MONCTON, N.B. — Imvescor Restaurant Group (formerly PDM Royalties Income Fund) has clarified its year-end and financial reporting requirements and provided a sales update for the third quarter and nine-month periods ended Sept. 27, 2009.
As a result of the Plan of Arrangement, PDM Royalties Income Fund, Imvescor Inc. and all other entities that formed Imvescor Restaurant Group, were assigned deemed year-ends of Oct. 9. 2009. At the first meeting of the Board of Directors of IRG, directors set a new fiscal year-end as the last Sunday in October. For 2009, the year-end is therefore Oct. 25. Based on the short timeline between Oct. 9 and Oct. 25, securities commissions supported the company’s request for a single filing for the new entity for the 10-month period ended Oct. 25, 2009. Audited financial results for the 10-month period will be reported within 90 days of the year-end.
For the third-quarter, ended Sept. 27, 2009, same stores sales (SSS) for the four brands owned by the company declined by -4.5 per cent, due largely to difficult general economic conditions that continue to adversely affect the restaurant industry in Canada. During the quarter, Imvescor brands outperformed many publicly traded Canadian full-service restaurants, which suffered same-store sales declines, ranging from -4.7 per cent to -8.5 per cent.
Total system sales in the third quarter were $106.4 million, a -4.1 per cent change from total system sales of $110.9 million for the same quarter last year. Total system sales for nine months ended Sept. 27 were $310.4 million, a -1.5 per cent decrease compared to total system sales of $315.1 million for the same nine months last year.
At the brand level, SSS for Pizza Delight were -0.9 per cent compared to a 3.7 per cent increase for the same quarter in 2008. Mikes experienced an SSS decline of -4.3 per cent compared to an increase of 4.1 per cent for the same quarter in 2008. Scores recorded SSS growth of 0.9 per cent compared to -1.4 per cent for the same quarter in 2008. Baton Rouge, which operates in the casual dining segment most affected by the recession, experienced an SSS decline of -14.6 per cent compared to -1.2 per cent for the same period in 2008.
Same store sales and total sales comparisons for the third-quarter and nine-month period were impacted by the closure of one Baton Rouge and one Scores restaurant during all or part of the second and third quarters, due to fire. As a result of the closures, total system sales decreased temporarily by approximately $4.6 million. Both restaurants have now re-opened.
“With the amalgamation behind us we are now focusing all of our attention and resources on building shareholder value and managing our four brands for growth,” said Ron Magruder, president and CEO.