Business
Rocky Mountain Liquor Reports Q1 2020 Consolidated Financial Results
EDMONTON, AB / ACCESSWIRE / May 21, 2020 / Rocky Mountain Liquor Inc. (TSXV: RUM ) (the "Com...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"Rocky Mountain Liquor Reports Q1 2020 Consolidated Financial ResultsEDMONTON, AB / ACCESSWIRE / May 21, 2020 / Rocky Mountain Liquor Inc. (TSXV:RUM) (the \"Company\" or \"Rocky Mountain\"), listed on the TSX Venture Exchange (the \"Exchange\"), today reported its financial results for the quarter ending March 31, 2020.The Company has continued to succeed at its objective to grow market share and reduce costs. For the period ending March 31, 2020, the Company operated 28 stores with average sales per store of $337,031. This is an increase of 8% in average sales per store when compared to the same period in 2019.Key operational and financial highlights, year over year 3 month comparison:Sales increased by $360,354 to $9.44M (2019 was $9.10M) with 28 stores contributing to sales at the end of the period in 2020 vs 29 at the end of the period in 2019EBITDAR* increased by $228,252 to $491,262 (2019 was $263,010)Net loss improved by $424,314 to $275,182 (2019 loss was $699,496)Gross margin percentage increased to 22.0% (2019 was 21.3%)The Q1 2020 increase in sales can be primarily attributed to the latter half of March 2020, when sales increased as a result of the Government of Alberta's decision to close bars and restaurants to the public due to COVID-19 and recognize liquor retail as an essential service.EBITDAR increased by 87% over the same three month period in 2019 as a result of management's continued focus on competitive pricing strategies, the balancing of costs and customer experience, and from providing a consistent brand message that appeals to both existing and new customers.Net loss reduced due to increased sales and contribution margin and reductions in finance costs in 2020 due to the conversion of the convertible debenture in July 2019 and a reduction to operating costs as a result of a reduced number of locations.Margins have increased from 21.3% to 22.0% as the Company has remodeled its marketing, pricing and promotional strategies to maximize gross margins. The Company strategizes the timing of Limited Time Offer purchases with in store promotions, to realize margin growth.The Company is closely monitoring the evolution of the COVID-19 situation. In Alberta, liquor retail has been recognized as an essential business. As such, the Company has been able to operate all 28 of its retail stores. The Company took immedia...