E-Malt.com News article: 3833

Canada: Brick Brewing Co. Limited released on December 14 record financial results for the third quarter ended October 31, 2004. Net sales for the third quarter of 2004 increased to C$6.9 million compared to $4.0 million for the same period last year, an increase of 72%. Net beer revenues increased 153% to $6.8 million primarily as a result of growth in the Company's value and mainstream beer brands, coupled with the launch of the PC brands in Ontario and Quebec earlier in the year. Net income was a record $684 thousand compared to a loss of C$169 thousand in the third quarter last year, an improvement of C$853 thousand. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 565% (C$1.2 million) to C$1.4 million in the third quarter, compared to $.2 million for the same quarter last year.

"Our strong financial performance during this period is extremely gratifying considering that domestic beer volumes in general have been poor," said Jim Brickman, Executive Chairman and Founder. "We are in an excellent position to capitalize on the growing popularity of our value brand portfolio at one end while promoting the growth of our premium brands at the other," he added.

For the first nine months Company’s Net Revenue increased 41% to $17.4 million over the same period last year as the Company's beer volumes increased 265%. Net income was up 512% to $1.7 million, or $0.10 per share on a diluted basis, compared to $0.3 million, or $0.02 per share in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $3.1 million compared to $1.3 million in the first nine months of last year, an increase of 138%.

During the quarter volumes from co-packing were down by 87% versus the same period last year. The co-pack business was down primarily due to the erosion of volumes experienced by these non-owned brands. This was more than offset by sales gains and superior margins from the Company's value beer strategy.

In August the Company announced that it had reached an agreement to obtain new term financing from Roynat Capital. This financing closed subsequent to the end of the quarter and provided the Company with financing to repay its existing term lender with supplemental available financing to further reduce costs and improve efficiencies.

On November 4, 2004 the Company successfully raised approximately C$5.4 million by issuing common shares in a private placement. The funds will be used to invest in Brick's manufacturing infrastructure, sales and marketing to further grow the business and reduce manufacturing costs.

Doug Berchtold President and CEO said, "I am pleased to announce the financial restructuring of Brick Brewing is now complete. We have two banking partners who are unquestionably committed to help us grow and the recently completed equity financing raised an additional $5.4 million. The Company is
now poised to make additional investments both in brands and operations to further sustain improved financial performance in future fiscal periods," he added.


15 December, 2004