UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 30, 2006
TIM HORTONS INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-32843 | 51-0370507 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
874 Sinclair Road, Oakville, ON, Canada | L6K 2Y1 | |
(Address of principal executive offices) | (Zip Code) |
(905) 845-6511
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
Selected Information in Connection with Results of Operations by Quarter for 2005
Set forth below is selected financial information provided in connection with the Company’s unaudited Condensed Consolidated Quarterly Statements of Operations for the four fiscal quarters of 2005 and for the full year 2005. The Company has elected to provide such information for comparative purposes as the Company has not previously made available its results of operations for 2005 on a quarterly basis.
Selected Financial Information in Connection with 2005 Condensed Consolidated Quarterly
Statements of Operations (Unaudited)
Statements of Operations (Unaudited)
Full Year | ||||||||||||||||||||
Q1 ended | Q2 ended | Q3 ended | Q4 ended | (2005) ended | ||||||||||||||||
April 3, | July 3, | October 2, | January 1, | January 1, | ||||||||||||||||
2005 | 2005 | 2005 | 2006 | 2006 | ||||||||||||||||
(Canadian dollars in thousands, except share and per share data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales | $ | 209,296 | $ | 242,422 | $ | 251,766 | $ | 256,766 | $ | 960,250 | ||||||||||
Franchise revenues: | ||||||||||||||||||||
Rents and royalties | 102,056 | 115,240 | 115,730 | 116,765 | 449,791 | |||||||||||||||
Franchise fees | 12,237 | 10,858 | 18,563 | 30,328 | 71,986 | |||||||||||||||
114,293 | 126,098 | 134,293 | 147,093 | 521,777 | ||||||||||||||||
Total revenues | 323,589 | 368,520 | 386,059 | 403,859 | 1,482,027 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales | 183,067 | 208,939 | 221,239 | 220,920 | 834,165 | |||||||||||||||
Operating expenses | 38,194 | 41,081 | 40,204 | 45,778 | 165,257 | |||||||||||||||
Franchise fee costs | 12,036 | 12,458 | 18,712 | 26,006 | 69,212 | |||||||||||||||
General and administrative expenses | 25,463 | 25,069 | 23,196 | 35,234 | 108,962 | |||||||||||||||
Equity (income) | (7,606 | ) | (8,193 | ) | (7,482 | ) | (8,477 | ) | (31,758 | ) | ||||||||||
Goodwill and asset impairment | — | — | — | 53,101 | 53,101 | |||||||||||||||
Other (income) expense, net | (74 | ) | (1,778 | ) | (5,678 | ) | 571 | (6,959 | ) | |||||||||||
Total costs and expenses, net | 251,080 | 277,576 | 290,191 | 373,133 | 1,191,980 | |||||||||||||||
Operating income | 72,509 | 90,944 | 95,868 | 30,726 | 290,047 | |||||||||||||||
Interest (expense) | (853 | ) | (1,135 | ) | (1,295 | ) | (763 | ) | (4,046 | ) | ||||||||||
Interest income | 752 | 657 | 891 | 1,685 | 3,985 | |||||||||||||||
Affiliated interest (expense), net | (1,754 | ) | (1,438 | ) | (1,718 | ) | (9,546 | ) | (14,456 | ) | ||||||||||
Income before income taxes | 70,654 | 89,028 | 93,746 | 22,102 | 275,530 | |||||||||||||||
Income taxes | 23,153 | 28,129 | 27,485 | 5,672 | 84,439 | |||||||||||||||
Net income | $ | 47,501 | $ | 60,899 | $ | 66,261 | $ | 16,430 | $ | 191,091 | ||||||||||
Basic and fully dilutive earnings per share of common stock | $ | 0.30 | $ | 0.38 | $ | 0.41 | $ | 0.10 | $ | 1.19 | ||||||||||
Weighted average # of shares outstanding (in thousands) | 159,953 | 159,953 | 159,953 | 159,953 | 159,953 | |||||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TIM HORTONS INC. | |||||
By: | Leon M. McCorkle, Jr. | ||||
Leon M. McCorkle, Jr. Vice President and Secretary |
Date May 30, 2006