Sept. 2, 2002
BURLINGTON, Ontario -- Afton Food Group Ltd. (TSE: AFF), franchisor of the 241 Pizza chain and several other fast-food concepts, posted its first losing quarter in seven years.
According to a release, Afton attributed much of the loss to one-time, non-cash restructuring charges related to the closure of under-performing stores, call center losses and costs associated with its failed merger with the Pizza Delight chain.
For the second quarter ended June 30, 2002, Afton reported revenues of CAN $7.2 million versus $7.9 million (U.S. $4.6 million versus $5.1 million) the previous year.
For the first six months of the year, revenues were CAN $14.1 million versus $15.8 million (U.S. $9.1 million versus $10 million) in the previous year.
Following the restructuring charges, the company reported a pre-tax loss of CAN $11.2 million versus a profit of $480,000 (U.S. $7.2 million versus a profit of $309,000) for the same period in 2001, and a loss of CAN $10.7 million versus a profit of $1 million (U.S. $6.9 million versus $643,000) for the first six months of 2001.