Franchising segment normalized adjusted EBITDA(1) increased 1% to reach $52.6 million in the quarter, compared to $51.9 million in Q2-23 with normalized adjusted EBITDA as a % of revenue(2) of 52%. Normalized adjusted EBITDA(1) decreased 1% to $73.7 million in the quarter, compared to $74.6 million in Q2-23. System sales(3) for the quarter remained relatively stable at $1.5 billion compared to Q2-23. Cash flows provided by operating activities were $40.6 million compared to $51.9 million in Q2-23, a decrease of $11.3 million mainly attributable to an unfavourable working capital variance during the quarter due to timing of collections and payments of account receivables and payables. Free cash flows net of lease payments(1) decreased to $24.3 million in the quarter, compared to $29.5 million in Q2-23. Free cash flows net of lease payments per diluted share(2) were $1.01 for the quarter compared to $1.21 in Q2-23. Net income attributable to owners decreased by 10% at $27.3 million, or $1.13 per diluted share compared to $30.4 million, or $1.24 per diluted share in Q2-23. Ended the quarter with 7,107 locations compared to 7,116 locations in Q4-23.  Repurchased and cancelled 266,700 shares for a total consideration of $12.8 million in Q2-24. Long-term debt repayments of $16.3 million for the quarter with net repayments of $77.9 million since Q2-23. Renewed Normal Course Issuer Bid Program ("NCIB") on June 28, 2024 Amended revolving credit facility on July 10, 2024 to remove $50.0 million yearly maximum distribution threshold. Quarterly dividend payment of $0.28 per share on August 15, 2024 (1) This is a non-GAAP measure. Please refer to the "Non-GAAP Measures" section at the end of this press release. (2) This is a non-GAAP ratio. Please refer to the "Non-GAAP Ratios" section at the end of this press release. (3) This is a supplementary financial measure. Please refer to the "Supplementary Financial Measures" section at the end of this press release. MONTREAL, July 11, 2024 /CNW/ - MTY Food Group Inc. ("MTY", "MTY Group" or the "Company") (TSX:MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for the second quarter of fiscal 2024 ended May 31, 2024 and declared a quarterly dividend of 28.0¢ per share, payable on August 15, 2024 to shareholders registered in the Company's records at the end of the business day on August 2, 2024. "Emerging from a challenging winter, system sales within our US segment, along with the profitability and margin of our franchising segment were advancing in this second quarter. These areas are the core drivers of our business and we are encouraged by the results," stated Eric Lefebvre, Chief Executive Officer of MTY. "While our Canadian segment is recovering from the headwinds of January and February of 2024, and profitability in our corporate segment was softer, system sales for the second quarter remained stable year-over-year." "I'm pleased to see MTY's snack brands, including Cold Stone, Wetzel Pretzel's, Pinkberry and SweetFrog continue to demonstrate strong performance year over year, as well as seeing our trend of location numbers remaining near breakeven since February 2023." Lefebvre shared. "As we move forward, management will remain committed to maximize shareholder value by improving normalized adjusted EBITDA through improved in-restaurant dining and online digital experiences as well as cost cutting measures. Organic growth of system sales and store count of existing concepts remains a priority for us while we continues to seek potential acquisitions." Financial Highlights   (in thousands of $, except per share information) Q2-2024 Q2-2023 6 Months 2024 6 Months 2023 Revenue 303,739 305,219 582,383 591,222 Adjusted EBITDA(1) 73,198 74,648 132,460 137,511 Normalized adjusted EBITDA(1) 73,683 74,648 133,218 138,607