Edmonton, Alberta (FSCwire) - 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 period ending September 30, 2015.

 

KEY OPERATING AND FINANCIAL METRICS

 

Key Operational and Financial Highlights, year over year 3 month comparison:

 

• Net income increased to $388,511 (2014 - $318,173)
• Sales decreased to $13.3M (2014 -  $15.3M)
• Gross margin percentage increased to 26.5% (2014 – 23.6%)
• Operating margin decreased to $802,077 (2014 - $987,665)
• EBITDA decreased to $791,471 (2014 - $988,531)

 

Key Operational and Financial Highlights, year over year 9 month comparison:

 

• Net income increased to $375,704 (2014 – $9,849)
• Sales decreased to $37.4M (2014 -  $42.2M)
• Gross margin percentage increased to 25.9% (2014 – 23.0%)
• Operating margin decreased to $1.6M (2014 - $1.7M)
• EBITDA decreased to $1.6M (2014 – $1.7M)

 

Total sales for the three month period ended September 30, 2015 were $13.3 million and $37.4 million for the nine month period. Sales are lower than the same three and nine month periods in 2014 due to the sale and closure of 4 stores, and a decrease in commercial liquor service sales as a result of management’s decision to reduce the number of accounts it services. There has also been a slowdown in the Economy in Alberta which has affected sales in certain rural markets where Energy is a dominant industry.

 

Gross margins have increased to 26.5% for the three month period ended June 30, 2015, and to 25.9% for the nine month period. The increase in gross margins as compared to the same periods in 2014 is mainly due to a change in the marketing and promotional strategy at stores resulting in higher margins as well from the inventory purchased prior to the mark-up on liquor as per the Government of Alberta Budget in March 2015. The increase is also partially due to an increase in the ratio of retail sales to licensee sales, as retail sales have higher margins.

 

Detailed information in the form of the Company’s interim unaudited consolidated financial statements and Management Discussion and Analysis for the three month period ended June 30, 2015 are available under the Company’s profile on SEDAR at www.sedar.com and also on the Company’s website at www.ruminvestor.com. After accessing the website, please choose the “Investor Relations” tab to view Quarterly Reports.

 

About Rocky Mountain

 

Rocky Mountain owns 100% of Andersons Liquor Inc. (“Andersons”), headquartered in Edmonton Alberta, which now own and operate 45 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008.  It is listed on the TSX Venture Exchange (TSX-V:RUM).

 

Forward-Looking Statements

 

This news release may contain "forward-looking statements" within the meaning of applicable securities laws relating to the future growth of the Company, and the ability to execute its business strategy. Readers are cautioned not to place undue reliance on forward-looking statements, and in particular results achieved in 2015 and previous periods. Past results might not be a certain indication of future performance, which is subject to other risks, including but not limited to changes in operational policies, changes in management, changes in strategic focus, market conditions and customer preferences.  Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that these events may not materialize as well as those additional factors discussed in the section entitled "Risk Factors" in RUM's Management Discussion and Analysis, which can be obtained at www.sedar.com.  If they do materialize, there remains a risk of non-execution for any reason.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

For further information:

Peter J. Byrne                                                                                                                                    Sarah Stelmack

Chief Executive Officer                                                                                                                 Chief Financial Officer

(780) 686-7383                                                                                                                                   (780) 863-2326

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/RockyMtnLiqNov162015.pdf

Source: Rocky Mountain Liquor Inc. (TSX Venture:RUM) http://www.ruminvestor.com/

 

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