Cara Operations Limited - Continued Growth in Sales, Earnings and Earnings Per Share.TORONTO--(BUSINESS WIRE)--July 22, 1998--Cara Operations Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAO.) (ME:CAO.) (TSE:CAO.A.) (ME:CAO.A.) 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 ("Cara") today announced the financial and operating results for the 12-week period ended June 21, 1998, which constitutes the first quarter of the fiscal 1999 year (the "First Quarter" or "Quarter"). The First Quarter results show continued growth in sales, earnings and earnings per share at Cara. In the Quarter, sales increased by 5.0 percent to $285 million while earnings and earnings per share increased by 2.1 percent to $7.0 million and by 2.3 percent to 7.2 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. respectively, the highest first quarter results in Cara's history. "The results of the First Quarter reflect the quality and diversity of our assets and businesses including those of our strategic partners The Second Cup and The Spectra Group of Great Restaurants. Both of our operating Groups, Restaurants and Foodservices, achieved year-over-year growth in sales. Fuelled by the strong performance of our Foodservices Group, we were able to achieve the best ever first quarter results, notwithstanding a slight reduction in contribution by our Restaurant Group. The relative performance of our Restaurant Group was adversely affected by the unseasonably warm weather this spring, reduced discounting on our part, and the fact that last year's first quarter was quite strong. As such we expect a continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improving performance from this Group and Cara as a whole, as we progress through the year", said Cara's President & Chief Executive Officer, Gabe Tsampalieros. In the Quarter, Cara completed two corporate initiatives aimed at enhancing long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. They were: (a) the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. for cancellation pursuant to Cara's "Normal Course Issuer Bids" of approximately 3.1 million shares (approximately 1.8 million common and 1.3 million Class A subordinated voting) at prices ranging between $6.25 per share and $6.90 per share; and (b) the conversion of our floating rate debt to "fixed rate" debt through the issuance of $100 million senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes of the Company (the "Notes"). The Notes bear interest at a rate of 5.99 percent per annum Per annum Yearly. and unless prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. by the Company mature in June
2008. As testimony to Cara's financial credibility, the issue was
over-subscribed by a ratio of almost 4 to 1.
CONSOLIDATED INFORMATION
------------------------
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(In thousands of 1st Quarter 1st Quarter Percent
dollars except ended ended Increase
for share data) June 21/98 June 22/97
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System Sales
(incl. Franchisees) $285,359 $271,833 5.0
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Operating Income
(Note 1) $16,368 $15,846 3.3
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Earnings $7,014 $6,868 2.1
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Earnings Per Share,
basic (in cents) 7.2 cents 7.0 cents 2.3
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SEGMENTED INFORMATION
---------------------
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1st Quarter 1st Quarter Percent
ended ended Increase
Restaurant Group June 21/98 June 22/97
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System Sales
(incl. Franchisees) $146,818 $144,247 1.8
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Gross Revenue
(excl. Franchisees) $38,819 $37,849 2.6
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Operating Income
(Note 1) $9,950 $10,526 (5.5)
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1st Quarter 1st Quarter Percent
ended ended Increase
Foodservices Group June 21/98 June 22/97
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System Sales
(Note 2) $138,540 $127,586 8.6
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Gross Revenue
(Note 3) $157,661 $144,140 9.4
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Operating Income
(Note 1) $6,417 $5,320 20.6
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Note 1: Operating income is earnings after Group goodwill,
amortization, and administration expenses, but before corporate
administration costs, financial expenses and provision for taxes. Last
year's figures have been restated to reflect the allocation of Group
administration expenses.
Note 2: Foodservices system sales exclude inter-company sales and
sales to Cara's franchisees.
Note 3: Foodservices Gross Revenue excludes inter-company sales
but includes sales to Cara's franchisees.
Earnings and earnings per share do not include Cara's share of the equity earnings in The Second Cup Ltd ("Second Cup") for the period March 8 to June 21, 1998 as same have yet to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report upon by Second Cup. However, Cara's share of equity earnings in The Spectra Group of Great Restaurants Inc. for the period March 30 to June 21, 1998 in the sum of $176,000 is included in Earnings and Earnings per Share. OPERATING HIGHLIGHTS RESTAURANT GROUP In the Quarter, the Cara Restaurant Group achieved year-over-year increases in sales and was successful in maintaining market share. 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. grew by 1.8 percent to a record $147 million, while 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. declined by 5.5 percent to $10 million. The occurrence of Easter and other religious holidays in April, an unseasonably warm May, a relatively flat market place, continued promotional activity by our competitors, and reduced discounting at our restaurants (relative to last year), had an adverse impact on same restaurant sales. With our re-imaging programs underway, strong marketing campaigns scheduled for the balance of the year and the return of near normal weather, we anticipate an improved performance from this Group in the next Quarter and for the year as a whole. Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. In the Quarter, relative to the corresponding period last year, Swiss Chalet system sales grew by 3.1 percent to $73.6 million. The sales increase is due in part to new restaurant openings, guest focused, value driven promotions, and continued emphasis on improved operations. I'm pleased to report that as expected, we have seen a significant improvement in year-over-year growth in same restaurant sales since the end of the Quarter. In the Quarter, we opened two new restaurants both twinned with Harvey's. Harvey's In the Quarter, relative to the corresponding period last year, system sales increased by 2 percent. The increase in system sales is due to new restaurant openings. Same restaurant sales are trailing those of last year. The decline in same restaurant sales is attributable to overall reduced consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. in the segment as well as the ever-increasing number of restaurants being built by the industry. Notwithstanding these factors, Harvey's has enhanced its market share in terms of dollars and maintained its share of visits. Our recently introduced "custom combo" concept which allows our guests to bundle any one of our sandwiches with their choice of any two of: soup, french fries French fry n. A thin strip of potato fried in deep fat. Often used in the plural. , beverage, onion rings Onion rings are a type of fast food commonly found in the United States, Canada, United Kingdom, Australia, Malaysia and other places. It generally consists of a small ring of onion dipped in batter and then deep fried. , salad, and/or dessert, been well received and truly underscores Harvey's unique selling proposition The Unique Selling Proposition (also Unique Selling Point) is the marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. of great taste, choice and value. Air Terminal Restaurants / Toast! Cafe / Second Cup / Travel Centres Sales in the Quarter continued to be negatively affected by on-going renovations at Vancouver's Domestic Terminal Building and reduced passenger traffic at Mirabel. Sales in the Quarter (relative to last year) declined by 6.5 percent. More importantly however, the division was successful in its recent bid to redevelop re·de·vel·op v. re·de·vel·oped, re·de·vel·op·ing, re·de·vel·ops v.tr. 1. To develop (something) again. 2. the 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. concessions at the Winnipeg International Airport. It is anticipated that sales in the first year of this ten-year agreement will be approximately $4 million and increase thereafter. In addition the division recently negotiated a multi-year extention of its facilities at the arrivals level at Vancouver's Domestic Terminal Building where we recently opened our new renovated facilities which feature a Milestone's restaurant, a Toast! Cafe & Grill Grill may refer to: In food:
FOODSERVICES GROUP The Foodservices Group had another very strong quarter. Sales increased by 8.6 percent to $138.5 million while operating income grew by 21 percent to $6.4 million. Airport Services The division experienced double-digit growth in sales for the fifth consecutive quarter. Sales in the Quarter rose by 13.5 percent to $46.8 million compared with the corresponding quarter last year. These increases are attributable to the overall increase in air travel as well as to the new accounts and business gained by the division over the last 18 months. 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 After eight quarters of continuous growth, Beaver's sales were relatively flat but profitability improved, albeit marginally. The modest decrease in sales is attributable in part to the occurrence of the Easter holiday in April (it was in March last year) as well as the "slow down" in the resource sector which has delayed the opening of some camp sites which in turn have affected the "remote" sector of our business. New contracts acquired during the Quarter included Nortel, Calgary; Thames Valley This article is about the Thames Valley in southern England. For New Zealand's Thames Valley region, see Thames Valley, New Zealand, or for the ITV region in the United Kingdom, see ITV Thames Valley. School Board, Elgin/Middlesex counties, Ontario; and CEGEP CEGEP Collège d'Enseignement Général et Professionnel (French) , Rimouski, Quebec Rimouski is a Canadian city (ville) on the center part of Bas-Saint-Laurent region in eastern Quebec, located on the south shore of the Saint Lawrence River at the mouth of the Rimouski River, and km ( mi) north-east of Quebec City. . Subsequent to the Quarter, Beaver announced the completion of the acquisition of Innovative Caterers of Vancouver, which has 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. sales of approximately $18 million, to a variety of accounts, most of them located in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography including Simon Frazer University. Summit Foods Summit reported sales growth for the eighth consecutive quarter (six of, which were double-digit). Sales increased by almost 20 percent to $59 million. The strong growth in sales is attributable to the addition of significant new business including the Ontario Ministry of Health, Extendicare, new "street accounts", new Harvey's and Swiss Chalet restaurant accounts, and the continued integration of Magnafoods Incorporated, which was acquired in September 1996. CONTACT: Cara Operations Limited Michael Nahirny, 416/969-2500 416/969-2547/2548 (FAX) or Cara Operations Limited Gabe Tsampalieros, 416/969-2534 416/969-2547/2548 (FAX) Internet Email: Finance@cara.com |
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