Baskin Robbins 2012 Annual Report Download - page 43

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Fiscal year
2012 2011 2010
Adjusted net income available to common shareholders (in thousands):
Adjusted net income $ 149,700 101,744 87,759
Less: Adjusted net income allocated to participating securities (179)(494)(872)
Adjusted net income available to common shareholders $ 149,521 101,250 86,887
Pro forma weighted average number of common shares – diluted:
Weighted average number of Class L shares over period in which
Class L shares were outstanding(1) — 22,845,378 22,806,796
Adjustment to weight Class L shares over respective fiscal year(1) —(9,790,933)—
Weighted average number of Class L shares over fiscal year — 13,054,445 22,806,796
Class L conversion factor — 2.4338 2.4338
Weighted average number of converted Class L shares — 31,772,244 55,507,768
Weighted average number of common shares 114,584,063 74,835,697 41,295,866
Pro forma weighted average number of common shares – basic 114,584,063 106,607,941 96,803,634
Incremental dilutive common shares(2) 1,989,281 1,064,587 275,844
Pro forma weighted average number of common shares – diluted 116,573,344 107,672,528 97,079,478
Diluted adjusted earnings per pro forma common share $ 1.28 0.94 0.90
(1) The weighted average number of Class L shares in the actual Class L earnings per share calculation for fiscal year
2011 represents the weighted average from the beginning of the fiscal year up through the date of conversion of the
Class L shares into common shares. As such, the pro forma weighted average number of common shares includes an
adjustment to the weighted average number of Class L shares outstanding to reflect the length of time the Class L
shares were outstanding prior to conversion relative to the fiscal year. The converted Class L shares are already
included in the weighted average number of common shares outstanding for the period after their conversion.
(2) Represents the dilutive effect of restricted shares and stock options, using the treasury stock method.
Results of operations
Fiscal year 2012 compared to fiscal year 2011
Consolidated results of operations
Fiscal year Increase (Decrease)
2012 2011 $ %
(In thousands, except percentages)
Franchise fees and royalty income $ 418,940 398,474 20,466 5.1 %
Rental income 96,816 92,145 4,671 5.1 %
Sales of ice cream products 94,659 100,068 (5,409) (5.4)%
Sales at company-owned restaurants 22,922 12,154 10,768 88.6 %
Other revenues 24,844 25,357 (513) (2.0)%
Total revenues $ 658,181 628,198 29,983 4.8 %
Total revenues for the prior year benefited approximately $8.0 million from the impact of an extra week, consisting primarily of
additional royalty income and sales of ice cream products. Additionally, total revenues for fiscal year 2012 were unfavorably
impacted by approximately $5.8 million from a one-time delay in revenue recognition as a result of a change in shipping terms
related to the shift in ice cream manufacturing to Dean Foods.
Without the effect of these two items, total revenues increased $43.8 million, or 7.1%, in fiscal year 2012 driven by an increase
in royalty income, on a 52-week basis, of $28.4 million, or 7.9%, mainly as a result of Dunkin’ Donuts U.S. systemwide sales
growth. Sales at company-owned restaurants also increased $10.8 million, or 88.6%, as a result of company-owned stores
acquired during 2012 and the full year impact of company-owned stores acquired at the end of 2011. Also contributing to the
increase in total revenues was an increase in rental income of $4.7 million, or 5.1%, driven by incremental sales-based rental
income resulting from growth in Dunkin' Donuts U.S. systemwide sales.