Sportscene Group Maintains its Momentum

MONTREAL, Jan. 18, 2018 /CNW Telbec/ - During the Annual Meeting of Shareholders held this morning, management of SPORTSCENE GROUP INC. ("Sportscene" or "the Company"); (TSXV: SPS.A) disclosed the financial results for the first quarter of fiscal 2018, being the 13-week period ended November 26, 2017. In line with its expectations, all performance indicators of Sportscene and the La Cage – Brasserie sportive network pursued the upward trend initiated almost two years ago.

Total sales ⁽¹⁾ of the La Cage – Brasserie sportive network amounted to $31.3 million, posting an 11.3% increase compared with the corresponding period last year. As it was the case in previous quarters, this rise is attributable to sustained growth in average same-Cage sales ⁽²⁾. Sportscene's consolidated revenues reached $24.9 million, up 15.4% over the same period last year, while consolidated adjusted EBITDA ⁽³⁾ increased by 20.7% to stand at $2.6 million. Sportscene thus ended the first quarter of fiscal 2018 with net earnings of $0.8 million or $0.20 per share, compared to net earnings of $0.5 million or $0.13 per share last year. Operating activities generated cash flows of $1.8 million, raising the Company's short-term available cash to $4.9 million as at November 26, 2017.

Therefore, Sportscene can bank on a sound financial position to implement its action plan for fiscal 2018, based on the following main drivers: (1) technological development; (2) modernization of the La Cage network according to the new design; and (3) the pursuit of innovative employee training and engagement programs.

"After several consecutive quarters of sustained growth, and even though the strategic repositioning achieved in recent years has not yet unlocked its full potential, it is clear that our Company is now well positioned for growth and ready to consider longer-term expansion projects", said Sportscene's President and Chief Executive Officer Jean Bédard.  

"Through the major transition accomplished in recent years, we have consolidated our leadership in our market niche: ambience restaurant operations. Furthermore, we have acquired additional expertise and developed our practices with respect to local procurement, a key to superior food freshness. These strengths are opening up longer-term expansion avenues on which we intend to capitalize in coming years", the C.E.O concluded.

Profile

Sportscene Group is a pioneer and a leader in the ambience restaurant niche in Quebec, where it has operated a chain of sports-themed resto-bars since 1984: La Cage – Brasserie sportive ("La Cage"). Enjoying a strong brand image, La Cage comprises 44 units located across Quebec at the date hereof. The Cages offer complete foodservices and bar services in a sophisticated sports-inspired décor featuring the most advanced audio-visual technologies.

The following items are not performance measures consistent with IFRS:
(1)	Total network sales correspondent to sales achieved by all La Cage restaurants, including corporate units, partnerships and franchises.
(2)	Average same-Cage sales isolate the impact of restaurant openings and closures to assess the actual trend in restaurant sales.
(3)	In Sportscene's statement of comprehensive income, consolidated adjusted EBITDA corresponds to "Earnings before financial expenses, amortization, net (income) loss of joint ventures and associates and income taxes", from which other (gains) losses are excluded, and to which the Company's share of earnings before financial expenses, amortization and income taxes of joint ventures and associates is added.

For further information regarding the results and financial position of Sportscene Group Inc., refer to the management report as well as the interim condensed consolidated financial statements and accompanying notes for the 13-week period ended November 26, 2017, which are available on SEDAR.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Reconciliation of Non-IFRS Financial Measures
	13-Week Periods Ended
	November 26, 2017	November 27, 2016
Restaurant revenues	21,228	18,584
Food concession revenues	(1,440)	(911)
Non-banner revenues	(1,591)	(1,434)
Revenue from franchises and joint ventures	13,060	11,841
Total network sales	31,257	28,080
Income before financial expenses, amortization, net (income) loss of joint ventures and associates and income taxes	2,412	1,980
Other (gains) loss	(73)	(81)
Adjusted EBITDA	2,339	1,899
Earnings before financial expenses, amortization and income taxes of joint ventures and associates	289	279
Consolidated adjusted EBITDA	2,628	2,178

Interim Condensed Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars, except for earnings per share and number of outstanding shares)
(unaudited)
			13 weeks ended
			November 26,	November 27,
			2017	2016
			$	$
Revenues			24,906	21,585
Cost of sales			7,705	6,388
Selling and administrative expenses, excluding amortization			14,862	13,298
Other (gains) losses			(73)	(81)
Earnings before financial expenses, amortization, net (income) loss of joint ventures and associates and income tax			2,412	1,980
Amortization			1,282	1,172
Financial expenses			207	187
Net (income) loss of joint ventures and associates			(123)	(71)
			1,366	1,288
Earnings before income tax expenses			1,046	692
Income tax expenses			243	169
Net earnings and comprehensive income			803	523
Net earnings and comprehensive income attributable to:
The Company's shareholders			821	538
Non-controlling interests			(18)	(15)
Net earnings and comprehensive income			803	523
Earnings per share (in $):
		Basic	0.20	0.13
		Diluted	0.20	0.13
Weighted average number of outstanding Class A shares (in thousands):
		Basic	4,185	4,165
		Diluted	4,215	4,165

SOURCE Sportscene Group Inc.

Jean Bédard, Chairman of the Board, President and Chief Executive Officer; François-Xavier Pilon, Vice-President, Finance, 450-641-3011

Related Links

http://www.cage.ca