Business
RUM Reports 2018 Annual Consolidated Financial Results
EDMONTON, AB / ACCESSWIRE / April 25, 2019 / Rocky Mountain Liquor Inc. (TSX-V: RUM ) (th...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"RUM Reports 2018 Annual Consolidated Financial ResultsEDMONTON, AB / ACCESSWIRE / April 25, 2019 / Rocky Mountain Liquor Inc. (TSX-V: RUM) (the \"Company\" or \"Rocky Mountain\"), listed on the TSX Venture Exchange (the \"Exchange\"), today reported its financial results for the year ending December 31, 2018.At the end of December 31, 2018 the Company operated 29 stores. This resulted in average sales per store of $391,835 for the three month period ending December 31, 2018. This is an increase of over 28% in average sales per store when compared to the same period in 2017, where we ended the period with 35 stores and an average of $307,050 sales per store. This is a further significant increase in the over 22% rise in average sales per store we reported last quarter.2018 saw us continue with our focus on cost reduction strategies that have resulted in a decrease in operating and administrative expense of over $1.2 million, a reduction to 19.7% from 22.8% as a percentage of sales for the twelve months ending December 31.To date, the Company has rebranded 15 stores to its Great Canadian Liquor \"GCL\" brand. Three locations in the first quarter, two locations in the second quarter, and a further two stores in the third quarter of 2018. The GCL brand provides customers with lower pricing on all product offerings, resulting in a reduction in margin when compared to the same period in the prior year. The Company has altered its marketing, pricing and promotional strategies to grow market share through its rebranding strategy.Since December 31, 2017, the Company has sold three stores and closed three stores. As a result of the success of the GCL stores, where each transitioned store has experienced an increase in revenue, and through Management's strategy to sell or close underperforming stores, the Company has increased its operating margin (EBITDA) by $738,782, or 375% over the same twelve month period from 2017.Management continues to focus on its competitive pricing strategies, the balancing of costs and customer experience, and providing a consistent brand message that appeals to both existing and new customers. KEY OPERATING AND FINANCIAL METRICSKey operational and financial highlights, year over year 3 month comparison: Sales increased to $11.4M (2017 - $10.7M) Operating margin increased to $288,938 (2017 - $79,666) EBITDA inc...