MONTREAL, Que. – The economy continues to take its toll on restaurant sales. Case-in-point: Montreal-based Sportscene Restaurants, parent company of La Cage aux Sports,’s announced results for the quarter ending February 28, posting net earnings of $1.1 million or $0.25 per share (basic and diluted), compared with $1.2 million or $0.29 per share (basic and diluted) year-over-year.
Company execs consider the results satisfactory considering the economic uncertainty that continues to affect consumer spending and customer traffic. Total sales at La Cage aux Sports’s network have declined by 7.8 per cent for a total of $27.6 million during that period.
The company’s revenues decreased by 8.4 per cent to $18.3 million, due largely to the fact that Sportscene did not undertake any significant construction or renovation work during the second quarter of the current fiscal year. In the same period last year the company had finalized the construction of a new franchised Cage. However, restaurant revenues remained stable. Operating income, or EBITDA, amounted to $2.5 million, compared with $2.9 million the previous year.
During the six-month period ended Feb. 28, 2010, Sportscene Group posted net earnings of $2.6 million or $0.61 per share (basic and diluted) on revenues of $39.4 million, compared with net earnings of $2.7 million or $0.64 per share (basic and diluted) on revenues of $42.9 million in the first half of the previous year.
President and CEO Jean Bédard indicated that most of the network’s sales decrease is attributable to the economic climate. “Overall, the La Cage aux Sports banner has succeeded so far in weathering the economic slowdown and defending its competitive position through targeted and effective marketing initiatives. In addition, despite a decrease in Sportscene’s revenues, the efforts made since the beginning of the recession to further focus on value-added activities and optimize operations enabled us to maintain preserve the profitability of La Cage aux Sports’s network and Sportscene Group as a whole.”