Baskin Robbins 2011 Annual Report Download - page 61

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Baskin-Robbins U.S.
Fiscal year
2010
Fiscal year
2011
Increase (Decrease)
$ %
(In thousands, except percentages)
Royalty income .................................. $25,039 25,177 138 0.6%
Franchise fees ................................... 1,709 1,271 (438) (25.6)%
Rental income ................................... 4,842 4,544 (298) (6.2)%
Sales of ice cream products ......................... 2,307 2,223 (84) (3.6)%
Other revenues .................................. 9,023 8,548 (475) (5.3)%
Total revenues ............................... $42,920 41,763 (1,157) (2.7)%
Segment profit ................................... $27,607 20,904 (6,703) (24.3)%
The decline in Baskin-Robbins U.S. revenue for fiscal year 2011 primarily resulted from a decline in other
revenues of $0.5 million due to a decrease in licensing income related to the sale of Baskin-Robbins ice cream
products to franchisees. Additionally, franchise fees declined $0.4 million driven by fewer store openings, and
rental income declined $0.3 million due to a reduction in the number of leased locations. Approximately $0.3
million of the increase in total revenues was attributable to the extra week in fiscal year 2011.
Baskin-Robbins U.S. segment profit for fiscal year 2011 declined as a result of increased other general and
administrative expenses of $4.5 million primarily related to the roll-out of a new point-of-sale system for Baskin-
Robbins franchisees, as well as additional contributions to the Baskin-Robbins advertising fund to support
national brand-building advertising. In addition to the declines in revenues, segment profit also declined due to
increased personnel costs and travel of $1.2 million.
Baskin-Robbins International
Fiscal year
2010
Fiscal year
2011
Increase (Decrease)
$ %
(In thousands, except percentages)
Royalty income ................................. $ 6,191 8,422 2,231 36.0%
Franchise fees ................................... 1,289 1,593 304 23.6%
Rental income ................................... 572 616 44 7.7%
Sales of ice cream products ........................ 82,682 97,845 15,163 18.3%
Other revenues .................................. 551 103 (448) (81.3)%
Total revenues .............................. $91,285 108,579 17,294 18.9%
Segment profit .................................. $41,596 43,533 1,937 4.7%
The growth in Baskin-Robbins International revenues for fiscal year 2011 resulted from an increase in sales of
ice cream products of $15.2 million, which was primarily driven by strong sales in the Middle East and Australia,
a December 2010 price increase that was implemented to offset higher commodity costs, and an additional week
of sales in fiscal year 2011. Royalty income also increased $2.2 million primarily as a result of higher sales and
additional royalties earned in Australia directly from franchisees following the termination of a master license
agreement in October 2010, as well as higher sales in Japan and South Korea. Approximately $1.3 million of the
increase in total revenues was attributable to the extra week in fiscal year 2011.
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