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Denny's Corporation Message Board

  • bluecheese4u bluecheese4u Feb 13, 2008 7:46 PM Flag

    DENNY’S CORPORATION REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR END 2007

    DENNY’S CORPORATION REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR END 2007


    SPARTANBURG, S.C., February 13, 2008 – Denny’s Corporation (NASDAQ: DENN) today reported results for its fourth quarter and year ended December 26, 2007.


    Fourth Quarter Summary


    · Same-store sales decreased 1.2% at company units and increased 0.3% at franchised units

    · Net income increased $14.4 million to $16.7 million

    · Adjusted income before taxes decreased $3.9 million to $3.4 million

    · Sold 74 company restaurants to 19 franchisees under Franchise Growth Initiative (FGI)

    · Signed franchise restaurant development commitments for 49 new units

    · Generated $44.7 million in net asset sale proceeds

    · Reduced outstanding debt by $55.1 million, or 14%



    Full Year Summary


    · Same-store sales increased 0.3% at company units and 1.7% at franchised units

    · Net income increased $4.4 million to $34.7 million

    · Adjusted income before taxes of $10.5 million exceeded guidance

    · Sold 130 company restaurants to 30 franchisees under FGI

    · Net positive unit growth for Denny’s system

    · Shifted system mix to 75% franchised units and 25% company units

    · Signed franchise restaurant development commitments for 120 new units

    · Generated $80.7 million in net asset sales proceeds

    · Reduced outstanding debt by $100.3 million, or 22%



    Nelson Marchioli, President and Chief Executive Officer, stated, “Despite a challenging operating environment which got progressively more difficult throughout the year, we were able to deliver positive same store sales growth in 2007 and generate earnings above our expectations. As importantly, we made significant progress on our Franchise Growth Initiative (FGI). The early success of FGI is moving us more quickly towards our optimal business model with franchise restaurants now comprising 75% of the Denny’s system and contributing to a 34% increase in franchise income in the fourth quarter. We achieved positive net unit growth for the first time in seven years and began to build a robust franchise development pipeline. Our growth in cash flow from operations combined with the proceeds from our asset sales enabled Denny’s to pay down over $100 million in debt for the second consecutive year.”

    http://www.sec.gov/Archives/edgar/data/852772/000085277208000034/ex99_1earningsrelease.htm

 
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