SOURCE: Meritage Hospitality Group

Meritage Hospitality Group

October 24, 2012 08:37 ET

Meritage Reports Third Quarter 2012 Results, Continued Sales Growth and Restaurant Expansion

GRAND RAPIDS, MI--(Marketwire - Oct 24, 2012) -  Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier restaurant operators, today reported financial results for the quarter ended September 30, 2012.

Third Quarter 2012 Highlights

  • Sales increased 3.3% to $25.0 million compared to $24.2 million for the same period last year.

  • Income from Operations was $649,000 compared to $819,000 for the same period last year.

  • Net Income increased 100.5% to $845,000 compared to $422,000 for the same period last year.

  • Consolidated EBITDA (a non GAAP measure) increased 62.5% to $1,657,000 million compared to $1,020,000 million for the same period last year.

  • The Company declared its 36th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred Stock of $0.20 per share, which was payable on October 1, 2012 to shareholders of record as of September 15, 2012.

  • The Company acquired three Wendy's restaurants located in North Carolina and South Carolina on October 1, 2012. 

"We are currently undertaking major capital improvements in several of our Wendy's restaurants, including both interior and exterior re-imaging. Our newly acquired Carolina restaurants received installation of our web-based IT back-of-house operating and accounting systems. Our Twisted Rooster casual dining concept, now with four locations, continues to improve," stated Robert Schermer, Jr. the Company's CEO.

Year-to-Date 2012 Highlights

  • Sales for the nine months ended September 30, 2012 increased 8.8% to $73.9 million compared to sales of $68.0 million for the same period last year.

  • Income from Operations was $1,820,000 compared to $2,058,000 for the same period last year. 

  • Net Income increased 116.5% to $2,199,000 compared to $1,016,000 for the same period last year.

  • Consolidated EBITDA (a non-GAAP measure) increased 51.4% to $4,099,000 compared to $2,707,000 in 2011.

The Company remains committed to investing in the long term fundamentals of the Wendy's restaurant brand revitalization and leveraging its operating platform in U.S. markets. The company now owns and operates Wendy's restaurants in Florida, Georgia, Michigan, North and South Carolina.

Meritage Hospitality Group is one of the nation's premier restaurant operators, with 92 restaurants in North America. Meritage is headquartered in Grand Rapids, Michigan operating with approximately 3,000 employees. 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 new 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.