IPOCanadian IPO
Company Name : Tim Hortons Inc.
Company Profile
Filing Date : 12/1/2005
Offering : $767,000,000
Price : $21.00 - $23.00 per share
Closing Date : TBD
Exchange : TSX
Eligibility : British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories
Underwriters :
Canada: Goldman Sachs Canada Inc., RBC Dominion Securities Inc.
United States: Goldman, Sachs & Co., RBC Capital Markets Corporation
Associations :
Issuer's Law Firm : Lang Michener
Underwriter's
Law Firm : Torys
Auditor : PricewaterhouseCoopers LLP
Transfer Agent :
Business Description :
Tim Hortons Inc. franchises and operates Tim Hortons restaurants in both Canada and the U.S. Tim Hortons' business model includes controlling the real estate for most of its franchise restaurants. Tim Hortons also distributes coffee and other drinks, non-perishable food, supplies, packaging and equipment to system restaurants in Canada through its five distribution centres. In the U.S. Tim Hortons supplies similar products to system restaurants through third-party distributors. Tim Hortons' system, which consists of franchised and company-operated restaurants, represented 22.6% of the $14.0 billion Canadian QSR segment at year end 2004 based on systemwide restaurant sales dollars.
Tim Hortons is the largest QSR chain in Canada based on systemwide sales and number of restaurants open, with a menu spanning a broad range of categories that appeal to customers throughout the day, such as premium blend coffee, flavoured cappuccinos, specialty and steeped teas, home-style soups, fresh sandwiches and freshly baked goods. According to the CRFA and Statistics Canada, in 2004 Tim Hortons' system represented 22.6% of the $14.0 billion QSR segment of the Canadian foodservice industry based on sales dollars, almost 25.0% larger than McDonald's, its nearest competitor. According to a tracking study we conducted in 2003, approximately 46.0% of the Company's Canadian customers visit its restaurants four or more times per week. Tim Hortons believes it has achieved this outstanding customer loyalty by offering a varied menu of products with superior quality and consistency in a convenient and friendly environment at an exceptional value and by being very involved in the communities it serves. The appeal of the Company's menu and its commitment to convenience also allow most of its restaurants to operate 24 hours each day with no two-hour period accounting for more than 20.0% of our average daily sales.
Tim Hortons' restaurants operate under a variety of formats. A standard Tim Hortons restaurant is a free-standing building ranging in size from 1,400 to 3,090 square feet with a convenient drive-thru window and featuring innovative merchandising techniques designed to capture its customers' senses and generate incremental sales. As of October 2, 2005, Tim Hortons had a system of 2,801 restaurants in Canada and the U.S. Tim Hortons' 2,529 restaurants across Canada include 660 non-standard, smaller restaurants in locations such as universities, hospitals and office buildings. Tim Hortons has a significant and long-standing strategic partnership with Exxon-Mobil's Canadian subsidiary, with more than 325 kiosks located within their Esso convenience stores in Canada. In the U.S., Tim Hortons has a regional presence in the Northeast and Midwest with 272 restaurants in 10 states, concentrated in three major markets. As of October 2, 2005, franchisees operated 2,705, or 98.8%, of the restaurants in Canada and 207, or 76.1%, of the restaurants in the U.S.
Industry Category : Hospitality
Company Financials :
Fiscal Year-End : December 31
Financials : Revenue for the 9 months ended October 2, 2005 - $953,059,000
Net income for the 9 months ended October 2, 2005 - $150,832,000
Revenue for the year ended December 31, 2004 - $1,338,266,000
Net income for the year ended December 31, 2004 - $205,051,000