Papa Murphy’s (FRSH : NASDAQ : US$9.35), Net Change: 0.30, % Change: 3.31%, Volume: 326,661
Vancouver, Washington-based Papa Murphy’s announced financial results for its quarter ended March 31, 2014
The company earned total revenues of $25.1 million, up $5.5 million Y/Y and the results excludes the $1.8 million of revenues in Q1/14 related to the re-sale of point of sale licenses to franchisees at cost.
Domestic comparable store sales increased 3.3%, including an increase of 7.1% for domestic company-owned stores and 3.1% for domestic franchise stores.
Papa Murphy’s adjusted EBITDA increased 33.7% to 7.5 million for the quarter. 21 new Papa Murphy’s stores were opened system-wide, including 19 new domestic franchises, with 2014 outlook expects 105 new domestic franchises to open.
Ken Calwell, President and CEO, stated, “We are pleased to begin fiscal 2014 with impressive increases in revenue and pro forma profitability. Our success continues to be driven by the collective hard work of our team and franchisees, as we continue to help busy parents and families solve the dinnertime dilemma of providing their family with a high-quality, home-cooked meal, at a great value.”
On May 7 of this year, the company successfully completed an IPO of 5,833,333 shares at $11 per share in which the proceeds to Papa Murphy’s, after deducting underwriter discounts, commissions, and estimated offering expenses, were approximately $55.8 million.
The net proceeds from the IPO were used to pay down $55.5 million of existing debt. Calwell
added that the company is excited about the opportunities head of them and believes that they will continue to drive same store sales growth and improve system-wide profitability by executing their initiatives.