MONCTON, NB, Nov. 23 /CNW Telbec/ -- Imvescor Restaurant Group ("IRG" or the "Company") (TSX: IRG), (formerly PDM Royalties Income Fund ("PDM") clarified today its year-end and financial reporting requirements, and provided a sales update for the third quarter and nine-month periods ended September 27, 2009.
Fiscal Year and Reporting Periods
As a result of the Plan of Arrangement, PDM Royalties Income Fund, Imvescor Inc. and all other entities that formed Imvescor Restaurant Group, were assigned deemed year-ends of October 9. 2009. At the first meeting of the Board of Directors of IRG, directors set a new fiscal year-end as the last Sunday in October. For 2009, the year-end is therefore October 25. Based on the short timeline between October 9 and October 25, securities commissions supported the Company's request for a single filing for the new entity for the ten-month period ended October 25, 2009. Audited financial results for the ten-month period will be reported within 90 days of the year-end.
Sales results: Third Quarter ended September 27, 2009
The following is an update on same store sales comparisons and total sales.
For the third-quarter ended September 27, 2009, same stores sales (SSS) for the four brands owned by the Company declined by -4.5%, due largely to difficult general economic conditions that continue to adversely affect the restaurant industry in Canada. During the quarter, Imvescor brands outperformed many publicly traded Canadian full service restaurants, which suffered same store sales declines ranging from -4.7% to -8.5%.
Total system sales in the third quarter were $106.4 million, a -4.1% change from total system sales of $110.9 million for the same quarter last year. Total system sales for nine months ended September 27, 2009 were $310.4 million, a -1.5% decrease compared to total system sales of $315.1 million for the same nine months last year.
At the brand level, SSS for Pizza Delight were -0.9% compared to a 3.7% increase for the same quarter in 2008. Mikes experienced an SSS decline of -4.3% compared to an increase of 4.1% for the same quarter in 2008. Scores recorded SSS growth of 0.9% compared to -1.4% for the same quarter in 2008. Baton Rouge, which operates in the casual dining segment most affected by the recession, experienced an SSS decline of -14.6% compared to -1.2% for the same period in 2008.
Same store sales and total sales comparisons for the third-quarter and nine-month period were negatively affected by the closure of two restaurants (one Baton Rouge and one Scores restaurant) during all or part of the second and third quarters, due to fire. As a result of the closures, total system sales decreased temporarily by approximately $4.6 million. Both restaurants have now reopened.
"With the amalgamation behind us we are now focusing all of our attention and resources on building shareholder value and managing our four brands for growth," said Ron Magruder, President and Chief Executive Officer.
About Imvescor Restaurant Group
Headquartered in Moncton, New Brunswick, Imvescor Restaurant Group owns franchised and corporate stores throughout Canada, under four brands: Pizza Delight(R) operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Baton Rouge(R) operates in the Province of Quebec and Ontario in the casual dining segment.
Certain information regarding Imvescor Restaurant Group contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. The Company assumes no obligation to update such forward-looking statements, except as required by applicable securities laws. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.