LoveSPoT
7 years ago
Spot: Poised to Start it's Ascent
TORONTO, Nov. 21, 2017 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") has released its financial and operating results for the third quarter ended September 30, 2017. SPoT's unaudited consolidated financial statements for the three and nine months ended September 30, 2017, together with its management discussions and analysis, are available on SEDAR under the Company's name.
The Company is pleased to report that its third quarter operations this year have resulted in a company-wide net earnings of $287,688, and a comprehensive net earnings of $328,212 after considering the currency exchange factor, as well as an EBITDA (earnings before interest, taxes, depreciation and amortization) of $452,977. These financial results have further improved the company-wide EBITDA to a positive position of $590,192 for the nine months ended September 30, 2017.
The Company is also pleased to report that this is the second consecutive quarter whereby its operations have resulted in company-wide net profit this year.
In its news release of November 7, 2017, the Company confirmed that the year-over-year same-store sales of its corporate-owned and franchise cafés have increased during the past three months; 26% at SPoT Transit, 22% at SPoT Glens Falls, 10% at SPoT Saratoga Springs, and 12% at SPoT Hamburg.
While maintaining its focus on high quality food, beverages and customer service, the Company's management also continued to drive SPoT's operating costs down. The reductions in costs during the nine months ended September 30, 2017, as compared with those ended in the same period of 2016, are as follows:
The Company's cost of sales decreased by $887,567, from $3,133,242 to $2,245,675. Accordingly, cost of sales as a percentage of revenue dropped to 32.3% in 2017, down by 5.4% from 2016. In order to achieve this result, SPoT implemented a streamlined system to optimize waste control at the café level.
Gross profit as a percentage of revenue increased to 67.7%, up from 63.5%.
Interest and accretion expenses decreased by $173,565, from $381,586 to $208,021.
Office and general expenses decreased by $261,611, from $502,149 to $240,538.
Professional fees, consulting fees and travel expenses were collectively reduced by a total of $145,140, from $339,596 to $194,456.
Salaries and wages decreased by $271,784, from $3,404,329 to $3,132,545.
Occupancy costs decreased by $169,996 from $1,115,002 to $975,006. These costs include rent, insurance, maintenance, utilities and janitorial expenses.
During this third quarter, and subsequently in October of 2017, the Company made partial payments of the Long-Term Debt and Convertible Debenture in the total principal amount of $427,667.
"Net earnings are up by $298,021 this quarter," said Anton Ayoub, President and CEO of the Company, "This is the first time SPoT has reported consecutive Q2 and Q3 net earnings, and we are very pleased with the overall success of our cost reduction and sales improvement initiatives. Profitability is expected to continue to increase as we complete the development of our new franchise cafés this year and move ahead with the development of more corporate and franchise cafés in New York, Connecticut and Massachusetts next year."
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds, operates and franchises community oriented cafés and express cafés in New York State. SPoT's community cafés provide its customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each SPoT café is distinctively designed to suit its local neighbourhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. In particular, forward-looking information in this press release includes, but is not limited to, the potential use of proceeds of the financing that is the subject of this release. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company 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.
SOURCE Spot Coffee (Canada) Ltd.
For further information: Anton Ayoub, CEO & President, (416) 368-2220 Ext 228, aayoub@spotcoffee.com
LoveSPoT
7 years ago
Great Forward Progress!!!
TORONTO, Oct. 24, 2017 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") has noted an increased demand from its shareholders for information concerning where the Company stands in terms of the total number of SPoT cafes.
SPoT currently has a total of 26 locations presently operating, in development or under construction in the states of New York and Connecticut.
SPoT's 26 cafe locations are broken down as follows:
Six (6) Operating Corporate-Owned Cafes which include SPoT Elmwood, SPoT Delaware, SPoT Rochester, SPoT Glen Falls, SPoT Saratoga Springs and SPoT Clarence.
Six (6) Operating Franchise Cafes which include SPoT Hamburg, SPoT Kenmore, SPoT Orchard Park, SPoT Hertel and SPoT Williamsville and SPoT Waterfront Village.
Five (5) Express Cafes Operating Under License to Dash's Supermarkets and to Chartwells at the Buffalo State College.
Nine (9) Franchise Locations Being Developed and Under Construction which include SPoT Roswell Park, SPoT Amherst, SPoT West Hartford, SPoT Larkin and SPoT West Seneca. Furthermore, SPoT's agreement with one of its franchisees, namely Parsico Cafes LLC ("PCL"), includes (in addition to SPoT West Hartford, CT) four (4) more cafes in CT and NYS to be developed, built and opened by the end of 2018. The Company is currently in the process of finding the most suitable locations to lease for PCL's next 4 cafes.
SPoT is currently negotiating new café locations with a new franchisee in Warwick, NYS, and multi-unit franchises with individual franchisees in Canada and the USA. The Company considers these prospective franchises as serious outstanding franchise proposals which have passed the Company's franchise selection criteria and are pending final franchise agreements.
SPoT's management will continue its focus now and in 2018 on the growth of its franchise operations, the repayment of debt, and the growth of net earnings.
LoveSPoT
7 years ago
Very Good news from SPoT:
TORONTO, Aug. 14, 2017 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") has released its financial and operating results for the second quarter ended June 30, 2017. The company's unaudited consolidated financial statements for the three and six months ended June 30, 2017, together with management's discussions and analysis are available on SEDAR under the Company's name.
Spot Coffee (Canada) Ltd. (CNW Group/Spot Coffee (Canada) Ltd.)
The Company is pleased to report that its second quarter operations this year have resulted in a company-wide net profit of $30,191 and an EBITDA of $234,080. These financial results have further improved the company-wide EBITDA to a positive position of $137,215 for the six months ended June 30, 2017.
Same-store corporate café sales increased by 3% in the second quarter of 2017 as compared with those in the same period of 2016. With the addition of SPoT Kenmore franchise café, franchise café sales grew by 16%, from $1,294,349 in the second quarter of 2016 to $1,495,238 in the same period of 2017.
Management continued to drive costs down wherever possible without affecting the quality of the Company's goods and services. Reduction in costs in the six months ended June 30, 2017 as compared with those ended in the same period of 2016, are outlined below as follows:
Cost of sales as a percentage of revenue have dropped from 36.6% in 2016 down to 32.9% in 2017;
Accordingly, gross profit as a percentage of revenue has increased to 67.1% in 2017 from 63.4% in 2016;
Interest and accretion expenses are down by $168,542 from $307,637 in 2016 down to $139,095 in 2017;
Credit card fees and bank charges are down by $18,141, from $103,385 in 2016 down to $85,244 in 2017;
Office and general expenses are down by $178,531, from $349,948 in 2016 down to $178,417 in 2017;
Professional and consulting fees as well as travel expenses were all down by a total of $92,317, collectively, from a total of $227,659 in 2016 down to a total of $135,342 in 2017.
During this second quarter and in accordance with the Company's financial plan concerning debt reduction, the Company has further reduced its indebtedness by $207,000.
The Company realized a gain of $250,054 on the disposition of its remaining 25% equity in SPoT Coffee Hertel Inc. which owns the SPoT Hertel café.
"Q2 of 2017 has seen the dawn of transformation of the company's operations into profitability," said John Lorenzo, chairman of the Company. "This transition is the result of the internal growth of our franchise business and the continual improvements that our management team has unfailingly continued to implement. We have a great and dedicated team who share a common belief in the SPoT Coffee special distinguishing features that characterize the unique SPoT brand and business concept. Our goal is to work very hard in order to sustain and grow this trend of profitability year after year."
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds, operates and franchises community oriented cafés and express cafés in New York State and the US Northeast. SPoT's community cafés provide its customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each SPoT café is distinctively designed to suit its local neighbourhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. In particular, forward-looking information in this press release includes, but is not limited to, the potential use of proceeds of the financing that is the subject of this release. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company 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.
SOURCE Spot Coffee (Canada) Ltd.
MrG
13 years ago
SCFFF---SPoT Coffee Second Quarter 2011 Results: Reports 22% Increase in Sales Over Previous Quarter
A penny stock does not have to be well known on iHub in order to make good money on it.
TORONTO, ONTARIO--(Marketwire - Aug. 18, 2011) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") released its financial results for the Company's second quarter ended June 30, 2011. Complete 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.
Second Quarter 2011 Highlights
•Revenue increased 22% to $1.4 million from $1.15 million compared to the first quarter of 2011. The revenue increase compared to the same quarter of 2010 is up 10% from $1.27 million. The Company benefited from the strength of same store sales over the quarter as a result of various new marketing and branding initiatives, as well as the reopening of SPoT Rochester on May 27th after the café was temporarily closed for full renovations starting October 2010.
•Gross profit (measured as sales less cost of goods sold) improved to $917,457 for the quarter reflecting an increase of $71,723 or up 8% from $845,734 for the first quarter of 2011. Gross profit significantly improved by 20% when compared to same quarter of 2010. The Company's gross margin percentage (measured as gross profit divided by sales) increased to 65% for the second quarter of 2011 from 60% for the same quarter of 2010.
•The Company's consolidated net loss for the quarter was reduced to $11,358. This is a significant and positive reduction of 90% from a loss of $121,815 for the first quarter of 2011 and a reduction of 91% from a loss of $130,951 for the same quarter of 2010. On a cash basis, adjusting for amortization and standard accruals, the Company generated a positive net cash flow of $78,181 for the quarter ended June 30, 2011. This is the first quarter of positive cash flow for the Company. The Company benefited from an increase in sales and various cost cutting initiatives, including more advantageous supplier contracts and improvements in the purchasing process in order to reduce waste and excess carrying costs. As SPoT continues to expand, the Company benefits from increasing economies of scale.
"SPoT Coffee's second quarter results demonstrate the strength in the underlying operations as the Company continues to execute on its strategic growth plan. This quarter is the first quarter of positive cash flow for the Company representing the positive momentum towards achieving our short-term milestone of our first ten operating cafés," said Raymond Stapell, President and CEO of SPoT.
Second Quarter 2011 Developments
On May 27th, SPoT announced the reopening of its Rochester café in Western New York after its temporary closure for renovations. The newly renovated café has an updated service bar, enhanced seating areas and a new enlarged kitchen. The renovations have reduced the overall excess square footage decreasing monthly operating expenses by up to 40% while the improved design and menu enhancements lead to a greater customer experience.
On June 14, 2011 SPoT successfully closed a follow-on equity financing for total gross proceeds of $500,000 as well as on August 3, 2011 SPoT closed a $750,000 financing. Proceeds from both financings support the short-term expansion plan, in addition to further supporting the continued development of SPoT's existing operating infrastructure.
Construction on SPoT Hertel, SPoT's seventh operating café, is progressing on schedule and is expected to open during October 2011. The café is located Hertel Avenue, a vibrant commercial and residential area in Buffalo, New York.
Construction on SPoT Park Place, SPoT's eighth operating café, and will begin in mid-October which is ahead of the Company's initial planned construction schedule. SPoT Park Place will be the Company's second location in Toronto and is part of a new multi-condo urban development project in the North York area of Toronto by real-estate developer, Concord Adex, comprising 20 buildings and an expected residential population of 290,000. The café is anticipated to open early 2012.
SPoT is continuing to assess future café locations and is currently in the final stages of selecting the sites for cafés nine and ten. SPoT anticipates accelerated growth during 2012, leveraging its existing operating infrastructure in Western New York, Southern Ontario and Florida before a broader North American and international expansion commences.
About SPoT
SPoT (www.spotcoffee.com) designs, builds and operates community-oriented cafés that provide its customers from every lifestyle and culture with the highest quality service, signature light meals and in-house roasted gourmet coffee. The current SPoT management team and directors have been successfully operating company-owned cafés since 2004.
Each SPoT café is a popular and friendly gathering place for its community where specialty coffee, upscale beverages, fresh baked goods, signature sandwiches, soups, salads and gourmet pizza, cakes, pastries and home baked goods are offered and enjoyed by its patrons in a warm, friendly and home-like environment.
The Company currently operates six cafés that range in size from 2,000 to in excess of 4,000 sq. ft. with two more cafés currently under development. Spot is currently evaluating several locations as part of its North American expansion.
Unlike other conventional gourmet coffee houses and quick service restaurants that are built on uniformity of product and style, each SPoT café maintains several unique and key features, including:
•Dedication to create a friendly environment that nourishes and intensifies a sense of gathering and of community;
•In-house roasting and blending SPoT's own award-winning premium Arabica coffee;
•Unwavering commitment to offer the customers of the Company the highest quality products and services;
•Innovative and varying café designs that consider both the culture and flavor of the specific communities of each café;
•Choice of corner locations for each SPoT café at the center of their neighborhoods;
•Ability to offer intimate and warm ambiances in each café to suit the social and private moods of SPoT's patrons; and
•Trained and dynamic service staff that are proud to call themselves "Spotters" who enjoy serving their customers and make them feel at home.
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