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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