Mr. George Croft reports
BRICK BREWING REPORTS THIRD QUARTER EBITDA OF $2.0M
Brick Brewing Co. Ltd. has released its results for the third quarter ended Oct. 30, 2016.
Third quarter highlights
- Net revenue for the third quarter increased to $11.1-million compared with $9.8-million in the third quarter of fiscal 2016.
- Gross profit margin for the quarter was 34.3 per cent, an increase from 25.7 per cent in prior year.
- Selling, marketing and administration (SM&A) expenses were $2.3-million compared with prior year at $1.8-million.
- Earnings before interest, taxes, depreciation and amortization for the quarter increased to $2.0-million compared with EBITDA in the third quarter of fiscal 2016 of $1.5-million.
- The board of directors approved an increase to the quarterly dividend to 1.6 cents/share, payable Jan. 24, 2017, to shareholders of record as of Jan. 10, 2017. The dividend is classified as an eligible dividend.
Year-to-date highlights
- Net revenue increased to $34.6-million from $28.6-million in the prior year.
- Gross margin improved to 35.6 per cent from 27.0 per cent prior year.
- Selling, marketing and administration expenses increased to $6.9-million from $5.6-million.
- EBITDA improved to $7.1-million year to date, up from $4.0-million in the prior year.
Net revenues for the third quarter of fiscal 2017 grew to $11.1-million, up from $9.8-million in the third quarter of fiscal 2016. Gross margins for the quarter increased to 34.3 per cent versus 25.7 per cent in Q3 of the prior year. Margin expansion was supported by volume growth, improved product mix, strong pricing as well as overall cost reductions in operations. EBITDA for the third quarter of fiscal 2017 improved to $2.0-million, reflecting a continuation of the strong results reported in the first half of the year.
"This was, by any measure, another tremendous quarter for Brick Brewing," noted George Croft, president and chief executive officer. "We're reporting double-digit growth in branded volume, co-pack revenue and net sales. We've been able to expand margins, increase the investment in our brands and still deliver over 30-per-cent growth in EBITDA. Our Laker brand posted 13-per-cent volume growth while LandShark continued to resonate with consumers. Our Waterloo brand declined modestly in the quarter, due to channel inventory reductions. Counter sales for Waterloo remained strong and are consistent with our year-to-date growth, up 14 per cent versus prior year. We have been successful in growing market share, and the strong response we've enjoyed from our consumers has allowed us to outperform the category."
As a result of the strength in operating and financial performance, Brick is also announcing today an increase in the quarterly dividend to 1.6 cents/share, up from 1.2 cents/share. The dividend is payable Jan. 24 to shareholders of record as of Jan. 10, 2017. The dividend is an eligible dividend. Chief financial officer Sean Byrne commented: "The increase in the dividend is simply a continuation of our commitment to deliver value to shareholders. We believe it also speaks volumes about our ability to both invest in growing our business while at the same time increasing returns to shareholders."
Mr. Croft added: "Although we are enormously pleased with our results to date, we are taking nothing for granted. We will continue to focus on executional excellence and will be working hard to ensure a strong finish for the year."
STATEMENTS OF COMPREHENSIVE INCOME
Quarter ended Fiscal year to date ended
Oct. 30, Oct. 25, Oct. 30, Oct. 25,
2016 2015 2016 2015
Revenue $11,106,289 $9,829,613 $34,636,967 $28,573,912
Cost of sales 7,302,657 7,302,829 22,317,110 20,850,298
----------- ----------- ----------- -----------
Gross profit 3,803,632 2,526,784 12,319,857 7,723,614
----------- ----------- ----------- -----------
Selling, marketing and
administration
expenses 2,349,468 1,828,723 6,938,887 5,649,363
Other expenses 205,192 140,642 650,592 435,259
Finance costs 103,043 121,779 385,595 357,011
Gain on disposal of
property,plant and
equipment - (196,912) (196,912)
----------- ----------- ----------- -----------
Income before tax 1,145,929 632,552 4,344,783 1,478,893
----------- ----------- ----------- -----------
Income tax expense 291,495 141,082 1,067,360 376,839
----------- ----------- ----------- -----------
Net income and
comprehensive income 854,434 491,470 3,277,423 1,102,054
=========== =========== =========== ===========
Basic earnings per
share 0.02 0.01 0.09 0.03
Diluted earnings per
share 0.02 0.01 0.09 0.03
=========== =========== =========== ===========
About Brick Brewing
Brick is Ontario's largest Canadian-owned brewery. Brick has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Brick purchased the Canadian rights to Seagram Coolers and in 2015 secured the exclusive Canadian rights to both LandShark and Margaritaville. In addition, Brick utilizes its leading-edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders.
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