Delaware
(State or other jurisdiction of incorporation or
organization)
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95-3038279
(I.R.S. Employer Identification No.)
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450 North Brand Boulevard,
Glendale, California
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91203-1903
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Class
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Outstanding as of October 24, 2014
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Common Stock, $0.01 par value
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18,954,883
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Page
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September 30,
2014 |
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December 31, 2013
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||||
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(Unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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132,859
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$
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106,011
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Receivables, net
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91,292
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144,137
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Prepaid gift cards
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41,125
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49,223
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Prepaid income taxes
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—
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4,708
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Deferred income taxes
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32,517
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23,853
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Other current assets
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10,788
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3,650
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Total current assets
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308,581
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331,582
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Long-term receivables, net
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186,079
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197,153
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Property and equipment, net
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252,673
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274,295
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Goodwill
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697,470
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697,470
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Other intangible assets, net
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785,078
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794,057
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Other assets, net
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112,877
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110,085
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Total assets
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$
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2,342,758
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$
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2,404,642
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Liabilities and Stockholders’ Equity
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Current liabilities:
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Current maturities of long-term debt
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$
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4,720
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$
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4,720
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Accounts payable
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35,244
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40,050
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Gift card liability
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100,688
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171,955
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Accrued employee compensation and benefits
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17,282
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24,956
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Accrued interest payable
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31,618
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13,575
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Income taxes payable
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14,829
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—
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Current maturities of capital lease and financing obligations
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13,215
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12,247
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Other accrued expenses
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34,669
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16,770
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Total current liabilities
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252,265
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284,273
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Long-term debt, net (less current maturities)
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1,202,759
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1,203,517
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Capital lease obligations (less current maturities)
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101,832
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111,707
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Financing obligations (less current maturities)
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42,565
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48,843
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Deferred income taxes
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328,267
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341,578
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Other liabilities
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97,695
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99,545
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Total liabilities
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2,025,383
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2,089,463
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Commitments and contingencies
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Stockholders’ equity:
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Common stock, $0.01 par value, shares: 40,000,000 authorized; September 30, 2014 - 25,251,933 issued, 18,957,602 outstanding; December 31, 2013 - 25,299,315 issued, 19,040,890 outstanding
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253
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253
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Additional paid-in-capital
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278,213
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274,202
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Retained earnings
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352,685
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336,578
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Accumulated other comprehensive loss
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(65
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)
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(164
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)
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Treasury stock, at cost; shares: September 30, 2014 - 6,294,331; December 31, 2013 - 6,258,425
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(313,711
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)
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(295,690
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)
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Total stockholders’ equity
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317,375
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315,179
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Total liabilities and stockholders’ equity
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$
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2,342,758
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$
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2,404,642
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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
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September 30,
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2014
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2013
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2014
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2013
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Segment Revenues:
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Franchise and restaurant revenues
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$
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129,334
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$
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127,137
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$
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387,573
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$
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379,619
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Rental revenues
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30,761
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30,990
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92,223
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92,724
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Financing revenues
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2,758
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3,156
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10,779
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10,223
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Total segment revenues
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162,853
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161,283
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490,575
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482,566
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Segment Expenses:
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Franchise and restaurant expenses
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47,570
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44,091
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135,403
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130,875
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Rental expenses
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23,654
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24,149
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71,173
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72,953
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Financing expenses
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—
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—
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825
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245
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Total segment expenses
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71,224
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68,240
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207,401
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204,073
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Gross segment profit
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91,629
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93,043
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283,174
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278,493
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General and administrative expenses
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33,835
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35,331
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102,836
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105,004
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Interest expense
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24,984
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24,979
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74,895
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75,230
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Amortization of intangible assets
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3,071
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3,072
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9,212
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9,212
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Closure and impairment charges, net
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192
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(392
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)
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1,029
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770
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Loss on extinguishment of debt
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1
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—
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13
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36
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||||
Debt modification costs
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—
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—
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—
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1,296
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||||
(Gain) loss on disposition of assets
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(205
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)
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(72
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)
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592
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(326
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)
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||||
Income before income tax provision
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29,751
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30,125
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94,597
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87,271
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||||
Income tax provision
|
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(10,864
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)
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(11,395
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)
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(35,719
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)
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(33,365
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)
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Net income
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18,887
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18,730
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58,878
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53,906
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Other comprehensive (loss) income, net of tax:
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||||||||
Adjustment to unrealized loss on available-for-sale investments
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—
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—
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107
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—
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||||
Foreign currency translation adjustment
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(9
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)
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3
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(8
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)
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(5
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)
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Total comprehensive income
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$
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18,878
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$
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18,733
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$
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58,977
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$
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53,901
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Net income available to common stockholders:
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Net income
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$
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18,887
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|
|
$
|
18,730
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|
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$
|
58,878
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|
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$
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53,906
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Less: Net income allocated to unvested participating restricted stock
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|
(279
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)
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|
(296
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)
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(927
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)
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(925
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)
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||||
Net income available to common stockholders
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$
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18,608
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$
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18,434
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$
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57,951
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$
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52,981
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Net income available to common stockholders per share:
|
|
|
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|
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||||||
Basic
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$
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0.99
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|
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$
|
0.98
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|
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$
|
3.09
|
|
|
$
|
2.80
|
|
Diluted
|
|
$
|
0.99
|
|
|
$
|
0.97
|
|
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$
|
3.06
|
|
|
$
|
2.76
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
18,703
|
|
|
18,831
|
|
|
18,757
|
|
|
18,898
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Diluted
|
|
18,890
|
|
|
19,085
|
|
|
18,964
|
|
|
19,166
|
|
||||
|
|
|
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|
|
|
||||||||
Dividends declared per common share
|
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
2.25
|
|
|
$
|
2.25
|
|
Dividends paid per common share
|
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
2.25
|
|
|
$
|
2.25
|
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
||||||
|
|
2014
|
|
2013
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||
Net income
|
|
$
|
58,878
|
|
|
$
|
53,906
|
|
Adjustments to reconcile net income to cash flows provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
26,237
|
|
|
26,516
|
|
||
Non-cash interest expense
|
|
5,021
|
|
|
4,635
|
|
||
Deferred income taxes
|
|
(21,947
|
)
|
|
(16,007
|
)
|
||
Non-cash stock-based compensation expense
|
|
7,432
|
|
|
7,081
|
|
||
Tax benefit from stock-based compensation
|
|
4,008
|
|
|
3,001
|
|
||
Excess tax benefit from share-based compensation
|
|
(4,635
|
)
|
|
(1,985
|
)
|
||
Loss (gain) on disposition of assets
|
|
592
|
|
|
(326
|
)
|
||
Debt modification costs
|
|
—
|
|
|
1,296
|
|
||
Other
|
|
(1,155
|
)
|
|
697
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||
Receivables, net
|
|
54,237
|
|
|
41,698
|
|
||
Current income tax receivables and payables
|
|
19,975
|
|
|
7,232
|
|
||
Prepaid expenses and other current assets
|
|
5,909
|
|
|
16,054
|
|
||
Accounts payable
|
|
(5,657
|
)
|
|
2,650
|
|
||
Accrued employee compensation and benefits
|
|
(7,674
|
)
|
|
(4,372
|
)
|
||
Gift card liability
|
|
(71,268
|
)
|
|
(68,493
|
)
|
||
Other accrued expenses
|
|
32,474
|
|
|
29,231
|
|
||
Cash flows provided by operating activities
|
|
102,427
|
|
|
102,814
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Additions to property and equipment
|
|
(5,530
|
)
|
|
(4,547
|
)
|
||
Proceeds from sale of property and equipment
|
|
681
|
|
|
—
|
|
||
Principal receipts from notes, equipment contracts and other long-term receivables
|
|
10,252
|
|
|
10,254
|
|
||
Other
|
|
1
|
|
|
282
|
|
||
Cash flows provided by investing activities
|
|
5,404
|
|
|
5,989
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|||
Repayment of long-term debt
|
|
(3,600
|
)
|
|
(2,400
|
)
|
||
Payment of debt modification costs
|
|
—
|
|
|
(1,296
|
)
|
||
Principal payments on capital lease and financing obligations
|
|
(8,484
|
)
|
|
(7,515
|
)
|
||
Repurchase of DineEquity common stock
|
|
(30,006
|
)
|
|
(24,663
|
)
|
||
Dividends paid on common stock
|
|
(42,733
|
)
|
|
(43,170
|
)
|
||
Repurchase of restricted stock
|
|
(2,931
|
)
|
|
(3,209
|
)
|
||
Proceeds from stock options exercised
|
|
7,392
|
|
|
5,585
|
|
||
Excess tax benefit from share-based compensation
|
|
4,635
|
|
|
1,985
|
|
||
Change in restricted cash
|
|
(4,948
|
)
|
|
(3,122
|
)
|
||
Other
|
|
(308
|
)
|
|
—
|
|
||
Cash flows used in financing activities
|
|
(80,983
|
)
|
|
(77,805
|
)
|
||
Net change in cash and cash equivalents
|
|
26,848
|
|
|
30,998
|
|
||
Cash and cash equivalents at beginning of period
|
|
106,011
|
|
|
64,537
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
132,859
|
|
|
$
|
95,535
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
||
Interest paid in cash
|
|
$
|
62,369
|
|
|
$
|
58,751
|
|
Income taxes paid in cash
|
|
$
|
34,372
|
|
|
$
|
39,084
|
|
Long-term debt consisted of the following components:
|
|
|
|
|
||||
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(In millions)
|
||||||
Senior Secured Credit Facility, due October 2017, at a variable interest rate of 3.75% as of September 30, 2014 and December 31, 2013
|
|
$
|
463.6
|
|
|
$
|
467.2
|
|
Senior Notes due October 2018, at a fixed rate of 9.5%
|
|
760.8
|
|
|
760.8
|
|
||
Discount
|
|
(16.9
|
)
|
|
(19.8
|
)
|
||
Total long-term debt
|
|
1,207.5
|
|
|
1,208.2
|
|
||
Less: current maturities
|
|
(4.7
|
)
|
|
(4.7
|
)
|
||
Long-term debt, less current maturities
|
|
$
|
1,202.8
|
|
|
$
|
1,203.5
|
|
Nine months ended September 30, 2014
|
Declaration date
|
|
Payment date
|
|
Dividend per share
|
|
Total
(1)
|
||||
|
|
|
|
|
|
|
(In millions)
|
||||
First quarter
|
February 25, 2014
|
|
March 28, 2014
|
|
$
|
0.75
|
|
|
$
|
14.3
|
|
Second quarter
|
May 28, 2014
|
|
June 27, 2014
|
|
0.75
|
|
|
14.3
|
|
||
Third quarter
|
August 4, 2014
|
|
September 26, 2014
|
|
0.75
|
|
|
14.2
|
|
||
Total
|
|
|
|
|
$
|
2.25
|
|
|
$
|
42.8
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(In millions)
|
||||||||||||||
Total stock-based compensation expense:
|
|
|
|
|
|
|
|
||||||||
Equity classified awards expense
|
$
|
1.9
|
|
|
$
|
1.2
|
|
|
$
|
7.5
|
|
|
$
|
7.1
|
|
Liability classified awards expense (credit)
|
0.7
|
|
|
(0.8
|
)
|
|
1.2
|
|
|
(0.9
|
)
|
||||
Total pre-tax stock-based compensation expense
|
2.6
|
|
|
0.4
|
|
|
8.7
|
|
|
6.2
|
|
||||
Tax benefit
|
(1.0
|
)
|
|
(0.2
|
)
|
|
(3.3
|
)
|
|
(2.4
|
)
|
||||
Total stock-based compensation expense, net of tax
|
$
|
1.6
|
|
|
$
|
0.2
|
|
|
$
|
5.4
|
|
|
$
|
3.8
|
|
Risk-free interest rate
|
1.57
|
%
|
Weighted average historical volatility
|
51.1
|
%
|
Dividend yield
|
3.68
|
%
|
Expected years until exercise
|
4.60
|
|
Forfeitures
|
11.0
|
%
|
Weighted average fair value of options granted
|
$26.87
|
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Weighted Average
Remaining
Contractual Term
(in Years)
|
|
Aggregate
Intrinsic
Value (in Millions)
|
|||
Outstanding at December 31, 2013
|
|
775,059
|
|
|
$
|
42.09
|
|
|
|
|
|
Granted
|
|
120,932
|
|
|
81.53
|
|
|
|
|
|
|
Exercised
|
|
(236,692
|
)
|
|
31.23
|
|
|
|
|
|
|
Forfeited
|
|
(14,804
|
)
|
|
68.01
|
|
|
|
|
|
|
Outstanding at September 30, 2014
|
|
644,495
|
|
|
52.88
|
|
|
6.2
|
|
$18.2
|
|
Vested at September 30, 2014 and Expected to Vest
|
|
618,897
|
|
|
51.88
|
|
|
6.1
|
|
$18.1
|
|
Exercisable at September 30, 2014
|
|
454,011
|
|
|
$
|
43.92
|
|
|
5.1
|
|
$16.9
|
|
|
Restricted
Stock
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Restricted
Stock Units
|
|
Weighted
Average
Grant Date
Fair Value
|
||||||
Outstanding at December 31, 2013
|
|
266,252
|
|
|
$
|
58.87
|
|
|
47,230
|
|
|
$
|
64.57
|
|
Granted
|
|
94,658
|
|
|
81.52
|
|
|
13,879
|
|
|
81.65
|
|
||
Released
|
|
(85,981
|
)
|
|
52.83
|
|
|
(19,487
|
)
|
|
70.82
|
|
||
Forfeited
|
|
(29,397
|
)
|
|
66.52
|
|
|
—
|
|
|
—
|
|
||
Outstanding at September 30, 2014
|
|
245,532
|
|
|
$
|
68.88
|
|
|
41,622
|
|
|
$
|
66.92
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues (all from external customers)
|
|
|
|
|
|
|
|
|
|
|
||||||
Franchise operations
|
|
$
|
114.3
|
|
|
$
|
111.7
|
|
|
$
|
340.6
|
|
|
$
|
331.6
|
|
Company restaurants
|
|
15.0
|
|
|
15.4
|
|
|
47.0
|
|
|
48.1
|
|
||||
Rental operations
|
|
30.8
|
|
|
31.0
|
|
|
92.2
|
|
|
92.7
|
|
||||
Financing operations
|
|
2.8
|
|
|
3.2
|
|
|
10.8
|
|
|
10.2
|
|
||||
Total
|
|
$
|
162.9
|
|
|
$
|
161.3
|
|
|
$
|
490.6
|
|
|
$
|
482.6
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Company restaurants
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
Rental operations
|
|
3.6
|
|
|
3.8
|
|
|
11.2
|
|
|
12.0
|
|
||||
Corporate
|
|
25.0
|
|
|
25.0
|
|
|
74.9
|
|
|
75.2
|
|
||||
Total
|
|
$
|
28.7
|
|
|
$
|
28.9
|
|
|
$
|
86.4
|
|
|
$
|
87.5
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
||||||
Franchise operations
|
|
$
|
2.6
|
|
|
$
|
2.7
|
|
|
$
|
7.8
|
|
|
$
|
8.1
|
|
Company restaurants
|
|
0.5
|
|
|
0.5
|
|
|
1.6
|
|
|
1.6
|
|
||||
Rental operations
|
|
3.3
|
|
|
3.3
|
|
|
9.9
|
|
|
10.1
|
|
||||
Corporate
|
|
2.3
|
|
|
2.4
|
|
|
6.9
|
|
|
6.7
|
|
||||
Total
|
|
$
|
8.7
|
|
|
$
|
8.9
|
|
|
$
|
26.2
|
|
|
$
|
26.5
|
|
Income before income tax provision
|
|
|
|
|
|
|
|
|
|
|
||||||
Franchise operations
|
|
$
|
82.1
|
|
|
$
|
83.3
|
|
|
$
|
252.3
|
|
|
$
|
248.8
|
|
Company restaurants
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
||||
Rental operations
|
|
7.1
|
|
|
6.8
|
|
|
21.1
|
|
|
19.8
|
|
||||
Financing operations
|
|
2.8
|
|
|
3.2
|
|
|
10.0
|
|
|
10.0
|
|
||||
Corporate
|
|
(61.9
|
)
|
|
(62.9
|
)
|
|
(188.6
|
)
|
|
(191.2
|
)
|
||||
Total
|
|
$
|
29.8
|
|
|
$
|
30.1
|
|
|
$
|
94.6
|
|
|
$
|
87.3
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Numerator for basic and dilutive income per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
$
|
18,887
|
|
|
$
|
18,730
|
|
|
$
|
58,878
|
|
|
$
|
53,906
|
|
Less: Net income allocated to unvested participating restricted stock
|
(279
|
)
|
|
(296
|
)
|
|
(927
|
)
|
|
(925
|
)
|
||||
Net income available to common stockholders - basic
|
18,608
|
|
|
18,434
|
|
|
57,951
|
|
|
52,981
|
|
||||
Effect of unvested participating restricted stock in two-class calculation
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Net income available to common stockholders - diluted
|
$
|
18,609
|
|
|
$
|
18,435
|
|
|
$
|
57,954
|
|
|
$
|
52,984
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average outstanding shares of common stock - basic
|
18,703
|
|
|
18,831
|
|
|
18,757
|
|
|
18,898
|
|
||||
Dilutive effect of stock options
|
187
|
|
|
254
|
|
|
207
|
|
|
268
|
|
||||
Weighted average outstanding shares of common stock - diluted
|
18,890
|
|
|
19,085
|
|
|
18,964
|
|
|
19,166
|
|
||||
Net income per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.99
|
|
|
$
|
0.98
|
|
|
$
|
3.09
|
|
|
$
|
2.80
|
|
Diluted
|
$
|
0.99
|
|
|
$
|
0.97
|
|
|
$
|
3.06
|
|
|
$
|
2.76
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Long-term debt, less current maturities
|
|
$
|
1,202.8
|
|
|
$
|
1,275.7
|
|
|
$
|
1,203.5
|
|
|
$
|
1,306.2
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
80.2
|
|
|
$
|
52.3
|
|
|
$
|
0.3
|
|
|
|
|
|
$
|
132.9
|
|
|
Receivables, net
|
|
4.0
|
|
|
115.1
|
|
|
0.2
|
|
|
(28.0
|
)
|
|
91.3
|
|
|||||
Prepaid expenses and other current assets
|
|
213.8
|
|
|
52.7
|
|
|
—
|
|
|
(214.6
|
)
|
|
51.9
|
|
|||||
Deferred income taxes
|
|
(2.2
|
)
|
|
34.7
|
|
|
—
|
|
|
—
|
|
|
32.5
|
|
|||||
Intercompany
|
|
(469.0
|
)
|
|
462.6
|
|
|
6.4
|
|
|
|
|
|
—
|
|
|||||
Total current assets
|
|
(173.2
|
)
|
|
717.4
|
|
|
7.0
|
|
|
(242.6
|
)
|
|
308.6
|
|
|||||
Long-term receivables
|
|
—
|
|
|
186.1
|
|
|
—
|
|
|
—
|
|
|
186.1
|
|
|||||
Property and equipment, net
|
|
21.6
|
|
|
230.0
|
|
|
1.0
|
|
|
—
|
|
|
252.7
|
|
|||||
Goodwill
|
|
—
|
|
|
697.5
|
|
|
—
|
|
|
—
|
|
|
697.5
|
|
|||||
Other intangible assets, net
|
|
—
|
|
|
785.1
|
|
|
—
|
|
|
—
|
|
|
785.1
|
|
|||||
Other assets, net
|
|
19.1
|
|
|
93.8
|
|
|
—
|
|
|
—
|
|
|
112.9
|
|
|||||
Investment in subsidiaries
|
|
1,719.6
|
|
|
—
|
|
|
—
|
|
|
(1,719.6
|
)
|
|
—
|
|
|||||
Total assets
|
|
$
|
1,587.0
|
|
|
$
|
2,709.9
|
|
|
$
|
8.0
|
|
|
$
|
(1,962.2
|
)
|
|
$
|
2,342.8
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current maturities of long-term debt
|
|
$
|
32.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(28.0
|
)
|
|
$
|
4.7
|
|
Accounts payable
|
|
3.5
|
|
|
31.8
|
|
|
—
|
|
|
|
|
|
35.2
|
|
|||||
Accrued employee compensation and benefits
|
|
11.4
|
|
|
5.9
|
|
|
—
|
|
|
|
|
|
17.3
|
|
|||||
Gift card liability
|
|
—
|
|
|
100.7
|
|
|
—
|
|
|
|
|
|
100.7
|
|
|||||
Other accrued expenses
|
|
16.9
|
|
|
292.2
|
|
|
(0.2
|
)
|
|
(214.6
|
)
|
|
94.3
|
|
|||||
Total current liabilities
|
|
64.5
|
|
|
430.6
|
|
|
(0.2
|
)
|
|
(242.6
|
)
|
|
252.3
|
|
|||||
Long-term debt
|
|
1,202.8
|
|
|
—
|
|
|
—
|
|
|
|
|
|
1,202.8
|
|
|||||
Financing obligations
|
|
—
|
|
|
42.6
|
|
|
—
|
|
|
|
|
|
42.6
|
|
|||||
Capital lease obligations
|
|
—
|
|
|
101.8
|
|
|
—
|
|
|
—
|
|
|
101.8
|
|
|||||
Deferred income taxes
|
|
(3.9
|
)
|
|
332.5
|
|
|
(0.4
|
)
|
|
|
|
|
328.3
|
|
|||||
Other liabilities
|
|
6.2
|
|
|
90.3
|
|
|
1.2
|
|
|
|
|
|
97.7
|
|
|||||
Total liabilities
|
|
1,269.6
|
|
|
997.8
|
|
|
0.6
|
|
|
(242.6
|
)
|
|
2,025.4
|
|
|||||
Total stockholders’ equity
|
|
317.5
|
|
|
1,712.1
|
|
|
7.4
|
|
|
(1,719.6
|
)
|
|
317.4
|
|
|||||
Total liabilities and stockholders’ equity
|
|
$
|
1,587.0
|
|
|
$
|
2,709.9
|
|
|
$
|
8.0
|
|
|
$
|
(1,962.2
|
)
|
|
$
|
2,342.8
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
50.3
|
|
|
$
|
54.7
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
106.0
|
|
Receivables, net
|
|
2.0
|
|
|
150.0
|
|
|
0.1
|
|
|
(8.0
|
)
|
|
144.1
|
|
|||||
Prepaid expenses and other current assets
|
|
189.2
|
|
|
56.1
|
|
|
—
|
|
|
(187.7
|
)
|
|
57.6
|
|
|||||
Deferred income taxes
|
|
(4.1
|
)
|
|
28.0
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
|||||
Intercompany
|
|
(435.2
|
)
|
|
429.4
|
|
|
5.8
|
|
|
—
|
|
|
—
|
|
|||||
Total current assets
|
|
(197.8
|
)
|
|
718.1
|
|
|
7.0
|
|
|
(195.7
|
)
|
|
331.6
|
|
|||||
Long-term receivables
|
|
—
|
|
|
197.2
|
|
|
—
|
|
|
—
|
|
|
197.2
|
|
|||||
Property and equipment, net
|
|
23.5
|
|
|
249.7
|
|
|
1.0
|
|
|
—
|
|
|
274.3
|
|
|||||
Goodwill
|
|
—
|
|
|
697.5
|
|
|
—
|
|
|
—
|
|
|
697.5
|
|
|||||
Other intangible assets, net
|
|
—
|
|
|
794.1
|
|
|
—
|
|
|
—
|
|
|
794.1
|
|
|||||
Other assets, net
|
|
16.2
|
|
|
93.9
|
|
|
—
|
|
|
—
|
|
|
110.1
|
|
|||||
Investment in subsidiaries
|
|
1,697.6
|
|
|
—
|
|
|
—
|
|
|
(1,697.6
|
)
|
|
—
|
|
|||||
Total assets
|
|
$
|
1,539.5
|
|
|
$
|
2,750.4
|
|
|
$
|
8.0
|
|
|
$
|
(1,893.3
|
)
|
|
$
|
2,404.6
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current maturities of long-term debt
|
|
$
|
12.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8.0
|
)
|
|
$
|
4.7
|
|
Accounts payable
|
|
1.4
|
|
|
38.6
|
|
|
—
|
|
|
—
|
|
|
40.1
|
|
|||||
Accrued employee compensation and benefits
|
|
14.5
|
|
|
10.4
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|||||
Gift card liability
|
|
—
|
|
|
172.0
|
|
|
—
|
|
|
—
|
|
|
172.0
|
|
|||||
Other accrued expenses
|
|
(13.7
|
)
|
|
244.1
|
|
|
—
|
|
|
(187.7
|
)
|
|
42.6
|
|
|||||
Total current liabilities
|
|
15.0
|
|
|
465.0
|
|
|
—
|
|
|
(195.7
|
)
|
|
284.3
|
|
|||||
Long-term debt
|
|
1,203.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,203.5
|
|
|||||
Financing obligations
|
|
—
|
|
|
48.8
|
|
|
—
|
|
|
—
|
|
|
48.8
|
|
|||||
Capital lease obligations
|
|
—
|
|
|
111.7
|
|
|
—
|
|
|
—
|
|
|
111.7
|
|
|||||
Deferred income taxes
|
|
(0.3
|
)
|
|
342.1
|
|
|
(0.3
|
)
|
|
—
|
|
|
341.6
|
|
|||||
Other liabilities
|
|
5.9
|
|
|
92.7
|
|
|
0.9
|
|
|
—
|
|
|
99.5
|
|
|||||
Total liabilities
|
|
1,224.2
|
|
|
1,060.4
|
|
|
0.6
|
|
|
(195.7
|
)
|
|
2,089.5
|
|
|||||
Total stockholders’ equity
|
|
315.3
|
|
|
1,690.0
|
|
|
7.4
|
|
|
(1,697.6
|
)
|
|
315.2
|
|
|||||
Total liabilities and stockholders’ equity
|
|
$
|
1,539.5
|
|
|
$
|
2,750.4
|
|
|
$
|
8.0
|
|
|
$
|
(1,893.3
|
)
|
|
$
|
2,404.6
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise and restaurant revenues
|
|
$
|
0.7
|
|
|
$
|
128.1
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
129.3
|
|
Rental revenues
|
|
—
|
|
|
30.8
|
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|||||
Financing revenues
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|||||
Total revenue
|
|
0.7
|
|
|
161.6
|
|
|
0.5
|
|
|
—
|
|
|
162.9
|
|
|||||
Franchise and restaurant expenses
|
|
0.7
|
|
|
46.9
|
|
|
—
|
|
|
—
|
|
|
47.6
|
|
|||||
Rental expenses
|
|
—
|
|
|
23.7
|
|
|
—
|
|
|
—
|
|
|
23.7
|
|
|||||
Financing expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
General and administrative expenses
|
|
10.3
|
|
|
23.5
|
|
|
0.1
|
|
|
—
|
|
|
33.8
|
|
|||||
Interest expense
|
|
24.7
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|||||
Amortization of intangible assets
|
|
—
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|||||
Closure and impairment charges
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|||||
Gain on disposition of assets
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Intercompany dividend
|
|
(44.6
|
)
|
|
—
|
|
|
—
|
|
|
44.6
|
|
|
—
|
|
|||||
Income before income taxes
|
|
9.7
|
|
|
64.3
|
|
|
0.4
|
|
|
(44.6
|
)
|
|
29.8
|
|
|||||
Benefit (provision) for income taxes
|
|
9.2
|
|
|
(20.1
|
)
|
|
—
|
|
|
—
|
|
|
(10.9
|
)
|
|||||
Net income
|
|
$
|
18.9
|
|
|
$
|
44.2
|
|
|
$
|
0.4
|
|
|
$
|
(44.6
|
)
|
|
$
|
18.9
|
|
Total comprehensive income
|
|
$
|
18.9
|
|
|
$
|
44.2
|
|
|
$
|
0.4
|
|
|
$
|
(44.6
|
)
|
|
$
|
18.9
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise and restaurant revenues
|
|
$
|
0.7
|
|
|
$
|
126.1
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
127.1
|
|
Rental revenues
|
|
—
|
|
|
31.0
|
|
|
—
|
|
|
—
|
|
|
31.0
|
|
|||||
Financing revenues
|
|
—
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|||||
Total revenue
|
|
0.7
|
|
|
160.2
|
|
|
0.4
|
|
|
—
|
|
|
161.3
|
|
|||||
Franchise and restaurant expenses
|
|
0.6
|
|
|
43.5
|
|
|
—
|
|
|
—
|
|
|
44.1
|
|
|||||
Rental expenses
|
|
—
|
|
|
24.1
|
|
|
0.0
|
|
|
—
|
|
|
24.2
|
|
|||||
Financing expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
General and administrative expenses
|
|
9.0
|
|
|
26.0
|
|
|
0.3
|
|
|
—
|
|
|
35.3
|
|
|||||
Interest expense
|
|
24.6
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|||||
Amortization of intangible assets
|
|
—
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|||||
Closure and impairment charges, net
|
|
—
|
|
|
(0.5
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.4
|
)
|
|||||
Loss on disposition of assets
|
|
—
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Intercompany dividend
|
|
(39.2
|
)
|
|
—
|
|
|
—
|
|
|
39.2
|
|
|
—
|
|
|||||
Income before income taxes
|
|
5.6
|
|
|
63.5
|
|
|
0.2
|
|
|
(39.2
|
)
|
|
30.1
|
|
|||||
Benefit (provision) for income taxes
|
|
13.1
|
|
|
(24.5
|
)
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|||||
Net income
|
|
$
|
18.7
|
|
|
$
|
39.0
|
|
|
$
|
0.2
|
|
|
$
|
(39.2
|
)
|
|
$
|
18.7
|
|
Total comprehensive income
|
|
$
|
18.7
|
|
|
$
|
39.0
|
|
|
$
|
0.2
|
|
|
$
|
(39.2
|
)
|
|
$
|
18.7
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise and restaurant revenues
|
|
$
|
2.1
|
|
|
$
|
384.3
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
$
|
387.6
|
|
Rental revenues
|
|
—
|
|
|
92.2
|
|
|
—
|
|
|
—
|
|
|
92.2
|
|
|||||
Financing revenues
|
|
—
|
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|
10.8
|
|
|||||
Total revenue
|
|
2.1
|
|
|
487.3
|
|
|
1.1
|
|
|
—
|
|
|
490.6
|
|
|||||
Franchise and restaurant expenses
|
|
2.0
|
|
|
133.4
|
|
|
—
|
|
|
—
|
|
|
135.4
|
|
|||||
Rental expenses
|
|
—
|
|
|
71.1
|
|
|
—
|
|
|
—
|
|
|
71.1
|
|
|||||
Financing expenses
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|||||
General and administrative expenses
|
|
29.3
|
|
|
73.3
|
|
|
0.2
|
|
|
—
|
|
|
102.8
|
|
|||||
Interest expense
|
|
73.9
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
74.9
|
|
|||||
Amortization of intangible assets
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
|||||
Closure and impairment charges
|
|
—
|
|
|
0.3
|
|
|
0.7
|
|
|
—
|
|
|
1.0
|
|
|||||
Loss on disposition of assets
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|||||
Intercompany dividend
|
|
(136.9
|
)
|
|
—
|
|
|
—
|
|
|
136.9
|
|
|
—
|
|
|||||
Income before income taxes
|
|
33.7
|
|
|
197.6
|
|
|
0.1
|
|
|
(136.9
|
)
|
|
94.6
|
|
|||||
Benefit (provision) for income taxes
|
|
25.2
|
|
|
(60.9
|
)
|
|
—
|
|
|
—
|
|
|
(35.7
|
)
|
|||||
Net income
|
|
$
|
58.9
|
|
|
$
|
136.7
|
|
|
$
|
0.1
|
|
|
$
|
(136.9
|
)
|
|
$
|
58.9
|
|
Total comprehensive income
|
|
$
|
58.9
|
|
|
$
|
136.8
|
|
|
$
|
0.1
|
|
|
$
|
(136.9
|
)
|
|
$
|
59.0
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise and restaurant revenues
|
|
$
|
2.1
|
|
|
$
|
376.5
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
379.6
|
|
Rental revenues
|
|
—
|
|
|
92.7
|
|
|
—
|
|
|
—
|
|
|
92.7
|
|
|||||
Financing revenues
|
|
—
|
|
|
10.2
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|||||
Total revenue
|
|
2.1
|
|
|
479.4
|
|
|
1.0
|
|
|
—
|
|
|
482.6
|
|
|||||
Franchise and restaurant expenses
|
|
2.1
|
|
|
128.8
|
|
|
—
|
|
|
—
|
|
|
130.9
|
|
|||||
Rental expenses
|
|
—
|
|
|
72.9
|
|
|
—
|
|
|
—
|
|
|
72.9
|
|
|||||
Financing expenses
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
General and administrative expenses
|
|
27.7
|
|
|
76.3
|
|
|
0.9
|
|
|
—
|
|
|
105.0
|
|
|||||
Interest expense
|
|
74.2
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
75.2
|
|
|||||
Amortization of intangible assets
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
|||||
Closure and impairment charges
|
|
—
|
|
|
0.5
|
|
|
0.2
|
|
|
—
|
|
|
0.8
|
|
|||||
Gain on disposition of assets
|
|
—
|
|
|
0.4
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.3
|
)
|
|||||
Debt modification costs
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Intercompany dividend
|
|
(116.6
|
)
|
|
—
|
|
|
—
|
|
|
116.6
|
|
|
—
|
|
|||||
Income before income taxes
|
|
13.4
|
|
|
190.0
|
|
|
0.5
|
|
|
(116.6
|
)
|
|
87.3
|
|
|||||
Benefit (provision) for income taxes
|
|
40.5
|
|
|
(73.9
|
)
|
|
—
|
|
|
—
|
|
|
(33.4
|
)
|
|||||
Net income
|
|
$
|
53.9
|
|
|
$
|
116.1
|
|
|
$
|
0.5
|
|
|
$
|
(116.6
|
)
|
|
$
|
53.9
|
|
Total comprehensive income
|
|
$
|
53.9
|
|
|
$
|
116.1
|
|
|
$
|
0.5
|
|
|
$
|
(116.6
|
)
|
|
$
|
53.9
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Cash flows provided by (used in) operating activities
|
|
$
|
(78.1
|
)
|
|
$
|
180.6
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
102.4
|
|
Investing cash flows:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property and equipment
|
|
(3.4
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|||||
Principal receipts from long-term receivables
|
|
—
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|||||
Proceeds from sale of assets
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flows provided by (used in) investing activities
|
|
(3.4
|
)
|
|
8.8
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|||||
Financing cash flows:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Payment of debt
|
|
(3.6
|
)
|
|
(8.5
|
)
|
|
—
|
|
|
—
|
|
|
(12.1
|
)
|
|||||
Repurchase of common stock
|
|
(30.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30.0
|
)
|
|||||
Dividends paid on common stock
|
|
(42.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42.7
|
)
|
|||||
Restricted cash
|
|
—
|
|
|
(4.9
|
)
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|||||
Other
|
|
8.6
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|||||
Intercompany transfers
|
|
179.2
|
|
|
(178.6
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|||||
Cash flows provided by (used in) financing activities
|
|
111.5
|
|
|
(191.8
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
(81.0
|
)
|
|||||
Net change
|
|
29.9
|
|
|
(2.4
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
26.8
|
|
|||||
Beginning cash and equivalents
|
|
50.3
|
|
|
54.7
|
|
|
1.0
|
|
|
—
|
|
|
106.0
|
|
|||||
Ending cash and equivalents
|
|
$
|
80.2
|
|
|
$
|
52.3
|
|
|
$
|
0.3
|
|
|
|
|
|
$
|
132.9
|
|
|
|
Parent
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-guarantor
Subsidiaries
|
|
Eliminations and
Reclassification
|
|
Consolidated
|
||||||||||
Cash flows provided by (used in) operating activities
|
|
$
|
(66.3
|
)
|
|
$
|
169.4
|
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
|
$
|
102.8
|
|
Investing cash flows:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property and equipment
|
|
(3.8
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|||||
Principal receipts from long-term receivables
|
|
—
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Cash flows provided by (used in) investing activities
|
|
(3.8
|
)
|
|
9.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
|||||
Financing cash flows:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Payment of debt
|
|
(2.4
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
(9.9
|
)
|
|||||
Payment of debt modification costs
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|||||
Purchase of common stock
|
|
(24.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.7
|
)
|
|||||
Dividends paid on common stock
|
|
(43.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43.2
|
)
|
|||||
Restricted cash
|
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|||||
Other
|
|
4.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|||||
Intercompany transfers
|
|
179.7
|
|
|
(180.1
|
)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|||||
Cash flows provided by (used in) financing activities
|
|
112.4
|
|
|
(190.6
|
)
|
|
0.4
|
|
|
—
|
|
|
(77.8
|
)
|
|||||
Net change
|
|
42.3
|
|
|
(11.4
|
)
|
|
0.1
|
|
|
—
|
|
|
31.0
|
|
|||||
Beginning cash and equivalents
|
|
9.9
|
|
|
54.0
|
|
|
0.6
|
|
|
—
|
|
|
64.5
|
|
|||||
Ending cash and equivalents
|
|
$
|
52.2
|
|
|
$
|
42.5
|
|
|
$
|
0.8
|
|
|
$
|
—
|
|
|
$
|
95.5
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance |
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance |
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions, except per share information)
|
||||||||||||||||||||||
Revenue
|
|
$
|
162.9
|
|
|
$
|
161.3
|
|
|
$
|
1.6
|
|
|
$
|
490.6
|
|
|
$
|
482.6
|
|
|
$
|
8.0
|
|
Segment profit
|
|
91.7
|
|
|
93.0
|
|
|
(1.3
|
)
|
|
283.2
|
|
|
278.5
|
|
|
4.7
|
|
||||||
Segment profit as % of revenue
|
|
56.3
|
%
|
|
57.7
|
%
|
|
(1.4
|
)%
|
|
57.7
|
%
|
|
57.7
|
%
|
|
0.0
|
%
|
||||||
General & administrative expenses
|
|
33.8
|
|
|
35.3
|
|
|
1.5
|
|
|
102.8
|
|
|
105.0
|
|
|
2.2
|
|
||||||
Interest expense
|
|
25.0
|
|
|
25.0
|
|
|
(0.0
|
)
|
|
74.9
|
|
|
75.2
|
|
|
0.3
|
|
||||||
Debt modification costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
||||||
Other expenses, net
(1)
|
|
3.1
|
|
|
2.6
|
|
|
(0.5
|
)
|
|
10.8
|
|
|
9.7
|
|
|
(1.1
|
)
|
||||||
Income tax provision
|
|
10.9
|
|
|
11.4
|
|
|
0.5
|
|
|
35.7
|
|
|
33.4
|
|
|
(2.4
|
)
|
||||||
Net income
|
|
$
|
18.9
|
|
|
$
|
18.7
|
|
|
$
|
0.2
|
|
|
$
|
58.9
|
|
|
$
|
53.9
|
|
|
$
|
5.0
|
|
Net income per diluted share
|
|
$
|
0.99
|
|
|
$
|
0.97
|
|
|
$
|
0.02
|
|
|
$
|
3.06
|
|
|
$
|
2.76
|
|
|
$
|
0.30
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
September 30, 2014
|
|
September 30, 2014
|
||||
|
Applebee's
|
|
IHOP
|
|
Applebee's
|
|
IHOP
|
Percentage increase in domestic system-wide same-restaurant sales
|
1.7%
|
|
2.4%
|
|
0.6%
|
|
3.2%
|
Net franchise restaurant development (reduction)
(1)
|
—
|
|
12
|
|
(2)
|
|
24
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2014
|
|
2013
|
||||
|
(In millions)
|
||||||
Consolidated cash flows from operating activities
|
$
|
102.4
|
|
|
$
|
102.8
|
|
Consolidated free cash flow
|
$
|
95.2
|
|
|
$
|
97.6
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
|
(Unaudited)
|
||||||||||
Applebee's Restaurant Development Activity
|
|
|
|
|
|
|
|||||
Summary - beginning of period:
|
|
|
|
|
|
|
|
||||
Franchise
|
1,986
|
|
|
1,989
|
|
|
1,988
|
|
|
2,011
|
|
Company restaurants
|
23
|
|
|
23
|
|
|
23
|
|
|
23
|
|
Total Applebee's restaurants, beginning of period
|
2,009
|
|
|
2,012
|
|
|
2,011
|
|
|
2,034
|
|
Franchise restaurants opened:
|
|
|
|
|
|
|
|
|
|
||
Domestic
|
7
|
|
|
1
|
|
|
20
|
|
|
6
|
|
International
|
3
|
|
|
3
|
|
|
4
|
|
|
4
|
|
Total franchise restaurants opened
|
10
|
|
|
4
|
|
|
24
|
|
|
10
|
|
Franchise restaurants closed:
|
|
|
|
|
|
|
|
|
|
||
Domestic
|
(7
|
)
|
|
(6
|
)
|
|
(17
|
)
|
|
(31
|
)
|
International
|
(3
|
)
|
|
—
|
|
|
(9
|
)
|
|
(3
|
)
|
Total franchise restaurants closed
|
(10
|
)
|
|
(6
|
)
|
|
(26
|
)
|
|
(34
|
)
|
Net franchise restaurant (reduction) development
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(24
|
)
|
Summary - end of period:
|
|
|
|
|
|
|
|
||||
Franchise
|
1,986
|
|
|
1,987
|
|
|
1,986
|
|
|
1,987
|
|
Company restaurants
|
23
|
|
|
23
|
|
|
23
|
|
|
23
|
|
Total Applebee's restaurants, end of period
|
2,009
|
|
|
2,010
|
|
|
2,009
|
|
|
2,010
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
|
(Unaudited)
|
||||||||||
IHOP Restaurant Development Activity
|
|
|
|
|
|
|
|
|
|
||
Summary - beginning of period:
|
|
|
|
|
|
|
|
||||
Franchise
|
1,455
|
|
|
1,414
|
|
|
1,439
|
|
|
1,404
|
|
Area license
|
167
|
|
|
168
|
|
|
168
|
|
|
165
|
|
Company
|
10
|
|
|
11
|
|
|
13
|
|
|
12
|
|
Total IHOP restaurants, beginning of period
|
1,632
|
|
|
1,593
|
|
|
1,620
|
|
|
1,581
|
|
|
|
|
|
|
|
|
|
||||
Franchise/area license restaurants opened:
|
|
|
|
|
|
|
|
||||
Domestic franchise
|
11
|
|
|
10
|
|
|
27
|
|
|
25
|
|
Domestic area license
|
1
|
|
|
—
|
|
|
3
|
|
|
3
|
|
International franchise
|
6
|
|
|
3
|
|
|
15
|
|
|
6
|
|
International area license
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total franchise/area license restaurants opened
|
18
|
|
|
13
|
|
|
45
|
|
|
35
|
|
Franchise/area license restaurants closed:
|
|
|
|
|
|
|
|
|
|
||
Domestic franchise
|
(5
|
)
|
|
(4
|
)
|
|
(16
|
)
|
|
(13
|
)
|
Domestic area license
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
International franchise
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
International area license
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Total franchise/area license restaurants closed
|
(6
|
)
|
|
(4
|
)
|
|
(21
|
)
|
|
(14
|
)
|
Net franchise/area license restaurant development
|
12
|
|
|
9
|
|
|
24
|
|
|
21
|
|
Refranchised from Company restaurants
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
Franchise restaurants reacquired by the Company
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
Net franchise/area license restaurant additions
|
12
|
|
|
7
|
|
|
27
|
|
|
20
|
|
|
|
|
|
|
|
|
|
||||
Summary - end of period:
|
|
|
|
|
|
|
|
||||
Franchise
|
1,466
|
|
|
1,421
|
|
|
1,466
|
|
|
1,421
|
|
Area license
|
168
|
|
|
168
|
|
|
168
|
|
|
168
|
|
Company
|
10
|
|
|
13
|
|
|
10
|
|
|
13
|
|
Total IHOP restaurants, end of period
|
1,644
|
|
|
1,602
|
|
|
1,644
|
|
|
1,602
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
—
|
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||
|
|
(Unaudited)
|
|||||||||||||||
Applebee's Restaurant Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective Restaurants
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise
|
|
1,985
|
|
|
1,986
|
|
|
1,985
|
|
|
1,998
|
|
|||||
Company
|
|
23
|
|
|
23
|
|
|
23
|
|
|
23
|
|
|||||
Total
|
|
2,008
|
|
|
2,009
|
|
|
2,008
|
|
|
2,021
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
System-wide
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales percentage change
(c)
|
|
2.5
|
%
|
|
0.0
|
%
|
|
0.7
|
%
|
|
0.6
|
%
|
|||||
Domestic same-restaurant sales percentage change
(d)
|
|
1.7
|
%
|
|
(0.4
|
)%
|
|
0.6
|
%
|
|
(0.1
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Franchise
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales percentage change
(c) (e)
|
|
2.5
|
%
|
|
6.2
|
%
|
|
0.7
|
%
|
|
7.7
|
%
|
|||||
Domestic same-restaurant sales percentage change
(d)
|
|
1.7
|
%
|
|
(0.4
|
)%
|
|
0.6
|
%
|
|
(0.1
|
)%
|
|||||
Average weekly domestic unit sales (in thousands)
|
|
$
|
46.0
|
|
|
$
|
44.9
|
|
|
$
|
47.9
|
|
|
$
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
IHOP Restaurant Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective Restaurants
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Franchise
|
|
1,459
|
|
|
1,413
|
|
|
1,449
|
|
|
1,410
|
|
|||||
Area license
|
|
168
|
|
|
168
|
|
|
167
|
|
|
167
|
|
|||||
Company
|
|
10
|
|
|
12
|
|
|
10
|
|
|
12
|
|
|||||
Total
|
|
1,637
|
|
|
1,593
|
|
|
1,626
|
|
|
1,589
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
System-wide
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales percentage change
(c)
|
|
5.3
|
%
|
|
6.1
|
%
|
|
5.9
|
%
|
|
4.2
|
%
|
|||||
Domestic same-restaurant sales percentage change
(d)
|
|
2.4
|
%
|
|
3.6
|
%
|
|
3.2
|
%
|
|
1.7
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Franchise
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales percentage change
(c)
|
|
5.6
|
%
|
|
6.2
|
%
|
|
6.0
|
%
|
|
4.3
|
%
|
|||||
Domestic same-restaurant sales percentage change
(d)
|
|
2.4
|
%
|
|
3.6
|
%
|
|
3.2
|
%
|
|
1.7
|
%
|
|||||
Average weekly domestic unit sales (in thousands)
|
|
$
|
35.8
|
|
|
$
|
35.0
|
|
|
$
|
35.9
|
|
|
$
|
34.8
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Area License
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales percentage change
(c)
|
|
4.0
|
%
|
|
7.9
|
%
|
|
5.9
|
%
|
|
5.6
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(In millions)
|
||||||||||||||
Reported sales (unaudited)
|
|
|
|
|
|
|
|
|
|
||||||
Applebee's franchise restaurant sales
|
$
|
1,100.3
|
|
|
$
|
1,073.7
|
|
|
$
|
3,434.1
|
|
|
$
|
3,409.4
|
|
IHOP franchise restaurant sales
|
$
|
678.3
|
|
|
$
|
642.6
|
|
|
$
|
2,028.1
|
|
|
$
|
1,912.7
|
|
IHOP area license restaurant sales
|
$
|
64.3
|
|
|
$
|
61.8
|
|
|
$
|
199.2
|
|
|
$
|
188.0
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance |
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance |
||||||||||||||||
|
|
September 30,
|
|
September 30,
|
|
|||||||||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|||||||||||||||
|
|
(In millions)
|
|
|
||||||||||||||||||||
Franchise operations
|
|
$
|
114.3
|
|
|
$
|
111.7
|
|
|
$
|
2.6
|
|
|
$
|
340.6
|
|
|
$
|
331.6
|
|
|
$
|
9.0
|
|
Company restaurant operations
|
|
15.0
|
|
|
15.4
|
|
|
(0.4
|
)
|
|
47.0
|
|
|
48.1
|
|
|
(1.1
|
)
|
||||||
Rental operations
|
|
30.8
|
|
|
31.0
|
|
|
(0.2
|
)
|
|
92.2
|
|
|
92.7
|
|
|
(0.5
|
)
|
||||||
Financing operations
|
|
2.8
|
|
|
3.2
|
|
|
(0.4
|
)
|
|
10.8
|
|
|
10.2
|
|
|
0.6
|
|
||||||
Total revenue
|
|
$
|
162.9
|
|
|
$
|
161.3
|
|
|
$
|
1.6
|
|
|
$
|
490.6
|
|
|
$
|
482.6
|
|
|
$
|
8.0
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance
|
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance
|
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Franchise operations
|
|
$
|
82.1
|
|
|
$
|
83.3
|
|
|
$
|
(1.2
|
)
|
|
$
|
252.3
|
|
|
$
|
248.8
|
|
|
$
|
3.5
|
|
Company restaurant operations
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
0.0
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||||
Rental operations
|
|
7.1
|
|
|
6.8
|
|
|
0.3
|
|
|
21.1
|
|
|
19.8
|
|
|
1.3
|
|
||||||
Financing operations
|
|
2.8
|
|
|
3.2
|
|
|
(0.4
|
)
|
|
10.0
|
|
|
10.0
|
|
|
0.0
|
|
||||||
Total segment profit
|
|
$
|
91.7
|
|
|
$
|
93.0
|
|
|
$
|
(1.3
|
)
|
|
$
|
283.2
|
|
|
$
|
278.5
|
|
|
$
|
4.7
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance
|
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance
|
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions, except number of restaurants)
|
||||||||||||||||||||||
Effective Franchise Restaurants:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Applebee’s
|
|
1,985
|
|
|
1,986
|
|
|
(1
|
)
|
|
1,985
|
|
|
1,998
|
|
|
(13
|
)
|
||||||
IHOP
|
|
1,627
|
|
|
1,581
|
|
|
46
|
|
|
1,616
|
|
|
1,577
|
|
|
39
|
|
||||||
Franchise Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Applebee’s
|
|
$
|
47.8
|
|
|
$
|
50.9
|
|
|
$
|
(3.1
|
)
|
|
$
|
148.6
|
|
|
$
|
151.9
|
|
|
$
|
(3.3
|
)
|
IHOP
|
|
42.5
|
|
|
40.8
|
|
|
1.7
|
|
|
126.1
|
|
|
120.1
|
|
|
6.0
|
|
||||||
IHOP advertising
|
|
24.0
|
|
|
20.0
|
|
|
4.0
|
|
|
65.9
|
|
|
59.6
|
|
|
6.3
|
|
||||||
Total franchise revenues
|
|
114.3
|
|
|
111.7
|
|
|
2.6
|
|
|
340.6
|
|
|
331.6
|
|
|
9.0
|
|
||||||
Franchise Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Applebee’s
|
|
1.1
|
|
|
1.6
|
|
|
0.5
|
|
|
3.8
|
|
|
4.6
|
|
|
0.8
|
|
||||||
IHOP
|
|
7.1
|
|
|
6.8
|
|
|
(0.3
|
)
|
|
18.6
|
|
|
18.6
|
|
|
0.0
|
|
||||||
IHOP advertising
|
|
24.0
|
|
|
20.0
|
|
|
(4.0
|
)
|
|
65.9
|
|
|
59.6
|
|
|
(6.3
|
)
|
||||||
Total franchise expenses
|
|
32.2
|
|
|
28.4
|
|
|
(3.8
|
)
|
|
88.3
|
|
|
82.8
|
|
|
(5.5
|
)
|
||||||
Franchise Segment Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Applebee’s
|
|
46.7
|
|
|
49.3
|
|
|
(2.6
|
)
|
|
144.8
|
|
|
147.3
|
|
|
(2.5
|
)
|
||||||
IHOP
|
|
35.4
|
|
|
34.0
|
|
|
1.4
|
|
|
107.5
|
|
|
101.5
|
|
|
6.0
|
|
||||||
Total franchise segment profit
|
|
$
|
82.1
|
|
|
$
|
83.3
|
|
|
$
|
(1.2
|
)
|
|
$
|
252.3
|
|
|
$
|
248.8
|
|
|
$
|
3.5
|
|
Segment profit as % of revenue
(2)
|
|
71.8
|
%
|
|
74.6
|
%
|
|
|
|
74.1
|
%
|
|
75.1
|
%
|
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance
|
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance
|
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions, except number of restaurants)
|
||||||||||||||||||||||
Effective Company Restaurants:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Applebee’s
|
|
23
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
—
|
|
||||||
IHOP
|
|
10
|
|
|
12
|
|
|
(2
|
)
|
|
10
|
|
|
12
|
|
|
(2
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company restaurant sales
|
|
$
|
15.0
|
|
|
$
|
15.4
|
|
|
$
|
(0.4
|
)
|
|
$
|
47.0
|
|
|
$
|
48.1
|
|
|
$
|
(1.1
|
)
|
Company restaurant expenses
|
|
15.3
|
|
|
15.7
|
|
|
0.4
|
|
|
47.2
|
|
|
48.2
|
|
|
1.0
|
|
||||||
Company restaurant segment profit
|
|
$
|
(0.3
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
0.0
|
|
|
$
|
(0.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
Segment profit as % of revenue
(2)
|
|
(2.1
|
)%
|
|
(1.8
|
)%
|
|
|
|
(0.4
|
)%
|
|
(0.2
|
)%
|
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance |
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance |
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Rental revenues
|
|
$
|
30.8
|
|
|
$
|
31.0
|
|
|
$
|
(0.2
|
)
|
|
$
|
92.2
|
|
|
$
|
92.7
|
|
|
$
|
(0.5
|
)
|
Rental expenses
|
|
23.7
|
|
|
24.2
|
|
|
0.5
|
|
|
71.1
|
|
|
72.9
|
|
|
1.8
|
|
||||||
Rental operations segment profit
|
|
$
|
7.1
|
|
|
$
|
6.8
|
|
|
$
|
0.3
|
|
|
$
|
21.1
|
|
|
$
|
19.8
|
|
|
$
|
1.3
|
|
Segment profit as % of revenue
(1)
|
|
23.1
|
%
|
|
22.1
|
%
|
|
|
|
22.8
|
%
|
|
21.3
|
%
|
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance |
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance |
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Financing revenues
|
|
$
|
2.8
|
|
|
$
|
3.2
|
|
|
$
|
(0.4
|
)
|
|
$
|
10.8
|
|
|
$
|
10.2
|
|
|
$
|
0.6
|
|
Financing expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.2
|
|
|
(0.6
|
)
|
||||||
Financing operations segment profit
|
|
$
|
2.8
|
|
|
$
|
3.2
|
|
|
$
|
(0.4
|
)
|
|
$
|
10.0
|
|
|
$
|
10.0
|
|
|
$
|
0.0
|
|
Segment profit as % of revenue
(1)
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
92.3
|
%
|
|
97.6
|
%
|
|
|
|
|
Three Months Ended
|
|
Favorable
(Unfavorable) Variance |
|
Nine Months Ended
|
|
Favorable
(Unfavorable) Variance |
||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
General and administrative expenses
|
|
$
|
33.8
|
|
|
$
|
35.3
|
|
|
$
|
1.5
|
|
|
$
|
102.8
|
|
|
$
|
105.0
|
|
|
$
|
2.2
|
|
Interest expense
|
|
25.0
|
|
|
25.0
|
|
|
0.0
|
|
|
74.9
|
|
|
75.2
|
|
|
0.3
|
|
||||||
Amortization of intangible assets
|
|
3.1
|
|
|
3.1
|
|
|
0.0
|
|
|
9.2
|
|
|
9.2
|
|
|
0.0
|
|
||||||
Closure and impairment charges
|
|
0.2
|
|
|
(0.4
|
)
|
|
(0.6
|
)
|
|
1.0
|
|
|
0.8
|
|
|
(0.2
|
)
|
||||||
Debt modification costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
||||||
(Gain) loss on disposition of assets
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.1
|
|
|
0.6
|
|
|
(0.3
|
)
|
|
(0.9
|
)
|
||||||
Provision for income taxes
|
|
10.9
|
|
|
11.4
|
|
|
0.5
|
|
|
35.7
|
|
|
33.4
|
|
|
(2.4
|
)
|
Nine months ended September 30, 2014
|
Declaration date
|
|
Payment date
|
|
Dividend per share
|
|
Total
(1)
|
||||
|
|
|
|
|
|
|
(In millions)
|
||||
First quarter
|
February 25, 2014
|
|
March 28, 2014
|
|
$
|
0.75
|
|
|
$
|
14.3
|
|
Second quarter
|
May 28, 2014
|
|
June 27, 2014
|
|
0.75
|
|
|
14.3
|
|
||
Third quarter
|
August 4, 2014
|
|
September 26, 2014
|
|
0.75
|
|
|
14.2
|
|
||
Total
|
|
|
|
|
$
|
2.25
|
|
|
$
|
42.8
|
|
|
Nine Months Ended
|
|
|
||||||||
|
September 30,
|
|
|
||||||||
|
2014
|
|
2013
|
|
Variance
|
||||||
|
(In millions)
|
||||||||||
Net cash provided by operating activities
|
$
|
102.4
|
|
|
$
|
102.8
|
|
|
$
|
(0.4
|
)
|
Net cash provided by investing activities
|
5.4
|
|
|
6.0
|
|
|
(0.6
|
)
|
|||
Net cash used in financing activities
|
(81.0
|
)
|
|
(77.8
|
)
|
|
(3.2
|
)
|
|||
Net increase in cash and cash equivalents
|
$
|
26.8
|
|
|
$
|
31.0
|
|
|
$
|
(4.2
|
)
|
|
Nine Months Ended
|
|
|
||||||||
|
September 30,
|
|
|
||||||||
|
2014
|
|
2013
|
|
Variance
|
||||||
|
(In millions)
|
||||||||||
Cash flows provided by operating activities
|
$
|
102.4
|
|
|
$
|
102.8
|
|
|
$
|
(0.4
|
)
|
Principal receipts from long-term receivables
|
10.3
|
|
|
10.3
|
|
|
—
|
|
|||
Additions to property and equipment
|
(5.5
|
)
|
|
(4.5
|
)
|
|
(1.0
|
)
|
|||
Principal payments on capital lease and financing obligations
|
(8.5
|
)
|
|
(7.5
|
)
|
|
(1.0
|
)
|
|||
Mandatory 1% repayment of principal balance of Term Loans
|
(3.5
|
)
|
|
(3.5
|
)
|
|
—
|
|
|||
Free cash flow
|
$
|
95.2
|
|
|
$
|
97.6
|
|
|
$
|
(2.4
|
)
|
Purchases of Equity Securities by the Company
|
||||||||||
Period
|
|
Total number of
shares
purchased
|
|
Average price
paid per
share
|
|
Total number of
shares purchased as
part of publicly
announced plans or
programs (b)
|
|
Approximate dollar value of
shares that may yet be
purchased under the
plans or programs (b)
|
||
June 30, 2014 – July 27, 2014
(a)
|
|
—
|
|
|
—
|
|
—
|
|
|
$40,300,000
|
July 28, 2014 – August 24, 2014
(a)
|
|
5,878
|
|
|
$81.22
|
|
—
|
|
|
$40,300,000
|
August 25, 2014 – September 28, 2014
(a)
|
|
6,170
|
|
|
$82.69
|
|
—
|
|
|
$40,300,000
|
Total
|
|
12,048
|
|
|
$81.97
|
|
—
|
|
|
$40,300,000
|
**
|
The certifications attached as Exhibits 32.1 and 32.2 accompany this Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
***
|
Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
†
|
A contract, compensatory plan or arrangement in which directors or executive officers are eligible to participate.
|
|
|
DineEquity, Inc.
(Registrant)
|
|
|
|
|
|
|
|
|
|
Dated:
|
October 28, 2014
|
By:
|
/s/ Julia A. Stewart
|
|
|
|
Julia A. Stewart
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
Dated:
|
October 28, 2014
|
By:
|
/s/ Thomas W. Emrey
|
|
|
|
Thomas W. Emrey
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
Dated:
|
October 28, 2014
|
By:
|
/s/ Greggory Kalvin
|
|
|
|
Greggory Kalvin
Senior Vice President, Corporate Controller
(Principal Accounting Officer)
|
Dated:
|
October 28, 2014
|
/s/ Julia A. Stewart
|
|
|
Julia A. Stewart
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
Dated:
|
October 28, 2014
|
/s/ Thomas W. Emrey
|
|
|
Thomas W. Emrey
Chief Financial Officer
(Principal Financial Officer) |
Dated:
|
October 28, 2014
|
/s/ Julia A. Stewart
|
|
|
Julia A. Stewart
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
Dated:
|
October 28, 2014
|
/s/ Thomas W. Emrey
|
|
|
Thomas W. Emrey
Chief Financial Officer
(Principal Financial Officer)
|