Normalized adjusted EBITDA(1) decreased 1% to $71.9 million in the quarter, compared to $72.9 million in Q3-23.
Franchising segment normalized adjusted EBITDA(1) increased 2% to reach $57.4 million in the quarter, compared to $56.4 million in Q3-23 with normalized adjusted EBITDA as a % of revenue(2) of 56% compared to 54% in Q3-23.
Cash flows provided by operating activities were $66.4 million compared to $51.5 million in Q3-23, a increase of $14.9 million mainly attributable to income taxes received.
Free cash flows net of lease payments(1) increased to $49.3 million in the quarter, compared to $32.1 million in Q3-23. Free cash flows net of lease payments per diluted share(2) were $2.06 for the quarter compared to $1.31 in Q3-23.
System sales(3) for the quarter remained relatively stable at $1.5 billion compared to Q3-23.
Net income attributable to owners of $34.9 million, or $1.46 per diluted share compared to $38.9 million, or $1.59 per diluted share in Q3-23.
Ended the quarter with 7,066 locations compared to 7,116 locations at the end of our last fiscal year.
Repurchased and cancelled 254,700 shares for a consideration of $11.4 million in Q3-24, bringing the year-to-date total to 592,200 shares for a consideration of $27.8 million.
Long-term debt repayments of $33.9 million for the quarter with net repayments of $85.4 million since Q3-23.
Amended revolving credit facility on July 10, 2024 to remove $50.0 million yearly maximum distribution threshold.
Quarterly dividend payment of $0.28 per share on November 15, 2024.
(1) This is a non-GAAP measure. Please refer to the "Non-GAAP Measures" section at the end of this press release.
(2) This is a non-GAAP ratio. Please refer to the "Non-GAAP Ratios" section at the end of this press release.
(3) This is a supplementary financial measure. Please refer to the "Supplementary Financial Measures" section at the end of this press release.
MONTREAL, Oct. 11, 2024 /CNW/ - MTY Food Group Inc. ("MTY", "MTY Group" or the "Company") (TSX:MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for its third quarter of fiscal 2024 ended August 31, 2024 and declared a quarterly dividend of 28.0¢ per share, payable on November 15, 2024 to shareholders registered in the Company's records at the end of the business day on November 5, 2024.
"Our third quarter of 2024 saw several highlights, including the year-over-year growth of normalized adjusted EBITDA in our franchising and processing, distribution and retail segments," stated Eric Lefebvre, Chief Executive Officer of MTY. "The effects of the gradual and systematic restructuring we are conducting are starting to bear fruits. In addition, the quarter brought a 23% increase in cash flow provided by operating activities, which continue to be a primary area of focus for our management team."
"I am also pleased to report our system sales have remained relatively stable despite the macroeconomic environment in which we operate and the tough comparison to a fantastic third quarter of 2023. Our snack category, which includes brands such as Wetzel Pretzel's and SweetFrog, continues to shine, outperforming prior year."
"We have opened fewer than anticipated locations in the third quarter, with multiple projects being impacted by significant delays in permitting, construction and pre-opening regulatory inspections, but I remain excited by our strong pipeline and I am confident we will get back to better opening results in the coming quarters," Lefebvre shared. "MTY remains well-positioned to thrive, due to our dedication to innovation, consistent product quality, superior store design, positive online experience for customers, and perceived value."
Financial Highlights
(in thousands of $, except per share information)
Q3-2024
Q3-2023
9 Months
2024
9 Months
2023
Revenue
292,753
298,080
875,136
889,302
Adjusted EBITDA(1)
71,781
72,870
204,241
210,381
Normalized adjusted EBITDA(1)
71,895
72,932
205,113
211,539
