Tim Hortons Posts Flat Q2 Attributable Net Profit, EPS Up - Quick Facts

(RTTNews) - Canadian quick-service restaurant chain Tim Hortons Inc. (THI.TO, THI) reported flat net income attributable to the company of C$123.75 million for the second quarter 2014, as growth in operating income was offset by the effects of our recent recapitalization, which resulted in increased interest expense and a higher effective tax rate. On the other hand, three-month earnings per share improved to C$0.92, from C$0.81 a year ago. On average, 13 analysts polled by Thomson Reuters expected earnings per share of C$0.87 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly total revenues went up by 9.3% year-over-year to C$874.3 million, from C$800.1 million, while seven analysts estimated revenues of C$843.29 million. Systemwide sales growth was the major driver of both a 9.2% growth in distribution sales and a 7.5% increase in rents and royalties revenue.

On a constant currency basis, systemwide sales advanced by 6.5%, as a result of new restaurant development in Canada and the U.S., and same-store sales growth of 2.6% in Canada and 5.9% in the U.S.

Looking ahead, the firm expects per-share earnings for fiscal 2014 to be at the high end, or slightly above, our targeted range of C$3.17 to C$3.27.

In addition, the company's board declared a dividend of C$0.32 per share, payable on September 3, 2014 to shareholders of record as of August 18, 2014.