For Immediate Release
May 15, 2023— Calgary, Alberta — Big Rock Brewery Inc. (TSX: BR) (“Big Rock” or the “Corporation”) today announced its financial results for the three months ended March 31, 2023.
Please read below or click the link for more information
“Our ability to deliver on a strong first quarter in fiscal 2023 has been a great win for the organization,” said interim President & CEO Stephen Giblin. “Our people at every level of the organization deserve recognition for the Corporation’s strong performance. Management is pleased to see that the changes made across the business are beginning to culminate in returning the Corporation to profitability and the focus remains to continue to build upon this positive momentum as we continue through the remainder of fiscal 2023.”
For the three months ended March 31, 2023, compared to the three months ended March 31, 2022, the Corporation reported:
• sales volumes increased by 1.5% from 33,279 hectolitres (“hl”) to 33,778 hl;
• net revenue increased by 18.9% from $8.8 million to $10.5 million;
• operating loss of $0.1 million versus an operating loss of $1.5 million;
• net loss of $0.3 million versus a net loss of $1.3 million; and
• Adjusted EBITDA increased from a loss of $0.6 million to positive $0.5 million. Adjusted EBITDA is a non-GAAP financial measure, see “Non-GAAP Measures”.
Summary of Results
|$000, except hl and per share amounts||Three months ended March 31|
|Sales volumes (hl) (1)||33,778||33,279|
|Gross revenue||$ 13,639||$ 12,712|
|Cost of sales||7,488||6,073|
|Adjusted EBITDA (2)||522||(620)|
|Operating income (loss)||(144)||(1,488)|
|Net income (loss)||(255)||(1,271)|
|Income (loss) per share (basic and diluted)||$ (0.04)||$ (0.18)|
(1) Excludes contract manufacturing volumes due to the nature of the agreements.
(2) Non-GAAP measure. See “Non-GAAP Measures”.
First Quarter Summary
The interim condensed consolidated financial statements and Management’s Discussion and Analysis for the three months ended March 31, 2023 dated May 15, 2022, can be viewed on Big Rock’s website at www.bigrockbeer.com and on SEDAR at www.sedar.com under Big Rock Brewery Inc. Big Rock is also pleased to announce that the Annual Meeting of Big Rock shareholders will be held on May 25, 2023, at 2:00 p.m. (Mountain Standard Time).
The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles. This press release contains the term “Adjusted EBITDA”. This financial measure does not have a standardized meaning under the Corporation’s Generally Accepted Accounting Principles and therefore may not be comparable to similar measures presented by other issuers.
Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization and share based payments. Management believes that this measure facilitates the understanding of the Corporation’s results from operations. The nearest GAAP measure to Adjusted EBITDA is net income, or net loss as applicable, with the reconciliation between the two as follows:
($000, except where indicated) Three Months ended March 31
|Net income (loss)||$ (255)||$ (1,271)||$ 1,016|
|Depreciation and amortization||1,163||819||344|
|Share based payments||(221)||46||(267)|
|Gain on disposal of assets||(212)||–||(212)|
|Rent paid on leased real property||(179)||–||(179)|
|Adjusted EBITDA (1)||$ 522||$ (620)||$ 1,142|
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock’s future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “likely” “may”, “project”, “predict”, “propose”, “potential”, “might”, “plan”, “seek”, “should”, “targeting”, “will”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this news release and are expressly qualified, in their entirety, by this cautionary statement.
In particular, this news release contains forward-looking statements pertaining to the following:
With respect to the forward-looking statements listed above and FOFI (as defined below) contained in this news release, management has made assumptions regarding, among other things:
that the duration and extent of the COVID-19 pandemic will not be long-term.
Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements and FOFI contained herein include the risk factors set out in the Corporation’s annual information form and also include, but are not limited to:
Any financial outlook or future oriented financial information (in each case “FOFI”) contained in this news release regarding prospective financial position, including anticipated year over year growth in 2022, is based on reasonable assumptions about future events, including those described above, based on an assessment by management of the relevant information that is currently available. The actual results will likely vary from the amounts set forth herein and such variations may be material. Readers are cautioned that any such FOFI contained herein should not be used for purposes other than those for which it is disclosed herein. Such information was made as of the date of this news release and the Company disclaims any intention or obligation to update or revise any such information, whether as a result of new information, future events, or otherwise unless required pursuant to applicable law.
Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements and FOFI contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements and FOFI included in this news release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
About Big Rock Brewery Inc.
In 1985, Ed McNally founded Big Rock to contest the time’s beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, ciders (Rock Creek Cider® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol “BR”. For more information on Big Rock visit www.bigrockbeer.com
For further information, please contact:
Stephen Giblin, Interim President & Chief Executive Officer, or Ron Love, Chief Financial Officer:
Phone: (403) 720-3239
Fax: (403) 720-3641