Welcome!

News Feed Item

Meritage Reports Second Quarter 2014 Results

Continued Restaurant Sales and Earnings Growth

GRAND RAPIDS, MI -- (Marketwired) -- 07/18/14 -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation's premier restaurant operators, today reported financial results for the second quarter ended June 29, 2014.

Second Quarter Highlights

  • Sales increased 15.4% to $40.5 million from $35.1 million for the same period last year.
  • Earnings from Operations increased 5.4% to $2,218,000 from 2,103,000 for the same period last year.
  • Net Earnings were $1,210,000 compared to $1,712,000 for the same period last year, (which included a non-recurring gain of $617,000).
  • Consolidated EBITDA (a non-GAAP measure) was $2.9 million compared to $3.3 million for the same period last year.
  • The Company paid its 47th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred Stock of $0.20 per share, on July 1, 2014 to shareholders of record as of June 15, 2014.
  • The Company paid a special common stock dividend of $0.015 per share on July 1, 2014, to shareholders of record as of June 15, 2014, representing a 50% dividend increase over the same period last year.

"We are pleased with our operating results for the quarter and the performance of our renovated and newly constructed Wendy's restaurants. The Company has allocated substantial resources toward Wendy's restaurant growth initiatives, including the restaurant re-imaging program termed 'Image Activation,' as well as construction in new retail trade areas.

"Our proprietary casual dining restaurants continued to perform well in the second quarter with net earnings growth of 560% over the same period last year. We have an exciting project pipeline for both Wendy's and our casual dining restaurants in 2015 and 2016, which we believe will accelerate our sales, EBITDA and earnings growth rates going forward," stated Meritage CEO, Robert E. Schermer, Jr.

Six Months Highlights

  • Sales for the six months increased 13.3% to $75.7 million compared to sales of $66.8 million for the same period last year.
  • Earnings from Operations increased 7.7% to $2,984,000 compared to $2,772,000 last year.
  • Net Income $1,408,000 compared to $2,134,000 for the same period last year, (which included a non-recurring gain of $849,000).
  • Consolidated EBITDA (a non-GAAP measure) was $4.4 million compared to $4.8 million in 2013.

The Company affirmed its 2014 operating guidance:

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

Meritage is one of the nation's leading franchise operators, currently operating 121 quick-service and casual dining restaurants in six states. The Company specializes in the acquisition, development and operation of restaurants, utilizing its scalable web-based back-of-house operating platform. The Company is headquartered in Grand Rapids, Michigan, and employs a growing workforce of approximately 3,500. The Company's public filings can be viewed at www.otcqx.com, under the common stock symbol MHGU and the company's website at 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 http://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
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...