Vancouver, British Columbia--(Newsfile Corp. - May 30, 2023) - Coho Collective Kitchens Inc. (TSXV: COHO) ("Coho" or the "Company") is pleased to provide further information regarding its proposed acquisition (the "Acquisition") of Purebread. Bakery Inc. ("Purebread").
Purebread Financial Highlights
Purebread is one of Canada's most respected independent retail brands with exceptional customer loyalty. Currently, Purebread has six operating locations which generated the following unaudited financial results for the trailing 12 months ended January 31, 2023:
- Revenue of $10.0M
- Gross Margin of 70%
- Adjusted EBITDA of $1.7M(1)
(1) This is a Non-IFRS Measure. For a reconciliation of Adjusted EBITDA to Net Income see "Non-IFRS Financial Measures" below.
For the fiscal year ended September 30, 2022, Purebread generated $9.3M (unaudited) of revenue, which represents a 42% increase compared to $6.6M (unaudited) of revenue for the fiscal year ended September 30, 2021. In addition, Purebread's seventh location will open in June 2023 at Vancouver International Airport with expected annual revenue of $3.5M.
Additional information regarding Purebread and the business of the Company following completion of the proposed Acquisition is available in a corporate presentation that has been posted within the Company's investor relations website - https://www.cohocollectivekitchens.com/.
Coho Financial Highlights
Coho is Canada's largest shared kitchen space company with nine locations in Western Canada, growing to 18 locations across the country, which represents a $22.0M revenue opportunity by fiscal year 2026[1]. Coho has high brand recognition within target segment, a Waitlist Value[2] at over $3.1M and 98% member retention rate.
About Coho
Coho is a growth stage, community-driven, commercial real estate and food technology company that provides private and shared kitchen and production space to food companies from start-ups to restaurant groups seeking turnkey solutions and business services. Each of the Company's customers, called "Members", are revenue generating companies that have signed a membership agreement with Coho for an agreed upon term. The concept falls in line with a rapidly growing trend in the food-delivery industry creating a market for delivery-only and/or virtual restaurant concepts. For more information about how Coho is growing and innovating in the commissary space, visit https://www.cohocommissary.com.
Coho Collective Contacts
Andrew Barnes, Chief Executive Officer
andrew@cohocommissary.com
(778) 877-6513
Investor Relations
invest@cohocommissary.com
(604) 243-7355
Non-IFRS Financial Measures
We report our financial results in accordance with IFRS. This press release was prepared using results and financial information determined under IFRS. In addition to IFRS financial measures, this press release also contains non-IFRS financial measures, non-IFRS ratios, capital management measures and other supplementary financial measures used by management to assess the Company's operational performance including Adjusted EBITDA and Waitlist Value.
These measures do not have a standardized meaning under IFRS. It is likely that the non-IFRS financial measures used by the Company will not be comparable to similar measures reported by other issuers or those used by financial analysts as their measures may have different definitions. The measures used by the Company are intended to provide additional information and should not be considered in isolation or as a substitute for IFRS financial performance measures.
Generally, a non-IFRS financial measure is a numerical measure of an entity's historical or future financial performance, financial position or cash flows that is neither calculated nor recognized under IFRS. Management believes that such non-IFRS financial measures are important as they provide readers with a better understanding of the results of our recurring operations and their related trends, while increasing transparency and clarity into our operating results. Management also believes these measures to be useful in assessing the Company's capacity to fulfill its financial obligations.
Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, adjusted for COVID-19 government support, one-time and incremental costs for new locations, provisions for operational and financial oversight, and certain other costs. A reconciliation of Purebread's Adjusted EBITDA to net income determined in accordance with IFRS is provided for the periods presented.
| PUREBREAD in CAD $000s | FY2021 | FY2022 | TTM Jan 2023 | ||||||
| Total Revenue | $ | 6,577 | $ | 9,331 | $ | 10,031 | |||
| Revenue growth | 14% | 42% | |||||||
| Gross Margin | $ | 4,705 | $ | 6,608 | $ | 6,981 | |||
| Gross margin (%) | 72% | 71% | 70% | ||||||
| Net Income | $ | 1,036 | $ | 585 | $ | 458 | |||
| Amortization | 304 | 846 | 846 | ||||||
| Taxes | 274 | 108 | 108 | ||||||
| EBITDA | $ | 1,614 | $ | 1,539 | $ | 1,412 | |||
| EBITDA margin (%) | 25% | 16% | 14% | ||||||
| Total adjustments | $ | (445 | ) | $ | 12 | $ | 279 | ||
| Adjusted EBITDA | $ | 1,169 | $ | 1,551 | $ | 1,691 |
Forward-Looking Information
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation, including (but not limited to) the completion of the acquisition of Purebread by Coho, future revenues of Coho or Purebread and the future revenue of Purebread's upcoming location at the Vancouver International Airport following the proposed Acquisition has been approved by management of Coho. Readers are cautioned that any such financial outlook or future oriented financial information contained herein is provided for the purpose of providing information about management's current expectations and plans relating to the future. Coho and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Coho's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future activities or results.
This press release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation, our statements related to: the completion of the Acquisition; the impact of the Acquisition on the Company's business and its growth plans; the costs savings and synergies anticipated from the Acquisition, and the Company's growth and acquisition plans in general.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance.
Coho's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Coho's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Acquisition, including: that Coho will not be able to complete the Acquisition on the terms announced, within the anticipated timeline, or at all; that the actual impact of the Acquisition on Coho's business and growth strategy will not be as currently anticipated; that Coho's other assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions; that the parties may not obtain all required consents or approvals for the Acquisition (including the approval of the TSXV); risks inherent in the ghost-kitchen, retail bakery, or coffeehouse sectors in general; that future results may vary from historical results; and competition in the markets where Coho operates. Except as required by securities law, Coho does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Financial Outlook
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") (including but not limited to) future revenues of Coho or Purebread and the future revenue of Purebread's upcoming location at the Vancouver International Airport has been approved by management of Coho which is subject to the same assumptions, risk factors, limitations, and qualifications as set out below under the heading "Forward-Looking Information". The actual financial results of the combined company may vary from the amounts set out herein and such variation may be material. Coho and its management believe that the financial outlook has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this press release was approved by management as of the date hereof. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, Coho does not undertake an obligation to update such FOFI. FOFI contained in this press release was made as of the date hereof and was provided for the purpose of providing further information about the combined company's anticipated future business operations. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
All financial figures are approximate and in Canadian dollars, unless otherwise noted.
THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
[1] The Company expects to generate $11.0M from its current nine locations and an additional $11.0M from nine future locations in fiscal 2026.
[2] Waitlist Value is defined as all forecasted revenue for future members that have been placed on the waitlists at all Coho commissary locations.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167995
