EDMONTON, AB / ACCESSWIRE / May 29, 2019 / Rocky Mountain Liquor Inc. (TSX-V: RUM) (the "Company" or "Rocky Mountain"), listed on the TSX Venture Exchange (the "Exchange"), today reported its financial results for the 3 month period ending March 31, 2019.
The Company has continued to succeed at its objective to grow market share through its rebranding strategy. At the end of March 31, 2019, the Company operated 29 stores with average sales per store of $312,983. This is an increase of over 21% in average sales per store when compared to the same period in 2018 where we ended the period with 34 stores and an average of $257,939 sales per store. The Company will continue its focus to provide customers additional product offerings and new marketing and promotional programs throughout the year.
The Company continued into 2019 with a focus on cost reduction strategies that have resulted in a decrease in operating and administrative expense of 4.9%. As a percentage of sales, operating and administrative expenses decreased from 25.2% in 2018 to 23.2% for the three months ending March 31 (2019 values were adjusted to excluded the changes as a result of new International Financial Reporting Standard 16 - Leases, as explained in the Notes to the Financial Statements for the period ending March 31, 2019).
KEY OPERATING AND FINANCIAL METRICS
Key operational and financial highlights, year over year 3 month comparison:
- Sales increased to $9.08M (2018 - $8.77M)
- EBITDA increased to $263,010 (2018 - loss $130,384)
- Net loss is $703,354 (2018 - $580,494)
- Gross margin percentage is 21.2% (2018 - 23.7%)
Detailed information in the form of the Company's interim consolidated financial statements and Management Discussion and Analysis are available under the Company's profile on SEDAR at www.sedar.com and also on the Company's website at www.ruminvestor.com. After accessing the website, please choose the "Investor Relations" tab to view Quarterly Reports.
About Rocky Mountain
Rocky Mountain owns 100% of Andersons Liquor Inc. ("Andersons"), headquartered in Edmonton, Alberta, which now own and operate 29 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. It is listed on the TSX Venture Exchange (TSX-V:RUM).
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable securities laws relating to the future growth of the Company, and the ability to execute its business strategy. Readers are cautioned not to place undue reliance on forward-looking statements, and in particular results achieved in 2018 and previous periods. Past results might not be a certain indication of future performance, which is subject to other risks, including but not limited to changes in operational policies, changes in management, changes in strategic focus, market conditions and customer preferences. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that these events may not materialize as well as those additional factors discussed in the section entitled "Risk Factors" in RUM's Annual 2018 Management Discussion and Analysis, which can be obtained at www.sedar.com. If they do materialize, there remains a risk of non-execution for any reason.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
| Allison Radford
Chief Executive Officer
(780) 483-8183 | Sarah Stelmack
Chief Financial Officer
(780) 863-2326 |
SOURCE: Rocky Mountain Liquor Inc