MTY Food Group Inc.
TSX VENTURE : MTY

MTY Food Group Inc.

July 12, 2007 09:01 ET

MTY Food Group Inc.: Second Quarter Results

MONTREAL, QUEBEC--(Marketwire - July 12, 2007) - MTY Food Group Inc. (MTY) (TSX VENTURE:MTY), franchisor and operator of over 805 quick service restaurants, under the banners of: Tiki Ming, Sukiyaki, La Cremiere, Cultures, Thai Express, Mrs. Vanellis, Veggirama, Caferama, Au Vieux Duluth Express, Yogen Fruz, Carrefour Oriental, Panini Pizza Pasta, Chick 'N' Chick, Franx Supreme, Croissant + Plus, Villa Madina, Kim Chi, TCBY, Sushi Shop and Koya Japan reported its operating results for the six-month period ended May 31, 2007.

MTY is pleased to announce record earnings for the six-month period ended May 31, 2007 of $3.82 million or $0.20 per share ($0.20 per fully diluted share) compared to a net income of $2.29 million or $0.14 per share ($0.13 per fully diluted share) for the same period last year, representing an outstanding increase of 66%. The acquisitions of Sushi Shop, Yogen Fruz and Koya Japan along with organic growth are the principal reasons explaining these solid results.

For the six month period, total revenue increased by 60%, to $14.60 million from $9.11 million for the same period last year. Revenue from franchise locations increased by 51% to $11.31 million from $7.49 million for the six month period. Revenue from corporate owned locations also increased to $3.29 million for the six month period from $1.61 million for the same period last year, representing an increase of 104%. EBITDA increased from $3.89 million to $6.68 million for the period representing an increase of 72%.

For the quarter ended May 31, 2007, net income was $1.99 million or $0.11 per share ($0.10 per fully diluted share), compared to $1.31 million or $0.08 per share ($0.07 per fully diluted share) for the same period last year, representing an increase of 52%.

For the quarter, total revenue increased by 67% to $8.36 million from $5.01 million for the same period last year. Revenue from franchise locations increased by 59% to $6.67 million from $4.20 million for the quarter. Revenue from corporate owned locations increased to $1.69 million for the quarter from $0.81 million representing an increase of 108%. EBITDA increased from $2.22 million to $3.47 million for the quarter representing an increase of 56%.

MTY total system wide sales amounted to $104.4 million during the six months period compared to $69.7 million for the same period last year, representing an increase of 50%. Same store sales grew by 4.5% for the period.

As at May 31, 2007, MTY had cash, term deposits and short-term notes totaling $13.21 million compared to $8.70 million as at November 30, 2006.

Approximately 60 new locations have been planned for the 2007 fiscal year of which 43 locations have already been opened since December 1st, 2006. Management remains committed and focused on expanding through internal growth and will continue seeking potential acquisitions in the restaurant and franchising operations.

On Behalf of the Board of Directors of MTY Food Group Inc.

Stanley Ma, Chairman, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information