Leading Canadian specialty coffee company The Second Cup Ltd. today [Tuesday] reported its results for the second quarter ended 15 December 2001.
Systemwide sales for the quarter increased 6.2% over the same period last year to C$43.7m and same store sales also increased 3% for the quarter. Excluding costs related to the Cara bid in the current year and losses related to the Company’s investment in Diedrich’s Coffee Inc. in the prior year, net earnings rose by 10.7% to US$1.3m and on the same basis operating earnings for the quarter were unchanged at US$2.4m. Reported net earnings for the quarter were US$0.9m or 9.3 cents per share compared with US$0.2m or 0.2 cents per share for the same period last year.
For the 24 week year to date period, systemwide sales were US$83.2m, up 5.9% from the prior year and same store sales also increased 3.6%. Excluding costs related to the Cara bid in the current year and losses related to the Company’s investment in Diedrich’s Coffee Inc. in the prior year, net earnings rose by 16.3% to US$2.5m, and on the same basis year to date operating earnings for the year increased 1.4% to US$4.7m. Reported year to date net earnings were US$1.9m or 20.3 cents per share compared to US$1.1m or 12.1 cents per share last year. Second Cup also continued to strengthen its balance sheet with the reduction of long-term debt by US$1.7m since the beginning of the year to US$3.2m.
Alton McEwen, Second Cup CEO, commented: “We are pleased with the results achieved during this quarter. Our same store sales continue to grow and we just experienced one of our most successful holiday periods in years, with comparable store growth of 7.2%.
“As we have stated before, Second Cup is also committed to consistently growing our earnings per share. When the costs associated with the unsolicited bid by Cara are excluded, net earnings per share increased 10.7% over last year.
“Second Cup is confident that its overall plan and strategy to grow the business will continue to gain momentum and deliver strong results and increased shareholder value.”