MTY Food Group reports Q4 net income attributable to owners of C$24.9M, with adjusted EBITDA rising 22% to C$42.8M; system sales increase 8% to C$962.5M

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MONTREAL , February 22, 2022 (press release) –

- Adjusted EBITDA[1] increased 22% to $42.8 million in Q4-21 and 22% to a record-high of $168.6 million in 2021.

- Cash flows from operating activities amounted to $31.9 million in Q4-21 and $139.3 million in 2021.

- Free cash flows per diluted share[2] totaled $1.44 in Q4-21 and $5.62 in 2021.

- Net income attributable to owners reached $24.9 million in Q4-21, or $1.00 per diluted share, and $85.6 million, or $3.46 per diluted share, in 2021.

- Long-term debt repayments of $22.7 million in Q4-21 and $102.2 million in 2021.

- System sales[3] reached $962.5 million in Q4-21, up 8% compared to Q4-20. System sales up 24% in Canada and 12% Internationally, down 1% in the US due to unfavourable impact of foreign exchange variation.

- 164 restaurants were temporarily closed at the beginning of Q4-21 and 82 at the end of the quarter.

- Although temporary closures increased during the first quarter of 2022 due to additional government mandated restrictions, as at February 16, 2022, only 71 locations remained temporarily closed, a decrease of 11 since November 30, 2021.

- 259 locations were closed one or more days during Q4-21, representing approximately 9,500 lost business days.

- Repurchased and cancelled 36,600 shares for a total consideration of $2.2 million in Q4-21.

- Quarterly dividend payment of $0.185 per share on November 15, 2021; quarterly dividend increased by 14% on January 18, 2022, to $0.210 per share.

- Acquisition of Küto Comptoir à Tartares in December 2021.

MTY Food Group Inc. (“MTY”, “MTY Group” or the “Company”) (TSX: MTY), franchisors and operators of multiple restaurant concepts worldwide, reported today its results for the fourth quarter and fiscal year ended November 30, 2021.

“After nearly two years of navigating through the COVID-19 pandemic, the strength of our brands and sustainability of our business model, combined with the resilience of our franchisees and staff, allowed MTY to deliver robust financial results and further improve our balance sheet in fiscal 2021,” said Eric Lefebvre, Chief Executive Officer of MTY. “We generated healthy free cash flows and profitability, highlighted by record adjusted EBITDA of $168.6 million in 2021.”

“Altogether, system sales improved 5% year-over-year, as the entire team responded proactively to pandemic-related challenges along with global supply-chain and labour issues while capitalizing on opportunities such as the increased prevalence of digital sales and marketing. Although we faced significant quarterly variations in the US and Canada, annual system sales growth was relatively similar with increases of 6% and 4%, respectively, reflecting the depth and diversity of our North American network.”

“In the fourth quarter, adjusted EBITDA increased 22% to $42.8 million, while system sales grew 8% over the same period last year,” Mr. Lefebvre added. “We also reduced our long-term debt, paid out a quarterly dividend and repurchased shares under our NCIB program. Despite the ongoing pandemic and other temporary issues affecting MTY, our long-term growth strategy remains unchanged. We seek to deliver organic growth, based on a market recovery, investments in our network and a strong franchise pipeline, while searching for accretive acquisitions at reasonable valuations.”

ABOUT MTY FOOD GROUP INC

MTY Group franchises and operates quick-service, fast casual and casual dining restaurants under more than 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY is a family whose heart beats to the rhythm of its brands, the very soul of its multi-branded strategy. For over 40 years, it has been increasing its presence by delivering new concepts of restaurants, making acquisitions, and forging strategic alliances, which have allowed it to reach new heights year after year. By combining new trends with operational know-how, the brands forming the MTY Group now touch the lives of millions of people every year. With 6,719 locations, the many flavours of the MTY Group hold the key to responding to the different tastes and needs of today’s consumers as well as those of tomorrow.

Footnotes:

[1] This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section at the end of this press release.

[2] This is a non-GAAP ratio. Please refer to the “Non-GAAP Ratios” section at the end of this press release.

[3] This is a supplementary financial measure. Please refer to the “Supplementary Financial Measures” section at the end of this press
release.

Disclaimer: The full PDF release can be found at (https://mtygroup.com/wp-content/uploads/2022/02/MTY_Q4_21_EN_Press-release-FINAL.pdf).

Source: MTY Food Group Inc

[Category: Retail]

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