Welcome!

News Feed Item

Meritage Hospitality Reports Preliminary 2013 Fiscal Results; Issues 2014 Outlook: Earnings Growth

GRAND RAPIDS, MI -- (Marketwired) -- 02/12/14 -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier restaurant operators, today reported preliminary financial results for the 2013 fiscal year ended December 30, 2013.

2013 Full-Year Highlights

  • Sales increased 39.2% to $137.8 million (a new record high for the Company), compared to $99.0 million last year.
  • Income Before Taxes increased 108% to $4.3 million compared to $2.1 million last year.
  • Net Income was $3.1 million compared to $2.9 million last year (last year included non-recurring income tax benefits of $1.6 million).
  • Consolidated EBITDA (a non-GAAP measure) increased 58.0% to $8.4 million, compared to $5.3 million last year.
  • The Company developed or acquired seven additional restaurants during the year, finishing 2013 with 119 restaurants in operation.
  • The Company declared its 45th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred stock and doubled its Common Share cash distributions in 2013.

"In 2013 we made tremendous progress integrating newly acquired restaurants and expanding our Wendy's market presence in Florida, Georgia and Virginia. Complementing our acquisition strategy, we are building new Wendy's "Image Activation" restaurants and launching an extensive Wendy's restaurant renovation program. Our quality of earnings improved significantly in 2013, as highlighted by our Income Before Taxes growth rate of 108%," stated Robert E Schermer, Jr., CEO.

"As we look to 2014 (beyond any short-term impact of an unusual mid-west winter), we expect that our financial flexibility and increasing cash flow will enable us to fund strong organic growth initiatives and return capital to shareholders. We see a strengthening of the overall health of our business with Net Income growth projected in the range of 50% to 55% in 2014," added Schermer.

Fourth Quarter 2013 Highlights

  • Sales increased 40.4% to $35.1 million compared to $25.0 million in 2012.
  • Net Income was $617,000 compared to $707,000 in the fourth quarter of 2012.
  • Consolidated EBITDA (a non-GAAP measure) increased 25.8% to $1.5 million compared to $1.2 million in the same period last year.

2014 Outlook: Growth is Imperative
The Company's 2014 operating targets include the following financial expectations:

  • Sales growth of 10% to 15%
  • Income Before Taxes growth of 55% to 60%
  • Net Income growth of 50% to 55%
  • EBITDA growth (a non-GAAP measure) of 30% to 35%

Our 2014 financial targets assume the development of new Wendy's restaurants, the re-imaging of Wendy's restaurants, and the exclusive catering rights to a new convention center located next to our Freighters Restaurant on the St. Clair River in Port Huron, Michigan.

The focus of our growth strategy continues to be investment in restaurant opportunities where we can leverage our web-based operating platform for efficiencies, providing the opportunity for continued intrinsic business value creation and cash distributions to shareholders.

About Meritage
Meritage is one of the nation's premier restaurant operators, currently managing 119 quick service and casual dining restaurants. The Company specializes in the acquisition, development and operation of quick service and casual dining restaurant properties. The Company is headquartered in Grand Rapids and employs a growing workforce of approximately 3,800. The Company seeks new restaurant acquisition and development opportunities to capitalize on its web-based operating platform and substantial restaurant operating expertise. The Company's public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or the Company's website 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 www.meritagehospitality.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
"We analyze the video streaming experience. We are gathering the user behavior in real time from the user devices and we analyze how users experience the video streaming," explained Eric Kim, Founder and CEO at Streamlyzer, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.