Humpty's Restaurants International Inc.

Humpty's Restaurants International Inc.

June 02, 2006 13:04 ET

Humpty's Restaurants International Releases 2006 First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released financial results for the 3-month period ending March 31, 2006.

For the 3 Months ended March 31
2006 2005
Consolidated Revenue: $2,552,288 $2,142,015
Net Income: 56,729 44,249
Net Income/Share: 0.004 0.003
Shares Outstanding: 14,803,785 14,845,785

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 31st. 2006.

Fiscal First Quarter 2006 operating results were much improved as the Corporation recorded net income of $56,729 vs. net income of $44,249 in fiscal 2005.

Year-over-year First Quarter combined revenue (Franchise Revenue and Restaurant Operations) increased 19.2% through the period from $2.142 million (Q1/05) to $2,552 million (Q1/06). Franchise revenue recorded a slight increase whereas Restaurant Operations increased significantly by 29.8%. The substantial increase of sales from Restaurant Operations was mainly due to the change of gasoline brands at our Red Deer Gasoline Alley location in February 2006. During the months of February and March the sales at this location increased 138%. Despite some renovations that were performed in January (sales loss of $35,000) Restaurant food sales still achieved an increase of 4.0% over the same period in 2005. G & A expenses decreased by 4.3% due mainly to the 14% decrease in advertising and promotion.

In the unusual section (other items) of our income statement we expensed $147,325 vs. $31,621 in fiscal 2005. In our Annual Report (2005) we reported a loss of $223,705 as a result of the Thunder Bay ON closure. From this closure there were residual losses of $51,507 that could not be determined until the First Quarter. This loss was recorded under lease settlements.

As previously mentioned The Corporate Restaurant performance improved 4% in the First Quarter. Overall system wide same store Restaurant sales increased by 5% with the Alberta economy leading the way. In January 2006 we took back the Franchise location in Cold Lake AB and immediately increased sales 97.2% and 88.4% for February and March respectively. The location is now profitable and is contributing to H.R.I.I.'s income.

Currently in the Humpty's System there are fifty-one (51) locations in Canada. The breakdown by Province is as follows: BC=2, AB=36, SK=10 and MB=3.

As we look forward into 2006 we will continue our efforts to grow the System geographically. However more importantly we will be 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

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)