KITCHENER, ON--(Marketwired - April 07, 2016) -
Fiscal 2016 Highlights:
- Net Revenues for the full year increased to $37.6 million, compared to $36.3 million for fiscal 2015.
- Fiscal 2016 gross margin improved to 29.0% (excluding one-time costs) vs. 28.1% prior year.
- SM&A expenses decreased to $7.4 million, down from $7.6 million the prior year.
- Fiscal 2016 EBITDA* increased to $6.0 million (excluding one-time costs) compared to EBITDA* reported for fiscal 2015 of $5.4 million.
- The Board of Directors re-affirmed the quarterly dividend, $0.012/share, payable May 24, 2016 to shareholders of record as of May 10, 2016. The dividend is classified as an eligible dividend.
Brick Brewing Co. Limited ("Brick" or the "Company") (
George Croft, President and Chief Executive Officer remarked, "Quite simply, we are thrilled with the results for F2016. We've been able to grow revenues, expand margins, keep cost under control, all to deliver record EBITDA in what has clearly been a tumultuous year in the industry. Equally impressive, the team delivered these results while flawlessly executing the Kitchener brewhouse expansion project, finishing on budget, and two months ahead of schedule. The new brewhouse, the most efficient in North America from a utility and material utilization perspective, will pay dividends for years to come, while we continue to grow our business right here at home in Ontario."
Brick's premium craft beer brand, Waterloo, posted full year volume growth of 31%. Mr. Croft remarked, "This was another great year for our Waterloo Craft Brewing division. We saw strength in our core portfolio -- Dark, IPA, Pilsner, Amber and Radler -- while also delighting consumers with our compelling seasonal offerings. With improved access for small brewers in both grocery and The Beer Store, we believe the year ahead will show continued growth for our Waterloo craft brands." In the Seagram brand, volume was down 18% for the year, driven by LCBO delists and malt cooler category declines at The Beer Store. Seagram cider continues as a standout, growing over 40% in the year. As well, the packaging re-design on Seagram Wildberry vodka coolers has been successful, leading to improving results in recent months. Laker volume was down 4% vs prior year, as increased competitive pricing pressure from the large international brewers eroded volumes across the category. "Our brewhouse investment was very timely," added Croft. "The savings we're realizing -- on materials, energy and labour productivity -- all of these allow us to respond to the competitive pricing pressures we see in the marketplace."
Brick's board of directors has also re-affirmed the quarterly dividend, at $0.012/share. The dividend is an eligible dividend and is payable May 24, 2016 to shareholders of record as of May 10, 2016. "When we launched the dividend in December 2015, it was with the intention to begin a practice of continuously returning cash to our shareholders. We're pleased to continue on this path, with the May 2016 dividend," noted Sean Byrne, Brick's Chief Financial Officer.
"Looking ahead, we're excited to continue this trajectory of growth into fiscal 2017," added Croft. "Our commercial launch of LandShark Lager and Margaritaville coolers will be hitting shelves this month, the roll out of beer into grocery is gaining momentum, and we're beginning to see the positive impact of changes in The Beer Store channel. With the diversity of our business model, the efficiency of our operations, and the strength of our brands, we think F2017 will be another great year for Brick Brewing."
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, 2016.
| Reconciliation of Net Earnings to Earnings Before Interest Taxes Depreciation and Amortization, and Share Based Payments (EBITDA)* | |||||||||
| Fiscal year ended | |||||||||
| (in thousands of dollars) | January 31, 2016 | January 31, 2015 | |||||||
| Net income | $ | 1,594 | $ | 1,395 | |||||
| Add (deduct): | |||||||||
| Income tax expense | 658 | 628 | |||||||
| Depreciation and amortization | 2,983 | 3,147 | |||||||
| Gain on disposal of property, plant and equipment | (206 | ) | (436 | ) | |||||
| Share-based payments | 125 | 122 | |||||||
| Finance costs | 479 | 535 | |||||||
| Subtotal | 4,039 | 3,996 | |||||||
| EBITDA* | 5,633 | 5,391 | |||||||
| STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
| Years ended January 31, 2016 and 2015 | ||||||||
| January 31, 2016 | January 31, 2015 | |||||||
| Revenue | $ | 37,609,568 | $ | 36,332,507 | ||||
| Cost of sales | 27,075,078 | 26,135,860 | ||||||
| Gross profit | 10,534,490 | 10,196,647 | ||||||
| Selling, marketing and administration expenses | 7,367,411 | 7,563,543 | ||||||
| Other expenses | 641,474 | 511,719 | ||||||
| Finance costs | 478,945 | 535,110 | ||||||
| Gain on disposal of property, plant and equipment | (205,912 | ) | (436,365 | ) | ||||
| Income before tax | 2,252,572 | 2,022,640 | ||||||
| Income tax expense | 658,392 | 627,571 | ||||||
| Net income and comprehensive income for the year | $ | 1,594,180 | $ | 1,395,069 | ||||
| Basic earnings per share | $ | 0.05 | $ | 0.04 | ||||
| Diluted earnings per share | $ | 0.05 | $ | 0.04 | ||||
| STATEMENTS OF FINANCIAL POSITION | ||||||||||
| As at January 31, 2016 and 2015 | ||||||||||
| January 31, 2016 | January 31, 2015 | |||||||||
| ASSETS | ||||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | $ | 21,986,070 | $ | 15,582,051 | ||||||
| Intangible assets | 15,375,392 | 15,114,247 | ||||||||
| Deferred income tax assets | 1,262,769 | 1,921,161 | ||||||||
| Construction deposit | - | 1,478,220 | ||||||||
| 38,624,231 | 34,095,679 | |||||||||
| Current assets | ||||||||||
| Cash | 393,645 | 594,976 | ||||||||
| Accounts receivable | 6,176,421 | 6,492,461 | ||||||||
| Inventories | 3,291,529 | 3,400,821 | ||||||||
| Prepaid expenses | 354,650 | 350,154 | ||||||||
| 10,216,245 | 10,838,412 | |||||||||
| TOTAL ASSETS | 48,840,476 | $ | 44,934,091 | |||||||
| LIABILITIES AND EQUITY | ||||||||||
| Equity | ||||||||||
| Share capital | 39,526,573 | 39,413,636 | ||||||||
| Share-based payments reserves | 932,201 | 1,075,554 | ||||||||
| Deficit | (4,933,195 | ) | (6,107,475 | ) | ||||||
| TOTAL EQUITY | 35,525,579 | 34,381,715 | ||||||||
| Non-current liabilities | ||||||||||
| Provisions | 388,548 | 307,235 | ||||||||
| Obligation under finance lease | 4,523,152 | 1,266,996 | ||||||||
| Long-term debt | 1,548,584 | 2,642,676 | ||||||||
| 6,460,284 | 4,216,907 | |||||||||
| Current liabilities | ||||||||||
| Accounts payable and accrued liabilities | 4,908,722 | 4,665,784 | ||||||||
| Current portion of obligation under finance lease | 713,699 | 46,925 | ||||||||
| Current portion of long-term debt | 1,232,192 | 1,622,760 | ||||||||
| 6,854,613 | 6,335,469 | |||||||||
| TOTAL LIABILITIES | 13,314,897 | 10,552,376 | ||||||||
| COMMITMENTS | ||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 48,840,476 | $ | 44,934,091 | ||||||
| STATEMENTS OF CASH FLOWS | ||||||||||
| Years ended January 31, 2016 and 2015 | ||||||||||
| January 31, 2016 | January 31, 2015 | |||||||||
| Operating activities | ||||||||||
| Net income | $ | 1,594,180 | $ | 1,395,069 | ||||||
| Adjustments for: | ||||||||||
| Income tax expense | 658,392 | 627,571 | ||||||||
| Finance costs | 478,945 | 535,110 | ||||||||
| Depreciation and amortization of property, plant and equipment and intangibles | 2,983,271 | 3,146,717 | ||||||||
| Gain on disposal of property, plant and equipment | (205,912 | ) | (436,365 | ) | ||||||
| Share-based payments | 125,257 | 121,521 | ||||||||
| Change in non-cash working capital related to operations | 689,069 | (969,392 | ) | |||||||
| Less: | ||||||||||
| Interest paid | (441,196 | ) | (460,496 | ) | ||||||
| Cash provided by operating activities | 5,882,006 | 3,959,735 | ||||||||
| Investing activities | ||||||||||
| Purchase of property, plant and equipment | (2,806,182 | ) | (1,968,373 | ) | ||||||
| Construction deposit paid | (936,595 | ) | (1,478,220 | ) | ||||||
| Proceeds from sale of property, plant and equipment, net | 331,490 | 3,370,397 | ||||||||
| Purchase of intangible assets | (281,545 | ) | (379,992 | ) | ||||||
| Cash used in investing activities | (3,692,832 | ) | (456,188 | ) | ||||||
| Financing activities | ||||||||||
| Decrease in bank indebtedness | - | (1,694,178 | ) | |||||||
| Repayment of long-term debt | (1,507,957 | ) | (1,566,293 | ) | ||||||
| Repayment of obligation under finance lease | (306,975 | ) | - | |||||||
| Dividends paid | (419,900 | ) | - | |||||||
| Issuance of shares, net of fees | 21,520 | 26,900 | ||||||||
| Shares repurchased and cancelled, including fees | (384,602 | ) | - | |||||||
| Proceeds from stock option exercise | 207,409 | 325,000 | ||||||||
| Cash used in financing activities | (2,390,505 | ) | (2,908,571 | ) | ||||||
| Net increase/(decrease) in cash | (201,331 | ) | 594,976 | |||||||
| Cash, beginning of year | 594,976 | - | ||||||||
| Cash, end of year | $ | 393,645 | $ | 594,976 | ||||||
| Non-cash investing and financing activities: | ||||||||||
| Acquisition of assets under finance lease | $ | 4,169,156 | $ | 1,313,921 | ||||||
Additional Information
For further details the Company's complete management discussion and analysis (MD&A) and financial statements for the year ended January 31, 2016 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 the 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 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. 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.
Contact Information:
Contact Information
For further information:
Sean Byrne
Chief Financial Officer
(519) 742-2732 x132
E-mail: info@brickbeer.com