Building Value: Cara Reports $65.5 Million Gain On Sale And Improved Operating Results.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 1, 2001 Cara Operations Cara Operations Limited is a Canadian company that provides catering services to airlines and operates several restaurant and coffee shop chains including: Harvey's, Swiss Chalet, Kelsey's , Milestones and Montana's. The company is based across from Lester B. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.) (TSE:CAO.A.) Cara Operations Limited ("Cara"), Canada's leading integrated foodservices company, is pleased to announce continued strong operating results and record earnings for the twelve week period ending December December: see month. 10, 2000, being Cara's third fiscal quarter (the "Third Quarter" or the "Quarter"). "The Third Quarter results reflect our Company's continuing trend of year-over-year growth due to improved operating performance and increased sales in our key divisions. The results also reflect a substantial after tax gain of $65.5 million realized on the previously reported sale of the business conducted by Beaver beaver, either of two large aquatic rodents, Castor fiber and Castor canadensis, known for their engineering feats. They were once widespread in N and central Eurasia except E Siberia, and in North America from the arctic tree line to the S United Foods, our institutional caterer", commented Gabe Tsampalieros, Cara's President and Chief Executive Officer. In the Quarter, system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. increased by 9.0% to $408.9 million while gross revenues grew by 8.5% to $294.0 million. Earnings before interest, taxes, depreciation, amortization and the gain on the sale of the business conduced by Beaver Foods ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") increased by 13.6 % to $ 29.6 million. Excluding unusual items, net earnings increased by 11.7% to $9.6 million and earnings per share ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") increased by 12 % to 10.3 cents. Including unusual items, net earnings were $74.7 million or 80.4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . In the Quarter, all of Cara's core businesses reported year-over-year growth in system sales. The main contributors to this growth were the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales from new units at Kelsey's and Montana's restaurants and strong revenue increases at Beaver and Airport Services. In the Quarter, Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. and Harvey's This article is about the Canadian fast food chain. For other uses, see Harvey's (disambiguation). Harvey's is a fast food restaurant chain that operates in Canada, with locations concentrated in southern and eastern Ontario, southern Quebec, the Maritimes, and urban continued to enjoy strong same restaurant sales growth of 5.5% and 3.5% respectively. For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. : system sales increased 15.6% to $1.2 billion; gross revenues grew 15.4% to $837 million; EBITDA increased by 26.5% to $88.5 million and net earnings; and EPS (before unusual items) increased by 26.9 % and 28.1% respectively to $29.2 million and 31.5 cents respectively. Including unusual items, net earnings were $92.7 million or $1 per share. "We are pleased with the overall performance and operating results achieved by our Company in the Quarter. Although weather, a slowing economy and a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. in consumer confidence levels can have
an adverse impact on our businesses, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for the balance of the year. Fiscal 2001 will prove to be a year of strong profitable growth for Cara particularly when the results of the Beaver Foods transaction are taken into account. The proceeds and gain realized on that sale are proof that the strategies implemented by Cara and our efforts to build leadership positions in each of our businesses are and have been building value for our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . This transaction and the strategic agreements arising out of it are wholly consistent with Cara's stated objectives of significantly enhancing shareholder value by sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target our focus on high growth areas while providing future opportunities for the growth of our businesses. I extend thanks to all our teammates and operating associates for their continued efforts and dedication to Cara's success", added Mr. Tsampalieros. The Third Quarter results reflected two unusual items: the first relates to an adverse adjustment to Cara's investment in The Second Cup Ltd. ("Second Cup") resulting from Cara's proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share ($406,000) of a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $1.1 million by Second Cup of its investment in Diedrich Coffee Diedrich Coffee is a coffee company based in Irvine, CA. Its first coffee house in Orange County, CA was opened in 1983. It owns the American mall-based stores for Gloria Jean's Coffees. , Inc. The write-down reduced Cara's earnings by 0.44 cents per share; the second item relates to the gain of $65.5 million on the sale, at the end of the Quarter, of substantially all of the contract food catering businesses, operated by Cara's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Beaver Foods Limited for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $150 million and an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $65.5 million. DIVIDEND On February February: see month. 1st, the Board of Directors of the Corporation approved a semi-annual dividend of 7 cents per share payable on February 23rd, 2001 to Common and Class A shareholders of Record on February 13th, 2001 bringing the total dividend paid in fiscal 2001 to 14 cents per share. With annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. system sales of in excess of $1.5 billion, Cara Operations Limited is one of Canada's leading foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. companies, providing employment for more than 28,000 Canadians This is a list of Canadians. Architects
In food:
A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. coffee retail market and the largest shareholder (38%) of The Spectra Group of Great Restaurants, a western-Canadian-based multi-concept restaurant operator, whose popular owned brands include the upscale casual chain of Milestones restaurants and the Bread Garden bakery/cafe concept. The shares of Cara, Second Cup and Spectra are listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbols, CAO - CAO.A, SKL SKL Conservative Peasants Party (Poland) SKL State Key Laboratory SKL Simple Key Loader SKL Svenska Kriminaltekniska Laboratoriet (Swedish National Criminal Forensics Laboratory) and SPA Spa, commune (1991 pop. 10,140), Liège prov., E Belgium, in the Ardennes. Its therapeutic mineral springs and baths, frequented since the 16th cent., made it an internationally fashionable watering place. - SPA.A respectively.
CONSOLIDATED INFORMATION
[In thousands 3rd Quarter 3rd Quarter 36 Weeks
of dollars except ended ended % ended
for share data] Dec 10/00 Dec 5/99 Variance Dec 10/00
----------------------------------------------------------------------
System Sales $408,867 $374,959 9.0 $1,176,000
[Note 1]
------------------------------------------------------------------------
Gross Revenue $294,005 $270,986 8.5 $837,119
------------------------------------------------------------------------
EBITDA [Note 2] 29,550 26,009 13.6 88,491
------------------------------------------------------------------------
EBIT [Note 3] $18,978 $16,830 12.8 $57,830
------------------------------------------------------------------------
Net Earnings
before Unusual Items
[Note 4] $9,551 $8,553 11.7 $29,237
------------------------------------------------------------------------
Gain on sale of
business [Note 5] $65,505 - $65,505
------------------------------------------------------------------------
Net Earnings $74,650 $8,553 772.8 $92,729
------------------------------------------------------------------------
EPS before Unusual
items [in cents] 10.29 9.2 12.1 31.5
------------------------------------------------------------------------
EPS [in cents] 80.4 9.2 774.8 99.9
------------------------------------------------------------------------
[In thousands 36 Weeks
of dollars except ended %
for share data] Dec 5/99 Variance
-----------------------------------------------------
System Sales [Note 1] $1,017,736 15.6
-----------------------------------------------------
Gross Revenue $725,269 15.4
-----------------------------------------------------
EBITDA [Note 2] 69,937 26.5
-----------------------------------------------------
EBIT [Note 3] $44,911 28.8
-----------------------------------------------------
Net Earnings
before Unusual Items
[Note 4] $23,036 26.9
-----------------------------------------------------
Gain on sale of
business [Note 5] - -
-----------------------------------------------------
Net Earnings $16,649 457.0
-----------------------------------------------------
EPS before Unusual
items [in cents] 24.6 28.2
-----------------------------------------------------
EPS [in cents] 17.8 461.0
-----------------------------------------------------
Note 1: System sales include sales by Cara's franchisees and
franchise operators but exclude intercompany sales and sales to Cara's
franchise operators by Summit.
Note 2: EBITDA is earnings before interest, taxes, depreciation
and amortization.
Note 3: EBIT is earnings before interest, provision for taxes and
after-tax equity income.
Note 4: Earnings before unusual items exclude the gain on sale of
Beaver Foods and Cara's share of The Second Cup's investment
write-down. Prior year's earnings before unusual items include Cara's
share in Second Cup's non-cash $16.2 million after tax loss relating
to its strategic divestment (U.S. operations).
Note 5: The gain on sale of Beaver Foods of $65.5 million is net
of applicable taxes of $26.2 million.
OPERATING HIGHLIGHTS Swiss Chalet In the Third Quarter, Swiss Chalet system sales grew by 6% to $91.4 million. Growth in same restaurant sales remained strong increasing by 5.5%, the fifth consecutive fiscal quarter in which Swiss Chalet has achieved year-over-year growth in same restaurant sales. This growth is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a combination of increased traffic flow and average guest spend. Swiss Chalet continues to focus on menu and atmosphere enhancements and on operational excellence offering value and service to our guests and focussed on growth opportunities through its take-out Take-out A cash surplus generated by the sale of one block of securities and the purchase of another, e.g., selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed (and generally agreed) to take the seller out of , delivery and drive-thru drive-through or drive-thru adj. 1. Relating to or conducting exchanges with clients who drive up to a window and remain in their automobiles: drive-thru banking. 2. sales channels. At quarter-end, the total Swiss Chalet restaurants operating in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and in the states of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and remained at 178. Harvey's Harvey's system sales increased by 3.5% to $64.3 million. Same restaurant sales increased by 3.5% vs. 0.2% a year ago. As with Swiss Chalet, Harvey's has now achieved year-over-year growth in same restaurant sales in each of the last five fiscal quarters. Harvey's continues to focus on initiatives that can and will have a significant positive impact on guest satisfaction and growth in same restaurant sales. These include new product offerings such as the recent launch of Harvey's new "Crispy crisp·y adj. crisp·i·er, crisp·i·est 1. Firm but easily broken or crumbled; crisp. 2. Having small curls, waves, or ripples. Fries" and variety such as the "Festival of Flavours". In addition, Harvey's is continuing with its restaurant rejuvenation Rejuvenation Aeson in extreme old age, restored to youth by Medea. [Rom. Myth.: LLEI, I: 322] apples of perpetual youth by tasting the golden apples kept by Idhunn, the gods preserved their youth. [Scand. Myth. , increased training and speed of service enhancements. During the quarter, eight restaurants were opened whilst three were closed bringing the total number of Harvey's restaurants in operation at the end of the fiscal quarter to 373. Kelsey's System sales in the Third Quarter grew by 19% to $58.6 million primarily due to the sales generated by the 19 new restaurants opened since December 1999. In the Quarter, one Montana's was opened bringing the total number of operating restaurants within the Kelsey's group to 124. In addition, one Kelsey's, three Montana's and one Outback restaurant were opened in Period 10 and an additional 8 restaurants including one Outback Steakhouse are currently under development and are scheduled to open prior to the end of March. The presence of the Kelsey's restaurant group within the Cara family enhances Cara's positioning as the leader in full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. , casual/family dining in Dining in is a formal military function for members of a company or other unit. The practice is thought to have begun in 16th Century England, in the monasteries and early universities. Canada. Air Terminal Restaurants Sales in the Third Quarter continued to grow faster than passenger traffic growth, increasing by 12.7% to $14.9 million. Same unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. growth of 7.3% and the addition of the last phase of Pearson Pear·son , Lester Bowles 1897-1972. Canadian politician who served as prime minister (1963-1968). He won the 1957 Nobel Peace Prize for his role in the negotiation of a solution to the Suez crisis (1956). enabled the division to attain double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in sales over last year. Subsequent to the third quarter, four foodservice units opened as part of the new terminal building expansion at Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located International. Airport Services Reflecting continued growth in air travel, sales increased by $3.6 million or 7.6% to $51.3 million. The construction of the new 270,000 sq. ft. flight kitchen and related facilities is on schedule and on budget. The training of teammates in various areas of operations and in new procedures, in preparation for the opening of the new kitchen, has commenced. Catering to our customers will begin in early March and the facility will be fully operational by April. Summit Foods Sales [including intercompany sales] increased by 6.5% to $69.8 million. Sales growth reflected the strong performance from Swiss Chalet and Harvey's. Summit has also successfully increased its "street account" and healthcare businesses with sales growth of 6.1% and 10.1%, respectively. This reflects the ongoing efforts of Summit's sales teammates working with many local prospects to build sales momentum. Construction of the new distribution centre in Mississauga Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing was completed in December and deliveries to customers commenced in January January: see month. . Health Services Sales in the Quarter were similar to last year. In October October: see month. , Health Services completed a key business imperative imperative: see mood. imperative - imperative language that consisted of testing of an enhanced patient service delivery model at William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Osler's Etobicoke Etobicoke Former city (pop., 2001: 338,117), southeastern Ontario, Canada. In 1998 it joined the cities of North York, Scarborough, York, and Toronto and the borough of East York to become the City of Toronto. Hospital Campus. The new model provides a mix of dining room, meal cart, and tray See tray drive, tray card and System Tray. service on the patient floor, and could lead to the elimination of centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. kitchens in hospital. Another positive development affecting the division was the 500 bed expansion program announced by Sunnybrook that will more than double the size of the acute care operation and fully utilize the remaining capacity of the on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. Caraflex operation. For additional information, please feel free to contact Gabe Tsampalieros, President and Chief Executive Officer at 905-405-6600 or Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Forsayeth, Chief Financial Officer at 905-405-6905.
Website: www.cara.com Fax: 905-405-6777
Internet Email: mforsayeth@cara.com
CARA OPERATIONS LIMITED
Consolidated Statements of
Earnings
Unaudited 12 WEEKS ENDED 36 WEEKS ENDED
Dec 10 Dec 5 % Dec 10 Dec 5 %
(In thousands 2000 1999 Change 2000 1999 Change
of dollars,
except for
share data)
------------------------------------------------------------------------
System Sales $408,867 $374,959 9.0 $1,176,000 $ 1,017,736 15.6
------------------------------------------------------------------------
Gross Revenue$294,005 $270,986 8.5 $ 837,119 $ 725,269 15.4
------------------------------------------------------------------------
Earnings
before : $ 29,550 $ 26,009 13.6 $ 88,491 $ 69,937 26.5
Amortization of
capital assets 9,211 7,923 16.3 26,664 21,361 24.8
Amortization of
goodwill, contracts
and trademarks 1,199 1,241 -3.4 3,509 3,305 6.2
Interest expense on
consolidated
operations 1,903 2,118 -10.2 6,155 5,470 12.5
(Note 1)
----------------------------------------------------------------------
Earnings : 17,237 14,727 17.0 52,163 39,801 31.1
before
Interest expense
on equity 372 438 -15.1 1,275 1,672 -23.7
investments
Amortization of
goodwill relating to
equity
investments 162 162 0.0 488 488 0.0
Share of equity loss /
(earnings) - Second
Cup & Spectra 66 (537) -112.3 365 4,545 -92.0
(Note 2)
------------------------------------------------------------------------
Earnings 16,637 14,664 13.5 50,035 33,096 51.2
before :
Income taxes 7,309 5,909 23.7 21,879 16,084 36.0
Non-controlling
shareholders'
interest 183 202 -9.4 932 363 156.7
------------------------------------------------------------------------
Earnings before: 9,145 8,553 6.9 27,224 16,649 63.5
Gain on sale of
business, net of
tax (Note 3) 65,505 - 65,505 -
------------------------------------------------------------------------
Net earnings for
the period $74,650 $ 8,553 772.8 $ 92,729 $ 16,649 457.0
------------------------------------------------------------------------
Shares Outstanding
(000's)
Common 42,985 42,984 0.0 42,985 42,984 0.0
Class A, 49,868 50,243 -0.7 49,868 50,243 -0.7
non-voting
------------------------------------------------------------------------
Total 92,853 93,227 -0.4 92,853 93,227 -0.4
------------------------------------------------------------------------
Earnings Per Share
before unusual items
(cents) - Note 4
Basic 10.3 9.2 12.1 31.5 24.6 28.2
Fully Diluted 9.9 8.9 11.4 30.3 17.4 74.1
------------------------------------------------------------------------
Earnings Per Share
(cents)
Basic 80.4 9.2 774.8 99.9 17.8 461.0
Fully Diluted 76.3 8.9 759.6 95.1 17.4 446.6
------------------------------------------------------------------------
Note 1: Includes interest incurred on all investments except the investments in The Second Cup Ltd. and The Spectra Group of Great Restaurants, Inc. Note 2: Cara's share of equity earnings of The Second Cup Ltd. booked in the third quarter includes Cara's proportionate share in the Second Cup's fourth quarter earnings for fiscal 2000 and the results for its first two quarters of fiscal 2001. In their fourth quarter in fiscal 2000, Second Cup wrote down their investment in Diedrich Coffee, Inc. by $4.1 million. In the second quarter of fiscal 2001, a further investment write down of $1.1 million was booked by Second Cup. Cara's share of these write down reduced reported year to date net earnings by $2.0 million (2.2 cents per share). The impact on Cara's third quarter results was a reduction in net earnings by $406,000 (0.44 cents per share). During its fourth quarter last year, Second Cup incurred a non- non- word element [L.]not . non- pref. Not: noninvasive. cash $16.2 million after tax loss relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its strategic divestments (the U.S. operations). Cara's share of that loss reduced net earnings last year by $6.4 million (6.8 cents per share). Note 3: On December 2, 2000, Cara completed the sale of substantially all of the contract food catering business of Beaver Foods Limited, a wholly- owned subsidiary, for net proceeds of approximately $150 million. The gain on sale was $65.5 million, net of applicable taxes of $26.2 million. Note 4: Earnings before unusual items excludes the gain on sale of Beaver Foods [Note 3] and Cara's share of The Second Cup's investment write down [Note 2].
CARA OPERATIONS LIMITED
Consolidated Balance Sheets
Unaudited
2000 1999
(In thousands of dollars) Dec 10 Dec 5
--------------------------------------------------------------------
ASSETS
Current
Cash $ 140,984 $ 2,900
Accounts receivable 63,590 78,573
Inventories 24,470 27,075
Prepaid expenses and other assets 2,072 6,849
Future income taxes 9,680 3,938
Current portion of long-term receivables 5,321 1,831
--------------------------------------------------------------------
246,117 121,166
Long-Term Receivables 17,444 15,144
Property, Plant & Equipment 349,348 309,215
Goodwill and Other Assets 58,650 93,160
Future Income Taxes 6,842 10,155
Equity Investments 38,109 45,718
--------------------------------------------------------------------
$ 716,510 594,558
--------------------------------------------------------------------
--------------------------------------------------------------------
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued charges $ 116,324 $ 110,593
Income taxes 33,709 7,808
Provision for restructuring costs 3,030 6,714
Current portion of long-term debt 3,612 9,398
--------------------------------------------------------------------
156,675 134,513
Other Long-Term Liabilities (Note 1) 18,822 11,072
Long-Term Debt 181,940 174,750
Future Income Taxes (Note 1) 18,836 17,777
--------------------------------------------------------------------
376,273 338,112
--------------------------------------------------------------------
--------------------------------------------------------------------
Minority interest 4,866 3,670
--------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital Stock 30,068 30,248
Retained Earnings (Note 1) 305,303 222,528
--------------------------------------------------------------------
335,371 252,776
--------------------------------------------------------------------
$ 716,510 $ 594,558
--------------------------------------------------------------------
--------------------------------------------------------------------
Note 1: Effective April 3, 2000, Cara adopted section 3461 of
the Canadian Institute of Chartered Accountants handbook,
entitled "Employee Future Benefits". Cara has implemented
section 3461 on a retroactive basis but without restatement
of comparative amounts. Using prescribed changes to pension
accounting, estimated assumptions and current market-related
discount rates, which are lower than those previously used by
the Company the following balance sheet accounts were
affected. The Company's pension obligation increased by $8.9
million, opening retained earnings decreased by $5.6 million
and future income taxes payable decreased $3.3 million.
Consolidated Statements of Cash Flows
Unaudited 12 WEEKS ENDED 36 WEEKS ENDED
Dec 10 Dec 5 Dec 10 Dec 5
(In thousands of dollars) 2000 1999 2000 1999
---------------------------------------------------------------------
Cash Flows Provided by (Used in)
Operating Activities
Earnings from operations $ 74,650 $ 8,553 $ 92,729 $ 16,649
Adjustments for:
Amortization of property,
plant & equipment 9,211 7,923 26,664 21,361
Amortization of goodwill
and other assets 1,199 1,241 3,509 3,305
Gain on sale of business,
net of tax (Note 1) (65,505) - (65,505) -
Equity (earnings) loss 228 (375) 853 5,033
Non-controlling shareholders'
interest 183 202 932 363
Gain (loss) on disposal
of property, plant & equipment (22) 94 (14) 706
Restructuring costs (3,643) (662) (3,967) (1,324)
--------------------------------------
Cash flow before
change in working capital 16,301 16,976 55,201 46,093
Change in non-cash operating
working capital 22,826 10,117 11,120 (9,586)
---------------------------------------------------------------------
39,127 27,093 66,321 36,507
---------------------------------------------------------------------
Investing Activities
Purchase of property,
plant & equipment $(34,631) $(14,850) $(78,641) $(39,052)
Purchase of goodwill and
other assets (95) (254) (768) (904)
Changes in mortgages and notes (7,434) 61 (6,079) (205)
Repayment of employee
stock plan loans 413 185 1,385 578
Acquisitions - - - (40,000)
Proceeds on sale of
business (Note 1 ) 151,293 - 151,293 -
Other 258 164 122 (124)
Proceeds on disposal of
property, plant & equipment 488 1,047 4,693 1,656
Proceeds on sale of
The Second Cup shares - - - 31,473
Dividends from The
Second Cup shares - - 7,326 -
---------------------------------------------------------------------
$110,292 (13,647) $ 79,331 $(46,578)
---------------------------------------------------------------------
Financing Activities
Share repurchase $ - $ - $ (41) $ (5,536)
Change in long-term debt (12,885) (13,486) (1,345) (17,778)
Dividend paid - - (6,499) (6,617)
---------------------------------------------------------------------
$(12,885) (13,486) $ (7,885) $(29,931)
---------------------------------------------------------------------
Change in Cash 136,534 (40) 137,767 (40,002)
Cash - Beginning of Period 4,450 2,940 3,217 42,902
---------------------------------------------------------------------
Cash - End of Period $140,984 $ 2,900 $140,984 $ 2,900
---------------------------------------------------------------------
---------------------------------------------------------------------
Note 1: On December 2, 2000, Cara completed the sale of
substantially all of the contract food catering business of
Beaver Foods Limited, a wholly-owned subsidiary, for net
proceeds of approximately $150 million. The gain on sale was
$65.5 million, net of applicable taxes of $26.2 million.
CARA OPERATIONS LIMITED
Systems Sales & Gross Revenue Information
Unaudited
36 Weeks Ended
December 10, 2000
----------------------------------------------------------
Quarter Year-to-Date
------------------------------------------------
System Gross System Gross
Divisions Sales Revenue Sales Revenue
----------------------------------------------------------------------
Harvey's $ 64,258 10,471 192,711 $ 34,044
Swiss Chalet 91,913 27,989 266,000 79,542
Kelsey's 60,822 42,805 182,038 128,137
Air Terminal
Restaurants 14,863 14,090 47,054 44,655
Airport Services 53,593 53,593 174,683 174,683
Beaver Foods 86,645 86,645 206,506 206,506
Health Services 5,139 5,139 15,132 15,132
Summit Foods 69,811 69,811 201,008 201,008
Intercompany (38,177) 16,623) (109,132) (46,829)
--------------------------------------------------
$ 408,867 $ 294,005 $1,176,000 $ 837,119
----------------------------------------------------------------------
36 Weeks Ended
December 5, 1999
---------------------------------------------------
Quarter Year-to-Date
---------------------------------------------------
System Gross System Gross
Divisions Sales Revenue Sales Revenue
----------------------------------------------------------------------
Harvey's $ 62,113 $ 12,702 $ 186,269 $ 35,847
Swiss Chalet 87,253 26,431 248,258 77,061
Kelsey's 49,981 36,984 94,048 68,770
Air Terminal
Restaurants 13,192 12,278 40,534 37,490
Airport Services 50,006 50,006 160,470 160,470
Beaver Foods 78,674 78,676 188,283 188,283
Health Services 5,183 5,183 15,110 15,110
Summit Foods 65,568 65,568 186,628 186,628
Intercompany (37,011) (16,968) 101,864) (44,594)
---------------------------------------------------
$ 374,959 $ 270,986 $1,017,736 $ 725,269
---------------------------------------------------
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