Dine Brands(US:DIN)2025-05-07 11:34Financial Performance - Total revenues for the three months ended March 31, 2025, were $214.78 million, an increase of 4% compared to $206.24 million for the same period in 2024[15] - Net income for the first quarter of 2025 was $8.20 million, a decrease of 53% from $17.47 million in the first quarter of 2024[15] - Franchise revenues decreased to $166.21 million in Q1 2025, down 5% from $175.88 million in Q1 2024[15] - Company restaurant sales increased significantly to $21.57 million in Q1 2025, compared to $0.27 million in Q1 2024[15] - The company reported a gross profit of $90.31 million for Q1 2025, down from $97.42 million in Q1 2024, representing a decline of about 7%[15] - Basic net income per share for Q1 2025 was $0.53, compared to $1.13 for Q1 2024, indicating a decrease of approximately 53%[15] - Segment operating profit for the total company in Q1 2025 was $56.8 million, compared to $65.4 million in Q1 2024, indicating a decline of 13%[110] Assets and Liabilities - Total current assets decreased to $360.12 million as of March 31, 2025, from $385.99 million as of December 31, 2024, reflecting a decline of approximately 7%[12] - Total liabilities decreased to $1.98 billion as of March 31, 2025, from $2.01 billion as of December 31, 2024[12] - The total stockholders' deficit was $215.75 million as of March 31, 2025, slightly improved from $216.02 million as of December 31, 2024[12] - Total assets decreased to $1,766,340,000 as of March 31, 2025, compared to $1,790,584,000 at the end of 2024[12] Cash Flow and Investments - Cash flows provided by operating activities decreased to $16,133,000 in Q1 2025 from $30,553,000 in Q1 2024, reflecting a decline of 47%[19] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $250,444,000, up from $212,125,000 at the end of Q1 2024, representing an increase of 18%[19] - The company repurchased common stock worth $1,637,000 in Q1 2025, down from $6,000,000 in Q1 2024, showing a decrease of 72.7%[19] - Dividends paid on common stock were $7,790,000 in Q1 2025, slightly down from $7,827,000 in Q1 2024[19] Franchise Operations - Total franchise revenues for the three months ended March 31, 2025, were $166.2 million, a decrease of 5.4% from $175.9 million in the same period of 2024[37] - Royalties decreased to $76.3 million in Q1 2025 from $80.2 million in Q1 2024, representing a decline of 4.9%[37] - Advertising revenues also fell to $70.5 million in Q1 2025, down from $75.3 million in Q1 2024, a decrease of 6.4%[37] - The balance of deferred franchise revenue as of March 31, 2025, was $41.2 million, with expected recognition of $4.4 million in 2025 and $5.1 million in 2026[37] Debt and Financing - Long-term debt as of March 31, 2025, is $1,087.1 million, slightly up from $1,086.6 million at December 31, 2024[57] - The leverage ratio of the Company as of March 31, 2025, was approximately 4.15x, allowing for the suspension of quarterly principal payments on the 2019 Class A-2-II Notes[65] - The outstanding balance of the Credit Facility as of March 31, 2025, was $100 million, with $224.4 million available for borrowing[68] - The Company authorized a debt repurchase program of up to $100 million on February 16, 2023, aimed at reducing future cash interest payments[74] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 35.9%, compared to 27.3% for the same period in 2024[90] - The total gross unrecognized tax benefit as of March 31, 2025, was $2.8 million, an increase from $2.5 million as of December 31, 2024[91] Operational Challenges - The company incurred closure and impairment charges of $5.85 million in Q1 2025, compared to $0.63 million in Q1 2024, reflecting increased operational challenges[15] - The company recognized non-cash closure and impairment charges of $5.846 million, significantly higher than $634,000 in the prior year[19] - Other asset impairment charges for the three months ended March 31, 2025, were primarily due to off-market leases related to certain IHOP restaurants[17]