- The addition of
St. Louis Bar & Grill ("St. Louis") to the Aegis family has provided encouraging results in the second quarter with net income from the brand of$1,304,000 for the quarter and$2,256,000 year-to-date. St. Louis system sales increased 2.2% in the quarter to$32,450,000 , and 10.1% year- to-date to$70,306,000 , over the same periods in 2022.- Same store sales at Bridgehead for the second quarter increased 17.4% over the second quarter of 2022, with system sales increasing 29.4%.
- Aegis' EBITDA for the quarter was
$1,300,000 compared to an EBITDA loss of$2,600,000 in the same quarter last year. - Aegis' net loss for the quarter was
$145,000 or$0.00 per share, versus a loss of$2,816,000 or$0.12 per share, in the same quarter last year. - Operating income for the quarter was
$630,000 before interest and financing expenses compared to an operating loss of$2,987,000 in the same quarter last year. - Subsequent to Q2,
St. Louis opened its 76th location, inWinnipeg, Manitoba .
On
During the second quarter,
Increasing franchisee profitability is at the forefront of
"The franchisees are our business partners, and their increasing success is the key to our own success. We will continue to look for traditional and non-traditional ways to increase both their top and bottom lines at the store level," said Pelton.
Revenue at Bridgehead improved to
Wholesale revenue of
"There are few brands with the heritage and quality of Bridgehead. With over 40 years of doing what's right for the Earth and for the people who produce its coffee, Bridgehead's story and products are second to none," said Pelton. Management has begun the exercise to re-align the company's branding and in-store experience to tell the Bridgehead story in a way that better-connects with consumers in today's world. "Today's consumer overwhelmingly values ethical and sustainable business practices, and factors them into purchase decisions. As other companies scramble to change their practices to meet customer expectations, Bridgehead is already there - and has been, for decades. This initiative will make sure our customers know why they can feel good about doing business with us," said Pelton.
"
"The
13 weeks ended |
26 weeks ended | ||||
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St. Louis Revenue
| |||||
Royalties | $ 1,511 | $ - | $ 2,788 | $ - | |
Advertising fund contributions | 1,216 | - | 1,836 | - | |
Other franchise revenue | 2,085 | - | 3,710 | - | |
$ 4,812 | $ - | $ 8,334 | $ - | ||
Bridgehead Revenue | |||||
Coffeehouses | $ 3,635 | $ 2,810 | $ 6,689 | $ 4,796 | |
Wholesale | 309 | 277 | 649 | 650 | |
E-commerce | 130 | 153 | 264 | 336 | |
$ 4,074 | $ 3,240 | $ 7,604 | $ 5,782 | ||
Total Revenue | $ 8,886 | $ 3,240 | $ 15,938 | $ 5,782 |
Net Loss to Operating income (loss):
13 weeks ended | 26 weeks ended | |||
(In thousands of Canadian dollars) |
|
|
| |
Net loss | $ (145) | $ (2,816) | $ (4,472) | |
Add (deduct): | ||||
Income tax recovery | - | (205) | (424) | |
Interest and financing charges | 775 | 99 | 1,784 | 190 |
Other income | (2) | (65) | (2) | (40) |
Operating income (loss) | $ 628 | $ (2,987) | $ 664 | $ (4,746) |
Net Loss to Adjusted EBITDA:
13 weeks ended | 26 weeks ended | |||
(In thousands of Canadian dollars) |
|
|
| |
Net loss | $ (145) | $ (2,816) | $ (1,118) | $ (4,472) |
Add (deduct): | ||||
Income tax recovery | - | (205) | - | (424) |
Other income | (2) | (65) | (2) | (40) |
Interest and financing charges | 775 | 99 | 1,784 | 190 |
Depreciation of property and equipment Amortization of intangible assets | 158 255 | 152 - | 316 510 | 318 - |
Amortization of right-of-use assets | 257 | 251 | 492 | 503 |
EBITDA | $ 1,300 | $ (2,584) | $ 1,984 | $ (3,925) |
Add impact of the following: | ||||
Revaluation of securities | 23 | 2,904 | (16) | 3,294 |
Adjusted EBITDA | $ 1,323 | $ 320 | $ 1,968 | $ (631) |
Aegis measures the success of its business in part by employing several key performance indicators referenced herein that are not recognized under IFRS, including same store sales, system sales, and EBITDA. These indicators should not be considered an alternative to IFRS financial measures, such as net income, and are presented in this report because management of Aegis believes that such measures are relevant in interpreting the performance of its business. As non‐IFRS financial measures do not have standardized definitions prescribed by IFRS, they are less likely to be comparable with those of other issuers or peer companies. A description of the non‐IFRS measures used by Aegis in measuring its performance and a reconciliation of certain non‐IFRS measures to the nearest IFRS measure are included in Aegis' management's discussion and analysis for the quarter ended
This press release contains forward-looking statements within the meaning of Canadian securities laws. These forward-looking statements contain statements of intent, belief or current expectations of Aegis. Forward-looking information is often, but not always, identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict," or similar words suggesting future outcomes or language suggesting an outlook.
The forward-looking statements included in this press release, including statements regarding the nature of Aegis' growth strategy going forward and Aegis' execution on any of its potential plans (including with respect to the growth and development of Bridgehead Coffee,
Risks and uncertainties that may cause such differences include but are not limited to: risks related to the company's strategy going forward; risks related to the rising interest rates and inflationary pressures on the cost of doing business; and other risks inherent in the industry in which Aegis operates. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information on these and other factors that could affect Aegis' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
In respect of the forward-looking statements and information included in this press release, Aegis has provided such in reliance on certain assumptions that it believes are reasonable at this time, including the ability of the company to manage the risks (economic, operational, financial, and other risks); the ability of the company to identify new acquisition opportunities and to successfully integrate past and future acquisition targets into the company's business; and the company's ability to generally execute on its strategy going forward.
The forward-looking statements in this press release are made as of the date it was issued and Aegis does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
For more information, please visit aegisbrands.ca.
SOURCE
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