Transformation of Aegis into a consolidator in the food and beverage space continues
Highlights
- Aegis entered into a strategic transaction to sell
Hemisphere Cannabis Co. ("Hemisphere") - The sale of Second Cup closed on
April 23 rd, 2021 - Aegis' Net Loss from continuing operations for the quarter was
$1,191,000 , or$0.05 per share compared to$1,207,000 , or the same loss per share in the second quarter of last year - Bridgehead's Net Loss for the quarter was
$23,000 compared to$494,000 in the second quarter of last year
Bridgehead
Sales at Bridgehead coffeehouses were hampered by the third wave of COVID-19 during the second quarter, with Same Store Sales (SSS) at -49.3% of 2019 results. However, revenues were bolstered by Bridgehead's e-commerce and wholesale business that has emerged through the pandemic. The brand continues to improve the bottom line with a Net Loss of
The leadership team at Bridgehead continues to innovate, reposition and expand as they focus on the growth of three key distribution channels: coffeehouses, online and wholesale. This includes the opening of a new location at
Hemisphere
Held for Sale and Discontinued Operations
On
With the sale of Second Cup and the pending sale of Hemisphere, the transformation of Aegis is well underway. As
Consumers are enthusiastically returning to all types of food service locations following a period of unmatched household savings, and with fewer options to choose. An estimated 10% of restaurants in
Additionally, subject to the receipt of certain third-party consents and other customary closing conditions, the sale of Hemisphere to Kiaro is expected to close in the fall, enabling Aegis to increase its focus on the growth of its Bridgehead Coffee brand and execute its acquisition strategy. Upon completion of the transaction, it is anticipated that Aegis will hold approximately 25% of Kiaro's common shares and will be Kiaro's largest shareholder. Aegis' CEO
Aegis continues to build an experienced leadership team that has created and grown some of the best hospitality brands in
NON-IFRS MEASURES
Aegis measures the success of its business in part by employing several key performance indicators referenced herein that are not recognized under IFRS, including same store sales and EBITDA. These indicators should not be considered an alternative to IFRS financial measures, such as net income, and are presented in this presentation because management of Aegis believes that such measures are relevant in interpreting the performance of its business. As non–IFRS financial measures do not have standardized definitions prescribed by IFRS, they are less likely to be comparable with other issuers or peer companies. A description of the non–IFRS measures used by Aegis in measuring its performance and a reconciliation of certain non–IFRS measures to the nearest IFRS measure is included in Aegis' management's discussion and analysis for the second quarter ended
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Canadian securities laws. These forward-looking statements contain statements of intent, belief or current expectations of Aegis. Forward-looking information is often, but not always identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook.
The forward-looking statements included in this press release, including statements regarding the pending sale of Hemisphere, the nature of Aegis' growth strategy going forward and Aegis' execution on any of its potential plans (including with respect to the growth and development of Bridgehead Coffee and identification of future acquisition targets), are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements.
Risks and uncertainties that may cause such differences include but are not limited to: risks that the sale of Hemisphere may not be completed or that the earn-out component of the purchase price may never be realized; risks that the sale of Hemisphere may have a negative impact on the market price and liquidity of Aegis' common shares; risks related to the company's strategy going forward; risks related to the COVID-19 pandemic; and other risks inherent in the industry in which Aegis operates. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information on these and other factors that could affect Aegis' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
In respect of the forward-looking statements and information included in this press release, Aegis has provided such in reliance on certain assumptions that it believes are reasonable at this time, including the ability of the company to manage the risks (economic, operational, financial, and other risks) associated with the COVID-19 pandemic, the ability of the company to identify new acquisition opportunities and to successfully integrate past and future acquisition targets into the company's business, and the company's ability to generally execute on its strategy going forward.
The forward-looking statements in this press release are made as of the date it was issued and Aegis does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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SOURCE
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