Humpty's Restaurants International Inc.
TSX VENTURE : HMP

Humpty's Restaurants International Inc.

November 28, 2008 15:31 ET

Humpty's Restaurants International Inc. (HMP-TSX) Today Released Financial Results for the 9-Month Period Ending September 30, 2008

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) - Humpty's Restaurants International Inc. (TSX VENTURE:HMP) -



For the 9- Months ended September 30
2008 2007
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Consolidated Revenue: $ 5,339,287 $ 10,091,725
Net Income: 460,750 319,994
Net Income/Share: 0.03 0.02
Shares Outstanding: 14,631,785 14,661,785
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We are pleased to present the Third Quarter Report for Humpty's Restaurants International Inc. (H.R.I.I.) for the nine months ending September 30, 2008. Net income for the period increased by 43.6% ($132,788 vs. $92,493) from the same period in 2008. With the positive results from the Third Quarter the net income for the nine month period that ended September 30, 2008 improved by 44% ($460,750 vs. net income of $319,994 in fiscal 2007).

Year-over-year Third Quarter combined revenue (Franchise revenue and Restaurant operations) decreased 49.8% through the period from $3.676 million (Q3/07) to $1.846 million (Q3/08). Franchise revenue recorded an increase of 4.6% however Restaurant operations decreased significantly by 61.9%. As you can recall from the previous Quarterly Reports the decrease in the Restaurant operations was due to the fact that in the Fourth Quarter of fiscal 2007 the Corporation sold its high volume Gasoline, Convenience Store, Car Wash and Restaurant enterprise in Red Deer, AB. Despite the significant decrease in sales volume the contributing profit of 6.7% to sales was an improvement over the 2.1% to sales in fiscal 2007. Much of the sales in the Red Deer enterprise consisted of low margin gasoline and convenience store products. Year to date contributing profit from Restaurant operations has improved 18.6% ($194,018 vs. $163,654) from fiscal 2007.

As mentioned previously, Franchise revenue improved by 4.6% in the Third Quarter, however year-to-date this revenue is down 1.3% ($2,429,309 vs. $2,462,294). Despite this slight decrease we have been able to reduce G&A expenses by 4% thereby improving the contributing profit from Franchise revenue by 3.8% year-to-date.

The service sector, like many other sectors of our business community still continues to experience critical labor shortages. However the precarious economic situation in the U.S. is having a ripple effect on Canada and therefore we are witnessing layoffs in some industries. Although layoffs are not positive it does free up personnel to fill some of many jobs that are still out there. We anticipate that over the next twelve months at least 50% of all "help wanted" sign will be removed.

Despite the economy going into a downward slide over the next number of months the Humpty's System will not be effected as much as some of our higher end competitors. Because our system is midscale and basically full service fast food our pricing is competitive. Although finances may be tight people will still eat out, however instead of a $20 meal, a $10 meal will satisfy the dining experience. That's where Humpty's fills the void.

As is our mandate we will continue to explore and examine every opportunity that presents itself to grow the system geographically however, we will remain diligent in our efforts to assist our existing Franchisees and Corporate Managers in improving sales and profitability.

For detailed financial information, audited statements can be found at www.sedar.com.

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)
    or
    Humpty's Restaurants International Inc.
    Tom Scappatura
    Controller
    (403) 269-4675
    (403) 266-1973 (FAX)
    Email: info@humptys.com
    Website: www.humptys.com