MTY: MTY Reports First Quarter Results for Fiscal 2025

Normalized adjusted EBITDA(1) increased 1% to reach $60.2 million in the quarter, compared to $59.5 million in Q1-24. Franchise segment Normalized adjusted EBITDA(1) rose 1% to attain $44.0 million, or 47% of sales. System sales(2) for the quarter improved by 2.5% or $33.1 million to reach $1,364.8 million compared to $1,331.7 million in Q1-24 primarily due to favourable foreign exchange. Cash flows provided by operating activities were $58.8 million compared to $54.2 million in Q1-24, an increase of $4.6 million mostly due to a decrease in interest paid on long-term debt. Free cash flows net of lease payments(1) increased to $43.5 million in the quarter compared to $36.9 million in Q1-24. Free cash flows net of lease payments per diluted share(3) were $1.87 for the quarter compared to $1.52 in Q1-24.Net income attributable to owners of $1.7 million, or $0.07 per diluted share compared to 17.3 million, or 0.71 per diluted share in Q1-24.Adjusted earnings per shares(1) of $0.87 per diluted share compared to $0.69 in Q1-24.Repurchased and cancelled 287,400 shares for a consideration of $13.8 million.Quarterly dividend payment of $0.33 per share on May 15, 2025.(1) This is a non-GAAP measure. Please refer to the "Non-GAAP Measures" section at the end of this press release.(2) See section "Definition of supplementary financial measures" found at the end of this press release.(3) See section "Definition of non-GAAP ratios" found in the Supplemental Information section for definition.MONTREAL, April 11, 2025 (GLOBE NEWSWIRE) -- MTY Food Group Inc. ("MTY", "MTY Group" or the "Company") (TSX:MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for its first quarter of fiscal 2025 ended February 28, 2025 and declared a quarterly dividend of 33.0¢ per share, payable on May 15, 2025 to shareholders registered in the Company's records at the end of the business day on May 1, 2025."Our same-store sales held relatively stable, once adjusted for the leap year impact - demonstrating the strength and resilience of our portfolio," said Eric Lefebvre, CEO of MTY. "While adverse weather conditions temporarily pressured performance, particularly in our US frozen treats segment, the start of Q2 signals a return to more normal operating conditions. Canada continues to perform consistently, underscoring the stability of our operations.""I believe this quarter's modest decline in unit count is a temporary setback, rather than a trend," Lefebvre continued. "Delays in openings are challenges we consistently navigate, particularly in Q1, which has historically been our slowest quarter for net openings. Our development pipeline for Q2, Q3 and beyond is robust, and we remain fully committed to expanding our footprint over the medium to long term.""Once again, this quarter showcased our ability to generate strong free cash flow growth, reinforcing the financial strength and asset light nature our business. While we remain disciplined in evaluating strategic acquisition opportunities that align with our long-term vision, we continue to see significant value in share repurchases at current levels as a highly accretive use of capital," Lefebvre noted.Financial Highlights(in thousands of $, except per share information)Q1-2025Q1-2024Revenue284,792278,644Adjusted EBITDA(1)58,45059,262Normalized adjusted EBITDA(1)60,19059,535Net income attributable to owners1,74317,305Cash flows from operations58,80254,178Free cash flows net of lease payments(1)43,527