Cara Operations Limited - Fourth Quarter Operating Results Reflect the Divestiture of Grand and Toy and Refocusing on Core Food Service Businesses.TORONTO--(BUSINESS WIRE)--May 8, 1996--Cara Operations Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME:CAO, CAO.A) Cara's Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , M. Bernard Syron and President & COO (Cell Of Origin) See mobile positioning. , Gabe Tsampalieros, today announced the sales and operating results for the year ended March 31, 1996: -0-
Fourth Quarter
March 31/96 April 2/95
System Sales (incl. franchisees) 358,832,000(1) 410,878,000 Gross Revenue (excl. franchisees) 241,794,000(1) 285,460,000 Net Profit before gain on divestiture of Grand & Toy 7,563,000(1) 5,098,000(3) Earnings per share 6.4 cents 4.3 cents Net Profit after gain on divestiture of Grand & Toy 12,789,000 5,098,000(3) Earnings per share 10.8 cents 4.3 cents
Year-to-date
March 31/96 April 2/95
System Sales
(incl. franchisees) 1,312,520,000(2) 1,335,688,000
Gross Revenue (excl. franchisees) 909,305,000(2) 908,889,000 Net Profit before gain on divestiture of Grand & Toy 32,185,000(2) 26,844,000(3) Earnings per share 27.3 cents 22.9 cents Net Profit after gain on divestiture of Grand & Toy 37,411,000 26,844,000(3) Earnings per share 31.8 cents 22.9 cents (1) Includes 15 weeks (1995 - 16 weeks) of sales/revenues/profit for Beaver and 8 weeks (1995 - 16 weeks) for Grand & Toy. (2) Includes 51 weeks of sales/revenues/profit for Beaver and 44 weeks for Grand & Toy instead of full 52 weeks. (3) After restructuring charge of $7,842 (6.6 cents per share). HIGHLIGHTS -- On February 5th, Cara completed the previously announced divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of Grand & Toy Office Products. With this, Cara is clearly focused on its core food businesses and on growth. In fact, Harvey's Hamburger restaurants announced that it will open a minimum of 40 new locations in fiscal 1997 - an all time record number of openings for this brand. Since the beginning of this fiscal year, 5 new Harvey's have opened. Swiss Chalet
Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario. Chicken & Ribs restaurants will open 15 new units in 1997, the greatest number of restaurant openings since 1987, and Swiss Chalet has already opened two new locations this fiscal year. -- Expansion will also continue through The Second Cup Ltd. whereby the corporation will open a minimum of 150 Second Cup outlets over the next five years, including 50 by June 1997, and will acquire an aggregate of 5,000,000 voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. of Second Cup Ltd. at a cost of approximately $58 million, making Cara the largest shareholder (37 percent) of Second Cup. This transaction is scheduled to close on or about May 15th. -- This fiscal year's net profit before net gain on sale of Grand & Toy and net loss on discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. amounted to $32,185,000 or 27.3 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. - an increase of 20 percent; and net profit after the Grand & Toy/Czech gain/loss amounted to $37,411,000 or 31.8 cents, an increase of 39 percent. The net profit of $37,411,000 or 31.8 cents is the highest per share since fiscal 1990. -- Cara's positive growth in the past year was derived primarily from its Airport Services Division (Airline Catering and Air Terminal Restaurants), and Grand & Toy Office Products. Buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. air travel activity and renovated Air Terminal Restaurants were contributing factors to the growth. -- In last year's fourth quarter, traffic has shown some resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in some of our core businesses and in particular in Harvey's. Consumer response to Harvey's and Swiss Chalet's new and bold media campaigns has already had positive impact on sales in the last several weeks of fiscal 1996. -- As part of its strategy to enhance shareholder value, the corporation has offered to buy back up to 10,000,000 of its outstanding common shares and up to 10,000,000 of its outstanding Class A non-voting shares at $5 per share representing a premium of 15 percent to the closing stock price at the time of announcement on April 29th. The transaction is expected to close May 21, 1996. On a more immediate note of interest, Cara today declared its semi-annual dividend of 5 cents per share to be paid on June 27, 1996 to Common and Class A shareholders of record on June 13, 1996. For additional information, please feel free to contact President Gabe Tsampalieros at 416/969-2534 or the contact listed below. CONTACT: 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 Michael Nahirny, 416/969-2500 416/969-2547 (fax) Internet: http://www.mcgill.com/(tilde A symbol used in Windows, starting with Windows 95, that maintains a short version of a long file or directory name for compatibility with Windows 3.1 and DOS. For example, the short version of a file named "Letter to Joe" would be LETTER~1. Then "Letter to Pat" becomes LETTER~2. )cara/ E-mail: nahirny@cara.com |
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