Fourth Quarter Highlights:

  • Net Revenue for the quarter grew 14.9% to $12.3 million compared to $10.7 million in the prior year.
  • Gross profit margin for the quarter improved to 32.4% from 29.1% in the prior year - excluding one-time costs.
  • Selling, Marketing and Administration(“SM&A”) for the quarter increased slightly to $2.3 million, compared to $2.1 million in the prior year
  • EBITDA* for the quarter was $2.6 million and $2.8 million, ex one-time costs, a gain of 57.1%, compared to $1.8 million in the prior year.
  • The Board of Directors re-affirmed the quarterly dividend, at $0.025/share, payable May 30, 2019 to shareholders of record as of May 16, 2019. The dividend is classified as an eligible dividend.

Full Year Highlights:

  • Net revenue increased 7.8% to $53.7 million, from $49.8 million in the prior year - excluding a one-time charge due to The Beer Store’s (TBS) consignment-based change resulting in net revenue decrease of $3.6 million.
  • Gross profit margin rebounded from the first quarter softness to deliver 28.9% compared to 30.4% in the prior year, excluding one-time costs.
  • Selling, Marketing and Administration (“SM&A”) expenses increased slightly to $9.5 million from $9.1 million in the prior year.
  • Reported EBITDA* for the full year was $7.6 million ($10.1 million excluding one-time costs, primarily associated with the change in TBS consignment).  The $10.1 million represents an 11.6% increase versus prior year $9.0 million (excluding one-time costs).

KITCHENER, Ontario, April 11, 2019 (GLOBE NEWSWIRE) -- Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX: BRB), Ontario’s largest Canadian-owned brewery, today released results for the fourth quarter and full year ended January 31, 2019. Brick posted record annual EBITDA of $10.1 million on a net revenue of $53.7 million. EBITDA for the fourth quarter was +57% or $2.8 million.

George Croft, Brick Brewing President and Chief Executive Officer commented, “We are extremely pleased with our performance and the growth of our business in fiscal 2019. After a challenging first quarter, we delivered a significant step up in operating performance that our shareholders have grown to expect.  During the last three quarters of the year we have been able to deliver growth in both volume and margin which resulted in an impressive 42% EBITDA growth versus the same three quarters in the prior year.”

Our premium portfolio posted volume gains of 3.5% in fiscal 2019.  LandShark® Lager was a tremendous success story driven by the in-case promotions delivering volume in excess of 22,000 hectolitres. Our Waterloo brands were flat in fiscal 2019 in the face of craft beer proliferation and strong competitive category pressure.  Our recently announced small batch brewhouse and taproom will showcase newly crafted Waterloo products and we expect to share these with the broader marketplace in fiscal 2020. In addition, Brick reported 33% growth in contract manufacturing revenue for the year, the result of growth with both current and new customers.

“The beer category is both mature and increasingly crowded which makes winning that much more rewarding,” continued Croft. “We’ve earned this momentum through difficult operational choices, astute investments and most importantly a brewery full of talented, committed people.  And we’re well positioned for continued growth. Our warehouse expansion, small batch brewhouse and taproom projects are well underway and on track for completion in Q3 F2020.  Our previously announced plans to be an active participant in the cannabis-infused beverage category are also progressing well.  All of these contribute to our confidence in our ability to deliver value and growth to our shareholders for the long term.”

Reconciliation of Net Earnings to Earnings Before Interest Taxes Depreciation and Amortization, and Share Based Payments (EBITDA)*

  Fiscal year ended
(in thousands of dollars)January 31, 2019 1January 31, 2018
Net income$   1,289 $  2,602
Add (deduct):  
Income tax expense   545    1,044
Depreciation and amortization   4,361    3,528
Loss on disposal of property, plant and equipment and intangibles   387    131
Share-based payments   469    316
Finance costs    507    546
Subtotal   6,269    5,565
EBITDA*   7,558    8,167
  1. As a result of a one-time adjustment during the quarter ended April 29, 2018 associated with TBS’ change to a consignment basis, net income decreased by $1.6 million and EBITDA decreased by $2.2 million.

Years ended January 31, 2019 and January 31, 2018

 January 31, 2019January 31, 2018
Revenue$50,084,490 $49,790,034
Cost of sales 37,108,956  35,509,607
Gross profit 12,975,534  14,280,427
Selling, marketing and administration expenses 9,462,821  9,142,571
Other expenses 784,697  814,256
Finance costs 506,595  545,990
Loss on disposal of property, plant and equipment and intangibles 387,294  131,068
Income before tax 1,834,127  3,646,542
Income tax expense 545,112  1,044,075
Net income and comprehensive income for the year$1,289,015 $2,602,467
Basic earnings per share$0.04 $0.07
Diluted earnings per share$0.04 $0.07

As at January 31, 2019 and January 31, 2018

  January 31, 2019  January 31, 2018 
Non-current assets  
Property, plant and equipment$  29,393,497  $  27,119,488 
Intangible assets   15,253,736   15,381,578 
Construction deposits   1,386,464   323,255 
    46,033,697           42,824,321 
Current assets  
Accounts receivable   4,851,774   6,999,212 
Inventories   10,316,767   7,891,364 
Prepaid expenses   562,756   613,710 
    15,731,297   15,504,286 
TOTAL ASSETS   61,764,994   58,328,607 
Share capital   40,001,097   39,747,525 
Share-based payments reserves    1,325,150   1,026,667 
Deficit   (4,269,592) (2,547,746)
TOTAL EQUITY   37,056,655   38,226,446 
Non-current liabilities  
Provisions   553,535   538,376 
Obligation under finance lease   2,212,157   3,011,893 
Long-term debt   8,420,927   6,019,245 
Deferred income tax liabilities   1,671,576   1,126,464 
    12,858,195   10,695,978 
Current liabilities  
Bank indebtedness   1,887,253   787,843 
Accounts payable and accrued liabilities   7,303,233   6,516,382 
Current portion of obligation under finance lease   799,736   769,962 
Current portion of long-term debt   1,859,922   1,331,996 
    11,850,144   9,406,183 
TOTAL LIABILITIES    24,708,339   20,102,161 
TOTAL LIABILITIES AND EQUITY$  61,764,994  $  58,328,607 


Years ended January 31, 2019 and January 31, 2018

  January 31, 2019  January 31, 2018 
Operating activities  
Net income$1,289,015  $  2,602,467 
Adjustments for:  
Income tax expense 545,112     1,044,075 
Finance costs 506,595     545,990 
Depreciation and amortization of property, plant and equipment and intangibles 4,360,675     3,527,762 
Loss on disposal of property, plant and equipment and intangibles 387,294   131,068 
Share-based payments 469,506     316,209 
Change in non-cash working capital related to operations 612,985     (5,422,741)
Interest paid (533,553)   (463,782)
Cash provided by operating activities   7,637,629      2,281,048 
Investing activities  
Purchase of property, plant and equipment (6,931,468)   (8,160,391)
Construction deposit paid (1,386,464)   (323,255)
Proceeds from sale of property, plant and equipment, net 430,000     2,032,266 
Purchase of intangible assets (69,412)   (281,417)
Cash used in investing activities    (7,957,344)   (6,732,797)
Financing activities  
Increase in bank indebtedness 1,099,410     787,843 
Issuance of long-term debt, net of fees 4,476,518     5,126,215 
Repayment of long-term debt (1,557,939)   (1,024,640)
Repayment of obligation under finance lease (769,962)   (741,297)
Dividends paid (3,010,861)   (2,391,653)
Issuance of shares, net of fees 53,126   60,050 
Shares repurchased and cancelled, including fees    (146,310)   (322,629)
Stock option costs (18,510) - 
Proceeds from stock option exercise 194,243   125,901 
Cash generated from financing activities 319,715     1,619,790 
Net increase/(decrease) in cash -     (2,831,959)
Cash, beginning of year                              -     2,831,959 
Cash, end of year$-  $- 

The foregoing financial information should be read in conjunction with the audited annual financial statements of the Company prepared under IFRS for the year ended January 31, 2019.

Brick is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario and is credited with pioneering the present-day craft brewing renaissance in Canada. Brick has complemented its Waterloo premium craft beers with the popular Laker brand.  In 2011, Brick purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark® and Margaritaville®. In addition, Brick utilizes its leading-edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders. Brick trades on the TSX under the symbol BRB. Visit us at

Forward-Looking Statements

 All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified using forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.

* EBITDA is a non-IFRS earnings measure, therefore it does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization, loss on disposal of property, plant, and equipment, and share based payments. Management uses this measurement to evaluate the operating results of the Company. This measure is also important to management since it is used by the Company’s lenders to evaluate the ongoing cash generating capability of the Company and therefore the amounts those lenders are willing to lend to the Company. Investors find EBITDA to be useful information because it provides a measure of the Company’s operating performance.

Contact Information
For further information:
David Birch, Chief Financial Officer
(519) 742-2732 Ext.106