SOURCE: Russell Breweries Inc.

Russell Breweries Inc.

November 30, 2015 13:04 ET

Russell Breweries Inc. Announces Q1 Fiscal 2016 Results

Company Reports $88,203 EBITDA Positive

VANCOUVER, BC--(Marketwired - November 30, 2015) - Russell Breweries Inc. (TSX VENTURE: RB), a producer of premium craft beer, releases its financial results for the first quarter of Fiscal 2016, ended September 30, 2015.

The Company is $88,203 EBITDA positive for Q1 of Fiscal 2016 ("Q1 2016F") compared to EBITDA positive of $25,748 for Q1 of Fiscal 2015 ("Q1 2015F").

Q1 Fiscal 2016 Highlights

The Company had a net loss and comprehensive loss of $49,745 for Q1 2016F compared to net loss and comprehensive loss of $131,022 for the three months ended September 30, 2014 ("Q1 2015F"). The decrease in net loss and comprehensive loss is primarily due to the increase in gross margin of $188,465 offset by the increase in selling, general and administrative expenses of $104,223.

Net revenue for Q1 2016F were $2,070,393 up $67,751 or 3% compared to $2,002,642 for Q1 2015F mainly due to higher sales.

The gross margin for Q1 2016F increased by $188,465 or 19% to $1,167,865 compared to $979,400 for Q1 2015F. The gross margin percentage of Q1 2016F was up 7% to 56% compared to 49% for Q1 2015F. The increase in gross margin percentage is mainly due to lower cost of sales.

Selling, general and administration expenses for Q1 2016F were at $1,152,894 up $104,223 or 10% compared to $1,048,671 for Q1 2015F.

For further details the Company's complete MD&A and financial statements for the three months ended September 30, 2015 and 2014 are available on SEDAR at www.sedar.com and the Company's web site at www.russellbeer.com.

Additional Information

EBITDA is a non-IFRS financial measure. EBITDA represents net income, excluding income tax expense, interest expense and amortization and accretion. EBITDA is an indication of the underlying business performance of the Company by removing certain non-cash adjustments from its calculation. The Company believes that the EBITDA trends are valuable indicators of whether its operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. The Company uses the results depicted by the EBITDA for these purposes, an approach utilized by the majority of public companies in the food and beverage sector. EBITDA is intended to provide additional information, and does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

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.

Contact Information

  • For more information, please contact:
    Benjamin Li Yu
    CEO
    Russell Breweries Inc.
    Tel: 604.599.1190
    Fax: 604.596.1048
    benjamin.yu@russellbeer.com