Dunkin' Brands Reports First Quarter 2012 Results
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% |
|||||
|
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 |
|
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 - |
||||||
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 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," " |
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
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
Baskin-Robbins U.S. comparable store sales growth was driven by new product news around
In the first 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
Company Updates & Fiscal Year 2012 Targets
On
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
Conference Call
As previously announced,
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
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 "
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
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
With more than 16,800 points of distribution in nearly 60 countries worldwide,
Three months ended |
|||||||||
|
|
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% |
|||||
|
45 |
27 |
18 |
66.7% |
|||||
Three months ended |
|||||||||
|
|
Increase (Decrease) |
|||||||
Dunkin' |
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% |
|||||
|
(7) |
18 |
(25) |
-138.9% |
|||||
Three months ended |
|||||||||
|
|
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% |
|||||
|
(5) |
(26) |
21 |
-80.8% |
|||||
Three months ended |
|||||||||
|
|
Increase (Decrease) |
|||||||
|
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% |
|||||
|
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 |
|
|
27 |
39 |
57 |
120 |
243 |
|
Q1 |
Q2 |
Q3 |
Q4 |
Fiscal Year |
||
Dunkin' |
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 |
|
|
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 |
|
|
(26) |
(13) |
(18) |
(35) |
(92) |
|
Q1 |
Q2 |
Q3 |
Q4 |
Fiscal Year |
||
|
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 |
|
|
75 |
91 |
83 |
121 |
370 |
| ||||||||||
Consolidated Statements of Operations | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
Three months ended | ||||||||||
|
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 | ||||||||
|
25,914 |
(1,723) | ||||||||
|
(36) |
— | ||||||||
|
$ |
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) |
| ||||||||||
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 | |||||||
| ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three months ended | ||||||||||
|
March 26, | |||||||||
2012 |
2011 | |||||||||
Cash flows from operating activities: |
||||||||||
|
$ |
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) | ||||||||
|
(12,438) |
3,594 | ||||||||
Cash flows from investing activities: |
||||||||||
Additions to property and equipment |
(4,279) |
(3,734) | ||||||||
Other, net |
(651) |
301 | ||||||||
|
(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) | ||||||||
|
(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 | |||||||
| ||||||
Diluted Adjusted Earnings per Pro Forma Common Share | ||||||
(In thousands, except share and per share data) | ||||||
(Unaudited) | ||||||
Three months ended | ||||||
|
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. |
| ||||||||||
Non-GAAP Reconciliations | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three months ended | ||||||||||
|
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% | ||||||||
|
$ |
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
News Provided by Acquire Media