DAVIDsTEA Inc. (DTEA) Reports Q3 Loss of C$0.17/Share, to Explore Strategic Alternatives
DAVIDsTEA Inc. (NASDAQ: DTEA) reported Q3 EPS of (Cdn$0.17), versus (Cdn$0.10) reported last year. Revenue for the quarter came in at Cdn$43 million, versus Cdn$44.1 million reported last year.
Company to explore strategic alternatives
The Board of Directors has decided to explore strategic alternatives in order to enhance shareholder value. This process will include the evaluation of strategic alternatives to maximize the Company's value, which may include a sale or other transaction.
In making the announcement, DAVIDsTEA's Chairman, Maurice Tousson stated: "DAVIDsTEA is an excellent brand with strong consumer appreciation and is a recognized leader in the tea industry. A recent Leger survey on the Consumer Experience highly ranked DAVIDsTEA in the specialty boutiques category. We were number one in Ontario and third in Quebec. That said, we are disappointed in DAVIDsTEA's performance, and believe that exploring potential alternatives is an important component towards our goal to deliver value to shareholders."
The strategic alternatives that the Board of Directors may consider include, but are not limited to, a potential financing, refinancing, restructuring, merger, acquisition, joint venture, divestiture or disposition of some or all of the Company's assets outside of the ordinary course of business.
No definitive schedule to complete its review of strategic alternatives has been established. There can be no assurance that this process will result in a transaction, or, if a transaction is undertaken, its terms or timing. As a matter of policy, the Company does not comment on or provide the market with updates as to the status of any informal expressions of interest or formal proposals or offers presented to the Company from time to time, or the course of discussions with any prospective counterparties, nor will it comment upon any rumors with regard to either of the foregoing or make a further announcement regarding the Company's consideration of any proposal or other expressions of interest until such time, if ever, that it enters into a definitive agreement for a completed transaction or is otherwise required to make an announcement.
The Company will be undergoing a process in the near-term to select financial advisors to assist in this initiative.
For earnings history and earnings-related data on DAVIDsTEA Inc. (DTEA) click here.