Spot Coffee (Canada) Ltd.
TSX VENTURE : SPP

Spot Coffee (Canada) Ltd.

November 27, 2013 19:00 ET

SPoT Coffee Third Quarter Financial Results & Operations

TORONTO, ONTARIO--(Marketwired - Nov. 27, 2013) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") released its financial results for the Company's three and nine months ended September 30, 2013. Complete interim financial statements and Management's Discussion and Analysis have been filed for public review at www.sedar.com and are available on the Company's website at www.spotcoffee.com. All dollar values expressed in Canadian dollars unless otherwise stated.

Third Quarter 2013 Financial Highlights

  • Revenue

    The Company's revenue for the three and nine months ended September 30, 2013 increased by 21% and 18% from the corresponding periods of 2012 to $2,065,718 and $6,001,439, respectively.

  • Gross Profit

    Gross profit increased by 21% to $1,400,408 for the third quarter of 2013 from $1,154,993 for the same quarter of 2012. SPoT's gross margin percentage remained at 67%, unchanged from the same quarter of 2012.

  • COGS

    Cost of sales was $665,310 and represents 33% of the total revenue for the three months ended September 30, 2013, in-line with the prior year's cost of sales.

  • Cafe-level EBITDA

    SPoT achieved positive café-level EBITDA of $237,936, representing 10% of total café sales, for the three months ended September 30, 2013. The Company had consolidated net loss of $412,372 for the three months ended September 30, 2013. The key drivers behind the net loss were the write-off of the remaining carrying value of leasehold improvements due to the early termination of leased space for Spot Park Place café, non-cash stock-based compensation expense and depreciation expense in the total amount of $272,834.

  • Positive Working Capital

    As at September 30, 2013, SPoT had a cash balance of $627,755 compared to $61,989 at December 31, 2012. The Company had a working capital of $424,564 at September 30, 2013 compared to working capital of $149,365 at December 31, 2012.

SPoT Will Benefit from the Following Key Factors for the Remainder of 2013

  • Continued negotiations for roasting and distribution contracts in the Middle East

  • Continued expansion of coffee roasting operations in North America

  • Implementation of structured retail sales department and loyalty program

  • Ongoing operational cost savings initiatives

About SPoT Coffee

SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provide its customers with the highest quality service, signature made-to-order meals and the world's finest in-house roasted gourmet coffee. Each SPoT café is distinctively designed to suit their local neighbourhoods, creating warm and friendly gathering places for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

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