Sunday, March 29th6.1°C
25657

Second Cup coffee chain has Q4 profit, stable adjusted earnings, lower revenue

MISSISSAUGA, Ont. - The Second Cup's chain of specialty coffee shops produced less revenue in the fourth quarter than a year earlier but shook off the huge loss it recorded at the end of 2012.

The $1.8-million net income for the 13 weeks ended Dec. 28 marked the second consecutive quarter of improvements for Second Cup, which had posted a $10.1-million loss in the second quarter.

It was also an improvement from a $12-million net loss in the fourth quarter of 2012, which included a $15.6-million asset writedown.

The financial report issued Monday is the first for Second Cup (TSX:SCU) since it appointed a new president and CEO — a former Starbucks vice-president who recently had been at Holt Renfrew.

Second Cup chairman Michael Bregman said in last month's announcement that the arrival of Alix Box from the luxury retailer would mark a "new era of success" for the company.

Specialty coffee vendors like Second Cup and Seattle-based Starbucks face more intense competition from other restaurant chains such as McDonald's and Tim Hortons.

"I am excited for the opportunity to lead Second Cup. Our objectives are ambitious," Box said in a statement Monday.

Box said she and board of directors intend to "reinvigorate" the Second Cup brand.

"Notwithstanding the near-term impact on profitability, I am committed to make the best decisions to maximize long-term shareholder value."

Second Cup has more than 350 cafes across Canada.

Total sales at Second Cup cafes declined to $51.9 million in the fourth quarter ended Dec. 31 from $53.5 million, with four fewer locations. Corporate revenue received by the Toronto-area company, on the other hand, rose to $8 million from $7.8 million.

Net income amounted to 12 cents per share in the 2013 fourth quarter, compared with a net loss of $1.21 per share a year before. Adjusted earnings per share slipped to 17 cents from 18.2 cents.

For the full year, system revenue was $191.4 million, down about $3 million from 2012, corporate revenue was $27.2 million, up nearly $1 million, net loss was $7.4 million, about $3 million less than in 2012.

The full-year net loss was 74 cents per share, compared with 95 cents in 2012; adjusted earnings were essentially flat at 45 cents per share.

The Canadian Press


Read more Business News

25253


Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7928-0.0082
Gold1196.30-8.80
Oil48.43-3.00
Lumber282.40-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 



25185

FEATURED Property
2224283944 Fairway Crescent
5 bedrooms 4 baths
$759,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_



25482




Member of BC Press Council


25534