Business
RUM Releases 2020 Consolidated Financials Including 119% Increase in EBITDA to $2.4 Million
EDMONTON, AB / ACCESSWIRE / April 14, 2021 / Rocky Mountain Liquor Inc. (TSXV: RUM ) (the "C...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"RUM Releases 2020 Consolidated Financials Including 119% Increase in EBITDA to $2.4 MillionEDMONTON, AB / ACCESSWIRE / April 14, 2021 / 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 year ended December 31, 2020.The Company has continued to succeed at its objective to grow market share through its rebranding strategy. The Company began transitioning to the Great Canadian Liquor brand (\"GCL\") three years ago in Q2, 2017. Since that time, we have rebranded 14 locations, lowering prices, improving promotions and social media interaction, increasing selection and focusing on providing an exceptional customer experience. GCL has continuously exhibited growth in revenue each quarter, and the Company remains focused on delivering efficiency and process improvements while managing operating costs.The strategy we embarked on in 2017 focused on identifying key locations where growth in market share was optimal. Sales have increased to $48.4M in 2020 from $44.0M in 2019, notwithstanding a reduction in store count from 29 for the year ending 2019 to 26 for the year ending 2020. Furthermore, average sales per store have increased by $346,399 from $1.5M in 2019 to $1.87M in 2020, based on stores in operation at the end of the year. Through the rebranding strategy, management focused on competitive pricing strategies, increasing sales and managing operational costs, resulting in the growth of EBITDA by 119% in 2020 over 2019 to $2.4M.In 2020 the proceeds from the sale of three stores and the increase in income from operations was used to reduce debt by $2.6M on our operating facility and bank loan. The combination of the lower bank loan and the elimination of the convertible debenture in July 2019 reduced finance costs by over 50% in the year.KEY OPERATING AND FINANCIAL METRICSKey operational and financial highlights, year over year 12 month comparison:Sales increased by $4.5M or 10%, to $48.4M (2019 was $44.0M) with 26 stores contributing to sales at the end of the year in 2020 versus 29 at the end of the year in 2019EBITDA increased by 119% to $2.4M (2019 was $1.1M)Gross margin percentage increased to 22.5% (2019 was 22.0%)Net income is $1.5M (2019 adjusted net loss of $634,773 after adjusting for a non-recurr...