Nov. 26, 2010 (Filing Services Canada) -- Rocky Mountain Liquor Inc. (RUM - TSX Venture), ("Rocky Mountain Liquor" or the "Company"), listed on the TSX Venture Exchange (the "Exchange"), today reported its financial results for the three and nine-month period ended September 30, 2010.
Key Operational Highlights, year over year 9 - month comparison:
* Sales increased 54% from $22,562,500 to $34,801,263;
* Operating margin after adjusting for the one time inventory margin gain in 2009 of $579,313 increased 80% from $1,092,771 to $1,967,997;
* Operating and Administrative Expenses as a percentage of sales reduced from 16.47% to 15.46%;
* Operating Margin after adjusting for the one time inventory margin gain in 2009 percentage increased from 4.84% to 5.65%;
* Average Revenue per store grew 21% from $902,500 to $1,087,540.
"The tax related, one-time gains on inventory in Q2 and Q3 in 2009 provided our team with a hurdle to overcome this year. I am extremely pleased with this Q3 results in the face of this one time comparative event," said Peter Byrne, Rocky Mountain Liquor CEO. "We continue to increase consumer transactions and market share. Reductions in operating expense as a percentage of sales is a key indicator of our commitment to build a sustainable enterprise and shareholder value," Mr. Byrne added.
Key Highlights for the Third Quarter:
During the three month period ended September 30, 2010, the Company increased its senior bank financing from $15 million to $25 million and extended the maturity of the facilities to July 11, 2011.
The Company completed the development of a new store in Lethbridge, Alberta and completed an acquisition of a store in the same market resulting in 32 stores in operation.
The Company has previously announced the potential development of 3 additional stores. If these 3 stores are developed, then the Company will have 35 stores in operation.
The founding shareholders converted 1,600,000 warrants to infuse $500 thousand new equity into the Company.
The Company's unaudited consolidated financial statements and Management Discussion and Analysis ("MD&A) for the three and nine-month period ended September 30, 2010 are available under the Company's profile on SEDAR at www.sedar.com.
About Rocky Mountain Liquor:
Rocky Mountain Liquor owns 100% of Andersons Liquor Inc. ("Andersons") headquartered in Edmonton Alberta, which owns and operates 32 private liquor stores in that province.
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, and should not rely on past performance when evaluating this acquisition, and in particular results achieved in 2009 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 (including but not limited to the inability to locate suitable acquisitions or complete new store development).
For further information:
Peter J. Byrne
Chief Executive Officer
(780) 686-7383
Tracey Bean
Chief Financial Officer
(780) 863-2326
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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