Brick Brewing Reports Third Quarter EBITDA of $1.5M

KITCHENER, ON--(Marketwired - December 10, 2015) -

Highlights:

• Net Revenue for the third quarter was $9.8 million compared to $9.3 million in the third quarter of fiscal 2015.
  
• Gross profit margin for the quarter was 25.7% (27.2% excluding 1x costs), compared to 26.6% in prior year.
  
• Selling, Marketing and Administration ("SM&A") of $1.8 million, down from the prior year at $1.9 million.
  
• EBITDA* for the quarter increased to $1.5 million ($1.6M excluding one time costs) compared to EBITDA* in the third quarter of fiscal 2015 of $1.4 million.
  
• The Board of Directors approved introduction of a quarterly dividend, $0.012/share, payable January 15, 2016 to shareholders of record as of January 1, 2016. The dividend is classified as an eligible dividend.

Brick Brewing Co. Limited ("Brick" or the "Company") (TSX: BRB), Ontario's largest Canadian-owned brewery, today released results for the third quarter ended October 25, 2015.

Net Revenues for the third quarter of fiscal 2016 grew to $9.8 million, up from $9.3 million in the third quarter of fiscal 2015. Excluding the impact of $147 thousand in one-time costs related to the Kitchener expansion, gross margins for the quarter were 27.2% versus 26.6% in Q3 of the prior year. Continued improvements to product mix coupled with success in cost reduction initiatives mitigated the impact of a soft pricing environment. EBITDA for the third quarter of fiscal 2016 improved to $1.5 million, and $1.6 million excluding one time costs, compared to $1.4 million in the third quarter of fiscal 2015.

"Competitive pricing pressure in the quarter impacted our Laker brand, as international brewers had National brands at deep discount pricing for much of the quarter. Our ability to generate EBITDA growth in this environment is a testament to the strength of our Waterloo craft premium brand, to our diversified business model, and to the investments we've made to ensure we can compete effectively with the large international brewers." noted George Croft, President and CEO. "Our craft premium Waterloo brand grew 37% and is up over 30% year to date. This is prior to introduction of beer into the grocery channel which is expected to arrive on shelves in the next few months. Seagram had a strong quarter as well, with volume up over 7%, led by double digit growth in both vodka based coolers and cider."

During the quarter Brick incurred $147 thousand in one time costs associated with the now complete Kitchener expansion project, bringing year to date one-time costs to $349 thousand. Chief Operating Officer Russell Tabata noted, "The efficiency and performance of the new brewhouse is right in line with our expectations. The improvements we're seeing in energy, materials, and distribution are essential to our ability to compete effectively over the long term."

Given the strong operating and financial performance, Brick is also announcing today the introduction of a quarterly dividend, $0.012/share, payable on January 15 to shareholders of record as of January 1, 2016. The dividend is an eligible dividend. Chief Financial Officer Sean Byrne explained, "Both management and the board felt the time was right to begin to return cash directly to our shareholders. The Company's financial position is strong and our investments in recent years are generating the expected returns. Dividend introduction is entirely in line with our commitment to deliver value to our shareholders."

Croft added, "With a quarter to go, the positive changes in The Beer Store soon to be realized, and the introduction of beer into grocery underway, we feel we are well positioned for a strong finish to the year."

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.

For further details the Company's complete management discussion and analysis (MD&A) and financial statements for the quarter ended October 25, 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 Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under Global Food Safety Standard, 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.