Humpty's Restaurants International Inc.

Humpty's Restaurants International Inc.

August 31, 2009 18:38 ET

Humpty's Restaurants International Inc. (HMP-TSX) Today Released Financial Results for the 6-Month Period Ending June 30, 2009

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2009) - Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released financial results for the 6-month period ending June 30, 2009.

For the 6- Months ended June 30
2009 2008
Consolidated Revenue: $3,460,1738 $3,493,165
Net Income: 311,636 327,964
Net Income/Share: 0.021 0.022
Shares Outstanding: 14,619,785 14,631,785

We are pleased to present the Second Quarter Report for Humpty's Restaurants International Inc. (H.R.I.I.) for the six months ended June 30, 2009. Net income for the period decreased significantly by 57.1% ($100,332 vs. $233,684) from the same fiscal period that ended June 30, 2008. With these negative results from the Second Quarter the net income for the six-month period that ended June 30, 2009 decreased by 5.0% ($311,636 vs. net income $327,964 in fiscal 2008).

Year-over-year Second Quarter combined revenue (Franchise revenue and Restaurant operations) decreased 5.2% through the period from $1.81 million (Q2/08) to $1.71 million (Q2/09). Franchise revenue recorded a slight decrease of 4.1% whereas Restaurant revenue decreased by 6.1%. The decrease in Franchise revenue can be attributed to the 8.7% decrease in Royalty fees collected. With the economic climate being as it is, particularly in Alberta, same store sales in the first six months of the year were down close to 9.0%.

Besides our total revenue being reduced by nearly $100,000 during the Second Quarter as compared to fiscal 2008 the following two items contributed significantly to our reduced net income for the period.

1. Clean-up of mold contamination in Lease premises in Thunder Bay ON, cost $45,000 (Lease expired April 1, 2009).

2. A portion of the 2008 Audit Fees were charged to this Quarter. These fees were $20,000.

Despite the drop in net income for the Second Quarter we can take solace in the fact that year-to-date our net income has only suffered by 5%. At the same time we also reduced our G&A expenses by 4.9%. Although this downturn in the economy, the recession or depression as it has been referred, will likely continue for the next nine to twelve months, we are optimistic for the future. Franchise inquires continue to flow into our office which is a good sign. We are presently in negotiations for two Franchise locations, one in both Alberta and Saskatchewan. In September a contemporary "new look" Humpty's location will open in Calgary. This corporate location will seat 130 customers and is expected to generate $1.4 - $1.6 million sales per annum.

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)