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Brick Brewing delivers another profitable quarter with EBITDA of $634 thousand

^{Published on 2010-06-11 18:20:34 - Market Wire}
 

 - Net revenue was $7.0 million compared to $7.6 million in the comparable period - Gross profit percentage has increased to 27.4% versus 26.5% - EBITDA for the period ended May 2, 2010 was $634 thousand, net income of $108 thousand 

 BRICK BREWING CO. LIMITED Consolidated Balance Sheet (unaudited) ------------------------------------------------------------------------- First quarter ended Year ended May 2, January 31, 2011 2010 ------------------------------------------------------------------------- Assets Current assets: Accounts receivable 2,956,881 2,357,069 Inventories 5,799,978 5,251,714 Prepaid expenses 558,445 412,351 Future income taxes 566,000 566,000 ------------------------------------------------------------------------- 9,881,304 8,587,134 Property, plant and equipment 14,823,716 14,101,122 Trademarks and listing fees 5,752,308 5,731,954 Other assets 96,394 188,871 Future income taxes 954,000 1,034,000 ------------------------------------------------------------------------- $ 31,507,722 $ 29,643,081 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness $ 855,440 $ 1,792,406 Accounts payable and accrued liabilities 5,878,208 3,187,915 Current portion of long-term debt 757,750 816,100 Current portion of obligations under capital lease 273,208 146,418 ------------------------------------------------------------------------- 7,764,606 5,942,839 Long-term debt 1,251,800 1,251,800 Obligations under capital lease 42,929 138,106 Shareholders' equity: Share capital 34,678,264 34,678,264 Contributed surplus 802,131 772,455 Deficit (13,032,008) (13,140,383) ------------------------------------------------------------------------- 22,448,387 22,310,336 Contingency $ 31,507,722 $ 29,643,081 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BRICK BREWING CO. LIMITED Consolidated Statement of Income, Comprehensive Income and Deficit (unaudited) First quarter ended ------------------------------------------------------------------------- May 2, April 30, 2010 2009 ------------------------------------------------------------------------- Gross revenue $ 14,628,007 $ 15,766,795 Less production taxes and distribution fees (7,656,863) (8,125,677) ------------------------------------------------------------------------- Net revenue 6,971,144 7,641,118 Cost of sales 5,061,658 5,619,236 ------------------------------------------------------------------------- Gross profit 1,909,486 2,021,882 Selling, marketing and administration 1,272,265 866,442 ------------------------------------------------------------------------- Earnings before the undernoted 637,221 1,155,440 Other income (expense): Depreciation and amortization (415,533) (464,987) Interest on long-term debt (24,404) (41,855) Other income (expense) (8,909) 1,121 ------------------------------------------------------------------------- (448,846) (505,721) ------------------------------------------------------------------------- Net income before provision for income taxes 188,375 649,719 Future income tax provision 80,000 218,360 ------------------------------------------------------------------------- Net income and comprehensive income 108,375 431,359 Deficit, beginning of period (13,140,383) (14,506,098) ------------------------------------------------------------------------- Deficit, end of period $(13,032,008) $(14,074,739) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings per share: Basic $ - $ 0.02 Diluted $ - $ 0.02 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BRICK BREWING CO. LIMITED Consolidated Statement of Cash Flows (unaudited) First quarter ended ------------------------------------------------------------------------- May 2, April 30, 2010 2009 ------------------------------------------------------------------------- Cash provided by (used in): Operations: Income for the period $ 108,375 $ 431,359 Items not involving cash: Amortization of property, plant and equipment, and other assets 414,722 472,487 Stock based compensation 29,676 24,794 Future income tax provision 80,000 218,360 Change in non-cash operating working capital 1,396,120 (442,348) ------------------------------------------------------------------------- 2,028,893 704,652 Financing: Increase (decrease) in bank indebtedness (936,966) 176,841 Repayment of long-term debt (58,350) (53,850) Repayment of obligation under capital lease (41,708) (32,649) Issue of capital stock (net of fees) - 3,200 ------------------------------------------------------------------------- (1,037,024) 93,542 Investing: Purchase of property, plant and equipment, and other assets (971,515) (731,793) Listing fees paid (20,354) (275,692) ------------------------------------------------------------------------- (991,869) (1,007,485) ------------------------------------------------------------------------- Net decrease in cash - (209,291) Cash, beginning of period - 209,291 ------------------------------------------------------------------------- Cash, end of period $ - $ - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental cash flow information: Cash paid for interest $ 32,087 $ 36,355 Non-cash investing and financing activities: Obligation under capital lease $ 73,321 $ - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 * EBITDA is a non-GAAP earnings measure, therefore it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization. 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.