TORONTO, Canada – Aegis Brands Inc. has reported financial results for the fourth quarter and year end as of December 31st, 2023. System sales reached $32.8 million in the fourth quarter increased by 19.1% over last year and for the year increased to $125.2 million or 12.2% over the prior year.
Same store sales accelerated through the year and increased by 9.4% in Q4. Operating income from continuing operations for the year was $2.1 million compared to a loss of $8.3 million last year
Net loss from continuing operations for the year was $1.0 million or $0.01 per share compared to $7.6 million or $0.31 per share last year. EBITDA from continuing operations for the year was $3.5 million compared to an EBITDA loss of $3.2 million when adjusted for asset impairment charges
Aegis Brands closed the previously announced sale of the assets of Bridgehead Coffee on March 8th, 2024.
St. Louis Bar & Grill
St. Louis contributed $4.6 million and $5.9 million in Net income and EBITDA respectively for the 2023 year. Same store sales rose by 9.4% in the fourth quarter and 7.8% for the year. St. Louis opened four new stores and closed none in the past year. Currently the brand has expanded to six provinces and 78 stores in total.
“St. Louis continues to grow sales organically”, said Steven Pelton, President and CEO of Aegis Brands Inc. “Our marketing department’s ability to drive traffic into our restaurants is improving with each promotion or event. As we see new faces during these events, our focus operationally is to convert new guests into regulars through providing extraordinary hospitality. We know if we can give our guest more than they expect within our four walls during a promotion, they will return, and we are seeing the results of these efforts. We are very proud of the people within the stores that are making this happen and we couldn’t be more excited for their continued success.”
Wing City by St. Louis
On December 14th, the first Wing City location opened in Toronto. This location is company owned and sales have steadily increased week over week. The menu, hours, and operations continue to evolve while trying to capture the perfect offering for the fast casual version of St. Louis. The second Wing City location will open within the next few months at the busy corner of King and Bathurst in Toronto. This location will be dual branded with Sweet Jesus.
Bridgehead
On March 8th the company closed the sale of the assets of its roasting, wholesale and coffeehouse business, excluding certain specified assets, for a purchase price of $3,500,000 in cash and the assumption of certain liabilities, to Pilot Coffee Group of Companies.
“This strategic divestiture allows us to build on the momentum of the St. Louis brand. We know there is significant growth yet to be realized with this brand and we are focused on creating shareholder value with this great asset.” said Pelton.
Aegis
After several challenging years, Aegis is now positioned for growth. The company is a very different company now than it has been in recent years. “We are excited about our future and are focused on growth and opportunities, not legacy problems” said Pelton. In 2023, Aegis brought on Chris Fountain as VP of Development at St. Louis and quickly promoted Chris to Chief Operating Officer at Aegis. Chris was the CEO and a partner at Pita Pit until they successfully sold the business in 2021. Pita Pit at its peak had 600+ stores operating in 13 countries.
The next step in the evolution of Aegis is to propose a rejuvenated slate of Directors for the shareholders to vote in at this year’s Annual General Meeting in May. This new slate will include Anthony Longo, CEO of Longo’s, and a significant shareholder of Aegis. Michael Bregman will step down as Chairman of the Board and will be succeeded by Anthony, if elected. Anthony’s extensive knowledge and experience will be invaluable as Aegis enters this new stage.
