8 slides from Dine Brands Global, Inc. Common Stock's corporate update, Jun 19, 2008
Slide 1: Supplemental Information on Sale-Leaseback of Applebee's Company-Owned Restaurant Real Estate
Great franchisees. Great brands.TM Supplemental Information on Sale-Leaseback of Applebee’s Company-Owned Restaurant Real Estate June 16, 2008
Slide 2: Forward-Looking Information
Forward-Looking Information There are forward-looking statements contained in this presentation. They use such words as “may,” “will,” “expect,” “believe,” “plan,” or other similar terminology, and include statements regarding the strategic and financial benefits of the acquisition of Applebee’s Int
Slide 3: Details of Sale-Leaseback Transaction Completed June 2008
Details of Sale-Leaseback Transaction Completed June 2008 Properties · 181 Applebee’s company-owned restaurant properties · Lease obligations expected to be assigned to franchisees upon sale of company-operated restaurants · Initial lease term of 20 years with four 5-year options to extend · Six pro
Slide 4: Sale-Leaseback Accounting Treatment
Sale-Leaseback Accounting Treatment · Sale-leaseback of Applebee’s company-owned restaurants does not qualify as a “sale” under accounting rules · Company deemed to have an ongoing economic involvement until restaurants can be franchised and lease obligation can be assigned to franchisees · Will be
Slide 5: Accounting Adjustment Resulting from Transaction
Accounting Adjustment Resulting from Transaction • Evaluating sale-leaseback gross proceeds of approximately $337 million against preliminary purchase price accounting values of properties – Such evaluation may result in an impairment charge during the second quarter 2008 • Company to provide more d
Slide 6: P&L Impact of Sale-Leaseback
P&L Impact of Sale-Leaseback • Interest expense recognized in consolidated corporate interest expense line item – Approximately $12.7 million in interest expense expected for balance of fiscal 2008 – Updating Company’s current fiscal 2008 corporate interest expense guidance to approximately $203 mil
Slide 7: Cash Flow and Balance Sheet Impact of Sale-Leaseback
Cash Flow and Balance Sheet Impact of Sale-Leaseback • Do not expect material impact to cash flow statement due to transaction – Reiterated fiscal 2008 consolidated cash from operations guidance of $105 to $110 million – Principal payments on leasehold obligation to be captured under Financing Activ
Slide 8: Funded Debt Reduction
Funded Debt Reduction • Expect approximately $303 million in total funded debt reduction – Tax obligation from sale-leaseback is expected to be partially offset by approximate $12 million benefit due to the accelerated recognition of financing and interest rate swap costs • Little change to consolid