Cara Announces `On Track' Third Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 4, 2000 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.) 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. Limited (&uot;Cara&uot;) today announced its operating results for the 12 weeks ended December December: see month. 5, 1999, (the &uot;Third Quarter&uot;), which continue to show good year-over-year improvement, in all areas and particularly in the Restaurant Group. Net earnings for the Third Quarter were $8.6 million, up from $8.2 million for the same period last year and earnings per share increased by 6% to 9.2 cents from 8.6 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. . 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 23% to $375 million, gross revenues by 27% to $271 million and 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 by 21% to $26.1 million from $21.5 million a year ago. A significant component of the growth in system sales, revenues and EBITDA is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the acquisition of Kelsey's International, which was completed in July July: see month. 1999. Excluding Kelsey's, system sales in the Restaurant and Foodservices Group increased by 7% and 6% respectively. Comparable net earnings for the 36 weeks ended December 5, 1999 were $23 million, up from the previous year's $21.5 million. Earnings per share were 24.6 cents compared to 22.5 cents, an improvement of 9%. These amounts exclude the unusual items relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Second Cup 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 reported in each of the Second Quarter's of fiscal 2000 and fiscal 1999. After all unusual items, the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings for Cara were $16.6 million (17.8 cents per share) a significant increase from the $12.3 million (12.8 cents per share) reported a year ago. EBITDA for the year-to-date was $70.1 million, up 17.5% from last year. &uot;We are pleased with our Company's performance for the Quarter as both sales and earnings remain &uot;on track&uot; and in line with our expectations. We're we're Contraction of we are. we're we are especially pleased with Cara's overall growth rate including: the positive trends in same restaurant sales at Harvey's; the growth in same restaurant sales at Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. ; the growth in the number of new restaurants and in sales at Kelsey's; and the exciting prospects created by our new 10-year relationship with Air 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 , our largest customer, and their initiatives relative to Canadian Airlines Canadian Airlines International Ltd. was, from 1987 until 2001, Canada's second largest airline after Air Canada, carrying more than 11.9 million passengers to over 160 destinations in 17 countries on five continents at its height in 1996. . As we enter into the last quarter, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the current momentum of our businesses will enable us to meet our Fiscal 2000 objectives,&uot; commented Gabe Tsampalieros, Cara's President and Chief Executive Officer. Share Buy-Back During the Quarter, the Corporation did not make any purchases pursuant to its Normal Course Issuer Bid. For the year-to-date however, Cara has repurchased 1,410,500 of its outstanding Class A non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto common shares, at prices ranging from $3.72 to $4.49, at an aggregate cost of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.5 million and at an average cost of $3.92 per share. DIVIDEND On February February: see month. 3, the Board of Directors of the Corporation approved a semi-annual dividend of 7 cents per share payable on February 24th, to Common and Class A Shareholders of Record on February 14th, 2000 bringing the total dividend paid in fiscal 2000 to 14 cents per share, an increase of 2 cents per share over last year and the fifth increase since fiscal 1995. Year 2000 Issue The Company is pleased to report that no Year 2000 issues arose and the Company continued to conduct normal business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets into the new calendar year. The Company continues to believe that it has taken the appropriate measures with respect to Year 2000 readiness and any future risk is minimal. However, we will continue to monitor the situation particularly as it relates to customers, suppliers, and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other third parties beyond our control.
Consolidated Information
-------------------------------------------------------------------
(In
thousands 3rd Quarter 3rd Quarter % 36 36 %
of dollars ended Dec. ended Dec. Vari- Weeks Weeks Vari-
except 5/99 6/98 ance ended ended ance
for share Dec. Dec.
data) 5/99 6/98
-------------------------------------------------------------------
System $374,956 $305,148 22.8 $1,017,736 $870,900 16.8
Sales
(Note 1)
(incl.
sales by
franchisees)
-------------------------------------------------------------------
Operating $19,772 $17,689 11.7 $55,027 $48,700 12.9
Income
(Note 2)
-------------------------------------------------------------------
Net $8,553 $8,182 4.5 $23,036 $21,507 7.1
Earnings
before
Unusual
Items
(Note 3)
-------------------------------------------------------------------
Net $8,553 $8,182 4.5 $16,649 $12,269 35.7
Earnings
-------------------------------------------------------------------
Earnings 9.2 8.6 6.1 17.8 12.8 38.8
per share cents cents cents cents cents cents
(in cents)
-------------------------------------------------------------------
Segmented Information
-------------------------------------------------------------------
RESTAURANT 3rd Quarter 3rd Quarter % YTD YTD %
GROUP ended ended Vari- Dec. Dec. Vari-
Dec. Dec. ance 5/99 6/98 ance
5/99 6/98
-------------------------------------------------------------------
System $212,538 $152,449 39.4 $569,109 $450,537 26.3
Sales
(Note 4)
(incl.
sales by
franchisees)
-----------------------------------------------------------------
Gross $88,395 $41,801 111.4 $219,168 $121,468 80.4
Revenue
(excl.
sales by
franchisees)
-------------------------------------------------------------------
Operating $10,691 $8,489 25.9 $31,382 $27,192 15.4
Income
(Note 2)
-------------------------------------------------------------------
-------------------------------------------------------------------
FOOD 3rd Quarter 3rd Quarter % YTD YTD %
SERVICES ended Dec. ended Dec. Vari- Dec. Dec. Vari-
GROUP 5/99 6/98 ance 5/99 6/98 ance
-------------------------------------------------------------------
System $162,418 $152,699 6.3 $448,627 $420,363 6.7
Sales
(Note 5)
(excl.
sales to
franchisees)
-------------------------------------------------------------------
Gross $182,591 $172,074 6.1 $506,101 $477,082 6.0
Revenue
(Note 6)
(incl. sales
to franchisees)
-------------------------------------------------------------------
Operating $9,081 $9,200 (1.2) $23,645 $21,508 9.9
Income
(Note 2)
-------------------------------------------------------------------
Note 1: System sales include sales by Cara's franchise operators but
exclude intercompany sales and sales to Cara's franchise
operators by Summit.
Note 2: Operating income is earnings after Group goodwill,
amortization, and administration expenses, but before corporate
administration costs, financial expense and provision for taxes.
Note 3: Fiscal 2000 amounts have been adjusted for the impact of
Second Cup's loss on divestments. Fiscal 1999 amounts have been
adjusted for the Harvey's restructuring charge.
Note 4: Restaurant Group system sales include sales by franchise
operators.
Note 5: Foodservices system sales exclude intercompany sales and sales
to Cara's franchise operators by Summit.
Note 6: Foodservices Gross Revenue excludes intercompany sales but
includes sales to Cara's franchise operators by Summit.
Operating Highlights Restaurant Group Group system sales in the Third Quarter increased by 39% and Gross Revenues by over 100%. Although the increase is largely due to the Kelsey's acquisition, the Group's other 3 divisions, including Harvey's, continue to show positive trends in both sales and profitability. Swiss Chalet In the Quarter, system sales grew by a record $7.8 million or 9.9% to $86.3 million and same restaurant sales increased by 2.4%. We expect the positive performance to continue. To-date, nine Swiss Chalet restaurants have been opened, six of which are twinned with Harvey's and offer 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. service. Eight of the nine new restaurants include a Roost, Swiss Chalet's contemporary casual lounge- eating area, which has met with good success. At Quarter-end, there were 179 Swiss Chalet Restaurants operating in Canada 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 . Harvey's Harvey's performance continues to improve and is beginning to show positive trends. System sales in the Third Quarter increased marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. to $62.1 million. More importantly, same restaurant sales were stable; a significant improvement over the almost 6% decline experienced by the brand last year. Notwithstanding the closure of 46 restaurants pursuant to our previously announced re-imaging and brand 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. program, there were 364 restaurants at the quarter-end compared to 372 at this time last year. Air Terminal Restaurants Sales in the Third Quarter relative to last year increased by 23%. The increase is due largely to sales from the new contract to operate 18 food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. facilities at 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). International Airport that started in June June: see month. 1999. In addition, there was &uot;same store&uot; sales growth of 4% in the Quarter. This division has been on an aggressive growth and revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. program. As a result, 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. revenues have increased by approximately 50%, and the division's share in the major airports in Canada List of airports in Canada is an organized list of airports in Canada. Due to the size of the list it has been broken down into: • • has grown to 51%. Kelsey's The 61% interest in Kelsey's acquired on July 5, 1999 and accordingly 22 weeks of operating results have been included as part of the Restaurant Group's operations. With approximately $49 million of system sales in the Quarter, the Kelsey's brands performed well. In the Quarter, two Kelsey's and three Montana's were opened bringing the total number of restaurants to 105. Currently, there are three Kelsey's and four Montana's restaurants under construction as the company continues its expansion program. Foodservices Group The Group posted a 6% increase in sales with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. remaining relatively flat compared to a year ago. Airport Services In the Third Quarter, system sales increased slightly to $47.7 million. As announced by Air Canada on October October: see month. 21st, the division and Air Canada have entered into a ten year supply and services agreement estimated to generate total revenues of approximately $1.5 billion. 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 System sales grew by 11% to $78.7 million, due in part to new business gained in the last 12 months. The division's ability to offer its clients a wide selection of well recognized &uot;street&uot; as well as &uot;in house&uot; brands continues to be a positive factor in Beaver's ability to retain existing accounts and secure new ones. Summit Foods Sales (including intercompany sales) increased by 6.3% to $65.6 million. The increase in sales is attributable in part to new business from all sectors including new &uot;street accounts&uot;, and increased volumes at Harvey's and Swiss Chalet, and Cara's Health Services health services Managed care The benefits covered under a health contract division.
Cara Operations Limited
Consolidated Statements of Earnings
Unaudited
12 WEEKS ENDED 36 WEEKS ENDED
(In thousands
of dollars Dec 5 Dec 6 % Dec 5 Dec 6 %
except for
share data) 1999 1998 Change 1999 1998 Change
----------------------------------------------------------------------
System Sales $ 374,956 $ 305,148 22.9 $ 1,017,736 $ 870,900 16.9
----------------------------------------------------------------------
Gross Revenue $ 270,986 $ 213,875 26.7 $ 725,269 $ 598,550 21.2
----------------------------------------------------------------------
Earnings before $ 26,156 $ 21,429 22.1 $ 70,065 $ 59,616 17.5
Amortization of
capital assets 7,923 5,821 36.1 21,361 16,481 29.6
Amortization of
goodwill,
contracts and
trademarks 1,241 953 30.2 3,305 2,778 19.0
Interest expense
on consolidated
operations
(Note 1) 2,265 1,372 65.1 5,598 3,573 56.7
----------------------------------------------------------------------
Earnings before: 14,727 13,283 10.9 39,801 36,784 8.2
Interest expense
on equity
investments 438 843 -48.0 1,672 2,412 -30.7
Amortization of
goodwill
relating to
equity
investments 162 162 N/A 488 488 0.0
Share of net
earnings / (loss)
- The Spectra
Group &Second
Cup (Note 2) 537 932 -42.4 (4,545) 1,906 N/A
Restructuring
charges (Note 3) - - N/A - 15,500 N/A
----------------------------------------------------------------------
Earnings before : 14,664 13,210 11.0 33,096 20,290 63.1
Income taxes 5,909 5,028 17.5 16,084 8,021 100.5
Minority interest 202 - N/A 363 - N/A
----------------------------------------------------------------------
Net earnings for
the period $ 8,553 $ 8,182 4.5 $ 16,649 $ 12,269 35.7
----------------------------------------------------------------------
Shares Outstanding (000's)
Common 42,984 42,984 0.0 42,984 42,984 0.0
Class A,
non-voting 50,243 51,679 -2.8 50,243 51,679 -2.8
---------------------------------------------------------------------
Total 93,227 94,663 -1.5 93,227 94,663 -1.5
---------------------------------------------------------------------
Earnings Per Share (cents)
Basic 9.2 8.6 6.6 17.8 12.8 39.1
Fully Diluted 8.9 8.4 6.0 17.4 12.7 37.0
---------------------------------------------------------------------
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: The year-to-date results includes Cara's share of Second
Cup's non-cash $16.2 million after tax loss relating to that company's
planned strategic divestments. Cara's share of the loss reduced
reported net earnings for the year-to-date by $6.4 million (6.8 cents
per share).
Note 3: In the second quarter of fiscal year ended March 28,
1999, the company had incurred a $15.5 million pre-tax charge ($9.2
million after tax and 9.6 cents per share) to rejuvenate the Harvey's
brand which included the closure of approximately 71 restaurants.
Cara Operations Limited
Consolidated Statements
of Cash Flows 12 WEEKS ENDED 36 WEEKS ENDED
Unaudited
1999 1998 1999 1998
(In thousands of dollars) Dec 5 Dec 6 Dec 5 Dec 6
----------------------------------------------------------------------
Cash Flows Provided by (Used in)
Operating Activities
Earnings from operations $ 8,553 $ 8,182 $16,649 $12,269
Adjustments for:
Amortization of
property, plant
&equipment 7,923 5,821 21,361 16,481
Amortization of
goodwill and other assets 1,241 953 3,305 2,778
Equity earnings (net of
goodwill amortization) (375) (770) 5,033 (1,418)
Minority interest 202 - 363 -
Loss on disposal of
property, plant &equipment 94 69 706 85
Restructuring costs (Note) (662) - (1,324) 9,238
Cash flow before change
in working capital 16,976 14,255 46,093 39,433
Change in non-cash operating
working capital 10,117 10,032 (9,586) (11,294)
--------------------------------------------------------------------
$ 27,093 24,287 $ 36,507 $ 28,139
--------------------------------------------------------------------
--------------------------------------------------------------------
Investing Activities
Purchase of property, plant
&equipment $(14,850) (13,828) $(39,052) $(27,715)
Purchase of goodwill and
other assets (254) (1,360) (904) (3,616)
Repayment of employee stock
plan loans 185 4 578 199
Acquisitions - (73) (40,000) (3,344)
Other 225 (644) (329) (1,769)
Proceeds on disposal of
property, plant &equipment
(Note) 1,047 - 1,656 -
Proceeds on sale of The
Second Cup shares - - 31,473 -
--------------------------------------------------------------------
$(13,647) (15,901) $(46,578) $(36,245)
--------------------------------------------------------------------
--------------------------------------------------------------------
Financing Activities
Share repurchase $ - (721) $ (5,536) $(26,849)
Change in long-term debt (13,486) 2,331 (17,778) 49,084
Dividend paid - - (6,617) (5,594)
Issuance of capital stock - - - 38
--------------------------------------------------------------------
$(13,486) 1,610 $(29,931) $16,679
---------------------------------------------------------------------
---------------------------------------------------------------------
Change in Cash (40) 9,996 (40,002) 8,573
Cash - Beginning of
Period 2,940 1,777 42,902 3,200
---------------------------------------------------------------------
Cash - End of Period $ 2,900 $ 11,773 $ 2,900 $ 11,773
---------------------------------------------------------------------
---------------------------------------------------------------------
Note: In the second quarter of fiscal 1999, the company incurred a
$15.5 million pre-tax charge ($9.2 million after tax) to rejuvenate
the Harvey's brand which included the closure of approximately 71
restaurants.
Prior year restated as per the new CICA recommendations for cash flows
statements.
Cara Operations Limited
Consolidated Balance Sheets
Unaudited 1999 1998
(In thousands of dollars) Dec 5 Dec 6
---------------------------------------------------------------------
Assets
Current
Cash $ 2,900 $ 11,773
Accounts receivable 78,573 70,615
Inventories 27,075 22,216
Prepaid expenses and other assets 6,849 3,103
Future income taxes 3,938 6,629
Current portion of long-term receivables 1,831 2,370
--------------------------------------------------------------------
121,166 116,706
Long-Term Receivables 15,144 16,881
Property, Plant &Equipment 309,215 240,616
Goodwill and Other Assets 93,160 69,378
Future Income Taxes 10,155 4,413
Equity Investments 45,718 81,826
--------------------------------------------------------------------
$ 594,558 529,820
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilities and Equity
Current Liabilities
Accounts payable and accrued charges $ 110,593 $ 84,462
Income taxes 7,808 -
Provision for restructuring costs 6,714 11,804
Current portion of long-term debt 9,398 6,322
-------------------------------------------------------------------
134,513 102,588
Long-Term Liabilities 11,072 11,326
Long-Term Debt 174,750 151,210
Future Income Taxes 17,777 17,172
-------------------------------------------------------------------
338,112 282,296
------------------------------------------------------------------
-------------------------------------------------------------------
Minority interest 3,670 -
-------------------------------------------------------------------
Shareholders' Equity
Capital Stock 30,248 30,925
Retained Earnings 222,528 216,599
--------------------------------------------------- ---------------
252,776 247,524
-------------------------------------------------------------------
$ 594,558 $ 529,820
-------------------------------------------------------------------
-------------------------------------------------------------------
Prior year restated as per the new CICA recommendations.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion