DUNKIN' BRANDS GROUP, INC.

CIK:0001357204|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Revenues:
Revenue	$ 361,543	$ 355,882	$ 972,063	$ 1,034,310
Operating costs and expenses:
Advertising expenses	133,352	130,846	362,702	379,898
General and administrative expenses	58,705	60,333	171,399	176,458
Depreciation	5,663	4,584	16,483	13,916
Amortization of other intangible assets	4,582	4,599	13,762	13,858
Long-lived asset impairment charges	0	36	560	361
Total operating costs and expenses	240,486	241,287	676,856	703,210
Net income of equity method investments	7,159	6,667	15,108	13,324
Other operating income, net	699	81	1,528	943
Operating income	128,915	121,343	311,843	345,367
Other income (expense), net:
Interest income	124	2,996	2,491	7,906
Interest expense	(31,854)	(31,787)	(96,541)	(96,758)
Gain (Loss) on Extinguishment of Debt	0	0	0	(13,076)
Loss on debt extinguishment	0	0	0	(13,076)
Other income (loss), net	154	(258)	(302)	(308)
Total other expense, net	(31,576)	(29,049)	(94,352)	(102,236)
Income before income taxes	97,339	92,294	217,491	243,131
Provision for income taxes	23,371	19,929	54,960	58,821
Net income	$ 73,968	$ 72,365	$ 162,531	$ 184,310
Earnings per share:
Common-basic (in dollars per share)	$ 0.90	$ 0.87	$ 1.97	$ 2.23
Common-diluted (in dollars per share)	$ 0.89	$ 0.86	$ 1.96	$ 2.20
Franchise fees and royalty income
Revenues:
Revenue	$ 160,065	$ 157,224	$ 415,506	$ 454,810
Advertising fees and related income
Revenues:
Revenue	132,280	128,675	358,881	375,132
Rental income
Revenues:
Revenue	30,639	31,984	85,588	92,691
Ice cream and other products
Revenues:
Revenue	24,514	24,409	71,164	72,400
Operating costs and expenses:
Cost of goods sold	19,276	21,066	55,410	59,724
Other revenues
Revenues:
Revenue	14,045	13,590	40,924	39,277
Occupancy expenses—franchised restaurants
Operating costs and expenses:
Cost of goods sold	$ 18,908	$ 19,823	$ 56,540	$ 58,995

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
Cash flows from operating activities:
Net income	$ 162,531	$ 184,310
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,638	31,698
Amortization of debt issuance costs	3,726	3,759
Loss on debt extinguishment	0	13,076
Deferred income taxes	105	(8,419)
Provision for uncollectible accounts and notes receivable	6,497	1,452
Share-based compensation expense	9,134	11,073
Net income of equity method investments	(15,108)	(13,324)
Dividends received from equity method investments	5,090	4,367
Other, net	1,224	(702)
Change in operating assets and liabilities:
Accounts, notes, and other receivables, net	(16,004)	20,104
Prepaid income taxes, net	7,915	9,332
Prepaid expenses and other current assets	(7,074)	(532)
Accounts payable	(11,757)	(10,151)
Other current liabilities	(7,202)	(75,858)
Deferred revenue	(41,014)	(7,984)
Other, net	9,022	(4,422)
Net cash provided by operating activities	142,723	157,779
Cash flows from investing activities:
Additions to property, equipment, and software	(15,797)	(26,515)
Other, net	345	1,118
Net cash used in investing activities	(15,452)	(25,397)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	1,700,000
Repayment of long-term debt	(15,612)	(1,699,237)
Payment of debt issuance and other debt-related costs	0	(17,937)
Dividends paid on common stock	(66,226)	(93,027)
Repurchases of common stock	(64,292)	(24,802)
Exercise of stock options	17,202	27,903
Other, net	(2,566)	(4,779)
Net cash used in financing activities	(131,494)	(111,879)
Effect of exchange rates on cash, cash equivalents, and restricted cash	(62)	(208)
Increase (decrease) in cash, cash equivalents, and restricted cash	(4,285)	20,295
Cash, cash equivalents, and restricted cash, beginning of period	707,977	598,321
Cash, cash equivalents, and restricted cash, end of period	703,692	618,616
Supplemental cash flow information:
Cash paid for income taxes	47,470	58,179
Cash paid for interest	93,184	93,384
Noncash investing activities:
Leased assets obtained in exchange for operating lease liabilities, net	7,245	10,438
Property, equipment, and software included in accounts payable and other current liabilities	3,212	3,588
Leased assets obtained in exchange for finance lease liabilities, net	$ 1,073	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 613,641	$ 621,152
Restricted cash	89,626	85,644
Accounts receivable, net of allowances of $12,155 and $6,533 as of September 26, 2020 and December 28, 2019, respectively	87,227	76,019
Notes and other receivables, net of allowances of $870 and $778 as of September 26, 2020 and December 28, 2019, respectively	55,617	57,174
Prepaid income taxes	8,799	16,701
Prepaid expenses and other current assets	57,622	50,611
Total current assets	912,532	907,301
Property, equipment, and software, net of accumulated depreciation of $186,599 and $172,001 as of September 26, 2020 and December 28, 2019, respectively	217,419	223,120
Operating lease assets	348,045	371,264
Equity method investments	163,443	154,812
Goodwill	888,274	888,286
Other intangible assets, net of accumulated amortization of $266,590 and $253,641 as of September 26, 2020 and December 28, 2019, respectively	1,288,952	1,302,721
Other assets	70,339	72,520
Total assets	3,889,004	3,920,024
Current liabilities:
Current portion of long-term debt	31,150	31,150
Operating lease liabilities	39,563	35,863
Accounts payable	76,017	89,413
Deferred revenue	38,144	39,950
Other current liabilities	379,504	386,050
Total current liabilities	564,378	582,426
Long-term debt, net	2,992,330	3,004,216
Operating lease liabilities	357,229	380,647
Deferred revenue	287,973	324,854
Deferred income taxes, net	197,669	197,673
Other long-term liabilities	22,770	18,218
Total long-term liabilities	3,857,971	3,925,608
Commitments and contingencies (note 9)
Stockholders’ deficit:
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 475,000,000 shares authorized; 82,407,709 shares issued and 82,406,709 shares outstanding as of September 26, 2020; 82,835,830 shares issued and 82,834,830 shares outstanding as of December 28, 2019	82	83
Additional paid-in capital	516,590	561,345
Treasury stock, at cost; 1,000 shares as of September 26, 2020 and December 28, 2019	(64)	(64)
Accumulated deficit	(1,028,546)	(1,129,565)
Accumulated other comprehensive loss	(21,407)	(19,809)
Total stockholders’ deficit	(533,345)	(588,010)
Total liabilities and stockholders’ deficit	$ 3,889,004	$ 3,920,024