Decent news , revenues up. Top 50 CompanyRocky Mountain Liquor loses $145,502 in Q1
Rocky Mountain Liquor Inc (C:RUM)
Shares Issued 57,797,788
Last Close 6/2/2011
.305
Monday June 06 2011 - News Release
Mr. Peter Byrne reports
RUM POSTS CONTINUED GROWTH IN Q1
Rocky Mountain Liquor Inc. has released its financial results for the period ending March 31, 2011.
Results highlights for the three-month period ending March 31, 2011:
Earnings before interest, taxes, depreciation and amortization increased 52.46 per cent from $213,942 to $326,167.
Sales increased 14.79 per cent from $8,729,994 to $10,021,156.
Operating margin increased 23.61 per cent from $193,219 to $237,962.
Operating margin percentage increased from 2.21 per cent to 2.37 per cent.
During the three-month period ended March 31, 2011, the company acquired one new store in St. Paul, Alta., and completed the construction of a new store in Edmonton, Alta., resulting in 34 stores in operation at the end of the first quarter.
Development of two new stores, one in Pincher Creek, Alta., and one in Wainwright, Alta., is now complete. These stores opened on April 15, 2011, and April 21, 2011, respectively. Additionally the company announced the potential acquisition of two more stores in Lethbridge, Alta., to close subject to due diligence in the second quarter 2011, and one new store development in Northern Alberta expected to open in the third quarter. Development permits have now been obtained for this new store development and construction is expected to commence in the second quarter.
Sales increased 14.79 per cent in the first quarter as a result of the increased number of stores in operation. Operating margin contribution increased to $237,962 up from $193,219 as did the operating margin percentage from 2.21 per cent to 2.37 per cent, mainly due to an increase in EBITDA less offsets from interest rate swap.
EBITDA increased substantially by 52.46 per cent from $213,942 to $326,167. Net loss for the quarter was $145,502, which increased from $60,546 in the same quarter in 2010. Prior-year comparisons have been restated as a result of transition to international financial reporting standards.
During the first quarter the Company was awarded the Alberta Venture magazine Fast Growth 50 Award, ranking 16th overall and second in companies over $20 million in revenue. On June 1st, 2011 RUM received a second growth award. This time Rocky Mountain placed in the 23rd annual PROFIT 200 rankings for the first time. PROFIT magazine ranks the top 200 growth companies based on revenue growth over a five year period.
Mr. Peter Byrne, CEO, said "We have grown steadily and achieved profitability every year. It was extremely satisfying to win one award for achievement in growth in Alberta, but to also obtain national ranking, is validation of our business strategy."
Speaking about growth Mr. Byrne added "Our capital structure has allowed us to grow with minimum dilution. We are committed to continuing our growth in the most beneficial way to our shareholders. The Company has previously stated its goal to grow with new developments and acquisition of existing privatized liquor stores in the provinces of Alberta and British Colombia. The Company's growth to date has been funded to a minor extent by raising new equity and convertible debt, but mainly with reinvestment of earnings and senior bank debt. Recently we reduced our term debt by $5.5 million. We are able to continue near term growth using on hand financial resources. The acquisitions and new store developments that we have announced to the end of Q3 will not require us to incur any further debt."
The Company's unaudited consolidated financial statements and Management Discussion and Analysis for the three month period ended March 31, 2011 are available under the Company's profile on SEDAR at www.sedar.com and also on the Company's website at www.ruminvestor.com.
We seek Safe Harbor.
© 2011 Canjex Publishing Ltd.