MONTREAL, Jan. 18, 2023 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the "Company") (TSX: MTY), franchisor and operator of multiple concepts of restaurants worldwide, announces its quarterly dividend payment will increase from 21.0¢ per share to 25.0¢ per share, a growth of 19%. The 25.0¢ dividend will be payable on February 15, 2023 to shareholders registered in the Company's records at the end of the business day on February 3, 2023.
"Given the continued strength of our results, as evidenced by our record breaking third quarter normalized adjusted EBITDA(1) and resulting strong cash flows, we are extremely excited to announce an increase to our quarterly dividend. The 19% increase shows the strength of the MTY brand portfolio and the rebound the Company has made since the onset of the pandemic. We are also re-energized by the recent acquisitions of BBQ Holdings and Wetzel's Pretzels, which will add additional available funds. Our free cash flow(1) generation abilities are robust and we are very confident in the future of MTY. The 19% increase represents the tenth increase since our first dividend of 4.5¢ per quarter was declared in November 2010 and our continued commitment to return value to our shareholders. In terms of capital allocation, MTY's priority remains to continue to seek strategic acquisitions as the market conditions improve to make such investments and to continue to invest in our current brand network," says Eric Lefebvre, Chief Executive Officer of MTY.
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(1) This is a non-GAAP measure. Please refer to the "Non-GAAP measures" section below.
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Non-GAAP measures
Normalized adjusted EBITDA (revenue less operating expenses (excluding transaction costs related to acquisitions) plus share of net profit (loss) of a joint venture accounted for using the equity method) and free cash flows (net cash flows provided by operating activities, used in additions to property, plant and equipment and intangible assets and provided by proceeds on disposal of property, plant and equipment) are non-GAAP (generally accepted accounting principles) measures, do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. The Company believes that Normalized adjusted EBITDA is a useful metric because it is consistent with the indicators management uses internally to measure the Company's performance, to prepare operating budgets and to determine components of executive compensation, without including the impact of transaction costs related to acquisitions, which may vary in occurrence and in amount. The Company believes that free cash flows are a useful metric because it provides the Company with a measure related to decision-making about cash-intensive matters such as capital expenditures, compensation, and potential acquisitions. The Company also believes that these measures are used by securities analysts, investors and other interested parties and that these measures allow them to compare the Company's operations and financial performance from period to period and provide them with a supplemental measure of the operating performance and financial position and thus highlight trends in the core business that may not otherwise be apparent when relying solely on GAAP measures.
Forward-looking information
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.
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Eric Lefebvre, Chief Executive Officer
SOURCE MTY Food Group Inc.
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