MONCTON, N.B. – Imvescor Restaurant Group Inc. (TSX: IRG) has reported a small loss in its most recent quarter as the company booked a significant reorganization charge and higher net financing costs.
The owner and franchisor of such eateries as Baton Rouge, Mikes, Pizza Delight and Scores said its net loss for the three months ended July 28 was $29,000 compared with a profit of $2.9 million in the same year-earlier period.
Revenue rose some 27 per cent to $14.8 million from $11.7 million.
During the third quarter, the company incurred $1.7 million in reorganization expenses consisting of costs related to the departure of its chief executive officer of $1.3 million and $350,000 in costs related to the accelerated vesting of related stock options.
Imvescor also booked a non-cash loss on redemption of debentures of $1.2 million.
Overall, the company experienced an increase of 1.1 per cent in same-store sales in the quarter, with those of New Brunswick focused Pizza Delight up 0.1 per cent and Quebec-focused Mikes and Scores up 0.4 per cent and Scores up 3.2 per cent respectively.
Baton Rouge, which operates in Nova Scotia, Quebec, Ontario and Alberta saw a decrease of 4.8 per cent.