TORONTO, Nov. 21, 2017 /CNW/ - SPOT COFFEE
(CANADA) LTD. (TSX-V: SPP) ("SPoT"
or the "Company") has released its financial and operating
results for the third quarter ended September 30, 2017. SPoT's unaudited consolidated
financial statements for the three and nine months ended
September 30, 2017, together with its
management discussions and analysis, are available on SEDAR under
the Company's name.
The Company is pleased to report that its third quarter
operations this year have resulted in a company-wide net earnings
of $287,688, and a comprehensive net
earnings of $328,212 after
considering the currency exchange factor, as well as an EBITDA
(earnings before interest, taxes, depreciation and amortization) of
$452,977. These financial results
have further improved the company-wide EBITDA to a positive
position of $590,192 for the nine
months ended September 30,
2017.
The Company is also pleased to report that this is the second
consecutive quarter whereby its operations have resulted in
company-wide net profit this year.
In its news release of November 7,
2017, the Company confirmed that the year-over-year
same-store sales of its corporate-owned and franchise cafés have
increased during the past three months; 26% at SPoT Transit, 22% at
SPoT Glens Falls, 10% at SPoT Saratoga Springs, and 12% at SPoT
Hamburg.
While maintaining its focus on high quality food, beverages and
customer service, the Company's management also continued to drive
SPoT's operating costs down. The reductions in costs during the
nine months ended September 30, 2017,
as compared with those ended in the same period of 2016, are as
follows:
- The Company's cost of sales decreased by $887,567, from $3,133,242 to $2,245,675. Accordingly, cost of sales as a
percentage of revenue dropped to 32.3% in 2017, down by 5.4% from
2016. In order to achieve this result, SPoT implemented a
streamlined system to optimize waste control at the café level.
- Gross profit as a percentage of revenue increased to 67.7%, up
from 63.5%.
- Interest and accretion expenses decreased by $173,565, from $381,586 to $208,021.
- Office and general expenses decreased by $261,611, from $502,149 to $240,538.
- Professional fees, consulting fees and travel expenses were
collectively reduced by a total of $145,140, from $339,596 to $194,456.
- Salaries and wages decreased by $271,784, from $3,404,329 to $3,132,545.
- Occupancy costs decreased by $169,996 from $1,115,002 to $975,006. These costs include rent, insurance,
maintenance, utilities and janitorial expenses.
During this third quarter, and subsequently in October of 2017,
the Company made partial payments of the Long-Term Debt and
Convertible Debenture in the total principal amount of $427,667.
"Net earnings are up by $298,021
this quarter," said Anton Ayoub,
President and CEO of the Company, "This is the first time SPoT has
reported consecutive Q2 and Q3 net earnings, and we are very
pleased with the overall success of our cost reduction and sales
improvement initiatives. Profitability is expected to continue to
increase as we complete the development of our new franchise cafés
this year and move ahead with the development of more corporate and
franchise cafés in New York,
Connecticut and Massachusetts next year."
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol
SPP. SPoT designs, builds, operates and franchises community
oriented cafés and express cafés in New
York State. SPoT's community cafés provide its customers
with the highest quality service, signature made-to-order meals and
award-winning micro-roasted coffee. Each SPoT café is distinctively
designed to suit its local neighbourhood, creating a warm and
friendly gathering place for the community. SPoT's commercial
business focuses on the sale of roasted coffee beans to food
service and grocery chains, business offices and third party
resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the
Company, certain information contained herein constitutes
forward-looking statements. In particular, forward-looking
information in this press release includes, but is not limited to,
the potential use of proceeds of the financing that is the subject
of this release. Although we believe that the expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information.
Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The forward-looking information contained in this news release is
expressly qualified by this cautionary statement. Except as
required by applicable securities laws, the Company undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
SOURCE Spot Coffee (Canada)
Ltd.