DineEquity, Inc. (DIN) has reported a marginal increase of 0.07 percent in profit for the quarter ended Sep. 30, 2016. The company has earned $24.27 million, or $1.33 a share, compared with $24.26 million or $1.28 a share, a year ago. On an adjusted basis, earnings per share were at $1.46 for the quarter compared with $1.43 in the same period last year. Revenue during the quarter dropped 3.95 percent to $156.02 million from $162.44 million in the previous year period. Gross margin for the quarter contracted 76 basis points over the previous year period to 58.77 percent. Total expenses were 66.04 percent of quarterly revenues, down from 67.57 percent for the same period last year. This has led to an improvement of 152 basis points in operating margin to 33.96 percent.
Operating income for the quarter was $52.98 million, compared with $52.68 million in the previous year period.
"Despite challenges facing the industry, DineEquity again posted year-over-year growth in earnings per diluted share and generated substantial adjusted free cash flow. We reaffirmed our commitment to return significant cash to shareholders by increasing the quarterly dividend by 5.4%, effective with the next dividend paid on January 6, 2017. Additionally, we completed our restaurant support center consolidation, which enables us to reallocate resources as needed," said Julia A. Stewart, chairman and chief executive officer of DineEquity, Inc.
Operating cash flow declinesDineEquity, Inc. has generated cash of $62.06 million from operating activities during the nine month period, down 12.09 percent or $8.53 million, when compared with the last year period. Cash flow from investing activities was $10.03 million for the nine month period, down 52.77 percent or $11.21 million, when compared with the last year period.
The company has spent $109.05 million cash to carry out financing activities during the nine month period as against cash outgo of $89.95 million in the last year period.
Cash and cash equivalents stood at $107.82 million as on Sep. 30, 2016, up 1.83 percent or $1.94 million from $105.89 million on Sep. 30, 2015.
Working capital drops significantly
DineEquity, Inc. has witnessed a decline in the working capital over the last year. It stood at $74.05 million as at Sep. 30, 2016, down 35.22 percent or $40.26 million from $114.32 million on Sep. 30, 2015. Current ratio was at 1.36 as on Sep. 30, 2016, down from 1.54 on Sep. 30, 2015.
Days sales outstanding went up to 59 days for the quarter compared with 56 days for the same period last year.
At the same time, days payable outstanding went up to 126 days for the quarter from 50 for the same period last year.
Debt comes down marginally
DineEquity, Inc. has recorded a decline in total debt over the last one year. It stood at $1,409.34 million as on Sep. 30, 2016, down 2.55 percent or $36.86 million from $1,446.20 million on Sep. 30, 2015. Total debt was 64.05 percent of total assets as on Sep. 30, 2016, compared with 62.38 percent on Sep. 30, 2015. Debt to equity ratio was at 5.49 as on Sep. 30, 2016, up from 5.25 as on Sep. 30, 2015. Interest coverage ratio improved to 3.45 for the quarter from 3.41 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
