Meritage Hospitality Group Inc (MHGU)

[Mr Fox]

2017 First Quarter Highlights

Sales increased 14.7% to a first quarter record $62.0 million from $54.1 million for the same period last year.

Earnings from Operations increased 106.3% to $3.4 million compared to $1.7 million for the same period last year.

Net Income increased 244.7% to $1.9 million compared to $541,000 for the same period last year.

Consolidated EBITDA (a non GAAP measure) increased 81.3% to $5.3 million compared to $2.9 million for the same period last year.

The Company acquired 8 Wendy’s restaurants in March and 4 in April, and has an additional 57 Wendy’s restaurants under definitive agreement to be acquired in four Mid-Atlantic States during the second quarter of 2017.