Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

  • Advanced Search
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Hamburger menu
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO
    • Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

Big Rock Brewery Inc. Announces 2018 Third Quarter Financial Results

Big Rock Brewery Inc. (CNW Group/Big Rock Brewery Inc.)

News provided by

Big Rock Brewery Inc.

Nov 01, 2018, 18:16 ET

Share this article

Share toX

Share this article

Share toX

CALGARY, Nov. 1, 2018 /CNW/ - Big Rock Brewery Inc. (TSX: BR) ("Big Rock" or "the Corporation") today announced its financial results for the three and nine months ended September 30, 2018.

"We are very pleased with the significant improvements we are making to our business, and the third quarter exemplifies that," said President & CEO, Wayne Arsenault. "Increased year-over-year margins and pursuit of new business allowed us to achieve EBITDA for the quarter of approximately $1.5 million and net income of $587 thousand, improvements of $965 thousand and $766 thousand, respectively."

"Subsequent to the quarter end we announced the closing of the amended transaction with Fireweed Brewing Corp. and have begun the installation in our Vancouver brewery of the assets purchased as part of the transaction," commented Mr. Arsenault. "We anticipate that the increased capacity and productivity of our Vancouver brewery will contribute to our growth in profitability in 2019."

Financial Highlights

For the quarter ended September 30, 2018, compared to the third quarter of 2017, Big Rock:

  • increased its net income by $766 thousand to $587 thousand, from a net loss of $179 thousand;
  • improved its operating profit by $906 thousand to $747 thousand from an operating loss of $159 thousand;
  • reported earnings before interest, tax, depreciation and amortization ("EBITDA") of $1,544 thousand compared to $579 thousand;
  • reported net revenue of $13,764 thousand, compared to $12,399 thousand, on sales volumes of 60,988 hl, compared to 57,075 hl; and
  • achieved funds flow from operations of $1,587 thousand, compared to $556 thousand.

For the nine months ended September 30, 2018 compared to the first nine months of 2017, Big Rock:

  • improved its net income by $1,319 thousand to a net income of $440 thousand, from a net loss of $879 thousand;
  • reported operating profit of $715 thousand compared to an operating loss of $1,070 thousand;
  • reported EBITDA of $3,056 thousand compared to $1,284 thousand;
  • reported net revenue of $36,757 thousand, compared to $35,484 thousand, on sales volumes of 162,482 hl compared to 162,255 hl; and
  • achieved funds flow from operations of $2,778 thousand, compared to $1,625 thousand.

Operating Highlights

The Canadian beer industry continues to be highly competitive, with numerous new craft breweries entering the marketplace. Despite competitive pressures, Big Rock's reported results for the three and nine months ended September 30, 2018 improved over the comparative periods in 2017. The Corporation increased its sales volumes in third quarter of 2018 (versus the third quarter of 2017), primarily due to a transition and rationalization of value streams undertaken throughout 2018. Despite the discontinuation of select brands in 2018, contract brewing has more than fulfilled those discontinued sales volumes with the Corporation's third quarter sales volumes up approximately 7% versus the third quarter of 2017 and roughly flat year-to-date. Additionally, gross profit margin improved in the third quarter and the nine months ended September 30, 2018 to 45% and 43% compared to 43% and 42% reported in the third quarter and nine months ended September 30, 2017. These improvements reflect the impact of pricing adjustments that were introduced in Alberta in late 2017 and in other regions during the first quarter of 2018 as well as improved Alberta net mark-up rates on beer and cider and increased operational cost efficiencies.

The Corporation continues to search for initiatives that will improve its asset utilization at its British Columbia ("BC") and Ontario breweries. In April 2018, Big Rock announced it had entered into an agreement to form a contractual joint venture with Fireweed Brewing Corp. ("Fireweed"), to operate and manage the Vancouver brewery.  However, certain closing conditions of the arrangement could not be satisfied.  As a result, Big Rock announced on July 23, 2018 and subsequently closed on October 18, 2018 an amended transaction with Fireweed, to acquire certain brewing assets and inventory related to branded beer and cider for a gross purchase price approximately $670,000, less amounts owed by Fireweed to Big Rock.  Subsequently, at closing, the parties entered into a license agreement by which Fireweed granted Big Rock exclusive rights to Fireweed's trademarks and other intellectual property with an option to purchase the intellectual property outright. Additionally, at closing, the parties entered into contract manufacturing agreements which permits Big Rock to exclusively manufacture all of Fireweed's branded products in BC and Alberta for a predetermined, volume-based fee. The amended transaction allows Big Rock to increase its production capacity and utilization at the Vancouver brewery.

In June 2018, an Alberta Trade Review panel ordered that the ASBD grant program be repealed or revised within six months, as it was found to place beer producers from other provinces at a competitive disadvantage in the Alberta market.  Big Rock continues to work with the Alberta Government with the objective of drafting policy changes that will effectively stimulate the craft beer industry in the province. The impact of this impending regulatory change cannot currently be estimated, however, Big Rock anticipates the final result to be announced in November 2018.

Summary of Results

$000, except hl and per share amounts

Three months ended

September 30

Nine months ended

September 30


2018

2017

2018

2017

Sales volumes (hectolitres or "hl")

60,988

57,075

162,482

162,255

Net revenue

$

13,764

$

12,399

$

36,757

$

35,484

Operating income (loss)

747

(159)

715

(1,070)

Net income (loss)

587

(179)

440

(879)

Income (loss) per share (basic and diluted)

$

0.08

$

(0.03)

$

0.06

$

(0.13)

$ per hl





Net revenue

$225.68

$217.24

$226.22

$218.69

Cost of sales

$125.16

$124.45

$127.86

$127.85

Additional Information

The unaudited consolidated financial statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2018, dated November 1, 2018 can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR at www.sedar.com under Big Rock Brewery Inc.  

Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely"  "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon by investors as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this news release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this news release contains forward-looking statements pertaining to the following:

  • expected sales volumes;
  • the expected increase in average margins;
  • projections of market prices and costs;
  • treatment under governmental regulatory and taxation regimes, including expected price increases resulting from the indexing of excise taxes to inflation;
  • supply and demand of Big Rock's products;
  • the impact of recent changes in Alberta mark-up rates and any further changes in the future;
  • the expected repeal of the ASBD grant program, Big Rock's efforts to work with the Alberta Government to implement policy changes to stimulate the craft beer industry in the province and the expected timing of resulting regulatory changes;
  • the expected increased capacity and productivity of the Corporation's Vancouver brewery and contribution to the Corporation's profitability in 2019 from the Corporation's acquisition of brewing assets and inventory from a BC brewer; and
  • the expectation the Corporation will have adequate sources of funding to finance the Corporation's operations.

With respect to the forward-looking statements listed above and contained in this news release, management has made assumptions regarding, among other things:

  • volumes in the current fiscal year will remain constant or will increase;
  • input costs for brewing and packaging materials will remain constant or will not significantly increase or decrease;
  • there will be no supply issues with Big Rock's vendors;
  • the Corporation's ongoing discussions with the Alberta Government will be successful in implementing policy changes favourable to Big Rock; and
  • the Corporation's acquisition of brewing assets and inventory from a BC brewer will improve the utilization of the Corporation's Vancouver brewery.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include, but are not limited to:

  • the inability to continue to reduce the net mark-up rate in Alberta; and
  • the inability to continue to grow demand for Big Rock's products.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this news release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

Non-GAAP Measures

The term "earnings before interest, taxes, depreciation and amortization" (EBITDA) is not a recognized measure under GAAP and may not be comparable to that reported by other companies. EBITDA is calculated by adding back to net income, interest, income taxes and depreciation and amortization. Management uses this measure to evaluate the Corporation's operating results. A reconciliation of EBITDA to net income (loss), the nearest GAAP measure, is contained under the section "Liquidity and Capital Resources – Capital Strategy" in the Corporation's Management's Discussion and Analysis for the three and nine months ended September 30, 2018, dated November 1, 2018, which can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR at www.sedar.com under Big Rock Brewery Inc.  

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, four ciders (Rock Creek Cider® series) and custom-crafted private label products keep us at the forefront of the craft beer revolution and still proudly contesting the beer trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit www.bigrockbeer.com

SOURCE Big Rock Brewery Inc.

Don Sewell, Chief Financial Officer, Phone: (403) 720-3239, Fax: (403) 720-3641, Email: [email protected]

Related Links

www.bigrockbeer.com

Modal title

Organization Profile

Big Rock Brewery Inc.

    Also from this source

  • BIG ROCK BREWERY INC. ANNOUNCES RESULTS OF ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS

  • BIG ROCK BREWERY INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND 51% INCREASE IN SALES VOLUMES

  • BIG ROCK BREWERY INC. ANNOUNCES FISCAL 2024 RESULTS AND A 38% INCREASE IN FOURTH QUARTER SALES VOLUMES

Contact Cision

  • 866-245-2317
    from 8 AM - 10 PM ET
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media

Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2025 CNW Group Ltd. All Rights Reserved. A Cision company.