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BRIEF-DAVIDsTEA Says Board Has Decided To Explore Strategic Alternatives
December 7, 2017 / 9:16 PM / 8 days ago

BRIEF-DAVIDsTEA Says Board Has Decided To Explore Strategic Alternatives

Dec 7 (Reuters) - DAVIDsTEA Inc:

* ANNOUNCES THIRD QUARTER FISCAL 2017 FINANCIAL RESULTS

* Q3 LOSS PER SHARE C$0.25

* Q3 SALES C$43 MILLION VERSUS I/B/E/S VIEW C$46.2 MILLION

* Q3 SAME STORE SALES FELL 6.8 PERCENT

* Q3 EARNINGS PER SHARE VIEW C$-0.15 -- THOMSON REUTERS I/B/E/S

* Q3 ADJUSTED LOSS PER SHARE C$0.17

* BOARD OF DIRECTORS HAS DECIDED TO EXPLORE STRATEGIC ALTERNATIVES

* STRATEGIC ALTERNATIVES BOARD MAY CONSIDER INCLUDE, BUT ARE NOT LIMITED TO, A POTENTIAL FINANCING, REFINANCING, RESTRUCTURING, MERGER

* STRATEGIC ALTERNATIVES INCLUDE, BUT ARE NOT LIMITED TO ACQUISITION, JV, DIVESTITURE/ DISPOSITION OF SOME OR ALL OF ASSETS

* NO DEFINITIVE SCHEDULE TO COMPLETE ITS REVIEW OF STRATEGIC ALTERNATIVES HAS BEEN ESTABLISHED

* COMPANY WILL BE UNDERGOING A PROCESS IN NEAR-TERM TO SELECT FINANCIAL ADVISORS TO ASSIST IN INITIATIVE

* IMPAIRMENT CHARGE OF C$2.7 MILLION INCURRED IN Q3 DUE TO UNDERPERFORMING STORES

* CAPEX FOR YEAR IS EXPECTED TO BE APPROXIMATELY C$13 TO $15 MILLION

* CURRENTLY EXPECTS TO BE FREE CASH FLOW POSITIVE FOR FULL YEAR

* COMPANY CURRENTLY EXPECTS TO BE FREE CASH FLOW POSITIVE FOR FULL YEAR

* ANNOUNCED THAT HOWARD TAFLER, ITS INTERIM CHIEF FINANCIAL OFFICER, HAS BEEN CONFIRMED AS CHIEF FINANCIAL OFFICER

* “WE ARE DISAPPOINTED WITH OUR THIRD-QUARTER RESULTS, WHICH CAME IN BELOW ANTICIPATED SALES AND PROFITABILITY”

* HAVE IMPLEMENTED A COST REDUCTION PROCESS WHICH INCLUDED ELIMINATING SOME POSITIONS TO REFLECT CHANGES IN ORGANIZATIONAL STRUCTURE

* NEW E-COMMERCE PLATFORM REMAINS ON TRACK TO BE LAUNCHED IN EARLY 2018 Source text for Eikon: Further company coverage:

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