Big Rock Brewery Inc.
TSX : BR

Big Rock Brewery Inc.
Big Rock Brewery Ltd.

Big Rock Brewery Ltd.

November 06, 2014 19:14 ET

Big Rock Brewery Inc. Announces Third Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - Nov. 6, 2014) - Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "Corporation") announced its financial results today for the three and nine months ended September 30, 2014.

The Corporation reported a net income of $764 thousand and $730 thousand for the three and nine months ended September 30, 2014, respectively, as compared to net income of $1,217 and $2,678 for the same periods in 2013. These results are attributed to a reduction in sales volumes. Reported sales volumes decreased 7.2% to 48,376 hectolitres ("hl") for the third quarter of 2014 as compared to 52,110 hl for the same quarter of 2014. Sales volumes decreased 11.3% to 129,074 hl for the nine months ended September 30, 2014 compared to 145,475 hl for the same nine month period in 2013. Excluding the impact of the discontinuance of certain products and the discontinuance or delayed introduction of certain package configurations, the volume decrease for the three and nine months ended September 30, 2014 would be 2,181 hl (4.3%) and 12,117 hl (8.6%), respectively.

"Our limited release product introductions are gaining traction and beginning to mitigate the impact of continuing competition in the crowded craft beer market in Alberta," said Bob Sartor, CEO. "We are on track to begin replacing previously discontinued full-time beers with better, higher margin offerings. The first of these will make its appearance in the fourth quarter of 2014. These new product introductions will help drive sales in the competitive Alberta market."

With respect to the Big Rock's efforts in markets outside of Alberta, Mr. Sartor commented, "We expect to commence brewing operations in our new Vancouver brewery by December and we are excited to begin releasing full-time and seasonal beers brewed in B.C. specifically for that market in January 2015. We have also announced a brewpub to be located in Toronto's vibrant Liberty Village neighbourhood, where we intend that next year we can start to showcase and share our innovation through existing and new Ontario-specific beers."

Financial and Operating Highlights

  • Volume growth occurred in premium-priced brands, including Big Rock's summer Brewmaster's Edition beer, Rhine Stone Cowboy Kölsch-style Ale, which ended its limited run in September, and Purple Gas, a summer seasonal offering;

  • The Corporation released six limited edition beers and two limited edition ciders in the third quarter (for a total of 17 products in the first nine months of 2014) and expects to release one permanent and nine limited edition products during the fourth quarter of 2014; and

  • Operating expenses for the three months ended September 30, 2014 were lower than the same period in 2013 due reduced marketing costs and lower share-based compensation expenses.

Additional Information

The Financial Statements and Management's Discussion and Analysis dated November 6, 2014 can be viewed on Big Rock's website at http://bigrockbeer.com/sites/default/files/2014q3.pdf and on SEDAR at sedar.com under Big Rock Brewery Inc.

Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "plans", "expects", "intends" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release not be unduly relied upon by investors as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this News Release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this News Release contains forward-looking statements pertaining to the following:

  • the number of additional limited edition products to be released;

  • the success of new products and initiatives in the future;

  • the expectation that the new brewery in British Columbia will be operational in December;

  • the timing of new products and initiatives and the extent to which they will provide incremental sales volumes; and

  • the expected commencement of operations of the Toronto brewpub in 2015.

With respect to the forward-looking statements listed above and contained in this News Release, management has made assumptions regarding, among other things:

  • new products and services introduced will result in incremental sales volumes; and

  • permitting and other construction activities will be able to be secured and/or completed within expected timeframes.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include, but are not limited to:

  • the inability to secure the requisite regulatory approvals to market the full production of the new facilities in British Columbia and Toronto within the timeframe indicated; and

  • the inability to secure and complete construction services for the new facility within the timeframe indicated.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this News Release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

Big Rock Brewery Inc. produces premium, all-natural craft beers. Big Rock has a family of eight permanent ales and lagers, Rock Creek Cider®, an ongoing selection of seasonal beers released through the Brewmaster's Limited Edition and cutting-edge, small-batch brews released through the Alchemist Edition.

Contact Information

  • Big Rock Brewery Inc.
    Robert Sartor
    President and Chief Executive Officer
    (403) 720 3239
    (403) 720 3641 (FAX)

    Big Rock Brewery Inc.
    Barbara Feit
    Chief Financial Officer
    (403) 720 3239
    (403) 720 3641 (FAX)
    investors@bigrockbeer.com
    www.bigrockbeer.com