Brick Brewing reports Q1 F2015 EBITDA of $0.7M

Highlights:

  • Net revenues for the first quarter of fiscal 2015 were $7.5 million, compared to $8.8 million in first quarter of fiscal 2014.
  • Gross profit percentage for the quarter was 21.7% compared to 26.3% in the prior year comparable quarter. Gross profit percentage was impacted primarily by the volume decline.
  • Selling, Marketing and Administration expense fell to $1.7 million from $1.9 million in the year prior, the result of delayed timing of advertising and reduced promotional spending.
  • EBITDA* for the first quarter of fiscal 2015 fell to $0.7 million compared to $1.0 million a year earlier.

KITCHENER, ON, June 5, 2014 /CNW/ - Brick Brewing Co. Limited ("Brick" or "The Company") today released financial results for the first quarter of fiscal 2015, ended April 27, 2014. Net revenue for the quarter was $7.5 million, down from $8.8 million in the first quarter of the prior year. EBITDA for the quarter came in at $0.7 million, down from $1.0 million in first quarter of the prior year.

"The long cold winter weather had a significant impact on the entire category, and our volumes were impacted as well" noted George Croft, President and CEO at Brick Brewing. "Weak industry volumes led to pricing pressure across the category, impacting both sales and margins.  In addition to the slow start to spring, in the prior year first quarter we had a number of promotional offerings that were not repeated this year including; Laker 12 pack promotion with free can in case, Seagram cider mix pack as well as our Waterloo seasonal pack."

"The poor weather has now extended into a cool spring, and the overall category would certainly benefit from warmer weather." continued Mr. Croft.  "Given the industry headwinds we're facing, it will be all the more important that we continue to focus on delivering great value to our customers, while maintaining our disciplined approach to cost control. We are working hard to deliver results. Our strong product lineup, our commitment to our customers, and our cost focus gives us the best chance to do that."

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, 2014.

Reconciliation of Net Earnings to Earnings Before Interest Taxes Depreciation and Amortization, and Share Based Payments (EBITDA)*

   
   Quarter ended 
(in thousands of dollars) April 27, 2014 April 28, 2013
     
Net income (loss) $ (207) $ 55
     
Add (deduct):    
  Income tax expense (recovery) (76) 20
  Depreciation and amortization 765 720
  Loss (gain) on disposal of property, plant and equipment 7 (46)
  Share-based payments 49 53
  Finance costs 120 163
Subtotal 865 910
     
EBITDA* 658 965

 



STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended April 27, 2014 and April 28, 2013
(Not audited or reviewed by the Company's external auditor)

       
     Quarter ended 
     April 27, 2014   April 28, 2013 
       
Revenue   $ 7,537,407 $ 8,784,746
Cost of sales   5,904,948 6,471,012
Gross profit   1,632,459 2,313,734
       
Selling, marketing and administration expenses   1,698,461 1,919,770
Other expenses   96,789 156,246
Finance costs   120,443 162,534
Income (loss) before tax   (283,234) 75,184
       
Income tax expense (recovery)   (76,445) 20,000
Net income (loss) and comprehensive
  income (loss) for the period
  $ (206,789) $ 55,184
       
       
Basic earnings (loss) per share   $ (0.01) $ 0.00
Diluted earnings (loss) per share   $ (0.01) $ 0.00

 



STATEMENTS OF FINANCIAL POSITION
As at April 27, 2014 and January 31, 2014
(Not audited or reviewed by the Company's external auditor)

        April 27, 2014 January 31, 2014
ASSETS      
  Non-current assets      
    Property, plant and equipment   $ 15,339,564 $ 15,449,248
    Intangible assets   14,894,144 14,752,855
    Deferred income tax assets   2,625,177 2,548,732
    32,858,885 32,750,835
       
  Current assets      
    Accounts receivable   6,763,952 5,865,024
    Inventories   3,853,957 3,951,436
    Assets held for sale   3,406,400 3,406,400
    Prepaid expenses   604,966 395,559
    14,629,275 13,618,419
TOTAL ASSETS   47,488,160 46,369,254
       
LIABILITIES AND EQUITY      
  Equity      
    Share capital   38,962,221 38,955,236
    Share-based payments reserves   1,109,857 1,060,533
    Deficit   (7,709,333) (7,502,544)
  TOTAL EQUITY   32,362,745 32,513,225
       
  Non-current liabilities      
    Provisions   293,285 289,083
    Long-term debt and promissory note   3,687,047 4,265,018
    3,980,332 4,554,101
       
  Current liabilities      
    Bank indebtedness   3,677,853 1,694,178
    Accounts payable and accrued liabilities   5,543,391 6,050,679
    Current portion of long-term debt and promissory note   1,923,839 1,557,071
    11,145,083 9,301,928
TOTAL LIABILITIES   15,125,415 13,856,029
       
COMMITMENTS      
       
TOTAL LIABILITIES AND EQUITY   $ 47,488,160 $ 46,369,254

 




STATEMENTS OF CASH FLOWS
For the periods ended April 27, 2014 and April 28, 2013
(Not audited or reviewed by the Company's external auditor)

     Quarter ended 
     April 27, 2014   April 28, 2013 
       
Operating activities      
  Net income (loss)   $ (206,789) $ 55,184
  Adjustments for:      
    Income tax expense (recovery)   (76,445) 20,000
    Finance costs   120,443 162,534
    Depreciation and amortization of property, plant and equipment and intangibles   764,527 719,946
    Loss (gain) on disposal of property, plant and equipment   7,345 (46,025)
    Share-based payments   49,324 53,169
    Change in non-cash working capital related to operations   (1,539,945) 234,104
  Less:      
    Interest paid   (94,047) (123,894)
Cash provided by (used in) operating activities   (975,587) 1,075,018
       
Investing activities      
  Purchase of property, plant and equipment   (657,688) (1,209,378)
  Proceeds from sale of property, plant and equipment   - 63,000
  Purchase of intangible assets   (145,789) (139,044)
Cash used in investing activities   (803,477) (1,285,422)
       
Financing activities      
  Increase/(decrease) in bank indebtedness   1,983,675 (267,140)
  Issuance of long-term debt   - 685,912
  Repayment of long-term debt   (211,596) (214,569)
  Issuance of shares   6,985 6,201
Cash provided by financing activities   1,779,064 210,404
       
Net increase/(decrease) in cash   - -
       
Cash, beginning of period   - -
Cash, end of period   $ - $ -

 

Additional Information

For further details the Company's complete management discussion and analysis (MD&A) and financial statements for the quarter ended April 27, 2014 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 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 Seagram Coolers and now produces, sells, markets and distributes Seagram Coolers across Canada.  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 Corporation 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 included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation 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, gain on disposal of property, plant, and equipment, and share based payments. 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. 

 

 

SOURCE: Brick Brewing Co. Limited

For further information:

Sean Byrne, Chief Financial Officer, Tel: (519) 742-2732 Ext.132; E-mail: info@brickbeer.com

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Brick Brewing Co. Limited

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