MONTREAL, Jan. 24,
2024 /CNW/ - MTY Food Group Inc. ("MTY" or the
"Company") (TSX: MTY), franchisor and operator of multiple concepts
of restaurants worldwide, announces its quarterly dividend payment
will increase from 25.0¢ per share to 28.0¢ per share, a growth of
12%. The 28.0¢ dividend will be payable on February 15, 2024 to shareholders registered in
the Company's records at the end of the business day on
February 5, 2024.
"2023 marked another year of continued growth for MTY with many
of our key indicators, including normalized adjusted
EBITDA(1) and cash flows from operations hitting record
highs in the first nine months of 2023. The acquisitions of
Wetzel Pretzel's and Sauce Pizza and
Wine in the first quarter of 2023 as well as the acquisition of BBQ
Holdings, Inc in the last quarter of 2022 greatly contributed to
these milestones which led to management's decision to increase our
quarterly dividend. The 12% increase shows the strength of the MTY
brand portfolio and our free cash flow(1) generation
abilities. We are very confident in the future of MTY. The 12%
increase represents the eleventh increase since our first dividend
of 4.5¢ per quarter was declared in November
2010 and our continued commitment to return value to our
shareholders." says Eric Lefebvre,
Chief Executive Officer of MTY.
|
(1)
This is a non-GAAP measure. Please refer to the "Non-GAAP measures"
section below.
|
Non-GAAP measures
Normalized adjusted EBITDA (revenue less operating expenses
(excluding transaction costs related to acquisitions) ) and free
cash flows (net cash flows provided by operating activities, used
in additions to property, plant and equipment and intangible assets
and provided by proceeds on disposal of property, plant and
equipment) are non-GAAP (generally accepted accounting principles)
measures, do not have a standardized meaning prescribed by GAAP and
are therefore unlikely to be comparable to similar measures
presented by other issuers. The Company believes that Normalized
adjusted EBITDA is a useful metric because it is consistent with
the indicators management uses internally to measure the Company's
performance, to prepare operating budgets and to determine
components of executive compensation, without including the impact
of transaction costs related to acquisitions, which may vary in
occurrence and in amount. The Company believes that free cash
flows are a useful metric because it provides the Company with a
measure related to decision-making about cash-intensive matters
such as capital expenditures, compensation, and potential
acquisitions. The Company also believes that these measures are
used by securities analysts, investors and other interested parties
and that these measures allow them to compare the Company's
operations and financial performance from period to period and
provide them with a supplemental measure of the operating
performance and financial position and thus highlight trends in the
core business that may not otherwise be apparent when relying
solely on GAAP measures.
Forward-looking
information
Certain information in this News Release may constitute
"forward-looking" information that involves known and unknown
risks, uncertainties, future expectations and other factors which
may cause the actual results, performance or achievements of the
Company or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. When used in this News Release,
this information may include words such as "anticipate",
"estimate", "may", "will", "expect", "believe", "plan" and other
terminology. This information reflects current expectations
regarding future events and operating performance and speaks only
as of the date of this News Release. Except as required by law, we
assume no obligation to update or revise forward-looking
information to reflect new events or circumstances. Additional
information is available in the Company's Management Discussion and
Analysis, which can be found on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
MTY Food Group Inc.
_____________________________________
Eric Lefebvre, Chief Executive Officer
SOURCE MTY Food Group Inc.