Business
RUM Sees Significant Increases in Sales, Income from Operations and Net Income for Q2 2020 Consolidated Financial Results
EDMONTON, AB / ACCESSWIRE / August 20, 2020 / Rocky Mountain Liquor Inc. (TSXV: RUM ) (the "...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"RUM Sees Significant Increases in Sales, Income from Operations and Net Income for Q2 2020 Consolidated Financial ResultsEDMONTON, AB / ACCESSWIRE / August 20, 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 three month and six month periods ending June 30, 2020.The Company has continued to succeed at its objective to grow market share and reduce costs, having increased sales by $2.3M for the three month period of 2020, and $2.6M for the six month period of 2020, when compared to the same periods in 2019. Sales growth of 19% for the second quarter of 2020 is primarily attributed to 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, resulting in consumers turning to liquor retailers in lieu of licensed establishments.As at August 20, 2020, all locations are open and operational. The novel coronavirus pandemic has had, and continues to have, a notable impact on the Company. The Company's financial results show increased sales, driven by increased demand for liquor product following the onset of the crisis, and continuing through the second quarter. Additional costs were incurred for safety and sanitization measures to ensure our employees are working in a safe environment including; increased sanitation, plexiglass shields at the counters, masks for staff when physical distancing cannot be maintained, social distancing measures within the locations, and restricting the number of individuals in the store at a time.KEY OPERATING AND FINANCIAL METRICSFinancial highlights, year over year 3 month comparison:Sales increased by $2.3M or 19% to $14.3M (2019 was $12.0M) 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 71% to $1,619,086 (2019 was $947,479)Net income improved by $993,913 to $970,689 (2019 loss was $23,224)Gross margin percentage increased to 23.3% (2019 was 22.1%)Income from operations increased by $671,800 to $1,618,779 (2019 was $946,979)Financial highlights, year over year 6 month comparison:Sales increased by $2.6M or 13% to $23.7M (2019 was $21.1M) with 28 stores contributing to sales at the end of the perio...