MISSISSAUGA, ON, Nov. 5, 2018 /CNW/ – The Second Cup Ltd. (“Second Cup” or “The Company”) (TSX: SCU) today reported improved financial results for the third quarter ended September 29, 2018.
Highlights
- Net Income was $766,000 or $0.04 per share for the third quarter compared with a loss of $2,962,000 or $0.19 per share in the prior year.
- Same store sales rose 0.3% in the quarter.
- Joint venture with National Access Cannabis Corp. (“NAC”), planning to convert two Alberta locations to recreational cannabis dispensaries and examining multiple potential opportunities in Ontario.
Third Quarter 2018
EBITDA of $858,000 rose by 6.6% compared with last year’s third quarter and represents a continuing trend of improving EBITDA results for Second Cup.
Same store sales grew by 0.3 % in Q3. The expansion of Pinkberry premium frozen yogurt continues with Pinkberry now in 84 Second Cup cafes across the country. Pinkberry is an important contributor to overall sales and transactions.
Garry Macdonald, Second Cup President & CEO said, “I am pleased with our continued improvement in profitability and same store sales results this quarter. Innovations such as Pinkberry, UberEats and Skip The Dishes delivery services are helping to drive incremental sales. Additionally, we continue to focus on providing our customers with a best-in-class customer experience.”
New Developments
NAC and Second Cup announced their strategic alliance in April 2018, through which the two companies will develop a network of NAC-branded (Meta) and operated recreational cannabis stores in provinces where legally permissible. Two conversions are underway in Alberta. While the guidelines are not yet finalized, many more locations in Ontario have been identified as attractive candidates for conversion to cannabis dispensaries.
While the Board remains focused on operational excellence in the Second Cup network, it recognizes the need for the Company’s strategy to continue to evolve and has begun a strategic review process for the overall company. The balance sheet has been strengthened and now has the capacity to support a broader range of strategic alternatives to create shareholder value. There is no guarantee this strategic review will result in any avenues being pursued.
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. For more information, please visit www.secondcup.com or find the company on Facebook and Twitter.