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HMP Humptys Restuarants Intl

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Share Name Share Symbol Market Type
Humptys Restuarants Intl TSXV:HMP TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Humpty's Restaurants International Inc. (HMP-TSX) Today Released Financial Results for the 3-Month Period Ending March 31, 2009

01/06/2009 9:48pm

Marketwired Canada


Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released
financial results for the 3-month period ending March 31, 2009.




                                           For the 3- Months ended March 31 
                                                   2009                2008
----------------------------------------------------------------------------
Consolidated Revenue:                        $1,746,388          $1,684,595
Net Income:                                     211,304              94,280
Net Income/Share:                                 0.014               0.006
Shares Outstanding:                          14,629,785          14,651,785
----------------------------------------------------------------------------



We are pleased to present the First Quarter Report for Humpty's Restaurants
International Inc. (H.R.I.I.) for the three months ending March 31, 2009.


Year-over-year First Quarter combined revenue (Franchise Revenue and Corporate
Store Operations) increased 3.6% through the period from $1.685 million (Q1 /
08) to $1.746 million (Q1 / 09). Franchise revenue decreased by 6.7% whereas
Corporate Stores Operations increased by 12.1%. The decrease in Franchise
revenue can be attributed to reduced restaurant sales in our Franchise locations
thus resulting in reduced Royalty and Advertising fees. The increase in
Corporate Store Operations is the result of the addition of another Corporate
location in December 2008 (Cold Lake, AB). Previously this location was only
being managed by the Corporation.


Fiscal First Quarter 2009 net income increased by 124.1% over 2008. The net
income of $211,304 in 2009 vs. $94,280 is fiscal 2008 was largely due to the
Corporation selling one it's Calgary corporately operated locations in March
2009. The gain on the sale of these fixed assets was $139,643. G&A expenses
improved by 14.1% or $66,170 from 2008. This was mainly due to a significant
decrease in advertising costs. Traditionally the First Quarter records soft
sales however with the current state of the economy we held back on our normal
First Quarter expenditures. Some of these funds that were held back will be
expensed in the Second and Third Quarter when revenues are expected to increase.


The current downturn in the economy has had a negative impact on our sales. Same
store sales to the end of March 2009 were down 7.7%. The Canadian Food and
Restaurant Association predicts a 4.6% reduction in food service sales for 2009.
This would be the largest decline since the 10.6% drop in 1991. For the Humpty's
System we are budgeting a 5.1% drop in revenue for 2009. Because the Humpty's
System is in the mid-scale casual restaurant category we will not be impacted as
much as the higher-end casual restaurant because we can offer similar products
at lower prices. Consumers will continue to dine out, as it is still as "event"
however they will not be spending as much and it won't be as frequent.


The Corporation has received more inquiries for Franchise information in the
past months than in the previous two years. This is a positive message for
Franchise growth. Another positive sign is that the Corporation will open a new
location in Calgary, AB in the Third Quarter (July 2009), the first in two and
one-half years. The downturn in the economy has lowered the cost of doing
renovations therefore many of our Franchise locations will be upgrading their
location in 2009.


The Humpty's System is doing everything in its power to put a positive spin to
this downturn in the economy. It will use this time to refocus on the basic
concepts of the System. With the labour situation now stabilized we will have
the opportunity to better emphasize "Quality - Service - Cleanliness".


With our focus on QSC and by continuing our efforts to improve what we already
have the future looks positive.


For detailed financial information, audited statements can be found at
www.sedar.com.


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