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

Sean Byrne, Chief Financial Officer, Tel: [phone] Ext.132; E-mail: [email protected]