Sportscene Group and La Cage - Brasserie sportive Achieve Their Best Quarterly Results since 2012

MONTREAL, July 11, 2018 /CNW Telbec/ - Management of SPORTSCENE GROUP INC. ("Sportscene" or "the Company") (TSXV: SPS.A) is proud to announce that the growth in its financial results continued during the third quarter of fiscal 2018, both in terms of sales and profits, generating the best quarterly performance of the past six years. 

For the 13-week period ended May 27, 2018, total sales (1) of the La Cage – Brasserie sportive network posted a 2.9% increase to stand at $33.5 million. This increase is attributable to the growth in average same-Cage sales (2), in line with the upward trend that has characterized the network's performance for more than two years. Sportscene's consolidated revenues amounted to $27.3 million, up 4.7% over the corresponding quarter of preceding year, while consolidated adjusted EBITDA (3) increased by 28.8% to $3.4 million. Sportscene ended the third quarter of fiscal 2018 with net earnings of $1.5 million or $0.34 per share, up 68.7% over the previous year.

For the 39-week period ended May 27, 2018, network sales (1) grew by 6.8% to total $96.5 million. Sportscene's consolidated revenues increased by 10.3% to $77.3 million, mainly due to the strong performance of the La Cage network. For the same reason, consolidated adjusted EBITDA (3) increased by 28.9% to $8.4 million. Sportscene's year-to-date net earnings increased by 85% to total $2.8 million or $0.65 per share.

Sportscene's President and Chief Executive Officer Jean Bédard said that the sustained increase in average same-Cage sales and significant improvement in the profitability of both the restaurants and the Company reflect the success of the La Cage banner. "Our restaurants stand out as much for their modern, sports-themed and friendly ambiance as for their food offering based on fresh, local products. Since the beginning of the fiscal year, we have continued to prioritize employee training and engagement, as well as technological innovation. We also continued modernizing the network of Cages, approximately two-thirds of which now feature the new design."

Outlook

"Our future growth partly depends on new developments compatible with our restaurant operations. With this in mind, we recently signed a partnership agreement with the owners of L'Avenue restaurants to develop this banner through franchising. Its high-end breakfast concept complements our vision of fresh food options based on local procurement. In addition, we intend to open new locations in the coming year, both under the P.F. Chang's banner and for our new À Domicile restaurant concept, which will provide group entertainment and reception areas targeting the 20 to 35 year-old consumer segment", the C.E.O. added. 

Declaration of a Dividend of $0.30 Per Share

Sportscene Group announces that its Board of Directors today declared a dividend of $0.30 per Class A share, which will be paid on August 14, 2018 to shareholders of record as at July 27, 2018. This decision was motivated by the sustained growth in the Company's financial results over the last several quarters, its sound financial position and substantial cash assets, as well as its favourable outlook.

Profile

Sportscene Group is a pioneer and a leader in the ambience restaurant niche in Quebec, where it has operated a chain of resto-bars since 1984: La Cage – Brasserie sportive ("La Cage"). In addition to its sports-themed ambience, La Cage stands out for its fresh food offering, based on local procurement. Enjoying a strong brand image, La Cage comprises 43 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: 

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 and 39-week periods ended May 27, 2018, 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.

SOURCE Sportscene Group Inc.

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