Jun. 6, 2011 (Filing Services Canada) -- Rocky Mountain Liquor Inc. (RUM - TSX Venture), listed on the TSX Venture Exchange (the "Exchange"), today reported its financial results for the period ending March 31, 2011.
Results Highlights for the 3-month period ending March 31, 2011:
* EBITDA increased 52.46% from $213,942 to $326,167;
* Sales increased 14.79% from $8,729,994 to $10,021,156;
* Operating margin increased 23.61% from $193,219 to $237,962;
* Operating margin percentage increased from 2.21% to 2.37%
During the three-month period ended March 31, 2011, the Company acquired one new store in St. Paul, Alberta, and completed the construction of a new store in Edmonton, Alberta, resulting in 34 stores in operation at the end of the First Quarter.
Development of two new stores, one in Pincher Creek, Alberta and one in Wainwright, Alberta is now complete. These stores opened on April 15, 2011 and April 21, 2011 respectively. Additionally the Company announced the potential acquisition of two more stores in Lethbridge, Alberta to close subject to due diligence in Q2 2011, and one new store development in Northern Alberta expected to open in Q3. Development permits have now been obtained for this new store development and construction is expected to commence in Q2.
Sales increased 14.79% in Q1 as a result of the increased number of stores in operation. Operating margin contribution increased to $237,962 up from $193,219 as did the operating margin percentage from 2.21% to 2.37%, mainly due to an increase in EBITDA less offsets from interest rate swap.
EBITDA increased substantially by 52.46% from $213,942 to $326,167. Net loss for the quarter was $145,502, which increased from $60,546 in the same quarter in 2010. Prior year comparisons have been restated as a result of transition to International Financial Reporting Standards.
During the first quarter the Company was awarded the Alberta Venture magazine Fast Growth 50 Award, ranking 16th overall and second in companies over $20 million in revenue. On June 1st, 2011 RUM received a second growth award. This time Rocky Mountain placed in the 23rd annual PROFIT 200 rankings for the first time. PROFIT magazine ranks the top 200 growth companies based on revenue growth over a five year period.
Mr. Peter Byrne, CEO, said "We have grown steadily and achieved profitability every year. It was extremely satisfying to win one award for achievement in growth in Alberta, but to also obtain national ranking, is validation of our business strategy."
Speaking about growth Mr. Byrne added "Our capital structure has allowed us to grow with minimum dilution. We are committed to continuing our growth in the most beneficial way to our shareholders. The Company has previously stated its goal to grow with new developments and acquisition of existing privatized liquor stores in the provinces of Alberta and British Colombia. The Company's growth to date has been funded to a minor extent by raising new equity and convertible debt, but mainly with reinvestment of earnings and senior bank debt. Recently we reduced our term debt by $5.5 million. We are able to continue near term growth using on hand financial resources. The acquisitions and new store developments that we have announced to the end of Q3 will not require us to incur any further debt."
The Company's unaudited consolidated financial statements and Management Discussion and Analysis for the three month period ended March 31, 2011 are available under the Company's profile on SEDAR at www.sedar.com and also on the Company's website at www.ruminvestor.com.
About Rocky Mountain Liquor Inc.
Rocky Mountain owns 100% of Andersons Liquor Inc. ("Andersons"), headquartered in Edmonton Alberta, which now own and operate 36 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. Should the three previously announced acquisitions occur, the Company will own and operate 39 stores. 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 2010 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. Future acquisitions are subject to due diligence, other conditions and factors. Readers are cautioned there is no assurance potential acquisitions will be completed.
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
Chief Executive Officer
(780) 686-7383
Sarah Stelmack
Chief Financial Officer
(780) 863-2326
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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