Bain Capital Partners, Carlyle Group and Thomas H. Lee Partners, the three private-equity firms who owned Dunkin’ Brands Group Inc. and initiated the public offering of the company in July of this year have announced that they are putting 22 million of the shares they hold up for sale. The three firms put the offering as representing more than 18 percent of the company’s total common shares. The company itself has not put any shares up for sale.
The announcement of the plan to put the shares up for sale followed upon the report of a revenue increase for the quarter of nine percent to $163.5 million. However there was also a drop in third quarter net income of 61 percent. The drop was related to charges resulting from going public and paying down debt. The income fell to $7.4 million from $18.8 million. Dunkin’ notes that there would have been a 32 percent increase in income to $31.3 million if not for the charges related to the IPO.
A key element in the Positive results was the 13 percent increase in Baskin-Robbins’ international sales. In the U.S. the ice Cream chain’s same-store sales rose 1.7%. Neil Moses, Dunkin’ Brands Chief Financial Officer, noted, “Our performance for the quarter gives us confidence in our ability to achieve our longer term growth targets. We believe these results demonstrate the opportunity that lies ahead for us and underscore the power of our nearly all-franchised business model with its high operating margins, low capital expenditure requirements and strong free cash flow.”
Source: All Business