DineEquity, Inc. (DIN) has reported a 15.81 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $21.35 million, or $1.18 a share in the quarter, compared with $25.36 million, or $1.35 a share for the same period last year. On the other hand, adjusted net income available to common stockholders for the quarter stood at $24.51 million, or $1.37 a share compared with $29.46 million or $1.59 a share, a year ago. Revenue during the quarter dropped 10 percent to $154.17 million from $171.30 million in the previous year period. Gross margin for the quarter contracted 245 basis points over the previous year period to 58.98 percent. Total expenses were 67.47 percent of quarterly revenues, up from 67.34 percent for the same period last year. That has resulted in a contraction of 13 basis points in operating margin to 32.53 percent.
Operating income for the quarter was $50.15 million, compared with $55.94 million in the previous year period.
"While this has been a challenging period for the industry, particularly for casual dining and Applebee’s, I have confidence in our brands, our franchisees and our team members," said Richard J. Dahl, Chairman and interim Chief Executive Officer of DineEquity, Inc.
Operating cash flow declines
DineEquity, Inc. has generated cash of $118.11 million from operating activities during the year, down 12.84 percent or $17.40 million, when compared with the last year. Cash flow from investing activities was $12.55 million for the year, down 50.20 percent or $12.65 million, when compared with the last year.
The company has spent $134.91 million cash to carry out financing activities during the year as against cash outgo of $119.93 million in the last year period.
Cash and cash equivalents stood at $140.54 million as on Dec. 31, 2016, down 2.94 percent or $4.25 million from $144.78 million on Dec. 31, 2015.
Working capital increases
DineEquity, Inc. has recorded an increase in the working capital over the last year. It stood at $79.84 million as at Dec. 31, 2016, up 7.48 percent or $5.56 million from $74.28 million on Dec. 31, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, up from 1.25 on Dec. 31, 2015.
Debt remains almost stable
DineEquity, Inc. has recorded a decline in total debt over the last one year. It stood at $1,410 million as on Dec. 31, 2016, down 0.77 percent or $10.97 million from $1,420.97 million on Dec. 31, 2015. Total debt was 61.88 percent of total assets as on Dec. 31, 2016, compared with 60.94 percent on Dec. 31, 2015. Debt to equity ratio was at 5.58 as on Dec. 31, 2016, up from 5.32 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.26 for the quarter from 3.39 for the same period last year.
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