MONTREAL, April 12, 2018 /CNW Telbec/ - SPORTSCENE GROUP INC. ("Sportscene" or "the Company") (TSXV: SPS.A) pursued its financial growth during the second quarter of fiscal year 2018, being the 13-week period ended February 25, 2018.  Total sales ⁽¹⁾ of the La Cage – Brasserie sportive network posted a 6.6% increase over the same quarter of the previous year to stand at $31.8 million, thanks to the sustained growth in average same-Cage sales ⁽²⁾. Sportscene's consolidated revenues amounted to $25.1 million, up 11.8% over the preceding year, while consolidated adjusted EBITDA ⁽³⁾ increased by 39.3% to stand at $2.4 million. Sportscene ended the second quarter of fiscal 2018 with net earnings of $0.5 million or $0.11 per share, compared with $0.1 million or $0.02 per share for the same quarter last year.

For the six-month period ended February 25, 2018, network sales ⁽¹⁾ totalled $63.0 million, up 8.9% over the same period of the previous year. Sportscene's consolidated revenues increased by 13.6% to reach $50.0 million. Consolidated adjusted EBITDA ⁽³⁾ increased by 28.8% to $5.0 million. Sportscene thus ended the first half of the fiscal year with net income of $1.3 million or $0.31 per share, more than twice the result recorded during the same period last year.

"Our financial results continue to evolve, bringing us closer quarter after quarter to the objectives of the extensive repositioning of the La Cage – Brasserie sportive banner carried out in recent years. Consistent with our key priority, same-Cage sales have experienced strong and sustained growth over the past two years, leading to a continuous improvement in the profitability of both the Cage network and the Company", said Sportscene's President and Chief Executive Officer Jean Bédard. 

Moreover, operating activities have generated cash flows of $3.8 million since the beginning of fiscal 2018, bringing the Company's short-term available cash to $5.6 million as at February 25, 2018.  Therefore, Sportscene is in a solid financial position to execute its investment and expansion plan.  Today, more than 60% of the network sports the new Cage image, and the Company still aims to complete the transformation of the network before the end of fiscal 2019.

"Now that the La Cage network is better positioned than ever and on track to meet its growth and profitability targets, we can look forward to new growth opportunities consistent with our sphere of excellence: ambience restaurant services with an emphasis on local procurement and food freshness", the C.E.O. added. 

Appointment of two New Directors

Sportscene Group announces the appointment of two new members to its Board of Directors: Jean-Marc Léger and Marc Poulin. Mr. Léger is a well-known expert in consumer's behaviour, monitoring of consumer's experience and marketing strategy. He is president of Léger, the largest Quebec- and Canadian-owned survey, market research and marketing strategy firm. Mr. Poulin is a specialist of the Canadian food industry. He has been a senior officer at Sobey's for almost 20 years, including 4 years as President and chief executive officer. Sportscene's development will benefit from their expertise.

Profile

Sportscene Group is a pioneer and a leader in the ambience restaurant niche in Quebec, where it has operated a chain of sports-themed resto-bars since 1984: La Cage – Brasserie sportive ("La Cage"). Enjoying a strong brand image, La Cage comprises 45 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 26-week periods ended February 25, 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.

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