MTY reports record results for the third quarter of its 2016 fiscal period

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.

 

(in thousands of $, except per share information)








Three-month period ended


Nine-month period ended



August 31, 2016

August 31, 2015

Variance

August 31, 2016

August 31, 2015

Variance








Revenues

52,886

35,003

51%

123,568

105,722

17%








Operating Expenses

34,933

21,663

61%

80,689

68,515

18%








EBITDA

17,953

13,340

35%

42,879

37,207

15%








Amortization and depreciation charges

3,079

2,087

48%

7,043

6,255

13%








Interest on long-term debt

958

108

787%

1,061

341

211%








Other income and charges

7,238

278


8,912

1,146









Income before taxes

21,154

11,423

85%

43,687

31,757

38%








Net income attributable to shareholders

16,519

8,176

102%

32,781

22,896

43%








Basic and diluted EPS

0.82

0.43


1.69

1.20









Locations in operation




5,534

2,740









System sales

412,246

274,653

50%

948,933

790,890

20%








Same store sales

-1.0%

-1.6%


-0.2%

-0.3%


 

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.

For further information: please contact Eric Lefebvre, Chief Financial Officer at 1-514-336-8885 or by email at ir@mtygroup.com, or visit our website: www.mtygroup.com or SEDAR's website at www.sedar.com under the Company's name.

RELATED LINKS
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