SOURCE: Meritage Hospitality Group

Meritage Hospitality Group

April 23, 2013 09:05 ET

Meritage Reports 2013 First Quarter Results

GRAND RAPIDS, MI--(Marketwired - Apr 23, 2013) - Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier restaurant operators, today reported financial results for the first quarter ended March 31, 2013.

2013 First Quarter Highlights

  • Sales increased 34.3% to a record $31.7 million from $23.6 million for the same period last year.
  • Income before Taxes increased 111% to $465,000 compared to $220,000 for the same period last year.
  • Net Income increased 2.4% to $422,000 compared to $412,000 for the same period last year (included certain non-reoccurring tax benefits). 
  • Consolidated EBITDA (a non GAAP measure) increased 50.5% to $1,497,000 compared to $995,000 for the same period last year.
  • The Company declared its 38th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred stock of $.20 per share, which was payable on April 1, 2013 to shareholders of record as of March 15, 2013.
  • The Company acquired its 112th restaurant, a Wendy's restaurant in the Atlanta, Georgia designated market area, and began construction on a new Wendy's restaurant on Jacksonville Beach, Florida.

"Our primary focus during the first quarter was the integration of newly acquired and newly opened Wendy's restaurants. The Company's wholly-owned Twisted Rooster-style casual dining restaurants continue to perform well and the Company is planning a third quarter opening of its new 'Freighters' restaurant, centerpiece to the new $24.0 million Hilton Double Tree Hotel, St. Clair County Convention Center and Baker College Culinary Institute project located on the St. Clair River in Port Huron, Michigan," stated Robert E. Schermer, Jr., the Company's CEO.

The Company continues to seek restaurant growth opportunities where it can leverage its web-based operating platform and management team within the Wendy's restaurant system.

About Meritage

Meritage is one of the nation's premier restaurant operators, currently operating 112 quick service and casual dining restaurants in six states. The Company is headquartered in Grand Rapids and employs a workforce of approximately 3,500. Meritage seeks growth opportunities to capitalize on its substantial restaurant development and operating expertise. The Company's public filings can be viewed at www.otcqx.com under the stock symbol MHGU, or at 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 http://www.meritagehospitality.com.