MTY Reports 2017 First-quarter Results

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MONTREAL — MTY Food Group Inc. released the results of its operations for the first quarter of its 2017 fiscal year.

On the acquisitions front, the Company acquired 60 per cent of the assets of 9974644 Canada Inc. (La Diperie) on Dec. 9, 2016, for a total consideration of $0.9 million. At closing La Diperie operated five stores in Canada.

At the end of the quarter, MTY’s network consisted of 5,527 locations, of which 76 were corporate and 5,451 were franchised. Since Nov. 30, 2016, the geographical split of MTY’s locations remained steady with 48 per cent in the U.S., 42 per cent in Canada and 10 per cent abroad.

System sales for the quarter grew by 98 per cent to $519.2 million — $255.8 million of which was due to acquisitions completed during 2016. Same-store sales for the quarter were down by 2.1 per cent over the same period last year as a result of the severe headwinds that continue to impact the Saskatchewan and Alberta markets. The same-store sales analysis excludes the performance of the Kahala and BF Acquisition Holdings networks; during the last three months, stores acquired in the Kahala transaction have generated a negative growth of 1.8 per cent.

Other highlights include:
• EBITDA was $20.5 million, up 69 per cent when compared to the same period last year. All of the growth in EBITDA came from the U.S. and international operations.
• Canadian operations represented 57 per cent of the total EBITDA earned (97 per cent in the prior year) while U.S. and international operations were 43 per cent of the current quarter’s EBITDA (three per cent in prior year).
• Net income attributable to owners decreased from $7.9 million ($0.41 per diluted share) in the first quarter of 2016 to $4.5 million ($0.21 per diluted share) in the first quarter of 2017.

Cash flows provided by operating activities grew by 84 per cent, to reach $16.8 million and at the end of the quarter, the company had $41.8 million of cash on hand and a long-term debt of $246.1 million in the form of holdbacks on acquisition and bank facilities.

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