MISSISSAUGA, ON, Canada – The Second Cup Ltd. (TSX: SCU) reported yesterday significantly improved financial results for the fourth quarter ended December 30, 2017.
- Fiscal year Adjusted EBITDA was $2,721,000 compared with $563,000 one year ago.
- 2017 Adjusted Net Income was $110,000 or $0.01 per share compared with a loss of $975,000 or -$0.08 per share in 2016.
- Q4 Adjusted EBITDA was $1,339,000 compared with $667,000 last year.
- Adjusted Net Income was $655,000 or $0.04 per share for the fourth quarter compared with $147,000 or $0.01 per share in the prior year.
- Garry Macdonald appointed President & CEO.
Fourth Quarter 2017
Same store sales were -1.1% in Q4 and -0.2% for the full year. Q4 Adjusted EBITDA of $1,339,000 is more than doubled from one year ago.
Adjusted Net Income for Q4 was $655,000 compared with $147,000 in the same quarter last year, an improvement of $508,000. The full year Adjusted Net Income of $110,000 is a significant improvement compared with a loss of $975,000 in 2016.
Garry Macdonald, Second Cup President & CEO said, “I am pleased with the continued improvement in profitability. We remain focused on driving same store sales with innovation including the roll out of Pinkberry frozen yogurt across our network. As well, we are upgrading and expanding Second Cup in traditional and non-traditional formats while quickly restoring our asset light business model. We ended the year with 12 corporately-owned cafés, which is down from a peak of 47 stores in 2015.”
Second Cup Chairman Michael Bregman said, “Garry has been able to implement meaningful improvements in the business in his short time with Second Cup and the Board is delighted that he has agreed to continue on in the role of CEO to further build value.”
Second Cup continues to rollout Pinkberry premium frozen yogurt which is now in 30 cafés across the country. Response to this complimentary, premium offering has been very favourable with new customers attracted to the cafés, driving incremental sales. Pinkberry will be introduced to more cafés across the network in time for the peak frozen yogurt season.
In January, Second Cup led the Canadian coffee market with a move to Clean Label beverages which now represent over 70% of the beverage menu. Clean Label products contain no artificial colours, flavours, preservatives or high fructose corn syrup.
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating franchised and company owned cafes across Canada. The company’s vision is to be the Canadian specialty coffee brand of choice across Canada, committed to superior quality, innovation and profitable growth.