Second Cup announces third quarter results and quarterly dividend

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[{"type":"text","content":"\n\n\n\n\n\nMISSISSAUGA, ON, Nov. 5, 2012 /CNW/ - The Second Cup Ltd. (\"Second Cup\"\n or the \"Company\") reported financial results today for the third\n quarter ended September 29, 2012 (the \"Quarter\" or \"Q3\"). The Company's\n shares are traded on the Toronto Stock Exchange under the symbol\n \"SCU\".  All amounts in this news release are presented in thousands of\n Canadian dollars, unless otherwise indicated.\n\n\nHighlights\n\n\nSystem sales relatively flat at $46.4 million in the Quarter and up by\n 1.2% year to date.\n\n\nSame café sales decline of 2.8% in the Quarter and 1.2% year to date.\n\n\nBasic and diluted earnings per share of $0.08 for the Quarter compared\n to $0.17 in the comparable quarter a year ago.\n\n\nDeclared a quarterly dividend of $0.085 per share.\n\n\nStacey Mowbray, President & CEO of Second Cup commented, \"We and our\n Franchise Partners continue to experience the increasing competitive\n pressure on our same café sales through Q3. Our net profit in Q3 was\n adversely affected by the same café sales decline, provisions on two\n leases we plan to sublet as well as research and innovation\n expenditures for future growth initiatives and brand enhancements. We\n have started and will continue to invest in our loyalty and customer\n communications capability, fully convinced that we will see the\n benefits of both in future sales and profitability. We have also\n started to invest in a new café design to further differentiate the\n brand, impacting on this year's profitability. We plan to make further\n strategic payments towards these upgrades in the near future.\n\n\nIn late September, we started selling Second Cup branded TASSIMO T-Discs\n in café and in select grocery chains through a newly formed partnership\n with Kraft Canada Inc. This important partnership enables our Franchise\n Partners to participate in the growing single serve category to further\n drive in-café sales. As well, the distribution and sale of Second Cup\n branded T-Discs in grocery and mass merchandise channels provide a new\n revenue stream for Second Cup.\"\n\n\nDividend\n\n\nManagement has, after extensive analyses and research, recommended\n continued and expanded investment in the Second Cup brand to rebuild\n sales, revenues and profitability for the Company and its Franchise...

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