RE: From sell to hold! oh ya net losses mounting...........
Net loss for Q2 2008 increased $179,000 or 49% to $546,000 or $0.02 loss per share compared to $367,000 or $0.03 loss per share for Q2 2007. Net loss grew principally as a result of increased selling, general and administration costs and a decline in gross margins. Fort Garry contributed $60,000 of the loss. Net Loss for YTD 2008 grew $691,000 or 131% to $1,217,000 or $0.05 loss per share compared to $526,000 or $0.04 loss per share for YTD 2007, principally due to increased selling, general and administration costs. The average number of weighted shares outstanding grew 10,229,000 for Q2 2008 and 10,223,000 for YTD 2008 to 24,686,000 and 22,463,000 respectively over Q2 and YTD 2007, reducing the impact of increased loss on loss per share numbers.
Gross margin for Q2 2008 declined 10% to 58% compared to 68% in Q2 2007 as a result of the impact of lower margin Fort Garry product and increased materials, freight and amortization of keg costs in British Columbia operations. Gross margin for YTD 2008 declined 7% to 64% compared to 71% for YTD 2007 also due to the impact of Fort Garry and overall increased costs for materials, freight and keg amortization in British Columbia operations.