Market Overview

Brick Brewing Reports Record Full-year EBITDA, ex one-time costs, of $9.0MM

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KITCHENER, Ontario, April 12, 2018 (GLOBE NEWSWIRE) -- Fourth Quarter Highlights:

  • Net Revenue for the quarter increased to $10.7 million compared to $10.5 million in the fourth quarter of fiscal 2017.
  • Gross Profit margin for the quarter was 29.1%, a decrease from 32.1% in prior year.
  • Selling, Marketing and Administration expenses of $2.1 million, compared to prior year at $2.3 million.
  • EBITDA* for the quarter was $1.81 million, compared to prior year EBITDA of $1.77 million.
  • The Board of Directors re-affirmed the quarterly dividend, at $0.02/share, payable May 22, 2018 to shareholders of record as of May 8, 2018. The dividend is classified as an eligible dividend.

Full Year Highlights:

  • Net Revenue increased to $49.8 million, from $45.2 million in the prior year.
  • Gross Profit margin was 28.7% and 30.4% ex one-time costs, a decrease from 34.8% in prior year.
  • Selling, Marketing and Administration expenses decreased to $9.14 million, down from $9.25 million in prior year.
  • EBITDA was $8.2 million and $9.0 million, ex one-time costs, up from $8.8 million in the prior year.

Brick Brewing Co. Limited ("Brick" or the "Company") (TSX:BRB), Ontario's largest Canadian-owned brewery, today released results for the fourth quarter and full year ended January 31, 2018.  Brick recorded annual EBITDA (ex one-time costs) of $9.0 million on a Net Revenue of $49.8 million. EBITDA for the fourth quarter was $1.81 million.

George Croft, Brick President and Chief Executive Officer commented, "We are pleased with the growth of our owner brands and co-pack business.  The integration of our operating facilities is now complete, and we look forward to the challenge of delivering exceptional results in the upcoming year.  We experienced challenging market conditions during 2017 with a cool, wet summer which drove overall full-year industry volume lower by 5.1%.  Despite the category declines, Laker grew 6% in the year, Waterloo was up 10% and the LandShark and Margaritaville family grew 45%.  We are excited about a new can line upgrade project that is well under way and will double our canning capacity. We expect to leverage the increased capacity and improved supply chain efficiencies over the next fiscal year in both our own branded volumes and with our contract manufacturing.

Brick reported 28% growth or $2.3 million in contract manufacturing revenue for the year, the result of growth with both current and new customers.

Croft added, "We have recently announced a number of new products and packaging, including Chudleigh's Cider, Waterloo Radler Sampler and Landshark draft that we are confident will resonate with our consumers. We are also excited about the upcoming craft offerings which we believe will be a key element in realizing our growth targets in the year ahead.  All of these contribute to our confidence in our ability to deliver value and growth to our shareholders for the long term."

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, 2018.

 
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, 2018 
  January 31, 2017
         
Net income $    2,602   $   3,997  
         
Add (deduct):        
Income tax expense     1,044       1,345  
Depreciation and amortization     3,528       2,876  
Loss on disposal of property, plant and equipment and intangibles     131       -  
Share-based payments     316       147  
Finance costs     546       478  
Subtotal     5,565       4,846  
         
EBITDA*     8,167       8,843  
         


STATEMENTS OF COMPREHENSIVE INCOME
Years ended January 31, 2018 and 2017

     January 31, 2018     January 31, 2017 
         
Revenue $    49,790,034   $   45,176,380  
Cost of sales     35,509,607       29,464,917  
Gross profit     14,280,427       15,711,463  
             
Selling, marketing and administration expenses     9,142,571       9,248,039  
Other expenses     814,256       643,273  
Finance costs     545,990       478,181  
Loss on disposal of property, plant and equipment and intangibles     131,068       -   
Income before tax     3,646,542       5,341,970  
             
Income tax expense     1,044,075       1,345,158  
Net income and comprehensive income for the year $    2,602,467   $   3,996,812  
         
         
Basic earnings per share $    0.07   $   0.11  
Diluted earnings per share $    0.07   $   0.11  
         


STATEMENTS OF FINANCIAL POSITION
As at January 31, 2018 and 2017

   January 31, 2018   January 31, 2017 
     
ASSETS    
Non-current assets    
Property, plant and equipment $    27,119,488   $   21,709,425  
Intangible assets     15,381,578       15,499,186  
Construction deposits     323,255       2,462,328  
      42,824,321       39,670,939  
     
Current assets    
Cash     -        2,831,959  
Accounts receivable     6,999,212       7,035,714  
Inventories     7,891,364  
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