Tim Hortons Q2 Profit Grows; Backs 2013 EPS View - Quick Facts

(RTTNews) - Canadian quick-service restaurant chain Tim Hortons, Inc. (THI, THI.TO) posted higher second-quarter 2013 net income attributable to the company of C$123.7 million, or C$0.81 a share, compared with last year's C$108.1 million, or C$0.69 a share. On average, 15 analysts polled by Thomson Reuters expected earnings per share of C$0.75 for the quarter. Analysts' estimates typically exclude one-time items.

The net profit growth resulted from higher operating income, as well as a lower effective tax rate due to discrete items that occurred in the quarter; while the EPS growth was due to the increase in net income attributable to THI, as well as the positive, cumulative impact of our share repurchase programs, according to Tim Hortons.

Systemwide sales went up 5.0% on a constant currency basis, as a result of new restaurant development in Canada and the U.S., with net growth of 233 restaurants systemwide in the past year, and from same-store sales growth of 1.5% in Canada and 1.4% in the U.S. Total revenues advanced by 1.9% year-over-year to C$800.14 million, from C$785.6 million, whereas 10 analysts estimated revenues of C$816.51 million. The revenue growth rate was below that of systemwide sales owing to a drop in distribution sales, the largest component of revenues.

Further, the company has maintained its fiscal 2013 earnings per share target range of C$2.87 - C$2.97, but expects full-year same-store sales growth in Canada and the U.S. to be below targeted ranges based on year-to-date performance. Sixteen analysts project annual earnings per share of C$2.90.

In addition, the board has declared a quarterly dividend of C$0.26 per share, payable on September 4, 2013 to shareholders of record as of August 19, 2013. Separately, Tim Hortons reported obtaining regulatory approval from the Toronto Stock Exchange or "TSX" to amend its Normal Course Issuer Bid to remove the former maximum dollar cap of C$250 million.