Humpty's Restaurants International Inc.

Humpty's Restaurants International Inc.

June 01, 2009 16:48 ET

Humpty's Restaurants International Inc. (HMP-TSX) Today Released Financial Results for the 3-Month Period Ending March 31, 2009

CALGARY, ALBERTA--(Marketwire - June 1, 2009) - Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released financial results for the 3-month period ending March 31, 2009.

For the 3- Months ended March 31
2009 2008
Consolidated Revenue: $1,746,388 $1,684,595
Net Income: 211,304 94,280
Net Income/Share: 0.014 0.006
Shares Outstanding: 14,629,785 14,651,785

We are pleased to present the First Quarter Report for Humpty's Restaurants International Inc. (H.R.I.I.) for the three months ending March 31, 2009.

Year-over-year First Quarter combined revenue (Franchise Revenue and Corporate Store Operations) increased 3.6% through the period from $1.685 million (Q1 / 08) to $1.746 million (Q1 / 09). Franchise revenue decreased by 6.7% whereas Corporate Stores Operations increased by 12.1%. The decrease in Franchise revenue can be attributed to reduced restaurant sales in our Franchise locations thus resulting in reduced Royalty and Advertising fees. The increase in Corporate Store Operations is the result of the addition of another Corporate location in December 2008 (Cold Lake, AB). Previously this location was only being managed by the Corporation.

Fiscal First Quarter 2009 net income increased by 124.1% over 2008. The net income of $211,304 in 2009 vs. $94,280 is fiscal 2008 was largely due to the Corporation selling one it's Calgary corporately operated locations in March 2009. The gain on the sale of these fixed assets was $139,643. G&A expenses improved by 14.1% or $66,170 from 2008. This was mainly due to a significant decrease in advertising costs. Traditionally the First Quarter records soft sales however with the current state of the economy we held back on our normal First Quarter expenditures. Some of these funds that were held back will be expensed in the Second and Third Quarter when revenues are expected to increase.

The current downturn in the economy has had a negative impact on our sales. Same store sales to the end of March 2009 were down 7.7%. The Canadian Food and Restaurant Association predicts a 4.6% reduction in food service sales for 2009. This would be the largest decline since the 10.6% drop in 1991. For the Humpty's System we are budgeting a 5.1% drop in revenue for 2009. Because the Humpty's System is in the mid-scale casual restaurant category we will not be impacted as much as the higher-end casual restaurant because we can offer similar products at lower prices. Consumers will continue to dine out, as it is still as "event" however they will not be spending as much and it won't be as frequent.

The Corporation has received more inquiries for Franchise information in the past months than in the previous two years. This is a positive message for Franchise growth. Another positive sign is that the Corporation will open a new location in Calgary, AB in the Third Quarter (July 2009), the first in two and one-half years. The downturn in the economy has lowered the cost of doing renovations therefore many of our Franchise locations will be upgrading their location in 2009.

The Humpty's System is doing everything in its power to put a positive spin to this downturn in the economy. It will use this time to refocus on the basic concepts of the System. With the labour situation now stabilized we will have the opportunity to better emphasize "Quality - Service - Cleanliness".

With our focus on QSC and by continuing our efforts to improve what we already have the future looks positive.

For detailed financial information, audited statements can be found at

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Humpty's Restaurants International Inc.
    Mr. Koenig
    (403) 269-4675
    (403) 266-1973 (FAX)
    Humpty's Restaurants International Inc.
    Tom Scappatura
    (403) 269-4675
    (403) 266-1973 (FAX)