Apr. 28, 2010 (Filing Services Canada) -- Rocky Mountain Liquor Inc. (RUM - TSX Venture), (the "Company"), listed on the TSX Venture Exchange, today reported its financial results for the year ending December 31, 2009.
For December 2008, the Company only reported 5 months of operations from August 1, 2008 to December 31, 2008. This was required because Andersons Liquor Inc ("Andersons"), which is wholly owned by the Company, adopted a December 31st year end, the same year ending date as the Company. To simplify comparison for everyone, we are making a comparison of the Company's 2009 results to the last full year results for Andersons, which 12-month period ended July 31, 2008 ("last comparable 12-month period").
Results for the 12-month period ending December 31, 2009:
* Net profit was $803,539 as compared net profit of $537,671 in Anderson's last comparable 12-month period; an increase of 49%;
* Income from operations was $2,265,683 as compared to income from operations of $1,367,039 in the last comparable 12-month period; an increase of 66%;
* Revenue was $32,717,175 as compared to $17,844,727 in the last comparable 12-month period; an increase of 83%.
Highlights for the 12-month period ending December 31, 2009
* Andersons purchased 7 stores during 2009 for a total of 26 stores
* New CFO, Tracey Bean was appointed in February 2009;
* The Company issued a convertible debenture in the amount of $809,000 to vendor of multi store acquisition in March 2009
* Andersons hedges $5.5 million at 2.14% plus credit spread for 5 years. A further 4.5 million hedge was contracted in April 2010 at 3.35% for 5 years.
* Andersons upsized its credit facilities with TD Bank from $7 million to $15.0 million;
* Humber Capital Corporation changes name to Rocky Mountain Liquor Inc. the trading symbol "RUM" remained unchanged
Events Subsequent to December 31, 2009
Three additional stores have been purchased and placed in operation since December 31, 2009. Andersons now operates 29 stores, has 185 employees and has announced the potential for new developments and acquisitions of 5 more to the end of Q3 2010. Should these new developments and acquisitions occur Andersons would own and operate 34 stores in Alberta.
"I am really proud of the accomplishments of our team." Stated Peter Byrne, CEO. "Successful, rapid growth, is the result of a strong commitment from our people at all levels in the enterprise. Our strategy has been further enhanced by a strong partnership with TD Bank and our shareholders who has endorsed our vision for growth with a solid capital structure. The operational precisions of our people, supported by lean processes and an enterprise wide, integrated, data-centric IT platform have enabled our transition from Capital Pool Corporation to a fully operational, profitable entity", Mr. Byrne said.
The change of year ending dates, as a result of the Qualifying Transaction, may have created difficulty for investors to compare our operational results. During 2010 investors will be able to compare each quarterly period using the same time periods in the previous year.
"Notwithstanding the difficulty to follow and research the companies comparative results during the transitional period, the market has responded well to our strategy and execution" Mr. Byrne continued. "Our capital pool corporation completed its initial public offering in April 2008 at a price of 20 cents per share. In December of 2008 a small private placement of $1,750,000 was raised at 31.5 cents per share. On April 27, 2010 our closing price was 50 cents. Our team is very appreciative of investor support and we pledge to continue our plan to enhance shareholder value by developing and acquiring accretive transactions. Our capital structure has allowed us to grow with minimum dilution and we commit to continuing our growth in the most beneficial way to our shareholders", said Mr. Byrne.
The Company has stated previously its goal is 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. The potential effect rising interest rates on the debt has been mitigated with a hedging strategy.
The Company's audited consolidated financial statements and Management Discussion and Analysis for the year ended December 31, 2009 are available under the Company's profile on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future growth and priorities for the Company, and the ability to execute the business strategy. Readers are cautioned not to place undue reliance on forward-looking statements. It is noted that the comparative periods between January 1, 2009 and December 31, 2009 and the statements for Andersons from August 1, 2007 to July 31, 2008 are differing periods, and are not continuous. 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. If they do materialize, there remains a risk of non-execution for any reason (including but not limited to the failure to integrate the new acquisitions and standardize processes, or the inability to locate suitable acquisitions or new store development locations).
For further information:
Peter J. Byrne
Chief Executive Officer
(780) 686-7383
Tracey Bean
Chief Financial Officer
(780) 683-2326
Rocky Mountain Liquor Inc.
Suite 200
17834 106 Ave
Edmonton, AB, T5S 1V4
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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