E-Malt.com News article: 641

Canadian Big Rock Brewery has released its results for the quarter ended Dec. 31, 2002. Gross sales revenue increased to $9,246,750 this quarter from $7,519,658 in the same quarter last year, a 23-per-cent increase. In terms of volume, hectolitres sold increased to 35,308 from 27,669 the previous year, a 28-per-cent increase.

The reorganization of Big Rock into a trust resulted in a one-time charge of $728,890 to current period earnings. Thus earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was down 32 per cent to $698,960 from last year EBITDA of $1,022,239 and net income for the quarter was $27,074, down from $709,260 last year.

On Jan. 10, 2003, Big Rock Brewery was reorganized into Big Rock Brewery Income Trust pursuant to a plan of arrangement. The trust, indirectly through its operating entities, operates Big Rock's premium brewing business and all of the former securityholders of Big Rock now hold all of the outstanding trust units of the trust. The unitholders of the trust are entitled to receive cash distributions paid by the trust and will be entitled to one vote for each trust unit held at unitholder meetings.

Under the terms of the arrangement, shareholders of Big Rock received one trust unit of the trust for every common share held. The reorganization of Big Rock into an income trust is the culmination of a process initiated by Big Rock's board of directors to explore alternatives for Big Rock to provide regular cash distributions to its shareholders while maintaining the ability to pursue growth opportunities. After reviewing projected revenues, profits and capital expenditure requirements for 2003, the board of Big Rock has approved a monthly distribution of six cents per unit. The board believes that Big Rock will be able to sustain this payout schedule during 2003, while retaining sufficient funds for normal budgeted expenditures, as well as a reasonable reserve to cover unanticipated financing requirements.

The trust units of the trust commenced trading on the Toronto Stock Exchange on Jan. 15, 2003.
To be consistent with other income trusts, the fiscal year-end of the trust will be Dec. 31 instead of March 31 as previously reported by Big Rock Brewery. Financial results for the period after the effective date of the plan of arrangement will follow the continuity of interest basis of accounting as if Big Rock had always been an income trust.


13 February, 2003