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02.11.2015 13:30
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The Second Cup Ltd. Announces Third Quarter Results and Positive Same Store Sales Trend
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Canada NewsWire
MISSISSAUGA, ON, Nov. 2, 2015
MISSISSAUGA, ON, Nov. 2, 2015 /CNW/ - The Second Cup Ltd. (TSX: SCU) reported financial results today for the third quarter ended September 26th, 2015.
Highlights:
- Third quarter same store sales declined 2.9% compared with minus 3.1% in Q2 and improved to positive 1.0% for the most recent 5 weeks.
- Quarterly net loss of $1,099,000 ($0.09 per share), compared with year ago net loss of $26,230,000 ($2.65 per share) or $463,000 ($0.05) per share adjusted for impairment charges.
- Café of the future roll out continues with three new concept cafes opened in the quarter.
- Reduced number of corporate stores from 47 to 42 with further reductions expected.
- Renewed partnership with Air Canada as the exclusive, premium coffee provider on board all Air Canada flights.
"There are strong indicators that our transformation strategy is taking hold, in particular the positive same store sales trend in October which is the first positive sales month in three and a half years", says Ms. Alix Box, President and CEO, The Second Cup Ltd. "We are excited about the roll out of our new café concept and the momentum we are gaining in refranchising cafes to high caliber franchisees. We are seeing progress and there is much more to do. We remain focused on our strategies to strengthen our network and drive same store sales growth."
Third Quarter 2015
Same store sales were -2.9% in Q3 compared to -3.1% in Q2. The company is very encouraged by the positive same store sales trend over the last 5 weeks.
Net loss of $1,099,000 includes a provision of $863,000 for the closure of 6 underperforming stores. The high number of corporate stores is negatively impacting short term profitability but we expect to make a significant reduction by mid-2016 as we progress toward the asset light business model.
The company has been working aggressively to reduce the number of corporate stores through franchising to strong operators and returning to an asset light model. The number of corporate stores was reduced to 42 in Q3 from 47 in Q2.
We have renewed our agreement with Air Canada and value our longstanding relationship. Andrew Yiu, Director of Product Design for Air Canada said "We are thrilled to continue our relationship with Second Cup and deliver an unparalleled, truly Canadian travel experience. This partnership thrives because both Second Cup and Air Canada are committed to best-in-class products and we are excited to offer passengers a unique taste of home."
The balance sheet remains strong with cash on hand of $9,161,000 and net debt of $1,997,000.
New Developments
Second Cup will continue rolling out the café of the future concept with 5 new and renovated cafes underway and scheduled to open by year end. The roll out of the new concept is an integral component of the company's transformation strategy.
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating over 325 franchised and company owned cafes. The company's vision is to be the coffee brand most passionately committed to quality and innovation. For more information, please visit www.secondcup.com or find the company on Facebook and Twitter.
Financial Highlights
The following table sets out selected IFRS and certain non-GAAP financial measures of the Company and should be read in conjunction with the Unaudited Condensed Interim Financial Statements of the Company for the 13 and 39 weeks ended September 26, 2015 and September 27, 2014.
| | 13 weeks ended | | 39 weeks ended | ||
| (In thousands of Canadian dollars, except same café sales, number of cafés, per share amounts, and number of common shares.) | September 26, | September 27, | | September 26, | September 27, |
| | | | | | |
| System sales of cafés1 | $41,087 | $43,596 | | $127,966 | $133,355 |
| | | | | | |
| Same café sales1 | (2.9%) | (3.3%) | | (2.3%) | (5.1%) |
| | | | | | |
| Number of cafés - end of period | 327 | 349 | | 327 | 349 |
| | | | | | |
| Total revenue | $9,270 | $6,686 | | $27,705 | $19,745 |
| | | | | | |
| Operating costs and expenses | $10,580 | $36,900 | | $28,953 | $50,121 |
| | | | | | |
| Operating income (loss) 1 | ($1,310) | ($30,214) | | ($1,248) | ($30,376) |
| | | | | | |
| EBITDA1 | ($924) | ($29,865) | | ($171) | ($29,486) |
| | | | | | |
| Net loss and comprehensive loss | ($1,099) | ($26,230) | | ($1,247) | ($26,564) |
| | | | | | |
| Basic and diluted loss per share as reported | ($0.09) | ($2.65) | | ($0.10) | ($2.68) |
| | | | | | |
| Total assets - end of period | $50,417 | $44,578 | | $50,417 | $44,578 |
| | | | | | |
| Number of common shares issued and outstanding - end of period | 12,830,945 | 9,903,045 | | 12,830,945 | 9,903,045 |
| 1See the section "Definitions and discussion on certain non-GAAP financial measures" for further analysis. | |||||
Balance Sheet Data
| | September 26, 2015 | December 27, 2014 |
| Cash and cash equivalents | $9,161 | $10,918 |
| Restricted cash | 651 | - |
| Total assets | 50,417 | 53,449 |
| Total debts | 11,189 | 11,119 |
| Total liabilities | 26,611 | 28,456 Werbung Mehr Nachrichten zur THE SECOND CUP LTD. Aktie kostenlos abonnieren
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