Brick Brewing First Quarter Report



    Brick Brewing reports improved EBITDA(*) by $1.1 million in the first
    quarter compared to last year

    WATERLOO, ON, June 10 /CNW/ - Brick Brewing Co. Limited (TSX: BRB),
Ontario's largest Canadian-owned and Canadian-based publicly held brewery,
today released its financial results for the first quarter ended April 30,
2008.
    "We are encouraged by our first quarter results, which represent a
$1.1 million EBITDA(*) improvement over the first quarter last year" said Jim
Brickman, Executive Chairman and Founder. "In this traditionally slower
period, we have managed to reduce the decline of our beer volumes and in
addition, supplement our core business with profitable co-pack volumes," added
Mr. Brickman.
    "We are also seeing the positive effects from our aggressive initiatives
to reduce costs and improve efficiencies. To be successful and prosper on a
sustainable basis, we must seek to become the most cost efficient, high
quality producer possible," he added.

    First Quarter Financial Highlights

    During the first quarter ended April 30, 2008, net revenues increased 7%
to $7.3 million, compared to $6.9 million in the same period last year. In the
first quarter, a seasonally slower quarter, EBITDA(*) was $363 thousand,
compared to a loss of $771 thousand in the first quarter of last year, an
improvement of over $1.1 million. In the quarter, there was a net loss of $108
thousand compared with a net loss of $898 thousand for the same period last
year.

    Also in the first quarter:

    
    -   In January 2008 the Company began production of the Mott's Caesar
        brand and in the quarter revenues from co-packing activities were
        $703 thousand compared to $128 thousand in the first quarter last
        year.

    -   Beer volumes decreased by 4% in the quarter compared to the same
        period last year, largely due to reduced can volumes. This decrease
        is less than the 14% decrease in beer volumes that occurred in the
        previous quarter.

    -   In the first quarter the Company's cost of producing and distributing
        beer decreased by $379 thousand due to improved efficiencies compared
        to the first quarter last year. Brewing material input costs
        increased by $333 thousand in the quarter compared to last year. The
        combined effect of these was that the per unit cost of producing and
        distributing beer decreased by 1% or $46 thousand in the quarter
        compared to the first quarter last year.

    -   Selling, marketing and administration costs decreased by
        $667 thousand in the first quarter over the first quarter last year,
        due primarily to reductions in ongoing overhead expenditures and
        reduced public relations spending this year compared to the first
        quarter last year.

    -   Subsequent to the end of the quarter, on May 12, 2008 the Company
        announced the appointment of George H. Croft as President & CEO.



                          Brick Brewing Co. Limited
                     Statements of Earnings and Deficit
                                 (unaudited)
                                  ($ 000's)

                                                   Three Months Ended

                                            April 30, 2008    April 30, 2007
    -------------------------------------------------------------------------
    Gross Revenue                           $       15,596    $       15,635
      Less: Production taxes &
       distribution fees                            (8,261)           (8,763)
    -------------------------------------------------------------------------
    Net Revenue                                      7,335             6,872

    Cost of goods sold                               5,943             5,951
    -------------------------------------------------------------------------
    Gross margin                                     1,392               921

    Expenses:
      Selling, marketing and administration          1,028             1,693
    -------------------------------------------------------------------------
    Earnings/(loss) before the undernoted              363              (771)

    Other income/(expenses):
      Amortization                                    (421)             (450)
      Interest on long-term debt                      (102)             (101)
      Other interest income                             17                10
      Equity loss of long term investment               (5)              (32)
    -------------------------------------------------------------------------
                                                      (512)             (573)
    -------------------------------------------------------------------------
    Loss before provision for income taxes            (148)           (1,344)

    Future income tax expense/(recovery)               (41)             (446)
    -------------------------------------------------------------------------
    Net loss                                          (108)             (898)

    Deficit, beginning of the period                (6,852)           (4,158)

    Impact of change in accounting policy
     for deferred financing charges                      -              (103)
    -------------------------------------------------------------------------
    Deficit, end of period                  $       (6,960)   $       (5,056)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net earnings/(loss) per share:
      Basic                                 $        (0.00)   $        (0.04)
      Diluted                                        (0.00)            (0.04)
    -------------------------------------------------------------------------



                          Brick Brewing Co. Limited
                               Balance Sheets
                                 (unaudited)
                                  ($ 000's)

    -------------------------------------------------------------------------
                                            April 30, 2008  January 31, 2008
    -------------------------------------------------------------------------
    Assets

    Current assets:
      Accounts receivable                   $        3,089  $          2,571
      Inventories                                    7,868             7,277
      Future income taxes                               64                55
      Prepaid expenses                                 619               510
      -----------------------------------------------------------------------
      Total current assets                          11,639            10,413

    Property, plant and equipment                   16,671            16,989
    Long term investment                               101               106
    Trademarks and listing fees                      5,437             5,430
    Deferred costs                                     355               384
    Other assets                                       205               213
    Future income taxes                              2,094             2,063
    -------------------------------------------------------------------------
                                            $       36,504  $         35,596
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Bank indebtedness                     $        1,927  $          2,791
      Trade accounts payable and
       accrued liabilities                           4,735             3,038
      Current portion of long-term debt                911               907
      Current portion of obligations
       under capital lease                             127               138
      -----------------------------------------------------------------------
      Total current liabilities                      7,699             6,874

    Long-term debt                                   2,938             2,992
    Obligations under capital lease                    387               419

    Shareholders' equity:
      Share capital                                 31,888            31,539
      Contributed surplus                              553               624
      Deficit                                       (6,960)           (6,852)
      -----------------------------------------------------------------------
      Total shareholders' equity                    25,481            25,311

    -------------------------------------------------------------------------
                                            $       36,504  $         35,596
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                       Brick Brewing Co. Limited
                           Statements of Cash Flows
                                 (unaudited)
                                  ($ 000's)

                                                   Three Months Ended

    -------------------------------------------------------------------------

                                            April 30, 2008    April 30, 2007
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Earnings/(loss) for the period          $      (108)      $       (898)
      Items not involving cash:
        Amortization                                  419                450
        Amortization of other assets                    8                  -
        Stock based compensation                      (72)                23
        Equity (earnings)/loss of
         long term investment                           5                 32
        Future income taxes/(recovery)                (32)              (482)
      Change in non-cash operating
       working capital                                469              1,709
      -----------------------------------------------------------------------
                                                      690                834

    Financing:
      Repayment of long term debt                     (50)                 -
      Repayment of obligation
       under capital lease                            (44)               (81)
      Issue of capital stock,
       net of costs                                   349                  -
      -----------------------------------------------------------------------
                                                      255                (81)

    Investments:
      Acquisition of property, plant and
       equipment and listing fees                     (81)              (419)
      -----------------------------------------------------------------------
                                                      (81)              (419)

    -------------------------------------------------------------------------
    Net increase in cash                              864                335

    Cash, beginning of period                      (2,791)                54

    -------------------------------------------------------------------------
    Cash/(bank indebtedness), end of period   $    (1,927)      $        388
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    

    These statements should be read in conjunction with the audited annual
financial statements of the Company.

    Additional Information

    For further details the Company's MD&A and financial statements for the
quarter ended April 30, 2008 will be available on the investor section of the
Brick website at www.brickbeer.com. Additional information relating to the
Company, including its Annual Information Form is available there 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 by Jim
Brickman 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.
Brick has complemented its J. R. Brickman Founder's Series and Waterloo Dark
premium craft beers with other popular brands such as Laker, Red Cap and
Formosa Springs Draft. Brick trades on the TSX under the symbol BRB. Visit us
at www.brickbeer.com

    Forward-Looking Statements

    All statements in this press release that do not directly and exclusively
relate to historical facts constitute forward-looking statements as of the
date of this press release. 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, which are not guarantees and
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:
volumes in the current fiscal year ending January 31, 2009 ("fiscal 2009")
will continue to decline, no material changes in consumer preferences,
operating efficiencies at the packaging and warehousing facility in Kitchener,
Ontario will continue to be realized, input costs for brewing and packaging
materials will continue to increase, competitive activity from other brewers
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 Company's MD&A, annual information form and
various other public filings. The forward-looking statements included in this
press release are made only at the date of this press release 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




For further information:

For further information: Graydon Moore, Chief Financial Officer, Tel:
(519) 576-9100 Ext. 222, E-mail: finance@brickbeer.com; Jim Brickman,
Executive Chairman/Founder, Tel: (519) 576-9100 Ext. 232; George H. Croft,
President & CEO, Tel : (519) 576-9100 X247

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Brick Brewing Co. Limited

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