Big Rock Brewery Inc.
TSX : BR

Big Rock Brewery Inc.
Big Rock Brewery Ltd. Partnership

May 11, 2011 16:59 ET

Big Rock Brewery Inc. Announces 2011 First Quarter Financial Results

CALGARY, ALBERTA--(Marketwire - May 11, 2011) - Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "the Brewery") announced today its financial results for the first quarter of 2011. Sales volumes for the first three months of 2011 totaled 41,993 hectolitres, the third strongest first quarter in the Brewery's 26 year history. The largest first quarter was in 2010, which included record volumes as a result of the Vancouver winter Olympics.

Operating profits before International Financial Reporting Standards ("IFRS") adjustments decline by $1 million compared with the same period last year as a result of decreased sales volumes over the same quarter last year.

"In the first quarter of 2010, we sold a lot of beer during the Olympics, not only in BC but across all of our markets," said Bill McKenzie, President. While the first quarter results were not as high as the same period last year, we exceeded management's expectations knowing the impact these one-time dynamics in the 2010 marketplace would have on our performance. "All things considered, sales volumes to March 2011 have still delivered one of Big Rock's biggest first quarters."

Big Rock reported a net loss of $26 thousand for the quarter ended March 31, 2011, an improvement over the $13 million net loss reported for the same comparative period last year.

"This quarter marks Big Rock's first under IFRS, the new accounting standards which took effect January 1, and had a significant impact on its comparative results," noted Dwayne Dubois, Big Rock's CFO. The comparative period included a fair value adjustment relating to the Brewery's trust units, which under IFRS were considered a financial liability and recorded at fair value. This resulted in a non-cash charge to earnings of $13 million for the three months ended March 31, 2010.

CEO and Chairman of Big Rock, Ed McNally commented on the quarter, by saying "We knew last year's first quarter volumes were going to be a tough act to follow." Added McNally, "The results are better than we first thought, and we will continue to focus on growing our brands."

Despite the economic environment and general trends across the beer industry, Big Rock remains excited about 2011. Management expects consumer demand for premium craft brewery products to remain positive throughout the year. In response to this consumer-driven demand, Big Rock will continue to invest in focused marketing opportunities to create brand awareness and sustained volume growth throughout 2011.

The Financial Statements and Management Discussion and Analysis dated March 11, 2011 can be viewed on Big Rock's website at bigrockbeer.com/corporate and on SEDAR at sedar.com under Big Rock Brewery Inc.

About Big Rock Brewery Inc.

Big Rock Brewery Inc. - headquartered in Calgary, Alberta - produces premium, all-natural craft beers. As Canada's leading craft brewer Big Rock boasts a family of twelve exceptional ales and lagers (including their newest brew IPA), Rock Creek dry apple cider and an ongoing selection of seasonal beers soon to be unveiled in the new Brewmaster's Series. Big Rock products are sold in nine provinces and three territories in Canada and oddly enough they are also available in Korea.

For more information on Big Rock Brewery visit bigrockbeer.com

Contact Information

  • Big Rock Brewery Inc.
    Aisling (Ash-ling) Tomei
    Manager, Corporate Relations
    (403) 203-3746
    (403) 236-7523 (FAX)
    atomei@bigrockbeer.com

    Big Rock Brewery Inc.
    Dwayne Dubois, CGA, CA
    Chief Financial Officer
    (403) 720-4465
    (403) 236-7523 (FAX)
    www.bigrockbeer.com