St. Louis continues to deliver impressive results TORONTO, Aug. 2, 2024 /CNW/ - Today, Aegis Brands Inc. (TSX:AEG) reported financial results for the second quarter ended June 30th, 2024.   Highlights: System sales of $37.2 million in the second quarter increased by 14.6% over the prior year and increased 15.5% to $68.9 million year to date. Same store sales rose 11.6% and 12.2% in the quarter and year to date respectively. EBITDA from continuing operations in the quarter increased by 87.5% to $2.2 million compared to $1.2 million last year. Net income from continuing operations for the quarter was $1.0 million or $0.01 per share compared with net income of $0.1 million or $0.00 per share last year. St. Louis opened its first location in the province of PEI. St. Louis Bar & Grill St. Louis contributed $3.5 million and $3.8 million Net income and EBITDA respectively for the quarter. Year to date St. Louis produced $5.6 million in Net income and $6.2 million in EBITDA. Same store sales rose by 11.6% and same store traffic increased by 6.5% over the same quarter last year. For the year, same stores sales increased by 12.2% with same store traffic increases of 9.1%. "Since Aegis' acquisition of St. Louis, the brand has delivered positive same store sales with the last three quarters producing 9.4%, 13.6% and 11.6% respectively. In uncertain economic times, these results are truly impressive" said Steven Pelton, President and CEO of Aegis Brands. "I am proud to work with our management team and the franchisees to increase both the top and bottom line of the stores. Year to date, we have added an approximate average of $36,000 to each store's profitability. Continually improving store economics is making an investment in our brand more compelling. As a result, our growing pipeline of franchisees will be our key to unlocking new store growth". June marked the opening of the first St. Louis on PEI and the eighth location in the Maritime provinces. A growing pipeline of locations and franchisees in the East Coast, Ontario, and Manitoba have been developed and will expand as store level profitability continues to improve. The company is currently focused on filling in the strongest markets it has before starting to build new ones. Last summer, St. Louis launched its famous Angus burger in grocery stores. The launch was well received and sales exceeded management's expectations. This year, burgers in grocery have already surpassed last year's sales with much of the barbeque season to come. Additionally, St. Louis will launch its signature chicken wings and boneless bites and will be available in stores starting this fall. To continue to build on the strong performance, St. Louis is in the middle of a three-step program to attract new guests and encourage existing guests to visit more often. The company's vision is "to create a world where everyone is a regular guest" and the first step was to reinforce the foundation of the business with an expanded focus on hospitality. The second step is a significant change to the menu. Menu launches over the next few quarters will introduce new items with the intent to attract new guests, while staying true to our guests who have been loyal to the brand for years. The final step is a brand refresh. "We are continually improving and becoming more broadly appealing, and the brand refresh will help signal these changes to our guests". Wing City by St. Louis The two store Wing City trial has not generated sufficient returns. We are curtailing the expansion until the brand can create meaningful profitability. "Although early in this trial concept, we are actively making the changes necessary for Wing City to improve its performance." said Pelton. Aegis Aegis is focused on increasing shareholder value by building and evolving its brands to have second-to-none store level economics. The company's goal is to provide franchisees with brands that are the best investment option for their time and money.  "We invested in St. Louis because it has been delivering strong returns for franchisees for two decades. With our help, its economics will continue to improve and the new store growth will accelerate" said Pelton. "Wing City has the same ambitions as St. Louis, as will any other brands we purchase or develop." Financial Highlights (in thousands of Canadian dollars): Revenue: 13 weeks ended June 30, 2024       June 25, 2023 26 weeks ended June 30, 2024        June 25, 2023 Royalties $               1,571 $            1,511 $               2,906 $              2,788 Advertising fund contributions 797 1,216 1,253 1,836 Other franchise revenue 2,047 2,085 3,855