Business
RUM Reports Financial Results for Quarter Ended March 31, 2023
EDMONTON, AB / ACCESSWIRE / May 23, 2023 / Rocky Mountain Liquor Inc. (TSXV: RUM ) (the "Company...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"RUM Reports Financial Results for Quarter Ended March 31, 2023EDMONTON, AB / ACCESSWIRE / May 23, 2023 / 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 ended March 31, 2023.Management's focus remains on providing customers with an exceptional in-store experience. The Company is continually evaluating its marketing plans to ensure that the strategies are generating and maintaining brand awareness and brand engagement as well as driving customer traffic to our stores. Management will continue focusing on improving category management through standardization of store layouts, pricing strategies and a strong promotional focus.KEY OPERATING AND FINANCIAL METRICSKey operational and financial highlights, year over year three-month comparison: 3 months ended Mar 2023 Mar 2022 Sales $8,382,233 $8,643,349 Average sales per store $335,289 $332,437 Sales of Existing stores (1) $8,382,233 $8,470,722 Gross Margin 22.8% 22.4%EBITDA (2) $(92,805) $(78,421)Net Loss $(290,258) $(211,590)Number of Stores in Operation at Period End 25 26 Total Credit Facility Use $3,657,858 $4,669,857 Notes:Sales existing stores are sales from stores that are in operation during the applicable period.Calculation of EBITDA is described under the heading \"Non-IFRS Measures\" in the Company's Management Discussion and Analysis.Margins are higher at 22.8% in 2023 compared to 22.4% in 2022 as management has been focusing on its marketing, pricing and promotional strategies by using competitive pricing strategies to support profitable growth. The Great Canadian Liquor brand is strategically focused on providing and exceptional customer experience while maintaining competitive pricing.In the last 12 months ending March 31, 2023, the Company reduced debt by $1,011,999, improving the balance sheet position and helping offset interest costs due to increases in the prime rate. The company remains dedicated to reducing debt and related interest costs, while identifying opportunities for increasing shareholder value.The Company sold an underperforming store in Q4 2022, reducing the number of stores in operation in Q1 2023 to 25 from 26 in Q1 2022. In addition, restrictions were in place at the beginning of Q1 2022 to on-site liquor consump...