DAVIDsTEA Reiterates Guidance Ahead of Presentation at ICR Conference
January 11 2016 - 4:01PM
DAVIDsTEA Inc. (Nasdaq:DTEA) today reiterated its previously issued
outlook for the fourth quarter and fiscal year 2015. The Company
continues to expect fourth quarter sales to be in the range of
C$70.0 million to C$72.0 million based on opening 10 new stores and
assuming a comparable sales increase slightly above the mid-single
digit range. Adjusted fully diluted income per common share, which
excludes IPO-related costs and other one-time costs, is expected to
be in the range of C$0.42 to C$0.44 per share.
For fiscal 2015, the Company continues to expect
sales to be in the range of C$175.0 million to C$177.0 million
based on opening 39 net new stores and assuming a comparable sales
increase slightly above the mid-single digit range. Adjusted fully
diluted income per common share, which excludes IPO-related and
other one-time costs, is expected to be in the range of C$0.37 to
C$0.39 per share.
As previously announced, the Company will be
presenting at the 2016 ICR Conference held at the JW Marriott
Orlando Grande Lakes Resort in Orlando, Florida. Management is
currently scheduled to present on Tuesday, January 12, 2016 at
10:30 a.m. Eastern
Time.
The presentation will be broadcast on the Company's website at
http://www.davidstea.com, in the "investor relations" section. An
online archive of the webcast will be available within two hours of
the conclusion of the call and will remain available for 30
days.
Non-IFRS Information:
This press release includes non-IFRS measures
including Adjusted fully diluted income per share. Adjusted fully
diluted income (loss) per share is not a presentation made in
accordance with IFRS, and the use of the term Adjusted fully
diluted income per share may differ from similar measures reported
by other companies. We believe that Adjusted fully diluted income
per share provides investors with useful information with respect
to our historical operations. We present Adjusted fully diluted
income per share as a supplemental performance measure because we
believe it facilitates a comparative assessment of our operating
performance relative to our performance based on our results under
IFRS, while isolating the effects of some items that vary from
period-to-period. Specifically, Adjusted fully diluted income per
share allows for an assessment of our operating performance and our
ability to service or incur indebtedness without the effect of
non-cash charges of the period or other one-time charges, such as
impairment costs, costs related to onerous contracts or contracts
where we expect the costs of the obligations to exceed the economic
benefit and non-recurring expenses relating to our initial public
offering. These measures also function as benchmarks to evaluate
our operating performance. Adjusted fully diluted income per share
is not a measurement of our financial performance under IFRS and
should not be considered in isolation or as an alternative to net
income, net cash provided by operating, investing or financing
activities or any other financial statement data presented as
indicators of financial performance or liquidity, each as presented
in accordance with IFRS. We understand that although Adjusted fully
diluted income per share is frequently used by securities analysts,
lenders and others in their evaluation of companies, it has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our results as
reported under IFRS. Some of these limitations are:
Adjusted fully diluted income per share does not
reflect changes in, or cash requirements for, our working capital
needs.
Because of these limitations, Adjusted fully
diluted income per share should not be considered as discretionary
cash available to us to reinvest in the growth of our business or
as a measure of cash that will be available to us to meet our
obligations.
Forward-Looking Statements:
This press release includes forward-looking
statements. These forward-looking statements generally can be
identified by the use of words such as "anticipate," "expect,"
"plan," "could," "may," "will," "believe," "estimate," "forecast,"
"goal," "project," and other words of similar meaning. These
forward-looking statements address various matters including
management's beliefs about the Company's sales and growth prospects
for the coming fiscal quarter and fiscal year. The Company cannot
assure investors that future developments affecting the Company
will be those that it has anticipated. Actual results may differ
materially from these expectations due to risks including: the
Company's ability to maintain and enhance its brand image,
particularly in new markets; the Company's ability to compete in
the specialty tea and beverage category; the Company's ability to
expand and improve its operations; levels of foot traffic in
locations in which the Company's stores are located; changes in
consumer trends and preferences; fluctuations in foreign currency
exchange rates; general economic conditions and consumer
confidence; the importance of the Company's fourth fiscal quarter
to results of operations for the entire fiscal year; and other
risks set forth in the Company's prospectus filed with the
Securities and Exchange Commission on June 4, 2015. If one or more
of these risks or uncertainties materialize, or if any of the
Company's assumptions prove incorrect, the Company's actual results
may vary in material respects from those projected in these
forward-looking statements. Any forward-looking statement made by
the Company in this release speaks only as of the date on which the
Company makes it. The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by any applicable securities laws.
About DAVIDsTEA Inc.
DAVIDsTEA is a fast-growing branded beverage
company, offering a differentiated selection of proprietary
loose-leaf teas, pre-packaged teas, tea sachets and tea-related
gifts and accessories. As of January 7, 2016, the Company owns and
operates 193 DAVIDsTEA stores throughout the United States and
Canada. The Company is headquartered in Montréal, Canada.
Investor Contact:
ICR, Inc.
Farah Soi/Rachel Schacter
203-682-8200
investors@davidstea.com
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