Tim Hortons Q3 Profit Down - Quick Facts

(RTTNews) - Tim Hortons Inc. (THI, THI.TO) reported that its third-quarter net income attributable to the company declined to C$98.13 million, from C$113.86 million last year. Net income was impacted by the full amount of the Transaction costs, as there was no tax benefit for these expenses.

Earnings per share were C$0.74 down from the previous year's C$0.75 due mainly to the C$0.21 impact of the Transaction costs.

Adjusted earnings per share of C$0.95 grew by 25.2% as a result of strong operating performance, as well as the cumulative impact of our recapitalization and expanded share repurchase program, which resulted in a lower number of shares outstanding.

Total revenues grew 10.2% to C$909.2 million from C$825.4 million last year. Systemwide sales growth was the primary driver of both a 12.8% increase in distribution sales and growth of 8.6% in rents and royalties revenue. Franchise fee revenues grew by 17.4% due to higher levels of restaurant development and increased renovations in Canada, which also resulted in higher associated franchise fee costs.

Analysts polled by Thomson Reuters expected the company to report earnings of C$0.89 per share and revenues of C$883.85 million for the quarter. Analysts' estimates typically exclude special items.

The Board of Directors has declared a quarterly dividend of C$0.32 per common share, payable on December 5, 2014, to shareholders of record as of the close of business on November 20, 2014.