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Source : MTY Food Group Inc. Contacts : Eric Lefebvre , CPA , CA , MBA Chief Executive Officer Tel : ( 514 ) 336-8885 ir@mtygroup.com GROUPE MTY GROUP ● Pierre Boucher , CPA , CMA Jennifer McCaughey , CFA Maison Brison Communications Tel : ( 514 ) 731-0000 PRESS RELEASE FOR IMMEDIATE PUBLICATION MTY REPORTS SECOND QUARTER 2021 RESULTS • Adjusted EBITDA ( 1 ) of $ 43.5 million in the quarter , compared to $ 18.2 million in Q2-20 . ● Cash flows from operating activities of $ 29.5 million , up by 54 % compared to Q2-20 , despite duration of COVID 19 pandemic . Free cash flows ( ¹ ) per diluted share decreased by 5 % compared to Q2-20 to reach $ 1.11 . Q2-20 was favorably impacted by the proceeds received from franchising multiple corporate locations . Net income attributable to shareholders of $ 23.0 million in the quarter , or $ 0.93 per share , up from a net loss attributable to shareholders of $ 99.1 million , or $ 4.01 per share , in Q2-20 . ● Non - cash impairment charge of $ 5.3 million related to intangible assets . • Long - term debt repayments of $ 15.2 million for the quarter . • System sales ( 1 ) of $ 891.5 million , up 33 % compared to Q2-20 . System sales up 56 % in Canada , 24 % in US and 38 % Internationally . Second quarter digital sales ( ¹ ) represent 27 % and 22 % of total system sales for Canada and the US , respectively in the quarter compared to 20 % and 24 % in Q2-20 . 321 restaurants were temporarily closed at the beginning of the quarter and 359 at the end of the quarter . 258 remain temporarily closed as at the date of this press release . 977 locations were closed one or more days during the quarter , representing approximately 38,300 lost business days . • Quarterly dividend restored with payment of $ 0.185 per share on August 13 , 2021 and NCIB renewed until July 2022 . ( 1 ) This is a non - GAAP measure . Please refer to the " Non - GAAP Measures " section at the end of this press release . Montreal , July 9 , 2021 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 its results for the second quarter ended May 31 , 2021 . " We are satisfied with our second quarter results especially since some of our key markets remained impacted by heavy restrictions throughout the quarter . During this year's second quarter , MTY's network remained impacted by more than 38,000 lost business days . While this marked a sequential improvement over the first quarter , lost business days were higher than in the fourth quarter of last year owing to the December 2020 wave of restrictions in Quebec and Ontario which hadn't yet been lifted at the end of May 2021. " " We are extremely pleased to note that the adjusted EBITDA for the quarter more than doubled over last year to $ 43.5 million despite the lingering impact of the pandemic , making it one of our best quarters ever . This reflects a marked recovery in Canada as well as organic growth of $ 15.3 million in the US and International segment . This translated into strong cash flows from operating activities , which reached $ 29.5 million . This allowed us to further reduce our debt level by $ 15 million , bringing total repayments since the start of the pandemic to close to $ 145 million , " stated Eric Lefebvre , Chief Executive Officer of MTY .