Business
Second Cup Announces Second Quarter Results and Suspension of Dividend
MISSISSAUGA, ON , Aug. 5, 2014 /CNW/ - The Second Cup Ltd. (TSX:SCU) ("Second Cup" or the...
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\nMISSISSAUGA, ON, Aug. 5, 2014 /CNW/ - The Second Cup Ltd. (TSX:SCU) (\"Second Cup\" or the \"company\") reported financial results today for the 13 weeks (the \"quarter\") and 26 weeks (the \"year to date\") ended June 28, 2014. In order to focus on growth and maximize long-term shareholder value, the company announced it is suspending its quarterly dividend effective immediately.\n\nQuarterly Highlights\n\n\nCompleted the reorganization of its Coffee Central support office resulting in $1.6 million of one-time restructuring costs and estimated annual savings of $2.3 million. \nRestructuring savings will be redeployed to franchisees primarily via reduced royalties. \nSystem sales of cafés decreased by 3.9% to $45.8 million compared to a year ago. Same café sales decreased 5.0%. \nAdjusted basic and diluted earnings per share of $0.08 compared to $0.14 a year ago. \nAdjusted EBITDA of $1.5 million compared to $2.1 million a year ago. \nAnnounced the August launch of single-serve Keurig® K-Cup® compatible coffee capsules. \nAlix Box, President and CEO commented, \"As I previously communicated, we have embarked on a journey to restore Second Cup to a leadership position with growth in sales and profitability.  Already we have completed a number of important steps including the downsizing and restructuring of our Coffee Central team, improving franchisee profitability, and assembling a talented new leadership team.  We are all passionately dedicated to delivering the best specialty coffee experience for our customers.\n\nWe are in the early stages of Second Cup's transformation and I am proud of our progress to date. We are developing a \"store of the future\" which will introduce exciting new levels of innovation and excellence for Second Cup and the Canadian coffee lover.  Later this year, we will unveil a new and very different Second Cup store in downtown Toronto.  It is our plan to roll out its best attributes across the country in the coming years. Together with my team, we are crafting a detailed strategic plan for Second Cup's future.\n\nWhen I commenced as CEO a few months ago, I was very excited about Second Cup's prospects for the future.  I understood that this would be a journey filled with challenges.  Today, I am even more excited about our company's potential...