Brick Brewing delivers another profitable quarter with EBITDA of $634
thousand

WATERLOO, ON, June 11 /CNW/ - Brick Brewing Co. Limited ("Brick" or the "Company") (TSX: BRB), Ontario's largest Canadian-owned and Canadian-based publicly held brewery, today released its financial results for the first quarter ended May 2, 2010.

"The first quarter results are consistent with our expectations," said George Croft, President & CEO. "We entered the year with a renewed commitment to the Laker trademark. We invested heavily in the redesign of packaging and billboard advertising. It is still early in the process, but we are attracting new customers and reversing the performance trend."

The success of the Waterloo Dark and Red Baron brands continued in the first quarter. Despite a volume decline of 13% versus the comparable period, the Red Baron brand has experienced growth of more than 800% since its re-launch in the spring of 2009.

The Company has continued to improve operating margin through targeted capital spending. In the first quarter, the Company completed the installation of a new bottle packer which will allow the Company to package its 12, 15, and 18 packages for a lower cost with higher graphics quality. Additionally, a new can pasteurizer was installed during the quarter to reduce labour cost and further improve can quality.

Some financial highlights are as follows:

    
    -   Net revenue was $7.0 million compared to $7.6 million in the
        comparable period

    -   Gross profit percentage has increased to 27.4% versus 26.5%

    -   EBITDA for the period ended May 2, 2010 was $634 thousand, net income
        of $108 thousand
    

"Brick is proud to be a Canadian owned brewery in a market that is dominated by foreign owned competitors. We have made excellent progress on our cost reduction initiatives. We are now fully focused on filling the excess capacity. Winning new business will be the measure of success for the balance of fiscal 2011," remarked Mr. Croft.

The following financial statements should be read in conjunction with the audited annual financial statements of the Company. Certain prior year amounts have been reclassified to conform to the current year's presentation format.

    
    BRICK BREWING CO. LIMITED
    Consolidated Balance Sheet
    (unaudited)

    -------------------------------------------------------------------------
                                          First quarter ended     Year ended
                                                        May 2,    January 31,
                                                         2011           2010
    -------------------------------------------------------------------------

    Assets
    Current assets:
      Accounts receivable                           2,956,881      2,357,069
      Inventories                                   5,799,978      5,251,714
      Prepaid expenses                                558,445        412,351
      Future income taxes                             566,000        566,000
    -------------------------------------------------------------------------
                                                    9,881,304      8,587,134

    Property, plant and equipment                  14,823,716     14,101,122
    Trademarks and listing fees                     5,752,308      5,731,954
    Other assets                                       96,394        188,871
    Future income taxes                               954,000      1,034,000
    -------------------------------------------------------------------------
                                                 $ 31,507,722   $ 29,643,081
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity
    Current liabilities:
      Bank indebtedness                          $    855,440   $  1,792,406
      Accounts payable and accrued liabilities      5,878,208      3,187,915
      Current portion of long-term debt               757,750        816,100
      Current portion of obligations under
       capital lease                                  273,208        146,418
    -------------------------------------------------------------------------
                                                    7,764,606      5,942,839

    Long-term debt                                  1,251,800      1,251,800
    Obligations under capital lease                    42,929        138,106

    Shareholders' equity:
      Share capital                                34,678,264     34,678,264
      Contributed surplus                             802,131        772,455
      Deficit                                     (13,032,008)   (13,140,383)
    -------------------------------------------------------------------------
                                                   22,448,387     22,310,336
    Contingency

                                                 $ 31,507,722   $ 29,643,081
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    BRICK BREWING CO. LIMITED
    Consolidated Statement of Income, Comprehensive Income and Deficit
    (unaudited)

                                                         First quarter ended

    -------------------------------------------------------------------------
                                                        May 2,      April 30,
                                                         2010           2009
    -------------------------------------------------------------------------

    Gross revenue                                $ 14,628,007   $ 15,766,795
      Less production taxes and distribution
       fees                                        (7,656,863)    (8,125,677)
    -------------------------------------------------------------------------
    Net revenue                                     6,971,144      7,641,118

    Cost of sales                                   5,061,658      5,619,236

    -------------------------------------------------------------------------
    Gross profit                                    1,909,486      2,021,882

    Selling, marketing and administration           1,272,265        866,442

    -------------------------------------------------------------------------
    Earnings before the undernoted                    637,221      1,155,440

    Other income (expense):
      Depreciation and amortization                  (415,533)      (464,987)
      Interest on long-term debt                      (24,404)       (41,855)
      Other income (expense)                           (8,909)         1,121
    -------------------------------------------------------------------------
                                                     (448,846)      (505,721)

    -------------------------------------------------------------------------
    Net income before provision for income taxes      188,375        649,719

    Future income tax provision                        80,000        218,360
    -------------------------------------------------------------------------
    Net income and comprehensive income               108,375        431,359

    Deficit, beginning of period                  (13,140,383)   (14,506,098)
    -------------------------------------------------------------------------
    Deficit, end of period                       $(13,032,008)  $(14,074,739)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings per share:
      Basic                                      $          -   $       0.02
      Diluted                                    $          -   $       0.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    BRICK BREWING CO. LIMITED
    Consolidated Statement of Cash Flows
    (unaudited)

                                                         First quarter ended

    -------------------------------------------------------------------------
                                                        May 2,      April 30,
                                                         2010           2009
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Income for the period                      $    108,375   $    431,359
      Items not involving cash:
        Amortization of property, plant and
         equipment, and other assets                  414,722        472,487
        Stock based compensation                       29,676         24,794
        Future income tax provision                    80,000        218,360
    Change in non-cash operating working capital    1,396,120       (442,348)
    -------------------------------------------------------------------------
                                                    2,028,893        704,652
    Financing:
      Increase (decrease) in bank indebtedness       (936,966)       176,841
      Repayment of long-term debt                     (58,350)       (53,850)
      Repayment of obligation under capital lease     (41,708)       (32,649)
      Issue of capital stock (net of fees)                  -          3,200
    -------------------------------------------------------------------------
                                                   (1,037,024)        93,542
    Investing:
      Purchase of property, plant and equipment,
       and other assets                              (971,515)      (731,793)
      Listing fees paid                               (20,354)      (275,692)
    -------------------------------------------------------------------------
                                                     (991,869)    (1,007,485)

    -------------------------------------------------------------------------
    Net decrease in cash                                    -       (209,291)

    Cash, beginning of period                               -        209,291

    -------------------------------------------------------------------------
    Cash, end of period                          $          -   $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow information:
      Cash paid for interest                     $     32,087   $     36,355
    Non-cash investing and financing activities:
      Obligation under capital lease             $     73,321   $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Additional Information

For further details the Company's management discussion and analysis (MD&A) and unaudited consolidated financial statements for the quarter ended May 2, 2010 will be available on the investor section of the Brick Brewing website at www.brickbeer.com. 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 Brewing Co. Limited 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. The Company, founded in 1984, was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. The Company has complemented its Waterloo family of premium craft beers with other popular brands such as Laker, Red Baron, Red Cap and Formosa Springs Draft. 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 11, 2010 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, 2011 ("fiscal 2011") will increase, no material changes in consumer preferences, brewing and packaging efficiencies will improve, input costs for brewing materials will decrease, the cost of packaging materials will decrease, competitive activity from other brewers will continue, no material change to the regulatory environment in which the Company operates, no material supply, cost or quality control issues with vendors, owner brand growth, market expansion and additional co-pack contracts. 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 Company's MD&A, the Company's annual information form and various other public filings. The forward-looking statements included in the press release are made only as of June 11, 2010 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-GAAP earnings measure, therefore it does not have any
        standardized meaning prescribed by Canadian generally accepted
        accounting principles 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.
    

%SEDAR: 00003334E

SOURCE Brick Brewing Co. Limited

For further information: For further information: George Croft, President and CEO, Tel: (519) 576-9519 Ext. 247, E-mail: info@brickbeer.com

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Brick Brewing Co. Limited

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