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TheStreet Open House

Denny's Corporation Reports Results For Fourth Quarter And Full Year 2012

- Achieves Second Consecutive Year of Positive Franchise and Company Same-Store Sales -

- 2012 Full Year Adjusted Income Before Taxes* Increased 26% -

SPARTANBURG, S.C., Feb. 20, 2013 (GLOBE NEWSWIRE) -- Denny's Corporation (Nasdaq:DENN), franchisor and operator of one of America's largest full-service restaurant chains, today reported results for its fourth quarter and full year ended December 26, 2012.

Full Year Summary

  • System-wide same-store sales grew 1.3%, comprised of a 1.5% increase at franchised restaurants and a 0.2% increase at company restaurants.
  • Opened 40 new system-wide restaurants, including six international locations.
  • Refranchised 36 company restaurants completing the Franchise Growth Initiative started in 2007, achieving our target of operating approximately 10% of the Denny's system as company restaurants.
  • Adjusted EBITDA* margin, as a percentage of total operating revenue, increased 0.8 percentage points to 16.0% compared with the prior year.
  • Net income of $22.3 million, or $0.23 per diluted share, was impacted by a $7.9 million charge to other nonoperating expense as a result of refinancing our credit facility, $3.7 million of impairment expense, and $7.1 million in gains on the sale of assets.
  • Adjusted Income Before Taxes* grew 26.2% to $47.0 million compared with the prior year.
  • Generated $48.8 million of Free Cash Flow* used to reduce outstanding term loan debt by $28.0 million and repurchase 4.8 million shares for $22.2 million.

Fourth Quarter Summary

  • System-wide same-store sales grew 1.7%, comprised of a 2.0% increase at franchised restaurants and a 0.5% increase at company restaurants.
  • Opened 13 new system-wide restaurants, including one company restaurant in Las Vegas and one international restaurant located in San Pedro Sula, Honduras.
  • Acquired one franchised restaurant located in the San Diego market for $1.4 million.
  • Net income of $6.5 million, or $0.07 per diluted share, was impacted by $0.7 million of impairment expense.
  • Adjusted Income Before Taxes* grew 15.6% to $10.9 million compared with the prior year quarter.

John Miller, President and Chief Executive Officer, stated, "Denny's delivered another year of solid results while generating our second consecutive year of positive company and franchise same-store sales. This is a testament to our positioning as America's Diner, emphasizing everyday affordability with attractive Limited Time Only products. Although we are encouraged about the progress we have made thus far, we believe there is much work to be done in our revitalization plan to drive additional value.  In our efforts to increase long-term shareholder value, we will continue to work closely with our franchisees to increase sales, profitability and new restaurant growth through our franchised-focused business model. By balancing our capital allocation between reinvestments in the brand, whether it's through our franchisees or our company restaurants, strengthening our balance sheet, and returning value to shareholders, we will continue to grow value for all stakeholders."

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