Aegis Returns to Profitability in the Third Quarter

TORONTO, Oct. 30, 2023

Highlights

• Aegis generated net income of $467,000 for the quarter or $0.01 per share compared to a net loss of $2,403,000 or $0.10 per share last year. Net loss year to date was $654,000 or $0.01 per share compared to a net loss of $6,874,000 or $0.30 per share.
• Aegis' EBITDA for the quarter was $1,845,000 compared to an EBITDA loss of $2,132,000 one year ago.
• Aegis' EBITDA was $3,826,000 year to date compared to an EBITDA loss of $6,066,000 last year.
• The St. Louis Bar & Grill ("St. Louis") brand provided encouraging results with net income of $1,683,000 for the quarter and $3,938,000 year to date.
• St. Louis' same store sales (SSS) increased 2.4% in the quarter and 7.4% year to date.
• Same store sales at Bridgehead increased 17.4% for the third quarter and 25.6% for the year.

"We are turning a corner at Aegis, as our investments in longer-term growth begin to return results and we report our first quarter of income from operations since 2018. We have the plans, the commitment, the expertise, and the partners to build on this momentum," said Steven Pelton, President and CEO of Aegis.

St. Louis generated revenue in the third quarter of $4,285,000 and $12,619,000 year to date. System sales increased by 5.9% to $32,734,000 and 9.9% to $92,412,000 in the quarter and year to date respectively.

St. Louis continues to evolve the menu to improve franchisee and corporate profitability. Additional promotions like the upcoming "Ribsanity" event are also designed to increase traffic and deliver an increase to the top and bottom lines. "Ribsanity is returning for the first time in four years. Our goal is to create new St. Louis rib enthusiasts just as we have done with our wings over the past 30 years." said Pelton.

St. Louis partnered with Sweet Jesus ice cream and launched a test at five locations. To date, the test has increased dessert sales in those stores substantially, without adding material capital investment. Due to the early success, St. Louis will be expanding the Sweet Jesus test to an additional ten locations.

In the third quarter, St. Louis entered into an agreement with Sports Interaction, an online sports betting company. This partnership creates a new revenue stream while creating an even more exciting atmosphere within our locations while the big games are on. "We want St. Louis to be the best place to enjoy sports with friends. We know many sports fans are betting on games since the new legislation came into Ontario. With this partnership, we aim to be the preferred restaurant to catch the game when you have a few bucks riding on it," said Pelton. Ontario St. Louis guests gained access to this new feature on October 8, 2023.