Brick Brewing EBITDA* doubles to $1.2 million in first quarter

KITCHENER, ON, June 5, 2012 /CNW/ - Brick Brewing Co. Limited ("Brick" or the "Company") (TSX: BRB), the largest Canadian-owned brewery in Ontario, today released its financial results for the first quarter ended April 29, 2012 for its fiscal year 2013.

"Our Company is off to a fast start in fiscal 2013" declared George Croft, President and CEO. "During the first quarter, Seagram Blends volume at the LCBO increased by 43% compared to the first quarter of fiscal 2012.  We achieved a more profitable sales mix in the quarter, and improved both net revenue and gross profit by $0.5 million."

"We are focused on driving additional costs out of the business and have made the commitment to save $1 million in operating costs.  The significant leap in profitability this quarter is a testament to the determined effort and dedication of our staff", said Mr. Croft.

Brick launched its redesigned Waterloo Brewing Co. portfolio, which includes permanent additions to the family; Waterloo Amber and Waterloo IPA.  The new family of beers will be available at the LCBO and at The Beer Store in a range of pack formats.  "This launch of Waterloo Brewing Co. is only the beginning of our strategy to reaffirm our company's craft brewing leadership and heritage" noted Mr. Croft.

"Despite legislated price increases - which eliminated our compelling price advantage - and many of our competitors replicating our "can in case" program, our position in the value beer segment is strong.  Ontario beer drinkers can rely on the Laker family of beers to provide great value in beer. The significant investments we've made in brewing quality over the last few years have only made our beers more competitive in the crowded value segment." continued Mr. Croft. "We look forward to continued profitable growth throughout fiscal 2013."

Financial highlights are as follows:

  • Net revenues for the first quarter of fiscal 2013 were $8.6 million compared to $8.1 million in the first quarter of fiscal 2012.

  • Gross profit percentage for the quarter increased to 25.8% from 20.7% in the prior year comparable quarter.

  • EBITDA* for the first quarter of fiscal 2013 doubled to $1.2 million compared to EBITDA* in the first quarter of fiscal 2012 of $0.6 million.

The following financial information should be read in conjunction with the audited annual financial statements of the Company prepared under IFRS for the year ended January 31, 2012.

Reconciliation of Net Earnings to Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)*    
   
   Quarter ended 
(in thousands of dollars) April 29, 2012 May 1, 2011
     
Net income/(loss)  $ 342  $ (134)
     
Add:    
  Income tax expense/(recovery) 125 (57)
  Depreciation and amortization 623 618
  Finance costs 113 163
Subtotal 861 724
     
EBITDA* 1,203 590

 

STATEMENT OF COMPREHENSIVE INCOME
For the quarters ended April 29, 2012 and May 1, 2011
(Not audited or reviewed by the Company's external auditor)

     Quarter ended
April 29, 2012 
     Quarter ended
May 1, 2011 
           
Revenue $   8,625,963   $   8,132,603
Cost of sales   6,402,739     6,450,465
Gross profit   2,223,224     1,682,138
           
Selling, marketing and administration expenses   1,547,985     1,564,725
Other expenses   95,570     145,695
Finance costs   112,645     162,997
Income/(loss) before tax   467,024     (191,279)
           
Income tax expense/(recovery)   125,500     (57,000)
Net income/(loss) and comprehensive income/(loss) for the period $   341,524   $   (134,279)
           
           
Basic earnings per share $   0.01   $   -
Diluted earnings per share $   0.01   $   -

 

STATEMENT OF FINANCIAL POSITION
As at April 29, 2012 and January 31, 2012
(Not audited or reviewed by the Company's external auditor)

     
April 29, 2012 
     
January 31, 2012 
           
ASSETS          
  Non-current assets          
    Property, plant and equipment $   17,953,775   $   17,753,175
    Intangible assets   13,904,905     13,829,158
    Other assets   70,000     35,000
    Deferred income tax assets   2,731,500     2,857,000
    34,660,180     34,474,333
           
  Current assets          
    Accounts receivable   5,951,003     4,585,333
    Inventories   4,736,559     3,961,542
    Prepaid expenses   281,455     299,919
    10,969,017     8,846,794
TOTAL ASSETS   45,629,197     43,321,127
           
LIABILITIES AND EQUITY          
  Equity          
    Share capital   34,655,402     34,653,027
    Share-based payments reserves   975,280     969,893
    Deficit   (7,783,252)     (8,124,776)
  TOTAL EQUITY   27,847,430     27,498,144
           
  Non-current liabilities          
    Provisions   184,822     181,898
    Long-term debt and promissory note   5,685,580     5,890,379
    5,870,402     6,072,277
           
  Current liabilities          
    Bank indebtedness   2,973,833     1,999,482
    Accounts payable and accrued liabilities   7,471,628     6,245,305
    Current portion of long-term debt and promissory note   1,445,340     1,481,269
    Obligations under finance leases   20,564     24,650
    11,911,365     9,750,706
TOTAL LIABILITIES   17,781,767     15,822,983
           
COMMITMENTS          
           
TOTAL LIABILITIES AND EQUITY $   45,629,197   $   43,321,127

 

STATEMENT OF CASH FLOWS
For the quarters ended April 29, 2012 and May 1, 2011
(Not audited or reviewed by the Company's external auditor)

     Quarter ended
April 29, 2012 
     Quarter ended
May 1, 2011 
Operating activities          
  Net income/(loss) $   341,524   $   (134,279)
  Adjustments for:          
    Income tax expense/(recovery)   125,500     (57,000)
    Finance costs   112,645     162,997
    Depreciation and amortization of property, plant and
equipment and intangibles
  622,618     617,613
    Share-based payments   5,387     12,696
    Change in non-cash working capital related to operations   (960,376)     255,599
  Less:          
    Interest paid   (113,085)     (45,256)
Cash provided by operating activities   134,213     812,370
           
Investing activities          
  Purchase of property, plant and equipment   (813,801)     (524,421)
  Purchase of intangible assets   (85,164)     (5,225,613)
Cash used in investing activities   (898,965)     (5,750,034)
           
Financing activities          
  Increase in bank indebtedness   974,351     3,125,501
  Decrease in obligations under finance leases   (4,086)     (144,160)
  Issuance of long-term debt   -     5,800,000
  Repayment of mortgage payable - Roynat Inc.   -     (3,680,037)
  Payment of financing costs   -     (184,640)
  Repayment of long-term debt   (207,888)     -
  Change in share capital   2,375     -
  Stock options exercised   -     21,000
Cash provided by financing activities   764,752     4,937,664
           
Net increase/(decrease) in cash   -     -
           
Cash, beginning of period   -     -
Cash, end of period $   -   $   -
           
Non-cash investing and financing activities:          
  Acquisition of intangible assets satisfied
by the issuance of a promissory note payable 
$   -   $   2,400,000

 

Additional Information

For further details the Company's complete management discussion and analysis (MD&A) and financial statements for the quarter ended April 29, 2012 will be available on the investor section of the Brick Brewing website at www.brickbeer.com. This and additional information relating to the Company, including its Annual Information Form, is or will be available on the Company's website and on SEDAR at www.sedar.com.

About Brick Brewing

Brick is Ontario's largest Canadian-owned and Canadian-based publicly held brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under British Retail Consortium (BRC) Global Standards for Food Safety, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its Waterloo brand premium craft beers with other popular brands such as Laker, Red Baron, Red Cap and Formosa Springs Draft.  In March 2011, Brick purchased the Canadian rights to the Seagram Coolers brand which it has now relaunched as Seagram Blends. Brick trades on the TSX under the symbol BRB. Visit us at www.brickbeer.com.

Forward-Looking Statements

Except for the historical information contained herein, the discussion in this press release contains certain forward-looking statements that involve risks and uncertainties, such as statements of the Company's plans, objectives, strategies, expectations and intentions and include, for example, the statements concerning expected volumes, operating efficiencies and costs.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology.  Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.  These forward-looking statements are not guarantees and reflect the Company's views as of June 4, 2012 with respect to future events.  Future events are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements, including the statements regarding expected volumes, operating efficiencies and costs are based on, among other things, the following material factors and assumptions: sales volumes in the fiscal year ending January 31, 2013 ("fiscal 2013") will increase; no material changes in consumer preferences; brewing, blending, and packaging efficiencies will improve; the cost of input materials for brewing and blending will increase; the cost of packaging materials will decrease; competitive activity from other manufacturers will continue; no material change to the regulatory environment in which the Company operates and no material supply, cost or quality control issues with vendors.   Readers are urged to consider the foregoing factors and assumptions when reading the forward-looking statements and, for more information regarding the risks, uncertainties and assumptions that could cause the Company's actual financial results to differ from the forward-looking statements, to also refer to the remainder of the discussion in this press release, the Company's annual information form and various other public filings as and when released by the Company.  The forward-looking statements included in this press release are made only as of June 4, 2012 and, except as required by applicable securities laws, the Company does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.

* EBITDA is a non-IFRS earnings measure, therefore it does not have any standardized meaning prescribed by International Financial Reporting Standards  and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization. Management uses this measurement to evaluate the operating results of the Company. This measure is also important to management since it is used by the Company's lenders to evaluate the ongoing cash generating capability of the Company and therefore the amounts those lenders are willing to lend to the Company. Investors find EBITDA to be useful information because it provides a measure of the Company's operating performance.

 

Image with caption: "Waterloo Brewing Co. (CNW Group/Brick Brewing Co. Limited)". Image available at: http://photos.newswire.ca/images/download/20120605_C5863_PHOTO_EN_14605.jpg

SOURCE Brick Brewing Co. Limited

For further information:

George Croft, President and CEO, Tel: (519) 742-2732 Ext.147; E-mail: info@brickbeer.com

Profil de l'entreprise

Brick Brewing Co. Limited

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