TORONTO, May 31, 2017 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") has released its financial and operating results for the first quarter ended March 31, 2017. The Company's consolidated financial statements, together with the notes related thereto, as well as management discussions and analysis for the first quarter ended March 31, 2017, and 2016, are now available on SEDAR.
The Company is pleased to report on the following details of the financial results for the first quarter of 2017:
- Reduction in sales revenue is due to the disposition by the Company on July 1, 2016, of 100% of its interest in SPoT Coffee Williamsville Inc., which owns SPoT Coffee Williamsville café, as well as the sale on November 11, 2016 of the majority of its interest in SPoT Coffee Hertel Inc., which owns the SPoT Coffee Hertel café. Accordingly, sales revenue generated by these two cafés were excluded from the first quarter of 2017 sales revenue, but were included in the sales revenue of the first quarter of 2016 when they were corporately owned. The gain of $963,214 which resulted from the aforementioned disposition was mainly applied by the Company to significantly reduce its debt.
- Sales revenue in the first quarter of each year is expected to be the lowest of the year considering the negative effects of winter weather conditions on the hospitality and food service business in general. Improved sales revenue for the next three quarters of the year are anticipated to compensate.
- Same café sales increased this quarter by 5%.
- The Company achieved positive cafe-level EBITDA (earnings before interest, taxes, depreciation and amortization) of $149,529.
- The key drivers behind the net loss of $236,783 in the first quarter of 2017 include a $100,179 non-cash depreciation expense and interest.
Management continues to intensify its focus this year on, among other improvements in its operations, the reduction of the Company's debt and the expansion of its café and express franchise business. The efforts that have been, and continue to be, expended by management in the last 15 months on the development of SPoT's franchise program will be reflected in the coming months with increased sales revenue, which is anticipated to drive the Company into profitability. SPoT will be reporting on the further buildup of its franchises shortly.
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds, operates and franchises community oriented cafés and express cafés in New York State. SPoT's community cafés provide its customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each SPoT café is distinctively designed to suit its local neighbourhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. In particular, forward-looking information in this press release includes, but is not limited to, the potential use of proceeds of the financing that is the subject of this release. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
SOURCE Spot Coffee (Canada) Ltd.
For further information: Anton Ayoub, CEO & President, (416) 368-2220 Ext 228, [email protected]