 |
 | |
 |  |
| We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level. |
FRANCHISE CONSOLIDATOR FOR THE 21st CENTURY THE COMPANY & THE INDUSTRY Afton was founded in 1993 and was created to act as a franchise consolidator. Since its inception Afton has completed four acquisitions and the reverse takeover of a public company trading on the Canadian Dealing network (CDN) under the symbol AFTN. Recently, Afton has completed its acquisition of the 160+ unit 241 Pizza ™ chain. Afton now owns and operates in excess of 250 franchised locations in Canada and the United States, with system sales approaching 100 million dollars. The North American Quick Service Restaurant (QSR) Industry is in the most active consolidation period ever. The United States and Canada have been branded and chained by restaurant franchisors for approximately 40 years. What was once a business for the small business person has given rise to the need for size. This fact has mandated greater economies of scale and sophisticated operating technologies, which larger, professionally managed restaurant operating companies bring to bear. Diversification is extremely important. Increasingly companies are operating multiple brands in diverse geographic locations. Larger operators are inheriting this once fragmented industry, and consolidation is the result. Afton has positioned itself to be part of, and to benefit from, this consolidation process. The coffee/donut, pizza, sandwich/salad segments represent the larger share of the QSR market and Afton is focused on these areas. After completion of the intended acquisition, Afton will be positioned to join the top twenty largest franchised Quick Service Restaurant chains in Canada. Through the continuing acquisition of chains, as well as the development of core brands, the number of locations and resulting system sales will grow well above industry rates. The company has estimated that in excess of $0.50 from every dollar of revenue from future acquisitions, should flow to Afton's earnings. The company's goal is to grow to, in excess of 500 locations by the year 2000. HIGHLIGHTS OF AFTON'S CORPORATE STRATEGY Growth through acquisition – Afton has identified in excess of 100 small to medium sized (25-150 units) franchised restaurant chains in North America that are candidates for consolidation Growth through franchising - The opportunities for franchising new locations is enhanced when operating from a larger base of existing units Growth through area and Master franchising in regional, domestic and international markets Growth through cross branding and twinning of concepts – a very lucrative opportunity exists to twin the 241 Pizza™ concept with Afton's existing and future Coffee/Donut outlets Growth through non-traditional markets, such as petroleum retail outlets Synergies and efficiencies due to economies of scale, in management, administration, marketing and advertising Major opportunities for cost savings to Afton and its franchisees are derived from the increase in locations and the resulting purchasing power Afton has diversified its brands to capture a larger share of the QSR market Recent News........... The company continues to seek acquisition candidates with brand presence and market share that will enhance corporate earnings and shareholder value. The company's goal is to have 500 retail locations operating by the year 2000, or sooner. Finacial results for the nine months ended Sept. 30 (in thousands of dollars) 1998 1997 System sales $ 76,649 $ 11,697 Revenue $ 5,583 $ 1,796 Net earnings $ 1,142 $ 226 Earnings per share 1.6 cents n/a Financial results for the three months ended Sept. 30 (in thousands of dollars) 1998 1997 System sales $ 25,778 $ 3,660 Revenue $ 1,756 $ 624 Net earnings $ 322 $ 58 Earnings per share .4 cent n/a The outlook for 1998 remains strong. Since the acquisition of 241 Pizza, the company has attended franchise shows in Toronto and Vancouver resulting in the sale of 27 new franchise locations in the first nine months of this year and expect to sell an additional 10 locations by year-end. Afton currently operates more than 250 corporate and franchised restaurants in Canada, the United States, Saudi Arabia and Oman under the brand names 241 Pizza, Ruffage, Donut Delite Cafe and Mrs. Powell's Bakery Eatery. The company continues to seek acquisition candidates with brand presence and market share that will enhance corporate earnings and shareholder value. The company's goal is to have 500 retail locations operating by the year 2000, or sooner. management is frustrated with the length of time it has taken to get the TSE listing. They will be meeting again next week with officials from the TSE to try to expedite the remainder of the application process. The company is presently making the financing arrangements for its next acquisition(s). It was recently presented with a financing package but wanted to negotiate more favorable terms (probably in light of recent interest rate cuts). The company indicated that it would prefer to have its TSE listing in place prior to completing an acquisition, however, management also expressed their desire to move forth with an acquisition shortly if the TSE keeps dragging its feet. They also indicated that no announcement would be made until a definitive agreement was signed - they don't want to announce a letter of intent only to have the final deal fall apart. Management still hopes to complete at least one additional acquisition before year end. Financial results appear on track. The third quarter (late summer) is usually the company's slowest, so don't be surprised if revenues and profits are less than Q2. THis is normal. We should see Q1/Q2 levels (or better) again in Q4. Don't forget that the home pizza delivery market generally does well in the winter since people don't want to leave home to go to restaurants in the cold weather. As well, pizza delivery also tends to be relatively less impacted by recessionary presures (not to say that we are headed for a recession, but it does lower the economic risk). And finally, a majority of the company's operations are in Ontario where the economy is still doing reasonably well (less exposure to commodities - ie BC). Company Website aftonfood.com | ||||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2025 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |