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%

26 Apr, 2012, 06:01 ET from Dunkin' Brands Group, Inc.

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