DineEquity Inc. reported fourth-quarter profit that beat Wall Street forecasts, despite it being lower than the same period in 2011. The Glendale parent company of Applebee’s Neighborhood Grill & Bar and IHOP Restaurants reported a net income of $18 million (97 cents a share) for the quarter ended Dec. 31, compared with $27.3 million ($1.51) a year earlier. Adjusted earnings were reported as $15.5 million (83 cents). The company said the decrease in adjusted earnings was mainly due to the refranchise and sale of Applebee’s company-operated restaurants and higher income taxes. With the adjustment, the company beat analyst profit projections of 82 cents a share by a penny, according to Thomson Financial. Revenue fell 35 percent to $158.6 million from $242.2 million, missing estimates of $161.5 million. “For DineEquity, 2012 was a year of milestones,” said Julia A. Stewart, chairman and chief executive, in a statement. “The year was marked by accomplishing what we set out to do when we acquired Applebee’s, completing the transition to a 99 percent franchised restaurant system. In addition, we reduced total debt by over $1 billion since the acquisition in 2007.” The company said it reduced its total debt by $77.2 million in the fourth quarter. In addition, term loan balances were reduced by $30.6 million and financing and capital lease obligations by $46.5 million. For the year, the adjusted net income was $78.1 million ($4.28 a share). This compares to $78.2 million ($4.29) for 2011. What’s more, the company has announced a first quarter cash dividend of 75 cents a share, payable on March 29. Shares were up $2.70, or 3.7 percent, to $74.98 in midday trading on the New York Stock Exchange.
