Chairman and Chief Executive Officer Julia Stewart Announces Resignation
"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,
Mr. Dahl has served on the board of directors since
"For more than 16 years, Julia has been a strong and valued leader of
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.
"
About
Based in
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
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
Investor, Ken Diptee, Executive Director, Investor Relations, DineEquity, Inc., 818-637-3632; or Media, Amy Mason, Senior Vice President, Communications, 818-637-4769