St. Louis
continues to deliver impressive results
TORONTO, Aug. 2, 2024
/CNW/ - Today, Aegis Brands Inc. (TSX: AEG) reported financial
results for the second quarter ended June
30th, 2024.
Highlights:
- System sales of $37.2 million in
the second quarter increased by 14.6% over the prior year and
increased 15.5% to $68.9 million year
to date.
- Same store sales rose 11.6% and 12.2% in the quarter and year
to date respectively.
- EBITDA from continuing operations in the quarter increased by
87.5% to $2.2 million compared to
$1.2 million last year.
- Net income from continuing operations for the quarter was
$1.0 million or $0.01 per share compared with net income of
$0.1 million or $0.00 per share last year.
- St. Louis opened its first
location in the province of PEI.
St. Louis Bar &
Grill
St. Louis contributed
$3.5 million and $3.8 million Net income and EBITDA respectively
for the quarter. Year to date St.
Louis produced $5.6 million in
Net income and $6.2 million in
EBITDA. Same store sales rose by 11.6% and same store traffic
increased by 6.5% over the same quarter last year. For the year,
same stores sales increased by 12.2% with same store traffic
increases of 9.1%.
"Since Aegis' acquisition of St.
Louis, the brand has delivered positive same store sales
with the last three quarters producing 9.4%, 13.6% and 11.6%
respectively. In uncertain economic times, these results are truly
impressive" said Steven Pelton,
President and CEO of Aegis Brands. "I am proud to work with our
management team and the franchisees to increase both the top and
bottom line of the stores. Year to date, we have added an
approximate average of $36,000 to
each store's profitability. Continually improving store economics
is making an investment in our brand more compelling. As a result,
our growing pipeline of franchisees will be our key to unlocking
new store growth".
June marked the opening of the first St. Louis on PEI and the eighth location in
the Maritime provinces. A growing pipeline of locations and
franchisees in the East Coast, Ontario, and Manitoba have been developed and will expand
as store level profitability continues to improve. The company is
currently focused on filling in the strongest markets it has before
starting to build new ones.
Last summer, St. Louis launched
its famous Angus burger in grocery stores. The launch was well
received and sales exceeded management's expectations. This year,
burgers in grocery have already surpassed last year's sales with
much of the barbeque season to come. Additionally, St. Louis will launch its signature chicken
wings and boneless bites and will be available in stores starting
this fall.
To continue to build on the strong performance, St. Louis is in the middle of a three-step
program to attract new guests and encourage existing guests to
visit more often. The company's vision is "to create a world where
everyone is a regular guest" and the first step was to reinforce
the foundation of the business with an expanded focus on
hospitality. The second step is a significant change to the menu.
Menu launches over the next few quarters will introduce new items
with the intent to attract new guests, while staying true to our
guests who have been loyal to the brand for years. The final step
is a brand refresh. "We are continually improving and becoming more
broadly appealing, and the brand refresh will help signal these
changes to our guests".
Wing City by St.
Louis
The two store Wing City trial has not generated sufficient
returns. We are curtailing the expansion until the brand can create
meaningful profitability. "Although early in this trial concept, we
are actively making the changes necessary for Wing City to improve
its performance." said Pelton.
Aegis
Aegis is focused on increasing shareholder value by building and
evolving its brands to have second-to-none store level economics.
The company's goal is to provide franchisees with brands that are
the best investment option for their time and money. "We
invested in St. Louis because it
has been delivering strong returns for franchisees for two decades.
With our help, its economics will continue to improve and the new
store growth will accelerate" said Pelton. "Wing City has the same
ambitions as St. Louis, as will
any other brands we purchase or develop."
Financial Highlights (in thousands of Canadian
dollars):
Revenue:
|
13 weeks
ended
June 30,
2024 June 25, 2023
|
26 weeks
ended
June 30,
2024 June 25,
2023
|
Royalties
|
$
1,571
|
$
1,511
|
$
2,906
|
$
2,788
|
Advertising fund
contributions
|
797
|
1,216
|
1,253
|
1,836
|
Other franchise revenue
|
2,047
|
2,085
|
3,855
|
3,710
|
Corporate store
revenue
|
1,085
|
-
|
2,130
|
-
|
|
$
5,500
|
$
4,812
|
$
10,144
|
$
8,334
|
Net income (loss) to operating income:
|
13 weeks
ended
June 30,
2024 June 25, 2023
|
26 weeks
ended
June 30,
2024 June 25,
2023
|
Net income
(loss)
|
$
1,024
|
$
(145)
|
$
641
|
$
(1,118)
|
Add
(deduct):
|
|
|
|
|
Net loss from
discontinued operations
|
-
|
301
|
197
|
889
|
Interest and financing
charges
|
732
|
707
|
1,506
|
1,645
|
Other loss
(income)
|
(843)
|
-
|
(843)
|
-
|
Operating
income
|
$
913
|
$
863
|
$
1,501
|
$
1,416
|
Net income (loss) to EBITDA and Adjusted EBITDA:
|
13 weeks
ended
June 30,
2024 June 25, 2023
|
26 weeks
ended
June 30,
2024 June 25,
2023
|
Net income
(loss)
|
$
1,024
|
$
(145)
|
$
641
|
$
(1,118)
|
Add
(deduct):
|
|
|
|
|
Net loss from
discontinued operations
|
-
|
301
|
197
|
889
|
Interest and financing
charges
|
732
|
707
|
1,506
|
1,645
|
Depreciation of
property and equipment
|
58
|
9
|
94
|
18
|
Amortization of
intangible assets
|
255
|
255
|
510
|
510
|
Amortization of
right-of-use assets
|
125
|
43
|
249
|
64
|
EBITDA
|
2,194
|
1,170
|
3,197
|
2,008
|
Add (deduct) impact of
the following:
|
|
|
|
|
Other loss
(income)
|
(843)
|
-
|
(843)
|
-
|
Revaluations of
securities, warrants, and other
|
4
|
23
|
4
|
(16)
|
Adjusted
EBITDA
|
$
1,355
|
$
1,193
|
$
2,358
|
$
1,992
|
Net income (loss) to adjusted net income (loss):
|
13 weeks
ended
June 30,
2024 June 25, 2023
|
26 weeks
ended
June 30,
2024 June 25,
2023
|
Net income
(loss)
|
$
1,024
|
$
(145)
|
$
641
|
$
(1,118)
|
Add
(deduct):
|
|
|
|
|
Net loss from
discontinued operations
|
-
|
301
|
197
|
889
|
Revaluations of
securities, warrants, and other
|
4
|
23
|
4
|
(16)
|
Other loss
(income)
|
(843)
|
-
|
(843)
|
-
|
Adjusted net income
(loss)
|
$
185
|
$
179
|
$
(1)
|
$
(245)
|
Net income (loss) per share to adjusted net income (loss) per
share:
|
13 weeks
ended
June 30,
2024 June 25, 2023
|
26 weeks
ended
June 30,
2024 June 25,
2023
|
Net income (loss) per
share
|
$
0.01
|
$
(0.00)
|
$
0.01
|
$
(0.01)
|
Add
(deduct):
|
|
|
|
|
Net loss per share from
discontinued operations
|
0.00
|
0.00
|
0.00
|
0.01
|
Revaluations of
securities, warrants, and other
|
0.00
|
0.00
|
0.00
|
(0.00)
|
Other loss
(income)
|
(0.01)
|
0.00
|
(0.01)
|
0.00
|
Adjusted net income
(loss) per share
|
$
0.00
|
$
0.00
|
$
(0.00)
|
$
(0.00)
|
About Aegis Brands
Aegis Brands owns and operates St. Louis Bar and Grill and Wing
City by St. Louis. The Company is
committed to letting each brand operate independently while
providing shared expertise to help them thrive. For more
information, please visit www.aegisbrands.ca.
NON-IFRS MEASURES
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 and EBITDA.
These indicators should not be considered an alternative to IFRS
financial measures, such as net income, and are presented in this
presentation 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 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 is included in Aegis' management's discussion
and analysis for the year ended December 31,
2023 available on SEDAR at www.sedarplus.ca.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of Canadian securities laws. 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 St.
Louis Bar and Grill and Wing City), are not guarantees of future
results and involve risks and uncertainties that may cause actual
results to differ materially from the potential results discussed
in the forward-looking statements.
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.sedarplus.ca).
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 Aegis Brands Inc.