Press Releases

Brick Brewing Reports First Quarter F2016 EBITDA of $0.9M

KITCHENER, ON--(Marketwired - June 04, 2015) -

  • Net revenue increased to $7.7 million, from $7.5 million in the prior year
  • Gross margin improved to 27.1% from 21.7%
  • Selling, Marketing and Administration ("SM&A") expenses increased nominally to $1.8 million from $1.7 million
  • EBITDA improved to $0.9 million in the quarter, vs. $0.7 million

Brick Brewing Co. Limited ("Brick" or the "Company") (TSXBRB), the largest Canadian-owned brewery in Ontario, today released financial results for the first quarter ended April 26, 2015. Brick reported first quarter EBITDA of $0.9 million on net revenue of $7.7 million.

"Our owner brand volume was flat in the first quarter, against a backdrop of approximately 2% volume decline for the overall category," noted Brick President and Chief Executive Officer George Croft. "Despite the impact of a long cold winter, Waterloo volume growth vs prior year was over 11% while Laker volume grew over 3%, both strong results in light of the category headwinds. Seagram volume was down approximately 27%, the result of fewer brand listings at LCBO and timing of new product launches set for Q2 in F16 vs Q1 in the prior year. We have recently launched attractive new flavors in Seagram malt based coolers, and as we move into summer we are looking for improved performance in Seagram coolers and cider."

Sound cost control, improved product mix and pricing all contributed to improvement in margins and EBITDA in the quarter. Croft added, "The business is performing very well, and we are seeing great execution against our plan. As we head into the key summer months, we believe we are well positioned for continued strong results. Our new product introductions are resonating with consumers, Kitchener expansion is on track, and the coming changes to the beer channel in Ontario, including the introduction of beer into grocery, all seem to be clear positives for Brick Brewing."

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, 2015.

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

       
    Quarter ended  
(in thousands of dollars)   April 26, 2015   April 27, 2014  
   
Net income $ 31 $ (207 )
   
Add (deduct):          
  Income tax expense (recovery)   18   (76 )
  Depreciation and amortization   683   765  
  Loss on disposal of property, plant and equipment   -   7  
  Share-based payments   30   49  
  Finance costs   112   120  
Subtotal   843   865  
   
EBITDA*   874   658  
           
           
STATEMENTS OF COMPREHENSIVE INCOME              
For the quarters ended April 26, 2015 and April 27, 2014              
(Not audited or reviewed by the Company's external auditor)              
   
   
      Quarter ended   
      April 26, 2015     April 27, 2014  
   
   
Revenue   $ 7,706,933   $ 7,537,407  
Cost of sales     5,615,177     5,897,603  
Gross profit     2,091,756     1,639,804  
   
Selling, marketing and administration expenses     1,774,445     1,698,461  
Other expenses     157,121     96,789  
Finance costs     111,602     120,443  
Loss on disposal of property, plant and equipment     -     7,345  
Income (loss) before tax     48,588     (283,234 )
   
Income tax expense (recovery)     17,810     (76,445 )
Net income (loss) and comprehensive income (loss) for the period   $ 30,778   $ (206,789 )
   
   
   
Basic earnings (loss) per share   $ -   $ (0.01 )
Diluted earnings (loss) per share   $ -   $ (0.01 )
               
               
STATEMENTS OF FINANCIAL POSITION                
As at April 26, 2015 and January 31, 2015                
(Not audited or reviewed by the Company's external auditor)                
   
   
      April 26, 2015       January 31, 2015  
ASSETS                
  Non-current assets                
    Property, plant and equipment   $ 17,896,184     $ 15,582,051  
    Intangible assets     15,386,974       15,114,247  
    Deferred income tax assets     1,903,351       1,921,161  
    Construction deposit     2,098,403       1,478,220  
      37,284,912       34,095,679  
  Current assets                
    Cash     368,172       594,976  
    Accounts receivable     6,128,661       6,492,461  
    Inventories     4,844,629       3,400,821  
    Prepaid expenses     489,236       350,154  
      11,830,698       10,838,412  
   
TOTAL ASSETS     49,115,610     $ 44,934,091  
   
LIABILITIES AND EQUITY                
  Equity                
    Share capital     39,400,380       39,413,636  
    Share-based payments reserves     1,105,080       1,075,554  
    Deficit     (6,076,697 )     (6,107,475 )
TOTAL EQUITY     34,428,763       34,381,715  
   
  Non-current liabilities                
    Provisions     311,773       307,235  
    Obligation under finance lease     3,495,553       1,266,996  
    Long-term debt     2,389,312       2,642,676  
      6,196,638       4,216,907  
   
  Current liabilities                
    Accounts payable and accrued liabilities     6,578,547       4,665,784  
    Current portion of obligation under finance lease     257,424       46,925  
    Current portion of long-term debt     1,654,238       1,622,760  
      8,490,209       6,335,469  
   
TOTAL LIABILITIES     14,686,847       10,552,376  
COMMITMENTS                
   
TOTAL LIABILITIES AND EQUITY   $ 49,115,610     $ 44,934,091  
                 
                 
STATEMENTS OF CASH FLOWS                
For the quarters ended April 26, 2015 and April 27, 2014                
(Not audited or reviewed by the Company's external auditor)                
   
   
   
      Quarter ended  
   
      April 26, 2015       April 27, 2014  
   
Operating activities                
  Net income (loss)   $ 30,778     $ (206,789 )
  Adjustments for:                
    Income tax expense (recovery)     17,810       (76,445 )
    Finance costs     111,602       120,443  
    Depreciation and amortization of property, plant and equipment and intangibles     682,684       764,527  
    Loss on disposal of property, plant and equipment     -       7,345  
    Share-based payments     29,526       49,324  
    Change in non-cash working capital related to operations     681,674       (1,539,945 )
  Less:                
    Interest paid     (93,847 )     (94,047 )
Cash provided by (used in) operating activities     1,460,225       (975,587 )
   
Investing activities                
  Purchase of property, plant and equipment     (552,663 )     (657,688 )
  Construction deposit paid     (620,183 )     -  
  Purchase of intangible assets     (277,827 )     (145,789 )
Cash used in investing activities     (1,450,671 )     (803,477 )
   
Financing activities                
  Increase in bank indebtedness     -       1,983,675  
  Repayment of long-term debt     (223,102 )     (211,596 )
  Issuance of shares, net of fees     (13,256 )     6,985  
Cash provided by (used in) financing activities     (236,358 )     1,779,064  
   
Net increase/(decrease) in cash     (226,804 )     -  
   
Cash, beginning of period     594,976       -  
   
Cash, end of period   $ 368,172     $ -  
                 
                 

Additional Information

For further details the Company's complete management discussion and analysis (MD&A) and financial statements for the quarter ended April 26, 2015 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 the largest Canadian-owned brewery in Ontario. 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 the 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.

 

Contact Information:

For further information:
Sean Byrne
Chief Financial Officer
(519) 742-2732 Ext.132
E-mail: info@brickbeer.com