Investor Presentaiton
FORWARD-LOOKING STATEMENTS AND
NON-GAAP FINANCIAL MEASURES
Denny's
Denny's Corporation urges caution in considering its current trends and any outlook on earnings disclosed in this
presentation. In addition, certain matters discussed may constitute forward-looking statements. These forward-looking
statements, which reflect the Company's best judgment based on factors currently known, are intended to speak only as of
the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual
performance of Denny's Corporation, its subsidiaries and underlying restaurants to be materially different from the
performance indicated or implied by such statements. Words such as "expects", "anticipates", "believes", "intends", "plans",
"hopes", and variations of such words and similar expressions are intended to identify such forward-looking statements.
Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking
statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated
events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-
looking statements include, among others: the competitive pressures from within the restaurant industry; the level of
success of the Company's operating initiatives, advertising and promotional efforts; adverse publicity; health concerns
arising from food-related pandemics, outbreaks of flu viruses, such as avian flu, or other diseases; changes in business
strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general
economy, particularly at the retail level; political environment (including acts of war and terrorism); and other factors from
time to time set forth in the Company's SEC reports, including but not limited to the discussion in Management's Discussion
and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company's Annual Report on Form 10-K for
the year ended December 30, 2015 (and in the Company's subsequent quarterly reports on Form 10-Q).
The presentation includes references to the Company's non-GAAP financials measures. The Company believes that, in
addition to other financial measures, Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net
Income and Adjusted Net Income Per Share are appropriate indicators to assist in the evaluation of its operating
performance on a period-to-period basis. The Company also uses Adjusted Income Before Taxes, Adjusted EBITDA and
Free Cash Flow internally as performance measures for planning purposes, including the preparation of annual operating
budgets, and for compensation purposes, including bonuses for certain employees. Adjusted EBITDA is also used to
evaluate its ability to service debt because the excluded charges do not have an impact on its prospective debt servicing
capability and these adjustments are contemplated in its credit facility for the computation of its debt covenant ratios. Free
Cash Flow, defined as Adjusted EBITDA less cash portion of interest expense net of interest income, capital expenditures,
and cash taxes, is used to evaluate operating effectiveness and decisions regarding the allocation of resources. However,
Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per
Share should be considered as a supplement to, not a substitute for, operating income, net income or other financial
performance measures prepared in accordance with U.S. generally accepted accounting principles. See Appendix for non-
GAAP reconciliations.
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