Brick Brewing reports first quarter F2010 financial results, with EBITDA of $1.16 million



    WATERLOO, ON, June 8 /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 of fiscal 2010.
    "With fiscal 2009 behind us, we are focusing on the future of Brick
Brewery," said George Croft, President & CEO. "The positive results for the
first quarter of fiscal 2010 demonstrate how the Company will benefit from the
significant and sustainable cost reductions made in fiscal 2009."

    
    Financial highlights for the quarter include:

    -   Net revenue growth of 3.2% compared to the first quarter of fiscal
        2009;
    -   Gross profit percentage has increased to 25.8% versus 19.2% in the
        comparable period of fiscal 2009;
    -   EBITDA(*) of $1.16 million, representing an increase of
        $781 thousand, or 208.8%; and
    -   Net income of $431 thousand, compared to a loss of $79 thousand in
        the first quarter last year.

    The Company has made great strides in aligning itself with the following
strategic pillars:

    - Building a strong owner brand portfolio in both the value and premium
    beer segments
    

    During the first quarter, the re-launch of the Red Baron brand coupled
with aggressive marketing support resulted in significant growth, with Red
Baron volumes increasing by almost ten times as compared to Q1 2009. The
Company's premium Waterloo brands experienced a volume increase of 34%. The
Laker Family brands underperformed this quarter, however the Company is
focused on marketing and sales initiatives designed to improve Laker volumes.

    
    - Focusing our investments against the biggest opportunities that drive
    revenue growth or deliver sustainable cost reduction
    

    Throughout the last half of fiscal 2009, several cost reduction measures
were implemented. Brick is saving money on salaries and wages, packaging
materials, as well as warehousing and distribution charges. The Company has
invested in a new canning line, which will further reduce costs. The Company
is positioned to deliver the $2 million of cost savings that was previously
announced.

    - Growing in the most profitable channels and geographic markets

    The Company has been fully participating in various activities and
programming available through The Beer Store such as lobby displays and
in-store tastings. New pack-sizes were also launched during the first quarter
to add more variety to meet consumer preferences. Increased radio and outdoor
advertising, along with the above initiatives, resulted in growth amongst the
Company's premium brands. The Company has benefited from the Ontario Craft
Brewer's Opportunity Fund and expects to receive further funding in the second
or third quarter of fiscal 2010.

    - Optimizing the Company's operating assets

    During periods of peak demand, the Company will continue to use its
Formosa facility for supplemental brewing. Efficiency gains were achieved at
the Waterloo and Kitchener facilities.

    
    - Building a high performance, disciplined, winning organization that is
    fully committed to excellence in execution
    

    Brick has hired talented, professional individuals, at all levels,
possessing the knowledge and experience to drive the Company to profitability.
    The recent addition of Russell Tabata as Brick's Chief Technical Officer
will provide continued focus and leadership in the following functional areas;
brewing, quality, logistics, engineering, packaging, procurement and
maintenance.
    "I share with you my enthusiasm over a great start to fiscal 2010 and
look forward to conveying results for the second quarter of 2010," said Mr.
Croft.


    
                          Brick Brewing Co. Limited
                         Consolidated Balance Sheet
                                 (unaudited)

    -------------------------------------------------------------------------
                                            April 30, 2009  January 31, 2009
    -------------------------------------------------------------------------
                                                                (Restated(1))
    Assets
    Current assets:
      Cash                                 $             -   $       209,291
      Accounts receivable                        3,036,024         2,096,781
      Inventories                                5,916,918         5,309,474
      Prepaid expenses                             481,497           507,518
      Future income taxes                          522,338           522,338
    -------------------------------------------------------------------------
                                                 9,956,777         8,645,402

    Property, plant and equipment               13,799,265        13,522,720
    Trademarks and listing fees                  5,677,006         5,401,314
    Deferred costs                                  98,328           108,067
    Other assets                                    42,500            50,000
    Future income taxes                            407,743           626,103
    -------------------------------------------------------------------------
                                                29,981,619        28,353,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Bank indebtedness                    $       176,841   $             -
      Accounts payable and accrued
       liabilities                               5,195,263         3,846,187
      Current portion of long-term debt            928,500           924,000
      Current portion of obligations under
       capital lease                               386,633           419,282
      Deferred grants                                    -           270,758
    -------------------------------------------------------------------------
                                                 6,687,237         5,460,227

    Long-term debt                               2,009,550         2,067,900

    Shareholders' equity:
      Share capital                             34,661,184        34,657,984
      Contributed surplus                          698,387           673,593
      Deficit                                  (14,074,739)      (14,506,098)
    -------------------------------------------------------------------------
                                                21,284,832        20,825,479
    Commitments

    -------------------------------------------------------------------------
                                           $    29,981,619   $    28,353,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) As a result of adopting CICA Handbook Section 3064, the Company has
        adjusted the opening retained earnings in the comparative
        consolidated financial statements by $182,080 (net of tax) to write
        off pre-production costs that are no longer permitted to be deferred.
        Deferred costs and future income taxes, as at January 31, 2009, were
        reduced by $261,153 and $79,073 respectively. Amortization expense
        presented in the consolidated income statement for the first quarter
        of fiscal 2009 has been reduced by $29 thousand.



                          Brick Brewing Co. Limited
             Consolidated Statement of Income (Loss) and Deficit
                                 (unaudited)

                                                   Three Months Ended
    -------------------------------------------------------------------------
                                            April 30, 2009    April 30, 2008
    -------------------------------------------------------------------------
                                                                   (Restated)

    Gross revenue                          $    15,697,444   $    15,595,840
      Less production taxes and
       distribution fees                        (8,125,677)       (8,261,023)
    -------------------------------------------------------------------------
    Net revenue                                  7,571,767         7,334,817

    Cost of sales                                5,619,236         5,926,824

    -------------------------------------------------------------------------
    Gross profit                                 1,952,531         1,407,993

    Selling, marketing and administration          797,091         1,025,917

    -------------------------------------------------------------------------
    Earnings before the undernoted               1,155,440           382,076

    Other expense:
      Depreciation and amortization               (464,987)         (392,368)
      Interest on long-term debt                   (41,855)         (102,175)
      Other income (expense)                         1,121            (1,918)
    Equity loss of long-term investment                  -            (4,768)
    -------------------------------------------------------------------------
                                                  (505,721)         (501,229)

    -------------------------------------------------------------------------
    Income (loss) before income taxes              649,719          (119,153)

    Future income tax expense (recovery)           218,360           (40,627)
    -------------------------------------------------------------------------
    Net income (loss) and comprehensive
     income (loss)                                 431,359           (78,526)

    Deficit, beginning of period               (14,506,098)       (6,852,240)
    Cumulative effect of adopting new
     accounting policies, net of tax                     -          (261,589)
    -------------------------------------------------------------------------
    Deficit, beginning of period restated      (14,506,098)       (7,113,829)
    -------------------------------------------------------------------------
    Deficit, end of period                     (14,074,739)       (7,192,355)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income (loss) per share:
      Basic                                           0.02             (0.00)
      Diluted                                         0.02             (0.00)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                          Brick Brewing Co. Limited
                     Consolidated Statement of Cash Flows
                                 (unaudited)

                                                   Three Months Ended
    -------------------------------------------------------------------------
                                            April 30, 2009    April 30, 2008
    -------------------------------------------------------------------------
                                                                   (Restated)
    Cash provided by (used in):

    Operations:
      Income (loss) for the period                 431,359           (78,526)
      Items not involving cash:
        Amortization of property, plant
         and equipment, deferred costs and
         other assets                              472,487           397,817
        Stock based compensation                    24,794            15,281
        Equity loss on long-term investment              -             4,767
        Future income tax provision
         (recovery)                                218,360           (31,776)
    Change in non-cash operating
     working capital                              (442,348)          469,302
    -------------------------------------------------------------------------
                                                   704,652           776,865
    Financing:
      Increase (decrease) in bank indebtedness     176,841          (864,223)
      Repayment of long-term debt                  (53,850)          (49,650)
      Repayment of obligation under
       capital lease                               (32,649)          (43,876)
      Issue of capital stock (net of fees)           3,200             9,730
      Stock options exercised                            -           252,000
    -------------------------------------------------------------------------
                                                    93,542          (696,019)
    Investing:
      Purchase of property, plant and
       equipment, listing fees and
       deferred assets                          (1,007,485)          (80,846)
    -------------------------------------------------------------------------
                                                (1,007,485)          (80,846)

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

    Cash, beginning of period                      209,291                 -

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


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

    Additional Information

    For further details the Company's management discussion and analysis
(MD&A) and financial statements for the quarter ended April 30, 2009 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 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 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 Waterloo brand 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 8, 2009 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: volumes in the fiscal year ending January
31, 2010 ("fiscal 2010") 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
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, the Company's annual information form and various other public
filings. The forward-looking statements included in this MD&A are made only as
of June 8, 2009 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: George H. 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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