Ms. Allison Radford reports

RUM REPORTS AN INCREASE TO EBITDA FOR Q3 2023 CONSOLIDATED FINANCIAL RESULTS COMPARED TO 2022

Rocky Mountain Liquor Inc. has released its financial results for the three- and nine-month periods ending Sept.30, 2023.

Key operating and financial highlights

Three-month comparison July 1 to Sept. 30:

• Gross margin increased 8 per cent to 24.2 per cent (2022: 22.4 per cent);
• EBITDA (earnings before interest, taxes, depreciation and amortization) increased 6 per cent to $536,675 (2022: $505,613);
• Operating margin increased 3 per cent to $909,564 (2022: $884,749).

Nine-month comparison Jan. 1 to Sept. 30:

• Gross margin increased 6 per cent to 23.9 per cent (2022: 22.5 per cent);
• EBITDA increased 11 per cent to $961,555 (2022: $868,848);
• Operating margin increased 4 per cent to $2,008,247 (2022: $1,931,217).

EBITDA for the three- and nine-month period ending Q3 2023 is continuing to outperform 2022. The company has continued to reduce debt by $1.4-million over the last 12 months, improving the balance sheet position and helping offset interest costs from increases in the prime rate.

Allison Radford, chief executive officer, commented: "Management will continue focusing on improving category management through purchasing optimization, pricing strategies and a focus on meeting market-driven consumer demand. The company is continually evaluating its marketing plans to ensure that the strategies are generating brand awareness and brand engagement as well as driving customer traffic to its stores."

The attached table summarizes key operating and financial metrics of the company's financial performance for the three- and nine-month periods ending Sept. 30, 2023, and 2022.

The company increased its operating margin by 3 per cent in Q3 2023 over the same quarter in 2022 by focusing on cost-efficiencies and from selling an underperforming store in 2022. Sales of existing stores for the three months ending Sept. 30, 2023, are lower than the same period in 2022 due to the sale of a store in Q4 2022. The weather throughout the summer, particularly on weekends, played a large role in the sales trends for the third quarter ending 2023 as it was not as favourable as 2022.

Average sales per existing store increased by 2 per cent for the nine-month period ending Sept. 30, 2023, over Sept. 30, 2022, primarily due to inflationary pressures on pricing. Sales of existing stores for the nine-month period ending Sept. 30, 2023, are 2 per cent lower than the same period in 2022. For the first two months in 2022, restrictions were in place to on-site liquor consumption establishments resulting in a positive effect on retail liquor sales in that period.

Gross margins are higher by 8 per cent at 24.2 per cent for the three months ending Sept. 30, 2023, compared with 22.4 per cent for the same period in 2022, and higher by 6 per cent at 23.9 per cent for the nine-month period in 2023 compared with 22.5 per cent in 2022 as management has been focusing on its marketing, pricing and promotional strategies to support profitable growth.

Detailed information in the form of the company's interim consolidated financial statements and management discussion and analysis are available under the company's profile on SEDAR+ and also on the company's website. After accessing the website, please choose the investor relations tab to view quarterly reports.

About Rocky Mountain Liquor Inc.

Rocky Mountain owns 100 per cent of Andersons Liquor Inc., headquartered in Edmonton, Alta., which now owns and operates 25 private liquor stores in that province, up from 18 stores since the common shares began trading in December, 2008. It is listed on the TSX Venture Exchange.

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