DineEquity Reportedly Eyes Fazoli's
Nov 25 14
DineEquity, Inc. (NYSE:DIN) may be looking to add Fazoli's System Management, LLC, reported New York Post citing sources. Speculation has been it would buy an Italian food chain because it wouldn’t compete with its two existing chains. Two sources close to the situation said that Fazoli’s would fit the bill - Sun Capital Partners, Inc. has just put chain up for sale. A source said that Sun has hired investment bank Duff & Phelps for the sale and is shopping Fazoli’s to larger restaurant chains. A source said that Fazoli’s operates 217 restaurants in 26 states and generates $10 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and would like to attract a bid north of $100 million. Sun Capital declined comment. DineEquity did not return calls.
DineEquity, Inc. Repays Entire Outstanding Principal Amount of 9.5% Senior Notes
Oct 31 14
On October 30, 2014, DineEquity, Inc. repaid the entire outstanding principal amount of the Corporation's 9.5% senior notes issued pursuant to an indenture, dated October 19, 2010, among the Corporation, the Guarantor parties thereto and Wells Fargo Bank, National Association as trustee. On September 30, 2014, the trustee provided a notice of redemption to the holders of the notes and the Corporation irrevocably deposited in trust with the trustee funds sufficient to repay all amounts owed to the note holders as of the October 30, 2014 redemption date. These amounts included approximately $761 million in outstanding principal, approximately $36 million in accrued interest and a make-whole premium required for early repayment of the senior notes of approximately $36 million. The Corporation's obligations under the Indenture terminated upon repayment. The notes issued pursuant to the Indenture were repaid from proceeds received from the Corporation's previously disclosed securitization refinancing transaction pursuant to which the Corporation issued $1.3 billion of Series 2014-1, Class A-2 Fixed Rate Senior Secured Notes. The Corporation has other business relationships with Wells Fargo Bank, National Association including the provision of certain banking services by Wells Fargo Bank to the Corporation.
DineEquity, Inc. Presents at Money20/20 Payments Conference, Nov-02-2014 through Nov-05-2014
Oct 28 14
DineEquity, Inc. Presents at Money20/20 Payments Conference, Nov-02-2014 through Nov-05-2014. Venue: The Aria Hotel & Casino, 3730 Las Vegas Boulevard, Las Vegas, NV 89158, United States. Presentation Date & Speakers: Nov-03-2014, John DeCastro, Brand Director, Gift Cards.
DineEquity, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Fiscal Year 2014 and Interest Expenses Guidance for the Fourth Quarter of 2014
Oct 28 14
DineEquity, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported total segment revenues of $162,853,000 against $161,283,000 a year ago. Income before income tax provision was $29,751,000 against $30,125,000 a year ago. Net income available to common stockholders was $18,608,000 against $18,434,000 a year ago. Diluted earnings per share were $0.99 against $0.97 a year ago. Net income available to common stockholders, as adjusted was $21,516,000 against $20,986,000 a year ago. Diluted net income available to common stockholders per share, as adjusted was $1.14 against $1.10 a year ago. The increase in adjusted net income was mainly due to lower general and administrative expenses, lower income taxes, and lower cash interest expense. The increase in net income was primarily due to a decline in general and administrative expenses, lower income tax expense, and a higher gain on the disposition of assets in the third quarter of 2014 compared to the same period of 2013.
For the nine months, the company reported total segment revenues of $490,575,000 against $482,566,000 a year ago. Income before income tax provision was $94,597,000 against $87,271,000 a year ago. Net income available to common stockholders was $57,951,000 against $52,981,000 a year ago. Diluted earnings per share were $3.06 against $2.76 a year ago. Cash flows provided by operating activities were $102,427,000 against $102,814,000 a year ago. Additions to property and equipment were $5,530,000 against $4,547,000 a year ago. Net income available to common stockholders, as adjusted was $67,627,000 against $62,486,000 a year ago. Diluted net income available to common stockholders per share, as adjusted was $3.57 against $3.26 a year ago. The increase in adjusted net income available to common stockholders was primarily due to higher segment profit, a decline in general and administrative expenses, and lower cash interest expense. The increase in GAAP net income available to common stockholders was primarily due to higher segment profit, lower general and administrative expenses, and debt modification costs that occurred in the first nine months of 2013 that did not recur in the first nine months of 2014.
For the fourth quarter alone, the company expects interest expense to be approximately $22 million, inclusive of roughly $6 million of interest expense from the 9.5% bonds the company retiring.
For the fiscal year 2014, the company’s interest expense is expected to be approximately $97 million. Cash from operations is expected to range between $120 million and $130 million. This reflects an increase from previous projections of between $98 million and $116 million. Free cash flow is projected to range between $109 million and $119 million. This reflects an increase from previous expectations of $86 to $104 million. Income tax expense rate of approximately 38% for fiscal 2014 excludes the impact of the fourth quarter 2014 income tax benefit expected on the write-off of costs related to the pay-off of senior secured credit facility and 9.5% senior notes.
DineEquity, Inc. Approves Cash Dividend for the Fourth Quarter of 2014, Payable on January 9, 2015
Oct 28 14
DineEquity, Inc. announced approval by its Board of Directors of a meaningful 17% increase in the company's quarterly cash dividend to $0.875 per share of common stock. The fourth quarter 2014 dividend will be payable on January 9, 2015 to the company's stockholders of record at the close of business on December 3, 2014.