IHOP 2009 Annual Report Download - page 84

The following table represents the principal receipts on various receivables due from our
franchisees as of December 31, 2009:
Principal Receipts Due By Period
2010 2011 2012 2013 2014 Thereafter Total
(In millions)
Equipment leases(1) ........................... $6.8 $6.9 $7.1 $7.4 $7.9 $110.4 $146.5
Direct financing leases(2) ........................ 4.1 4.8 5.5 6.5 7.4 83.0 111.3
Franchise notes and other(3) ...................... 5.3 2.9 2.4 1.0 0.8 2.7 15.1
Total ..................................... $16.2 $14.6 $15.0 $14.9 $16.1 $196.1 $272.9
(1) Equipment lease receivables extend through the year 2029.
(2) Direct financing lease receivables extend through the year 2024.
(3) Franchise note receivables extend through the year 2016.
Financing Activities
Financing activities used net cash of $208.8 million during 2009. Cash used in financing activities
primarily consisted of $173.8 million in repayments of long-term debt, payment of accrued debt
issuance costs of $20.3 million, capital lease obligation and financing obligation repayments of
$16.2 million and $24.1 million in dividend payments on Series A Preferred Stock. Of the long-term
debt repayments, $146.9 million was related to the early retirement of securitzation debt with excess
cash, $15.0 million was related to scheduled repayments and $11.8 million related to redemptions with
proceeds of asset dispositions and other items as required under the securitization agreements. Cash
provided by financing activities resulted from a decrease of $15.9 million in restricted cash related to
the securitizations and a borrowing of $10.0 million from the IHOP revolving credit facility.
Share Repurchases and Dividends
In January 2003, our Board of Directors authorized a program to repurchase shares of the
Company’s common stock. As of December 31, 2007, the Board approved the repurchase of up to
7.2 million shares of common stock. The Company has repurchased 6.3 million shares of its common
stock since the inception of the program at a total cost of $280.0 million. The Company did not
repurchase shares in 2009. In February 2009, the Board of Directors cancelled the authorization to
repurchase any additional shares under this program.
The Company had accrued $0.2 million as dividends for the Series A Perpetual Preferred Stock as
of January 3, 2010, the close of fiscal 2009.
The Company’s most recent quarterly dividend of $0.25 per common share was paid in
December 2008. Effective December 11, 2008, the Company suspended the payment of its quarterly
cash dividend to common shareholders for the foreseeable future in order to maximize the financial
flexibility of the Company. Future dividend payments on the common shares may be resumed at the
discretion of the Board of Directors after consideration of the Company’s earnings, financial condition,
cash requirements, future prospects and other factors.
Off-Balance Sheet Arrangements
As of December 31, 2009, we had no off-balance sheet arrangements, as defined in Item 303(a)(4)
of SEC Regulation S-K.
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