GRAND RAPIDS, MI–(Marketwired – Jul 18, 2013) – Meritage
Hospitality Group, Inc. (
OTCQX:
MHGU), one of the nation’s premier
restaurant operators, today reported financial results for the
second quarter ended June 30, 2013.
Second Quarter Highlights
-
Sales increased 38.6% to $35.1 million from $25.3 million
for the same period last year. -
Earnings before tax increased 165.1% to $2,367,000 compared
to $893,000 for the same period last year. -
Net Earnings increased 81.8% to $1,712,000 compared to
$941,000 for the same period last year. -
Consolidated EBITDA (a non-GAAP measure) increased 132.6%
to $3,329,000 compared to $1,430,000 million for the same period
last year. -
The Company declared its 39
th
consecutive quarterly dividend on its Series B Cumulative
convertible Preferred Stock of $0.20 per share, which was payable
on July 1, 2013 to shareholders of record as of June 15,
2013. -
The Company declared a special common stock dividend of
$0.01 per share which was paid July 1, 2013 to shareholders of
record as of June 15, 2013.
“We are pleased with the continued integration of our newly
acquired Wendy’s restaurants and the opening of our 113
threstaurant. We have allocated substantial resources
toward Wendy’s growth, including the re-development of three ‘Image
Activation’ restaurants, which we believe will accelerate our
Wendy’s portfolio transformation.
“The Company is preparing to open a new casual dining restaurant
named ‘Freighters’ under its proprietary casual dining themed
restaurant concept during the third quarter,” added Meritage CEO,
Robert E. Schermer, Jr. Freighters Eatery and Taproom serves as the
centerpiece in a new $24.0 million Hilton Double Tree Hotel, Blue
Water Convention Center and Baker College Culinary Institute,
located on the St. Clair River in Port Huron, MI.
Six Months Highlights
-
Sales for the six months increased 36.5% to $66.8 million
compared to sales of $48.9 million for the same period last
year. -
Income before tax increased 154.4% to $2,832,000 compared
to $1,113,000 for the same period last year. -
Net Income increased 57.7% to $2,134,000 compared to
$1,353,000 for the same period last year. -
Consolidated EBITDA (a non-GAAP measure) increased 97.6% to
$4.8 million compared to $2.4 million in 2012.
Meritage is one of the nation’s premier franchise operators,
currently operating 113 quick-service and casual dining
restaurants. The Company specializes in the development and
operation of restaurants, utilizing its scalable back-of-house
operating platform. The Company is headquartered in Grand Rapids,
MI and employs a growing workforce of approximately 3,800. The
Company’s public filings can be viewed at
www.otcqx.com, under the common
stock symbol MHGU and the company’s website at
www.meritagehospitality.com.
SAFE HARBOR STATEMENT
Certain information in this news release, particularly
information regarding future economic performance and finances, and
plans, expectations and objectives of management, constitutes
forward-looking statements. Factors set forth in our Safe Harbor
Statement, in addition to other possible factors not listed, could
affect the Company’s actual results and cause such results to
differ materially from those expressed in forward-looking
statements. Please review the Company’s Safe Harbor Statement at
http://www.meritagehospitality.com.
