RUM Reports Q2 Growth
Edmonton, Alberta CANADA, August 22, 2011 /FSC/ - Rocky Mountain Liquor Inc. (RUM - TSX Venture), (the "Company" or "Rocky Mountain"), listed on the TSX Venture Exchange (the "Exchange"), today reported its financial results for the period ending June 30, 2011.
Results for the 6-month period ending June 30, 2011
* EBITDA increased 43.51% from $866,486 to $1,243,527;
* Sales increased 14.83% from $21,253,807 to $24,405,572;
* Operating margin increased 7.93% from $1,154,807 to $1,246,461;
Results for the 3-month period ending June 30, 2011
* EBITDA increased 40.58% from $652,544 to $917,360
* Sales increased 14.71% from $12,523,813 to $14,365,599;
* Operating margin increased 4.88% from $961,588 to $1,008,498;
During the three-month period ended June 30, 2011, the Company completed the construction of two new stores, one in Pincher Creek, Alberta and one in Wainwright, Alberta resulting in 36 stores in operation at the end of the Second Quarter.
The Company acquired two new stores, in Lethbridge Alberta on July 12 and 13, 2011. Additionally the Company previously announced one new store development in Northern Alberta which is also expected to open in Q3.
Sales increased for the three months ending June 30, 2011 by 14.71%, and by 18.83% for the six months ending June 30, 2011 as a result of the increased number of stores in operation. Operating margin contribution increased to $1,008,498 up from $961,588 for the three months ending June 30, 2011, and for the six months ending June 30, 2011 to $1,246,461 from $1,154,807. The increases in both periods are mainly due to an increase in EBITDA less offsets from interest rate swap and interest.
EBITDA increased substantially by 40.58% for the three months ending June 30, 2011 and 43.51% for the six month period. Net income for the 3 month period was $163,195, which decreased from $220,216 in the same quarter in 2010 mainly due to an increase in interest. Net income for the 6 month period ending June 30, 2011 was $17,693, which decreased from $159,670 in the same quarter in 2010, again as a result of an increase in interest costs. Prior year comparisons have been restated as a result of transition to International Financial Reporting Standards.
During the second quarter the Company was awarded the Profit Magazine, Profit 200 Award. Rocky Mountain Liquor placed in the 23rd annual PROFIT 200 rankings for the first time. This award recognizes the top 200 fastest growing companies in Canada based on revenue growth over a five year period.
Mr. Peter Byrne, CEO, said "Cash flow has increased steadily and we have remained profitable every year. Being recognized and obtaining national ranking is validation of our business growth strategy." Speaking about growth Mr. Byrne added "Our capital structure allows us to grow with minimum dilution. We are committed to continuing our growth in the most beneficial way to our shareholders."
The Company's unaudited consolidated financial statements and Management Discussion and Analysis for the six month period ended June 30, 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
Rocky Mountain owns 100% of Andersons Liquor Inc. ("Andersons"), headquartered in Edmonton Alberta, which now own and operate 38 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. Once the construction of our Northern Alberta store is complete, 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.
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
To view this press release as a web page, click onto the link below:
http://www.usetdas.com/PR/rockymountainliquor08222011.htm
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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