The following is a summary of the MTY Food Group Inc. (MTYFF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Q1 2024 results of MTY Food Group Inc. were adversely affected by extreme weather that significantly lowered sales and normalized adjusted EBITDA fell to $59.5 million (down 7%)

• Despite the lower sales, the company achieved the highest ever operating cash flows at $54.2 million and doubled free cash flows to $36.9 million in Q1 2024

• The company made debt repayments totaling $34.6 million for the quarter, and $103.5 million over the previous year

• MTY Food Group Inc. has a cash position of $50.6 million and long-term debt of $736.2 million

• Same-store sales in the US and Canada market decreased by 2.7% and 3.6% respectively, due to unfavorable weather conditions

Business Progress:

• The company opened 75 new locations while closing 79, ending Q1 with a total of 7,112 locations, 97% of which were franchised or under operator agreements

• As part of its long-term value creation strategy, the company raised its quarterly dividend payment to $0.28 per share and repurchased $3.6 million worth of shares

• MTY Food Group Inc. has extended the maturity of its revolving credit facility to March 15, 2027

• It has been focusing on value offerings, balancing price points, product quality, and guest experience. The company has also undertaken cost containment measures and plans to gradually increase operational efficiency

• The company is also planning to implement an ERP system to improve cost containment, though this is still over a year away from execution

More details: MTY FOOD GROUP INC IR

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