Thursday, September 8, 2011

Brick Brewing Announces Second Quarter Results, Including EBITDA* of $1.8 Million

Waterloo, ON


Brick beer brands deliver growth of 7.1% as industry declines 1.7% in the quarter

Brick Brewing Co. Limited ("Brick" or the "Company") (TSX: BRB), Ontario's largest Canadian-owned and Canadian-based publicly held brewery, today released its financial results for the second quarter ended July 31, 2011.

"Our core beer portfolio continued to deliver strong growth in the second quarter. The Laker trademark, which is our largest brand family, grew 18.6% year over year," said George Croft, President and CEO.

"The Seagram Blends integration is substantially complete and we are ready to turn our focus to growth, applying the same rigor and discipline that helped Brick achieve success within its beer portfolio. Profitability of the Seagram portfolio has met our expectations," said Croft. "Consumers will start to see new product innovation as early as December 2011," added Mr. Croft.

Financial highlights are as follows:

  • Net revenues for the second quarter of fiscal 2012 were $10.7 million compared to $9.1 million in the second quarter of fiscal 2011.
  • Sales volumes for Brick beer brands increased by 7.1% compared to the second quarter of fiscal 2011. Brick drove this sales growth through a period of intense price competition between its largest competitors.
  • Gross profit percentage declined slightly from 30.4% to 27.7%.
    • In the second quarter the Company continued to prepare for a Global Food Safety certification, and incurred $0.1 million of incremental maintenance costs. Once completed, Brick will be the first Canadian brewer with this distinction.
    • Continued growth of cans (64.9% in the quarter and 92.2% year to date), resulted in a shift of product mix. Brick generates a lower margin on can sales as compared to bottles, due to the relative speed of production and aluminum costs.
  • EBITDA* for the period ended July 31, 2011 was $1.8 million, with a net income of $0.8 million.

On February 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for Canadian publicly accountable enterprises. Prior to the adoption of IFRS, the Company followed Canadian Generally Accepted Accounting Principles ("GAAP"). While IFRS has many similarities to Canadian GAAP, some of the Company's accounting policies have changed as a result of its transition to IFRS. The most significant accounting policy changes that have had an impact on the results of operations are discussed within the applicable sections of the Company's first quarter ended May 1, 2011 Management Discussion & Analysis ("MD&A") and interim Financial Statements filed on SEDAR.

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