Continued Stronger Profitability and Cash Flow
TORONTO, July 31, 2026 /CNW/ -- Today, Aegis Brands Inc. ("Aegis" or "the Company") (TSX: AEG) reported financial results for the second quarter ending June 28, 2026. The Company continues to deliver earnings growth, driven by operational efficiencies.
Highlights for the quarter:
-- System sales decreased 2.1% to $34.6 million and same store sales
decreased 3.9% compared to last year.
-- Net income for the second quarter improved 19.2% to $1.3 million, or
$0.02 per share, compared to net income of $1.1 million, or $0.01 per
share, in Q2 2025.
-- Adjusted EBITDA for the second quarter increased to $2.0 million from
$1.6 million in Q2 2025, representing year-over-year growth of 26.7%.
Year-to-Date:
-- System sales increased 1.2% to $66.2 million and same store sales
decreased 1.5% compared to last year.
-- Net income increased 44.7% to $1.8 million, or $0.02 per share, compared
with $1.2 million, or $0.01 per share, in the prior year.
-- Adjusted EBITDA increased 21.4% to $3.2 million from $2.7 million in the
prior year.
St. Louis Bar & Grill system sales for the quarter were down 2.1% to $34.6 million and same store sales decreased 3.9% compared with the prior year. The decline in sales was impacted by the timing of the Company's annual Wingsanity promotion which benefited sales in the second quarter of 2025 but will run in the third quarter of 2026. Excluding this timing difference, sales remained consistent.
Franchise revenue for the quarter increased 6.3% and operating expenses declined 9.7%, driven primarily by a more efficient overhead structure following the organizational restructuring. These improvements, together with reduced interest and financing costs, resulted in the 19.2% improvement in net income versus the prior year.
Balance Sheet and Liquidity
The Company continued to strengthen its financial position. Cash provided by operating activities totalled $2.2 million during the first half of the year, an increase of $1 million or 76% over the same period last year.
Corporate Update
During the quarter, Aegis announced a leadership transition following the departure of President and Chief Executive Officer Steven Pelton. The Company subsequently appointed Sean Murphy as President and Chief Executive Officer and a Director of Aegis Brands, effective August 17, 2026.
Outlook
"Our second quarter results demonstrate the resilience of the St. Louis business and the benefits of the operational initiatives undertaken over the past year," said Anthony Longo, Chairman of Aegis Brands. "While the timing of our Wingsanity promotion affected year-over-year sales comparisons during the quarter, the underlying business remained healthy, reflected in improved profitability and increased cash generation."
Aegis enters the second half of 2026 with a simplified business, prioritizing strengthening the St. Louis Bar & Grill brand. Management remains focused on driving franchisee success, enhancing guest experience, and maintaining disciplined cost management while continuing to evaluate strategic growth opportunities.
Reconciliations of net income, the most directly comparable IFRS financial measure, to operating income, to EBITDA and adjusted EBITDA, to adjusted net earnings and adjusted net earnings per share are provided below.
Second Quarter
13 weeks ended June 28, 2026 compared to 13 weeks ended June 29, 2025:
Net income to operating income:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,322 $ 1,109 Add (deduct):Net loss from discontinued operations - 49 Interest and financing charges 416 504 Other loss (income) - (353) Operating income $ 1,738 $ 1,309
Net income to EBITDA:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,322 $ 1,109 Add (deduct): Net loss from discontinued operations - 49 Interest and financing charges 416 504 Depreciation of property and equipment 12 14 Amortization of intangible assets 255 255 Amortization of right-of-use assets 21 21 EBITDA $ 2,026 $ 1,952
EBITDA to adjusted EBITDA:
(in thousands of Canadian dollars) 2026 2025 EBITDA $ 2,026 $ 1,952 Add (deduct):Other loss (income) - (353) Adjusted EBITDA $ 2,026 $ 1,599
Net income to adjusted net income:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,322 $ 1,109 Add (deduct):Net loss from discontinued operations - 49 Other loss (income) - (353) Adjusted net income $ 1,322 $ 805
Net earnings per share to adjusted net earnings per share:
2026 2025
Net earnings per share $ 0.02 $ 0.01
Add (deduct):Net loss per share from discontinued operations - 0.00
Other loss (income) - (0.00)
Adjusted net earnings per share $ 0.02 $ 0.01
Year to Date
26 weeks ended June 28, 2026 compared to 26 weeks ended June 29, 2025:
Net income to operating income:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,798 $ 1,243 Add (deduct):Net loss from discontinued operations - 153 Interest and financing charges 846 1,034 Other loss (income) - (353) Operating income $ 2,644 $ 2,077
Net income to EBITDA:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,798 $ 1,243 Add (deduct): Net loss from discontinued operations - 153 Interest and financing charges 846 1,034 Depreciation of property and equipment 28 27 Amortization of intangible assets 510 510 Amortization of right-of-use assets 42 41 EBITDA $ 3,224 $ 3,008
EBITDA to adjusted EBITDA:
(in thousands of Canadian dollars) 2026 2025 EBITDA $ 3,224 $ 3,008 Add (deduct):Other loss (income) - (353) Adjusted EBITDA $ 3,224 $ 2,655
Net income to adjusted net income:
(in thousands of Canadian dollars) 2026 2025 Net income $ 1,798 $ 1,243 Add (deduct):Net loss from discontinued operations - 153 Other loss (income) - (353) Adjusted net income $ 1,798 $ 1,043
Net earnings per share to adjusted net earnings per share:
2026 2025
Net earnings per share $ 0.02 $ 0.01
Add (deduct):Net loss per share from discontinued operations - 0.00
Other loss (income) - (0.00)
Adjusted net earnings per share $ 0.02 $ 0.01
About Aegis Brands
Aegis Brands Inc. owns and operates the St. Louis Bar & Grill brand and holds the master franchise for the Sweet Jesus ice cream brand in Canada. Aegis is focused on growing its portfolio through strategic partnerships, disciplined expansion, and operational excellence. For more information, visit www.aegisbrands.ca.
NON-IFRS MEASURES
Aegis measures the success of its business in part by employing several key performance indicators referenced herein that are not recognized under IFRS. These indicators should not be considered alternatives to IFRS financial measures, such as net income, and are presented because management of Aegis believes that such measures are relevant in interpreting the performance of its business. As non--IFRS financial measures do not have standardized definitions prescribed by IFRS, they are less likely to be comparable with other issuers or peer companies. A description of the non--IFRS measures used by Aegis in measuring its performance and a reconciliation of certain non--IFRS measures to the nearest IFRS measure is included in Aegis' management's discussion and analysis for the year ended December 28, 2025 available on the SEDAR+ website at www.sedarplus.ca.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Canadian securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The forward-looking statements included in this press release, include without limitation statements regarding future year-over-year sales increases, the nature of Aegis' growth strategy going forward and Aegis' execution on any of its potential plans (including with respect to the growth and development of St. Louis). Although Aegis has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking