Business
RUM's Q2 2021 Financial Results Produce Strong Operational Performance
EDMONTON, AB / ACCESSWIRE / August 25, 2021 / Rocky Mountain Liquor Inc. (TSXV: RUM ) (the "...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"RUM’s Q2 2021 Financial Results Produce Strong Operational PerformanceEDMONTON, AB / ACCESSWIRE / August 25, 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 three month and six month periods ending June 30, 2021.During the first half of 2020, there was a unique increase in demand realized in our retail liquor locations as other licensed premises were ordered to close to help reduce the spread of COVID-19. As the affected businesses have reopened, we have seen the demand return to typical levels with significant organic sales growth over 2019. The results of the rebranding strategy first conceived and implemented in 2017 have continued to drive normalized sales growth. The increase in existing store sales of 11.3% and operating margin of 19.4% from 2019 demonstrates the continued growth of the company.2020 Earnings before Interest, Taxes, Deprecation, Amortization and Rents (EBITDAR) was positively impacted by COVID-19. EBITDAR for the three month period ending Q2 2021 outperformed 2019 by 20% and the six month period of 2021 outperformed 2019 by 35%. The Company has experienced overall growth in average sales per store of 15.9% for the three month period ended 2021 over 2019 and 16.3% for the six month period ended June 2021 over 2019 as a result of its continued focus on the rebranding strategy.Notwithstanding a reduction in stores from 2019 to 2021 of 29 to 26, net income improved from a net loss position for the three month period ended 2019 to a net income position for the same period in 2021, increasing by $570,667 over 2019. The reduction in rent accounted for 8% of the improvement in net income in 2021 as a result of the store reductions.The Company has focused on reducing long term debt and finance costs. Effective May 31, 2021, the Company successfully renegotiated the terms of its financing agreement with TD Bank, reducing interest rates from prime plus 2.65% to prime plus 1.5% on its bank loan and operating facility. Finance costs in 2021 reduced by $25,830 for the three months and $81,304 for the 6 months ended June 30, 2021 over 2020.Detailed information in the form of the Company's interim consolidated financial statements and Management Discussion and Analysis is availabl...