Canada NewsWire
MONTREAL, Oct. 12, 2016
TSX Trading Symbol: "MTY"
MONTREAL, Oct. 12, 2016 /CNW Telbec/ - MTY Food Group Inc. ("MTY"
or the "Company") (TSX: MTY), franchisor and operator of multiple concepts of restaurants, reports today the results of its
operations for the third quarter of its 2016 fiscal year.
Highlights of the third quarter of 2016:
- On July 25th, 2016, the Company completed the acquisition of Kahala Brands Ltd. for
an estimated total consideration of $389 million.
- The system sales for the quarter, which benefited from 37 days of sales for the Kahala restaurants, grew by 50% to reach
$412.2 million. System sales for the first nine months of 2016 were $948.9
million.
- EBITDA was $18.0 million, a growth of 35% compared to the third quarter of 2015. Approximately
two thirds of the growth were generated by US operations. The franchising, corporate restaurant operation and food processing all
contributed to the increase in EBITDA.
- Net income attributable to owners increased from $8.2 million ($0.43 per share) in 2015 to $16.5 million ($0.82
per share) in 2016. A large part of the increase is attributable to a one-time gain of $8.0 million
generated on the settlement of a derivative contract on foreign exchange rates, while one-time acquisition costs of approximately
$1.0 million are included in operating expenses.
- At the end of the quarter, the company had $43.5 million of cash on hand, and a long-term debt
of $238.4 million in the form of holdbacks on acquisition and bank facilities, for a net debt of
$194.9 million.
- Same store sales for the quarter were down by 1.0%, with continuing difficult economic conditions prevailing in Alberta and Saskatchewan. This information excludes the performance of the
Kahala network; during the last 3 months, Kahala has had a positive same store sales growth of 2.0%.
- At the end of the quarter, MTY's network had 5,534 locations in operations, of which 77 were corporate and 5,457 franchised.
Following the acquisition of Kahala, 46% of MTY's locations are in the United States, 45% are in
Canada and 9% are abroad.
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(in thousands of $, except per share information)
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Three-month period ended
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Nine-month period ended
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August 31, 2016
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August 31, 2015
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Variance
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August 31, 2016
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August 31, 2015
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Variance
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Revenues
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52,886
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35,003
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51%
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123,568
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105,722
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17%
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Operating Expenses
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34,933
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21,663
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61%
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80,689
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68,515
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18%
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EBITDA
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17,953
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13,340
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35%
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42,879
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37,207
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15%
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Amortization and depreciation charges
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3,079
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2,087
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48%
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7,043
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6,255
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13%
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Interest on long-term debt
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958
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108
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787%
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1,061
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341
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211%
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Other income and charges
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7,238
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278
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8,912
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1,146
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Income before taxes
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21,154
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11,423
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85%
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43,687
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31,757
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38%
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Net income attributable to shareholders
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16,519
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8,176
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102%
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32,781
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22,896
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43%
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Basic and diluted EPS
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0.82
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0.43
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1.69
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1.20
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Locations in operation
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5,534
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2,740
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System sales
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412,246
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274,653
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50%
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948,933
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790,890
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20%
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Same store sales
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-1.0%
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-1.6%
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-0.2%
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-0.3%
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Note: These are financial highlights only. Management's Discussion and Analysis, the condensed interim consolidated financial
statements and notes thereto for the quarter ended August 31, 2016 are available on the SEDAR website
at www.sedar.com and on the Company's website
at www.mtygroup.com.
Certain information in this News Release may constitute "forward-looking" information that involves known and unknown risks,
uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Company
or industry results, to be materially different from any future results, performance or achievements expressed or implied by such
forward-looking information. When used in this News Release, this information may include words such as "anticipate", "estimate",
"may", "will", "expect", "believe", "plan" and other terminology. This information reflects current expectations regarding future
events and operating performance and speaks only as of the date of this News Release. Except as required by law, we assume no
obligation to update or revise forward-looking information to reflect new events or circumstances. Additional information is
available in the Company's Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
MTY Food Group Inc.
_____________________________________
Stanley Ma, Chairman, President & CEO
SOURCE MTY Food Group Inc.
