Dunkin' Donuts 2013 Annual Report Download - page 45

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-35-
Fiscal year
2013 2012 2011
Adjusted net income available to common shareholders (in thousands):
Adjusted net income $ 165,761 149,700 101,744
Less: Adjusted net income allocated to participating securities — (179)(494)
Adjusted net income available to common shareholders $ 165,761 149,521 101,250
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
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
Class L conversion factor — — 2.4338
Weighted average number of converted Class L shares — — 31,772,244
Weighted average number of common shares 106,501,733 114,584,063 74,835,697
Pro forma weighted average number of common shares – basic 106,501,733 114,584,063 106,607,941
Incremental dilutive common shares(2) 1,715,278 1,989,281 1,064,587
Pro forma weighted average number of common shares – diluted 108,217,011 116,573,344 107,672,528
Diluted adjusted earnings per pro forma common share $ 1.53 1.28 0.94
(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 2013 compared to fiscal year 2012
Consolidated results of operations
Fiscal year Increase (Decrease)
2013 2012 $ %
(In thousands, except percentages)
Franchise fees and royalty income $ 453,976 418,940 35,036 8.4 %
Rental income 96,082 96,816 (734) (0.8)%
Sales of ice cream products 112,276 94,659 17,617 18.6 %
Sales at company-owned restaurants 24,976 22,922 2,054 9.0 %
Other revenues 26,530 24,844 1,686 6.8 %
Total revenues $ 713,840 658,181 55,659 8.5 %
Total revenues increased $55.7 million, or 8.5%, in fiscal year 2013, driven by an increase in franchise fees and royalty income
of $35.0 million, or 8.4%, primarily as a result of Dunkin’ Donuts U.S. systemwide sales growth and favorable development
mix. Sales of ice cream products increased $17.6 million primarily due to increases in sales of ice cream products in the Middle
East and an increase in distribution costs billed to customers, as well as a one-time delay in revenue recognition related to the
shift in manufacturing to Dean Foods that impacted fourth quarter sales of ice cream products in the prior year. Sales at
company-owned restaurants also increased $2.1 million, or 9.0%, driven by higher average sales volumes and the timing of
acquisitions and development of restaurants during the periods.