Friday, October 24th5.1°C
23840
23129

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

22970


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23658

FEATURED Property
15103442541 Whitworth Road
4 bedrooms 4 baths
$3,950,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


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...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22786