Friday, October 31st8.5°C
23696
23883

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

23630


Recent Trending




Today's Market
S&P TSX14583.61+124.92
S&P CDNX761.95-9.70
DJIA17361.91166.49
Nasdaq4628.438+62.30
S&P 5002014.02+19.37
CDN Dollar0.8852-0.0082
Gold1165.40-33.20
Oil79.65-1.25
Lumber324.80+1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.12+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.13-0.02
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.03-0.005
Russel Metals32.59+0.37
Copper Mountain Mining2.02+0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 



23028

FEATURED Property
20256452172 Dewdney Road
2 bedrooms 1 baths
$1,295,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23091