Financial Highlights
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Dec 24, 2000 Dec 26, 1999
For the 39 weeks ended (Dollars) (Dollars) $Change %Change
Operating Results ($000) (1)
Systemwide network sales 83,904 82,448 1,456 2%
Total revenue 5,240 4,980 260 5%
Royalty and service income 4,674 4,553 121 3%
EBITDA from operations 315 897 (582) -65%
Earnings from Operations 37 62 (25) -40%
Per Common Shares (in dollars)
EBITDA from continuing
operations 0.009 0.027 (0.018) -67%
Net earnings from
continuing operations 0.001 0.002 (0.001) -50%
(1) Results include continuing operations only
Comac Food Group Inc. (“Comac”) yesterday announced the Company’s third quarter results. The sale of Grabbajabba operations to Timothy’s Coffees of the World Inc. was completed on December 11, 2000 resulting in proceeds of $1.2 million and a gain on sale of $700,000. The disposition of the coffee chain will allow management to focus on developing the Domino’s Pizza business which offers the greatest opportunity for profitable growth.
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By GlobalDataDomino’s Results
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The year to date results for Domino’s have been strong. Systemwide network sales for the 39 weeks ended December 24, 2000 totaled $77.5 million, up 3% from the $75.2 million posted in the comparable period last year. This can be attributed to increasing same store sales which were up 6.9% in the third quarter and 3.6% year to date. A comprehensive marketing program introducing the national launch of the Heat Wave program in January combined with the implementation of the new CinnaStix in March will continue to build customer awareness and frequency of consumer visits.
Domino’s generated total revenues of $4.3 million for the 39 weeks ended December 24, 2000, up 4.7% over the $4.1 million recorded last year. Year to date EBITDA was $913,000 at December 24, 2000, down $445,000 over the same period last year. The decrease can be attributed to the royalty penalty payable to Domino’s Pizza International as a result of the short fall of Domino’s stores in operation from the levels required by the Master Franchise Agreement. The impact of the penalty will decrease with the opening of new locations. Year to date there has been 6 new stores opened and there are 5 scheduled to open within the next 4 months. In addition, management will be offering area development agreements in certain strategic markets, ranging from 5 to 15 stores to be built over a 2 to 3 year period. This growth will be predominately in eastern Canada and discussions are underway with several qualified individuals.
Café Results
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With Grabbajabba sold, Comac’s remaining Café division includes Pastel’s Cafes and Company’s Coming Bakery Cafes. The operations have been combined and will be under the direction of one Operations Director. As the concepts are similar in nature, this will result in the most cost effective operation. Café division systemwide sales for the 39 weeks ended December 24, 2000 were $6.4 million, down 11% from $7.2 million posted in the previous year. Revenues for the same period were $899,000, up 8% over fiscal 2000 results while EBITDA was $105,000, down $40,000 from the previous year. Decrease in network sales and EBITDA can be attributed to lower royalty income and higher store closure costs resulting from the closure of non-performing franchise locations and that the division posted negative 6.3% same store sales.
Overall, Comac’s financial position has been significantly improved with the sale of Grabbajabba. The transaction resulted in a substantial gain and can earn an additional $137,000 in contingent revenue over the next 3 years based on certain performance criteria. At December 24, 2000, the Company had a positive working capital of just under $1.0 million.
Comac is a multi-concept franchise management organization focused on the food service industry. More than 230 stores currently operate across Canada under three retail brands: Domino’s Pizza, Pastel’s Café and Company’s Coming Bakery Café. Comac common shares trade on the Canadian Venture Exchange, trading symbol CFX.B.
Our 3rd Quarter Report is available to be viewed on our website at www.comac.ca.
For further information
Mr. John G. Beauparlant, President or Mr. Brad Adams C.A., Executive Vice-President and Chief Financial Officer of Comac Food Group Inc. at (403) 230-1151
