Aegis Brands Reports Second Quarter Results New Stores Outperforming
Highlights for the quarter:
- System sales decreased by 4.2% to
$35.2 million and same store sales decreased by 7.5%. - Adjusted EBITDA for the second quarter was consistent with the prior year at
$1.6 million . - Net income improved 8.3% to
$1.1 million or$0.01 per share compared to$1.0 million or$0.01 per share a year ago. - Two new locations were opened during the quarter - in
Oakville, Ontario and inNew Minas, Nova Scotia , bringing the new store count this year to three.
Highlights year to date:
- System sales decreased by 4.7% to
$65.3 million and same store sales decreased by 7.5%. - Adjusted EBITDA for the second quarter was consistent with the prior year at
$2.7 million . - Net income improved 93.9% to
$1.2 million or$0.01 per share compared to$0.6 million or$0.01 per share a year ago.
St. Louis contributed
While same store sales declined 7.5% in the quarter, this followed a strong 11.6% increase in the same period last year. To return to positive growth, management has launched targeted initiatives including enhanced training at legacy locations, new menu items currently in trial, and a refreshed marketing focus on core traffic drivers—specifically Half Price Wing Nights and Half Price Bottles of Wine every Friday.
New Locations Over-Indexing on Performance
During the quarter, St. Louis opened two new locations—in
CPG and Retail Channel Expansion
St. Louis continues to diversify its revenue through retail channels. Starting this fall, Longo's, Foodland, and
Looking Forward
"Our new store performance reflects our focus on building a stronger, more resilient and scalable brand," said
Reconciliations of net income, the most directly comparable IFRS financial measure, to operating income, to EBITDA and adjusted EBITDA, to adjusted net earnings and adjusted net earnings per share are provided below.
Second Quarter
13 weeks ended
Net income to operating income:
(in thousands of Canadian dollars) |
2025 |
2024 |
Net income |
$ 1,109 |
$ 1,024 |
Add (deduct): |
|
|
Net loss from discontinued operations |
49 |
341 |
Interest and financing charges |
504 |
699 |
Other loss (income) |
(353) |
(843) |
Operating income |
$ 1,309 |
$ 1,221 |
Net income to EBITDA:
(in thousands of Canadian dollars) |
2025 |
2024 |
Net income |
$ 1,109 |
$ 1,024 |
Add (deduct): |
|
|
Net loss from discontinued operations |
49 |
341 |
Interest and financing charges |
504 |
699 |
Depreciation of property and equipment |
14 |
13 |
Amortization of intangible assets |
255 |
255 |
Amortization of right-of-use assets |
21 |
75 |
EBITDA |
$ 1,952 |
$ 2,407 |
EBITDA to adjusted EBITDA:
(in thousands of Canadian dollars) |
2025 |
2024 |
EBITDA |
$ 1,952 |
$ 2,407 |
Add (deduct): |
|
|
Other loss (income) |
(353) |
(843) |
Adjusted EBITDA |
$ 1,599 |
$ 1,564 |
Net income to adjusted net income:
(in thousands of Canadian dollars) |
2025 |
2024 |
Net income |
$ 1,109 |
$ 1,024 |
Add (deduct): |
|
|
Net loss from discontinued operations |
49 |
341 |
Other loss (income) |
(353) |
(843) |
Adjusted net income |
$ 805 |
$ 522 |
Net earnings per share to adjusted net earnings per share:
|
2025 |
2024 |
Net earnings per share |
$ 0.01 |
$ 0.01 |
Add (deduct): |
|
|
Net loss per share from discontinued operations |
0.00 |
0.00 |
Other loss (income) |
(0.00) |
(0.00) |
Adjusted net earnings per share |
$ 0.01 |
$ 0.01 |
Year to Date
26 weeks ended
Net income to operating income:
(in thousands of Canadian dollars) |
2025 |
2024 |
|
Net income |
$ 1,243 |
$ 641 |
|
Add (deduct): |
|
|
|
Net loss from discontinued operations |
153 |
793 |
|
Interest and financing charges |
1,034 |
1,440 |
|
Other loss (income) |
(353) |
(843) |
|
Operating income |
$ 2,077 |
$ 2,031 |
|
|
|
|
|
Net income to EBITDA:
(in thousands of Canadian dollars) |
2025 |
2024 |
Net income |
$ 1,243 |
$ 641 |
Add (deduct): |
|
|
Net loss from discontinued operations |
153 |
793 |
Interest and financing charges |
1,034 |
1,440 |
Depreciation of property and equipment |
27 |
25 |
Amortization of intangible assets |
510 |
510 |
Amortization of right-of-use assets |
41 |
149 |
EBITDA |
$ 3,008 |
$ 3,558 |
EBITDA to adjusted EBITDA:
(in thousands of Canadian dollars) |
2025 |
2024 |
EBITDA |
$ 3,008 |
$ 3,558 |
Add (deduct): |
|
|
Other loss (income) |
(353) |
(843) |
Adjusted EBITDA |
$ 2,655 |
$ 2,715 |
Net income to adjusted net income:
(in thousands of Canadian dollars) |
2025 |
2024 |
Net income |
$ 1,243 |
$ 641 |
Add (deduct): |
|
|
Net loss from discontinued operations |
153 |
793 |
Other loss (income) |
(353) |
(843) |
Adjusted net income |
$ 1,043 |
$ 591 |
Net earnings per share to adjusted net earnings per share:
|
2025 |
2024 |
Net earnings per share |
$ 0.01 |
$ 0.01 |
Add (deduct): |
|
|
Net loss per share from discontinued operations |
0.00 |
0.01 |
Other loss (income) |
(0.00) |
(0.01) |
Adjusted net earnings per share |
$ 0.01 |
$ 0.01 |
About
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 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
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
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 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