TSX Trading Symbol: "MTY"
MONTREAL, Feb. 16 /CNW Telbec/ - MTY Food Group Inc. (MTY), franchisor
and operator of over 1,700 quick service restaurants today reports
today results for its fourth quarter and fiscal year ending November
The following are some highlights from the 2010 fiscal year;
Acquisition of Groupe Valentine Inc. and of its 95 outlets and 7 real
Quarterly dividend policy was established and first dividend was
Number of locations at year end total 1,727 up from 1,570 a year
Revenues reached $66.9 million, up 30% over the $51.5 million generated
EBITDA rose by 21% to $26.4 million from $21.7 million;
Net income increased by 26% to $15.4 million or $0.81 per share from
$12.3 million or $0.64 per share;
Operations have generated cash flows of over $21.8 million during 2010
compared to $16.1 million in 2009.
Despite disbursements of $7.4 million to acquire Groupe Valentine and
$0.9 million for the first dividend, liquidities at year-end remained
very strong with $29 million in cash and temporary investments;
System wide sales reached $461.9 million, up 18% from the $393.1 million
generated during 2009; and
Same store sales increased 2.03% during the fourth quarter of 2010,
recording the Company's first positive growth quarter since the first
quarter of 2009 bringing the 2010 fiscal year same store sales to a
slight decrease of 0.34%.
Results of operations for the fiscal year ended November 30, 2010
MTY reported a net income of $15.4 million or $0.81 per share ($0.81 per
diluted share) compared to a net income of $12.3 million or $0.64 per
share ($0.64 per diluted share) for the same period last year,
representing a net income increase of 26%. The increase in net income
for the period is mainly attributable to strong generic growth.
During its 2010 fiscal year, the Company's total revenue increased by
30%, to $66.9 million, from $51.5 million during the same period last
year. Revenue from franchise locations increased to $58.2 million for
fiscal 2010 from $42.2 million, representing a 38% higher as to fiscal
2009. While 59% of the increase comes from the impact of acquisitions,
the remainder of the increase is attributable to stronger volume of
initial franchise fees and turnkey deliveries as compared to the same
period last year and higher royalties generated by new stores opened
during the last 12 months. Revenue from corporate owned locations
decreased to $8.7 million during our 2010 year, from $9.4 million for
the same period last year, representing a reduction of 7%. This
reduction is mainly due to the decrease in the number of corporate
owned locations during the first three quarters of the period, before
the acquisition of Valentine and of its nine corporate locations.
EBITDA increased by 21%, from $21.7 million to $26.4 million for the
twelve months ended November 30, 2010. For the same period, EBITDA from
franchised locations increased from $21.2 million in 2009 to $25.5
million in 2010. The generic growth from stores opened in the last
quarter of 2009 and during 2010 is the main driver of the increase.
EBITDA as a percentage of revenue decreased mainly due to a larger
number of turnkey projects delivered and increased sales of products
and services made to franchisees, which typically generate lower profit
margins. EBITDA from corporate owned locations increased from $0.5
million in 2009 to $0.9 million in 2010, mainly because of the stronger
general performance of the remaining stores. For the same reason,
EBITDA as a percentage of revenue from corporate owned locations
increased to 11% for the period, compared to 6% in 2009.
System wide sales reached to $461.9 million during the year ended
November 30, 2010, compared to $393.1 million for the same period last
year, representing an increase of 18%. Approximately half of the
increase in system wide sales is attributable to the acquisition of
Country Style, while one tenth of the increase comes from
Valentine. The remainder is generated by new locations opened since the
end of 2009.
Results of operations for the fourth quarter ended November 30, 2010
MTY reported a net income of $4.5 million or $0.23 per share ($0.23 per
diluted share) compared to a net income of $3.8 million or $0.20 per
share ($0.20 per diluted share) for the same quarter last year
representing an increase of 19%. Most of the increase in net income for
the quarter is attributable to growth in royalties generated by outlets
opened during the last twelve months.
Total revenue increased by 25%, to $19.3 million from $15.5 million in
the fourth quarter of last year. During the same period, revenue from
franchise locations increased by 26% to $16.8 million from $13.3
million. The increase is attributable to the acquisition of Valentine
for $2.9 and the remaining balance came from generic growth.
Revenue from corporate owned locations increased by 16% to $2.5 million
for the quarter, from $2.2 million for the same quarter last year. The
increase is mainly attributable to the acquisition of Valentine, which
operated nine corporate stores at the date of the transaction and
opened two more during the fourth quarter.
Total EBITDA grew by 13%, from $6.6 million to $7.4 million for the
quarter. EBITDA from franchise locations increased 13%, from $6.6
million in 2009 to $7.4 million in 2010. The main driver of that
growth is the increase in royalties generated by stores opened in the
last twelve months. EBITDA as a percentage of revenue for franchise
locations declined to 42.6% from 48.4% a year ago. The acquisition of
Valentine, which earns a high proportion of its revenues from sale of
products to franchisees at a lower profit margin, accounts for most of
the variance. EBITDA from corporate owned locations was stable with a
slight negative contribution.
System sales amounted to $124.0 million, up 16% compared to the same
quarter last year. While Valentine accounts for approximately 40% of
the increase, the main driver of this growth is the increased number of
stores opened in the last twelve months.
For 2011, management plans of opening 85 new locations and remains
committed in seeking potential acquisitions to further strengthen its
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.
For further information:
Please contact Jean-Francois Dube, Investor Relations at 1-450-226-8475 or by email at email@example.com or visits our website: www.mtygroup.com or visit SEDAR's website at www.sedar.com under the Company's name.