782)




Dividends received from joint ventures


4,389





Other non-cash adjustments, net


952


2,108




Change in operating assets and liabilities:









Restricted cash







Accounts, notes, and other receivables, net


14,814


31,480





Other current liabilities


(64,975)


(41,696)





Liabilities of advertising funds, net


819


(6,926)





Other, net


(292)


(3,808)






Net cash provided by (used in) operating activities



(12,438)


3,594

Cash flows from investing activities:





Additions to property and equipment

(4,279)


(3,734)


Other, net

(651)


301






Net cash used in investing activities



(4,930)


(3,433)

Cash flows from financing activities:






Repayment of long-term debt, net


(6,441)


(750)


Payment of deferred financing and other debt-related costs



(16,209)


Proceeds from issuance of common stock, net



3,213


Dividend payments to common shareholders


(18,046)



Other, net


939


(88)






Net cash used in financing activities



(23,548)


(13,834)

Effect of exchange rates on cash and cash equivalents


206


81






Decrease in cash and cash equivalents



(40,710)


(13,592)

Cash and cash equivalents, beginning of period


246,715


134,100

Cash and cash equivalents, end of period

$

206,005


120,508












 

 


DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES


Diluted Adjusted Earnings per Pro Forma Common Share


(In thousands, except share and per share data)


(Unaudited)





Three months ended





March 31,


March 26,





2012


2011


Adjusted net income available to common shareholders:






Adjusted net income 

$

30,623


9,522


Less: Adjusted net income allocated to participating securities


(71)


(92)


Adjusted net income available to common shareholders


30,552


9,430


Pro forma weighted average number of common shares – diluted:






Weighted average number of Class L shares


-


22,817,115


Class L conversion factor 


-


2.4338


Weighted average number of converted Class L shares 


-


55,532,882


Weighted average number of common shares 


119,682,197


41,370,341


Pro forma weighted average number of common shares – basic 


119,682,197


96,903,223


Incremental dilutive common shares (a) 


1,633,983


463,452


Pro forma weighted average number of common shares – diluted 


121,316,180


97,366,675


Diluted adjusted earnings per pro forma common share 

$

0.25


0.10









(a) Represents the dilutive effect of restricted shares and stock options, using the treasury stock method.

  

  












DUNKIN' BRANDS GROUP, INC. AND SUBSIDIARIES

Non-GAAP Reconciliations

(In thousands)

(Unaudited)









Three months ended









March 31,


March 26,









2012


2011

Operating income






$

55,195


44,836


Operating income margin







36.2%


32.2%

Adjustments:











Amortization of other intangible assets







6,865


7,082


Impairment charges







9


653


Secondary offering costs







914


Adjusted operating income






$

62,983


52,571


Adjusted operating income margin







41.3%


37.8%












Net income (loss) attributable to Dunkin' Brands Group, Inc.






$

25,950


(1,723)

Adjustments:











Amortization of other intangible assets







6,865


7,082


Impairment charges







9


653


Secondary offering costs







914



Loss on debt extinguishment and refinancing transactions








11,007


Tax impact of adjustments(a)







(3,115)


(7,497)

Adjusted net income






$

30,623


9,522












(a) Tax impact of adjustments calculated at a 40% effective tax rate for each period presented.












 


 

SOURCE Dunkin' Brands Group, Inc.



RELATED LINKS
http://www.dunkinbrands.com

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