MONTREAL, Jan. 19, 2017 /CNW Telbec/ - At the Annual Meeting of Shareholders held this morning in Boucherville, management of SPORTSCENE GROUP INC. ("Sportscene" or "the Company"; SPS.A / TSX Venture Exchange) announced financial results in line with expectations for the first quarter of fiscal 2017, being the 13-week period ended November 27, 2016. The positive trends initiated during fiscal year 2016 have continued since the start of fiscal 2017, as all of the Company's key performance indicators further improved: La Cage – Brasserie sportive network sales, revenues, adjusted EBITDA (3) and net earnings.
Financial Results for the 13-week period ended November 27, 2016
Total sales of the La Cage – Brasserie sportive network (1) increased by 3.5% to $28.1 million, despite the fact that the chain had three fewer units than the previous year following the optimization carried out toward the end of fiscal 2016. The growth in network sales is therefore essentially attributable to an increase in average same-Cage sales (2) driven by the major repositioning strategy implemented in previous quarters. Sportscene's revenues rose 4.4% to $21.6 million, while adjusted EBITDA grew by 36.0% to reach $1.9 million, reflecting an improvement in the Company's profit margins. Consequently, Sportscene ended the 13-week period with net earnings of $0.5 million or $0.13 per share (basic and diluted) compared to net earnings of $0.2 million or $0.05 per share (basic and diluted) in the same quarter last year.
Management is pleased with the Company's financial results and the network's growth, which confirm the success of its repositioning program. "We believe that the positive trends in our results are solid and sustainable, as they stem from a major renewal of La Cage's food offering and brand image, which continues to be very well received by consumers", said President and Chief Executive Officer Jean Bédard.
2017 Outlook
Management remains focused on the objectives set for fiscal 2017 in order to consolidate the gains achieved by Sportscene so far in terms of market shares, sales, profitability and growth potential. In particular, the Company will pursue the expansion of the La Cage – Brasserie sportive network and accelerate its modernization in light of the good performance of restaurants featuring the new interior design, which now total 17. "We will also continue to invest in the development of our human resources. With this in mind, we launched a unique initiative, Académie Cage, during the first quarter, consisting of a tailored training program for our chefs and a leadership program for restaurant operators. In each component of our operations, we will use the most effective methods and tools to further differentiate our banner and improve our profit margins by optimizing both our costs and the added value offered to La Cage customers," added the President and C.E.O.
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 46 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: franchisees, partnerships and corporate units. |
| (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, adjusted EBITDA corresponds to "Earnings before financial expenses, amortization, share of net earnings of joint ventures and associates and income taxes", from which other (gains) and losses are excluded. |
For further information regarding the results and financial position of Sportscene Group Inc., refer to the management's report as well as the unaudited consolidated financial statements and accompanying notes for the 13-week period ended November 27, 2016, 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 |
||
| (in millions of $) |
13-week period ended |
|
| November 27, 2016 |
November 29, 2015 |
|
| Restaurant revenues (1), excluding revenues from franchises and sales in grocery stores) |
18.6 |
15.6 |
| Food concession revenues |
(0.9) |
(0.6) |
| Other banner revenues |
(1.4) |
(1.3) |
| Revenues from franchises and joint ventures |
11.7 |
13.4 |
| Total network sales |
28.0 |
27.1 |
| Earnings before financial expenses, amortization, share of net earnings of joint ventures ans associates and income taxes |
2.0 |
1.5 |
| Other gains |
(0.1) |
(0.1) |
| Adjusted EBITDA |
1.9 |
1.4 |
| (1) Restaurant revenues are detailed in note 5, « Revenues », of the interim condensed consolidated financial statements |
| Interim Condensed Consolidated Statements of Comprehensive Income |
|||
| (in thousands of Canadian dollars, except for earnings per share and number of outstanding shares) |
|||
| 13 weeks ended |
|||
| November 27, |
November 29, |
||
| 2016 |
2015 |
||
| $ |
$ |
||
| Revenues |
21,585 |
20,677 |
|
| Cost of sales |
6,388 |
6,960 |
|
| Selling and administrative expenses, excluding amortization |
13,298 |
12,321 |
|
| Other gains |
(81) |
(71) |
|
| Earnings before financial expenses, amortization, share of net earnings of joint ventures and associates and income tax expenses |
1,980 |
1,467 |
|
| Amortization |
1,172 |
1,105 |
|
| Financial expenses |
187 |
181 |
|
| Share of net earnings of joint ventures and associates |
(71) |
(47) |
|
| 1,288 |
1,239 |
||
| Earnings before income tax expenses |
692 |
228 |
|
| Income tax expenses |
169 |
48 |
|
| Net earnings and comprehensive income |
523 |
180 |
|
| Net earnings and comprehensive income attributable to: |
|||
| The Company's shareholders |
538 |
228 |
|
| Non-controlling interests |
(15) |
(48) |
|
| Net earnings and comprehensive income |
523 |
180 |
|
|
Earnings per share (in $): |
|||
| Basic |
0.13 |
0.05 |
|
| Diluted |
0.13 |
0.05 |
|
| Weighted average number of outstanding Class A shares (in thousands): |
|||
| Basic |
4,165 |
4,165 |
|
| Diluted |
4,165 |
4,165 |
|
SOURCE Sportscene Group Inc.
Contacts: Jean Bédard, Chairman of the Board, President and Chief Executive Officer; Josée Pépin, Vice-President, Finance, 450-641-3011
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