TSX Trading Symbol: "MTY"
MONTREAL, Oct. 5, 2016 /PRNewswire/ - MTY Food Group Inc.
("MTY" or the "Company") (TSX: MTY) announced today that pursuant
to the announcement made on September 9,
2016, that one of its wholly-owned subsidiaries has acquired
all of the equity interest of BF Acquisition Holdings, LLC.
("BFAH") (www.bajafresh.com and www.lasalsa.com).
The total consideration for the transaction is approximately
US$27.0 million paid in cash at
closing, financed using MTY's existing credit facilities.
At closing, BFAH operates 160 Baja Fresh Mexican Grill and 23 La
Salsa Fresh Mexican Grill restaurants, generating annual system
sales of approximately US $145
million. Of the 183 restaurants in operations, 16 are
corporately-owned and 167 are franchised.
Within the next 30 days, BFAH's head office will be moved in
MTY's office in Scottsdale,
Arizona.
Non‑IFRS Measures
This News Release makes reference to certain non‑IFRS
measures. These measures are not recognized measures under
IFRS, do not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing further understanding of the Company's results of
operations from management's perspective. Accordingly, they
should not be considered in isolation nor as a substitute for
analysis of the Company's financial information reported under
IFRS. The Company uses non-IFRS measures including "System Sales"
to provide investors with supplemental measures of its operating
performance and thus highlight trends in its core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. The Company also believes that securities analysts,
investors and other interested parties frequently use non-IFRS
measures in the evaluation of issuers. The Company's
management also uses non-IFRS measures in order to facilitate
operating performance comparisons from period to period, to prepare
annual operating budgets, and to determine components of management
compensation.
"System Sales" represents the net sales received from restaurant
guests at both corporate and franchise restaurants including
take-out and delivery customer orders. System Sales includes
sales from both established restaurants as well as new
restaurants. Management believes System Sales provides
meaningful information to investors regarding the size of MTY's
restaurant network, the total market share of the Company's brands
and the overall financial performance of its brands and restaurant
owner base, which ultimately impacts MTY's consolidated financial
performance.
Forward looking information
Certain information in this News Release constitutes
"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 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" or
variations of such words and phrases, or by the use of words or
phrases which state that certain actions, events or results may,
could, would, or might occur or be achieved. In particular,
this News Release contains forward-looking information regarding:
the expected system sales of the combined entity; potential growth
of the Company's US and international operations; the potential
impact of the BFAH acquisition on the Company and its shareholders;
and the location of MTY's US operations. This forward-looking
information reflects current expectations and assumptions regarding
future events and operating performance and speaks only as of the
date of this News Release. These assumptions include, but are
not limited to: currency exchange rates used to derive
Canadian dollar expectations; market acceptance of the BFAH
acquisition; future results of BFAH's business and operations
meeting or exceeding historical results; the success of the
integration of BFAH's operations with the Company's operations and
business; and market acceptance of potential future acquisitions by
the Company. Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements
of the Company to be materially different from those expressed or
implied by such forward-looking information. Such risks and
other factors may include, but are not limited to: currency
exchange rates, general business, economic, competitive, political,
capital market and social conditions and uncertainties; the
intensity of competitive activity, and the resulting impact on our
ability to attract customers' disposable income; our ability to
secure advantageous locations and renew our existing leases at
sustainable rates; the arrival of foreign concepts; our ability to
attract new franchisees; changes in customer tastes, demographic
trends and in the attractiveness of our concepts, traffic patterns,
occupancy cost and occupancy level of malls and office towers; the
level of consumer confidence and spending and the demand for, and
prices of, our products; our ability to implement our strategies
and plans in order to produce the expected benefits; events
affecting the ability of third-party suppliers to provide to us
essential products and services; labour availability and cost or
the loss of key individuals; stock market volatility; operational
constraints and the event of the occurrence of epidemics, pandemics
and other health risks; delay or failure to receive board or
regulatory approvals; changes in legislation affecting the Company;
and the timing and availability of external financing on acceptable
terms. Expected system sales could vary due to fluctuations
in currency exchange rates.
A description of additional assumptions used to develop such
forward-looking information and a description of additional risk
factors that may cause actual results to differ materially from
forward-looking information can be found in MTY's disclosure
documents on the SEDAR website at www.sedar.com. Readers are
further cautioned not to place undue reliance on forward-looking
information as there can be no assurance that the plans, intentions
or expectations upon which they are placed will
occur. Forward-looking information contained in this News
Release is expressly qualified by this cautionary
statement. Except as required by law, the Company assumes no
obligation to update or revise forward-looking information to
reflect new events or circumstances. Financial outlooks
contained in this News Release were approved by management of the
Company on October 5, 2016. The
purpose of this information is to provide a potential financial
outlook of the combined entity and this information may not be
appropriate for other purposes. 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.
_____________________________________
Stanley Ma, Chairman, President
& CEO
SOURCE MTY Food Group Inc.