RUM Reports Q2 2017 Consolidated Financial Results

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 3 and 6 month periods ending June 30, 2017.

KEY OPERATING AND FINANCIAL METRICS

Key operational and financial highlights, year over year 3-month comparison:

• Gross margin percentage is 23.1% (2016 – 24.1%)

• Sales decreased to $11.8M (2016 -  $12.6M)

• EBITDA decreased to $143,296 (2016 – $502,349)

• Net loss is $240,697 (2016 - income $1,142,852)

Key operational and financial highlights, year over year 6-month comparison:

• Gross margin percentage is 23.7% (2016 – 24.1%)

• Sales decreased to $20.5M (2016 -  $22.1M)

• EBITDA decreased to a loss of $240,013 (2016 – income $230,270)

• Net loss is $1,194,128 (2016 – income $517,528)

Total sales for the three month period ended June 30, 2016 decreased by $0.8M and $1.6M for the six month period. Sales are lower than 2016 partially due to the closure of one store in early 2017 and the closure of one store in the prior year. As well, there has also been a slowdown in the economy in Alberta which has affected sales in certain rural markets where energy is the dominant industry.

Margins have decreased to 23.1% for the three month period and 23.7% for the 6 month period. As the economy worsens in Alberta consumers have been substituting the products they purchase to lower margin items.  Additionally, the Company has altered its marketing, pricing and promotional strategies to maintain market share through its rebranding strategy.

As part of our re-branding strategy, seven locations have been completed and began operations under the Great Canadian Liquor brand between May and July of 2017. We have renovated the locations, increased the product assortment, reduced prices, and launched a new website and digital advertising platform to support the introduction of the brand, www.greatcanadianliquor.com.

Management plans to continue to sell stores in markets that are not compatible with our current business plans, ensuring the most effective use of our capital. Proceeds from any sales will be applied to reduce debt.

Detailed information in the form of the Company’s audited consolidated financial statements and Management Discussion and Analysis 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 40 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 2016 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:

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/RockyMountain08242017.pdf

Source: Rocky Mountain Liquor Inc. (TSX Venture:RUM)

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