Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

March 02, 2010 11:47 ET

Russell Breweries Inc. Reports Positive EBITDA in 2010 Fiscal Year to Date Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2010) - Russell Breweries Inc. (TSX VENTURE:RB), a producer of premium craft beer, today reported earnings before interest, taxes and amortization (EBITDA) of $71,494 for the six month period ending December 31, 2009.

Net Sales for the three months ended December 31, 2009 (Q2 2010F) were $1,386,353 up $35,627 or 2.64% compared to $1,350,726 for the three months ending December 31, 2008 (Q2 2009F).

The gross margin for Q2 2010F was up $284,099 or 55.41% to $796,853 compared to $512,754 for Q2 2009F. Overall gross margin percentage increased by 19.52% to 57.48% compared to the same period a year ago.

Selling, general and administration expense for Q2 2010F decreased $9,046 or 1.00% to $893,054 compared to $902,100 for Q2 2009F. The decreases in expenses consist of automotive decrease of $14,682 to $45,045 from $59,727, small-ware decrease of $11,328 to $744 from $12,072, administrative labor decrease of $22,147 to $229,779 from $251,926, management fees decrease of $26,985 to $37,702 from $64,687, professional fees decrease of $13,515 to $98,432 from $111,947, telephone decrease of $10,315 to $18,548 from $28,863, and travel decrease of $20,201 to $15,023 from $35,224, offsetting by an increase of $110,764 in advertising and promotion to $230,490 from $119,726.

Net loss decreased $308,361 or 42.80% to $412,083 for Q2 2010F or $0.01 per share compared to the net loss of $720,444 or $0.03 for Q2 2009F.

Net Sales for the six months ended December 31, 2009 (2010F YTD) were $3,220,313 up $170,659 or 5.60% compared to $3,049,654 for the six months ended December 31, 2008 (2009F YTD).

The gross margin for 2010F YTD was up $369,243 or 25.49% to $1,817,962 compared to $1,448,719 for 2009F YTD. Overall gross margin percentage increased by 8.95% to 56.45% compared to the same period a year ago.

Selling, general and administration expense for 2010F YTD decreased $58,922 or 3.26% to $1,746,468 compared to $1,805,390 for 2009F YTD. The decreases in expenses consist of automotive decrease of $16,800 to $85,431 from $102,231, small-ware decrease of $24,218 to $1,790 from $26,008, administrative labor decrease of $48,673 to $458,208 from $506,881, management fees decrease of $47,669 to $72,905 from $120,574, professional fees decrease of $2,975 to $148,153 from $151,128, telephone decrease of $5,152 to $41,676 from $46,828, and travel decrease of $5,804 to $36,662 from $42,466, offsetting by an increase of $50,115 in advertising and promotion to $479,026 from $428,911 and an increase of $36,648 in rent and utilities to $234,052 from $197,404.

Net loss decreased $502,781 or 49.19% to $519,382 for 2010F YTD or $0.02 per share compared to the net loss of $1,022,163 or $0.04 for 2009F YTD. Overall, the Company maintained positive EBITDA of $71,494 for 2010F YTD.

"We are very pleased to report continuing improved results," says Brian Harris, CEO. "The net sales increase was achieved in a very competitive beer market, a flat economy and seasonally soft quarter. The bottom line improvements are a continuation of initiatives implemented by management over the past six months."

For further details the Company's complete MD&A and financial statements for the three and six months ending December 31, 2009 are available on SEDAR at www.sedar.com and the Company's web site at www.russellbeer.com.

One of BC's fastest growing companies, Russell Breweries Inc produces premium beers in Western Canada in breweries located in BC and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB".

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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