Earnings before interest, taxes, depreciation and amortization (EBITDA) improved from 14.7 per cent in the third quarter of 2009 to 15.8 per cent this year, reversing declines experienced during the first two quarters of fiscal 2010. The gains are thanks to increased profit margins, lower financial expenses and a prime sport’s season, with the Montreal Canadiens’ making the Stanley Cup playoffs.
Nine-month earnings increased 5.8 per cent, to $4.2 million, for the La Cage Aux Sports resto-bar chain, although total network sales and revenues were down slightly compared with the same period in 2009. EBITDA increased by 2.1 per cent to $9.3 million, and the EBITDA margin improved from 14.4 per cent in 2009 to 15.1 per cent in 2010.
“Sportscene’s management believes the economic recovery that is gradually materializing should start to have a positive effect on the restaurant industry toward the end of 2010,” noted president and CEO Jean Bédard in a press release. “We intend to capitalize on our recent achievements to resume our expansion projects and the growth of our banner as of fiscal 2011.”
Sportscene has begun construction of the network’s 50th Cage unit — a large outlet in the East End of Montreal, which will open at the end of the first quarter of fiscal 2011. The company will also set up a foodservices concession inside a sports complex in Boisbriand, Que.