MONTREAL, Nov. 25, 2021 /CNW Telbec/ - Sportscene
Group Inc. ("Sportscene" or "the Company"); (TSXV: SPS.A)
announced its financial results today for the fourth quarter and
fiscal year ended August 29,
2021.
"We ended our financial year in a good position due to the
receipt of various government subsidies, the complete reopening of
our dining rooms in June as well as diversification of our
revenues, most notably our retail product offering. We also
benefited from the Canadiens participating in the Stanley Cup
finals," said Jean Bédard, President and CEO.
"We are particularly grateful for the collective efforts of our
employees, franchisees and partners who have helped us adapt and
even innovate to this new operating environment," concluded Mr.
Bédard.
Financial Performance for the Fourth Quarter Ended
August 29, 2021
The increase of 31.2%, or $6.3
million, of the Company's consolidated revenues, to
$26.4 million, stems primarily from
the easing of public health measures allowing the complete
reopening of our restaurant's dining rooms. However, when compared
with the fourth quarter of fiscal 2019, prior to the pandemic, the
Company's consolidated revenues were lower by 21.2%, from
$33.5 million. Revenues from the
restaurant, franchising and other segments together increased by
$9.1 million, compared to fiscal
2020, while revenues from the retail segment decreased by
$2.8 million, or 26.9%, to
$7.5 million. Supply chain
issues and stronger orders during the fourth quarter of last fiscal
year when new customers accounts were building their inventory
explain a portion of this reduction.
Consolidated adjusted EBITDA(1) for the fourth
quarter was $6.3 million, an increase
of 110.8% or $3.3 million from the
support of government subsidies and from gross margin improvements
following the reopening of restaurant dining rooms across the
network.
Sportscene ended the fourth quarter of fiscal 2021 with net
earnings of $2.4 million or
$0.28 per share (basic and diluted),
compared to net earnings of $0.7
million or $0.09 per share
(basic and diluted) in the same quarter last fiscal year.
Financial Performance for Fiscal 2021
Sportscene's fiscal 2021 consolidated revenues decreased by
38.3% or $42.1 million, to
$67.7 million. The COVID-19 pandemic
and associated public health measures imposed by the government
resulted in a significant slowdown in the restaurant, franchising
and other activities segments particularly during the first three
quarters of the fiscal year. However, retail revenues grew 6.5% to
$31.1 million due to dedicated
efforts in the last few years to grow the offering and the
distribution network.
Consolidated adjusted EBITDA(1) for fiscal 2021 grew
by 6.7%, or $0.7 million, to
$11.1 million. Lower consolidated
revenues and consolidated gross margins brought on by a more
restrictive operating environment in the context of the COVID-19
pandemic was mitigated by various government support measures, the
reopening of restaurant dine-in operations since the fourth
quarter, the diversification of activities towards the retail
sector and efforts dedicated to optimizing costs.
Sportscene ended fiscal 2021 with net earnings of $0.6 million or $0.07 per share (basic and diluted), compared to
a net loss of $4.0 million or
$0.45 per share (basic and diluted)
during the previous fiscal year when a $4.7
million depreciation charge was recognized in the context of
the COVID-19 pandemic.
Important Subsequent Event
On November 18, 2021, the
Corporation announced that it had entered into a final combination
agreement pursuant to which Jean Bédard, the President and Chief
Executive Officer of Sportscene, and a consortium of Québec
investors led by Champlain Financial Corporation will acquire,
through a newly incorporated corporation, all of the issued and
outstanding Class A shares of Sportscene, except for 1.7
million shares held, directly or indirectly, by Jean Bédard,
for a cash consideration of $7.25 per
share. Under the terms of the Transaction, Sportscene will
therefore become a private corporation and its shares will cease to
be listed on the TSX Venture Exchange. For further
information on the Transaction, please refer to the Company's press
release issued on November 18,
2021.
Disclaimer on forward-looking statements
This press release contains forward-looking statements
relating to the Company. Statements based on management's current
expectations involve known and unknown inherent risks and
uncertainties, including risks associated with public health issues
such as those resulting from the COVID-19 pandemic. Actual results
may differ from expectations. The reader is cautioned not to place
undue reliance on forward-looking information. The Company does not
undertake any obligation to update or revise any forward-looking
statements as a result of new information, future events or other
changes except if required by applicable laws.
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.
About Sportscene Group
Sportscene Group Inc. is a pioneer and leader in the ambiance
restaurant niche in Quebec. Since
1984, it has been operating the La Cage – Brasserie Sportive
("La Cage") restaurant chain, differentiated by its sporting
ambiance and food made from fresh, local products. With a strong
brand image, La Cage is established throughout the province and has
currently 38 locations. Sportscene continues to diversify its
restaurant activities, notably through the operation of
P.F. Chang's, an Asian cuisine restaurant and its
catering business for special events, making the Company a key
player in Quebec's restaurant
industry. Besides its restaurant operations, Sportscene is active
in the sale of La Cage and Moishes branded products
in grocery stores, ready-to-eat meals and ready-to-cook boxes.
Non-IFRS measures
The following measures used by the Company are not measures
recognized under International Financial Reporting Standards
("IFRS"):
|
(1)
|
"Consolidated
adjusted EBITDA" corresponds to "earnings before financial
expenses, amortization, net loss (income) of joint ventures and
income taxes", from which other (gains) losses are excluded and to
which the share of earnings before financial expenses, amortization
and income tax of joint ventures is added. See
"Reconciliation of non-IFRS financial measures",
below.
|
Reconciliation of Non-IFRS Financial
Measures
(Audited, in thousands of $)
|
Fourth
Quarter
Ended
|
Fiscal
Year
Ended
|
|
August 29,
2021
|
August 30,
2020
|
August 29,
2021
|
August 30,
2020
|
|
Income before
financial expenses, amortization, net
|
|
|
|
|
|
loss (income) of joint
ventures and income taxes
|
5,053
|
3,453
|
7,420
|
5,564
|
|
Other (gains)
losses
|
52
|
(699)
|
(431)
|
4,053
|
|
Government assistance
deducted from amortization and
|
|
|
|
|
|
financial
expenses(1)
|
689
|
-
|
3,453
|
-
|
|
Loss (income) before
financial expenses, amortization and
|
|
|
|
|
|
income taxes of
joint ventures(2)
|
477
|
222
|
653
|
786
|
|
Consolidated
Adjusted EBITDA
|
6,271
|
2,976
|
11,095
|
10,403
|
|
(1)
|
In accordance with
IFRS, a portion of government rent assistance has been applied
against amortization of right-of-use assets and interest on lease
liabilities. These amounts have been included in the calculation of
the consolidated adjusted EBITDA as they are considered monetary
items.
|
|
(2)
|
For further details,
see Note 18, "Investments in joint ventures", of the notes
to the annual consolidated financial statements.
|
For more information on the operating results and financial
position of Sportscene Group Inc., please see the annual management
discussion and analysis and consolidated financial statements and
accompanying notes for the fiscal year ended August 29, 2021, available on SEDAR.
Interim Condensed Consolidated Statements of Comprehensive
Income
(Audited, in thousands of Canadian dollars, except
for earnings per share and number of outstanding shares)
|
Fiscal
Year
Ended
|
|
August
29,
|
August 30,
|
|
2021
|
2020
|
|
$
|
$
|
|
Revenues
|
67,724
|
109,848
|
|
Cost of
sales
|
36,202
|
48,372
|
|
Selling and
administrative expenses, excluding amortization
|
24,533
|
51,859
|
|
Other (gains) losses
(1)
|
(431)
|
4,053
|
|
Income before
financial expenses, amortization, net loss (income) of joint
ventures and income tax
|
7,420
|
5,564
|
|
|
|
|
Amortization
|
5,335
|
9,469
|
|
Financial
expenses
|
1,129
|
2,122
|
|
Net loss (income) of
joint ventures
|
45
|
(136)
|
|
6,509
|
11,455
|
|
|
|
|
Income (loss) before
income tax
|
911
|
(5,891)
|
|
Income tax expense
(recovery)
|
299
|
(1,851)
|
|
Net and comprehensive
income (loss)
|
612
|
(4,040)
|
|
|
|
|
Net and comprehensive
income (loss) attributable to:
|
|
|
|
The Company's
shareholders
|
579
|
(3,863)
|
|
Non-controlling
interests
|
33
|
(177)
|
|
Net and comprehensive
income (loss)
|
612
|
(4,040)
|
|
|
|
|
Income (loss) per
share (in dollars):
|
|
|
|
Basic
|
0.07
|
(0.45)
|
|
Diluted
|
0.07
|
(0.45)
|
|
|
|
|
Weighted average
number of outstanding Class A shares
(in
thousands):
|
|
|
|
Basic
|
8,579
|
8,548
|
|
Diluted
|
8,722
|
8,548
|
|
(1)
|
Other (gains) losses
include gains/losses on the disposal of property, plant and
equipment, loss on impairment of non-current assets, gains on
business combinations and gain on disposal of investments in joint
ventures. For further details, see Note 8 accompanying the annual
consolidated financial statements.
|
SOURCE Sportscene Group Inc.
