First Quarter Highlights:

  • Net revenue increased 16% to $12.3 million from $10.6 million (excluding $3.6M one-time adjustments) in the prior year.

  • Selling, Marketing and Administration (SM&A) expenses were $2.07 million consistent with $2.12 million in the prior year.

  • EBITDA* increased 47% to $1.65 million, compared to $1.13 million prior year, excluding one-time adjustments.

  • The Board of Directors re-affirmed the quarterly dividend, $0.025/share, payable July 31, 2019 to shareholders of record as of July 17, 2019. The dividend is classified as an eligible dividend.

KITCHENER, Ontario, May 30, 2019 (GLOBE NEWSWIRE) -- Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX: BRB), Ontario’s largest Canadian-owned brewery, today released financial results for the first quarter which ended April 28, 2019. Brick reported EBITDA of $1.65 million on net revenue of $12.3 million. The adoption of IFRS 16 (leases) enhanced EBITDA by $0.2 million in the first quarter.

George Croft, Brick President and Chief Executive Officer commented, “Our EBITDA results in the first quarter were strong, delivering both volume and top line growth. I am pleased with the premiumization of our portfolio and the continued success of our co-pack business. Our Waterloo family grew 11%, LandShark® and Margaritaville® brands grew 55%, and co-pack business grew 14% versus prior year. The overall beer category experienced softness driven by an unseasonably cold and wet spring which drove the Ontario industry volume lower by 2.2%.  Our Laker family was most impacted by both the industry volume softness and very aggressive pricing on National mainstream brands, declining 10% vs prior year.  We have adjusted our Laker business plans to address this trend and early indications are showing positive results with +1% volume growth in the last four weeks.”

“January 2019 saw us break ground on the 65,000 square foot expansion of our facilities.  The project is progressing well – both on time and on budget,” commented Russell Tabata, Brick’s Chief Operating Officer. “We expect our warehouse expansion, small batch brewhouse and taproom projects to be completed in September 2019 becoming a cornerstone of our future success.”

Croft added, “Our first quarter results signal a positive start to F2020. We are now entering our peak summer selling period and we are working hard to maintain our momentum. With the relaunch of our Laker can-in-case offer, our LandShark® promotions, and our Waterloo craft pricing strategy, we are positioned well for success. All of these contribute to our confidence in our ability to deliver value and growth to our shareholders in F2020 and for the long term.”

Brick’s board of directors has also approved a quarterly dividend of $0.025/share. The dividend is payable July 31, 2019 to shareholders of record as of July 17, 2019.

Reconciliation of Net Earnings to Earnings Before Interest Taxes Depreciation and Amortization, and Share Based Payments (EBITDA)*
  Quarter ended 
(in thousands of dollars)April 28, 2019 1April 29, 2018 2
Net loss$   (107)$(1,851)
Add (deduct):  
Income tax recovery   -   (737)
Depreciation and amortization   1,434   1,010 
Loss (gain) on disposal of property, plant and equipment   (13) 251 
Share-based payments   76   83 
Finance costs   264   77 
Subtotal   1,761   684 
EBITDA *   1,654   (1,167)
  1. As a result of the adoption of IFRS 16 effective February 1, 2019, EBITDA* increased by approximately $0.2 million, depreciation and amortization increased by $0.2 million, and finance costs increased by $0.1 million.

  2. 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 $2.2 million. 
  Quarter ended 
  April 28, 2019 April 29, 2018
Revenue$   12,342,879  $7,011,987 
Cost of sales   9,735,693   6,911,118 
Gross profit   2,607,186   100,869 
Selling, marketing and administration expenses   2,073,214   2,117,937 
Other expenses   390,188   242,587 
Finance costs   263,793   76,587 
Loss (gain) on disposal of property, plant and equipment   (13,080) 251,405 
Loss before tax   (106,929) (2,587,647)
Income tax recovery   -    (736,500)
Net loss and comprehensive
  loss for the quarter
$   (106,929)$(1,851,147)
Basic loss per share$   -   $(0.05)
Diluted loss per share$   -   $(0.05)

 April 28, 2019January 31, 2019
Current assets  
Accounts receivable$   6,691,666  $4,851,774 
Inventories   9,014,750   10,316,767 
Prepaid expenses   1,069,579   562,756 
    16,775,995   15,731,297 
Non-current assets  
Property, plant and equipment   27,730,062   24,645,925 
Right-of-use assets   17,300,177   4,747,572 
Intangible assets   15,318,842   15,253,736 
Construction deposits   79,457   1,386,464 
    60,428,538   46,033,697 
TOTAL ASSETS$   77,204,533  $61,764,994 
Current liabilities  
Bank indebtedness$   945,897  $1,887,253 
Accounts payable and accrued liabilities   11,934,921   7,303,233 
Current portion of lease liabilities   1,216,170   799,736 
Current portion of long-term debt   1,874,098   1,859,922 
    15,971,086   11,850,144 
Non-current liabilities  
Provisions   560,211   553,535 
Lease liabilities   14,286,313   2,212,157 
Long-term debt   7,974,713   8,420,927 
Deferred income tax liability   1,671,576   1,671,576 
    24,492,813   12,858,195 
TOTAL LIABILITIES   40,463,899   24,708,339 
Share capital   39,760,815   40,001,097 
Share-based payments reserves   1,356,340   1,325,150 
Deficit   (4,376,521) (4,269,592)
TOTAL EQUITY   36,740,634   37,056,655 
TOTAL LIABILITIES AND EQUITY$   77,204,533  $61,764,994 

  Quarter ended 
  April 28, 2019 April 29, 2018
Operating activities  
Net loss$   (106,929)$(1,851,147)
Adjustments for:  
Income tax recovery   -   (736,500)
Finance costs   263,793   76,587 
Depreciation and amortization of property, plant and
  equipment, right-of-use assets and intangibles
   1,433,815   1,010,085 
Loss (gain) on disposal of property, plant and equipment   (13,080) 251,405 
Share-based payments   76,524   82,667 
Change in non-cash working capital related to operations   3,622,806   3,556,941 
Interest paid   (290,179) (116,429)
Cash provided by operating activities   4,986,750   2,273,609 
Investing activities  
Purchase of property, plant and equipment   (2,836,254) (1,842,879)
Construction deposit paid   (79,457) (1,462,539)
Proceeds from sale of property, plant and equipment, net   13,080   280,000 
Purchase of intangible assets   (113,841) (4,479)
Cash used in investing activities   (3,016,472) (3,029,897)
Financing activities  
Increase (decrease) in bank indebtedness   (941,357) 1,298,438 
Repayment of long-term debt   (434,795) (333,879)
Repayment of lease liabilities   (308,510) (189,761)
Issuance of shares, net of fees   1,480   - 
Shares repurchased and cancelled, including fees   (289,676) - 
Stock option costs   -   (18,510)
Proceeds from stock option exercise   2,580   - 
Cash generated from financing activities   (1,970,278) 756,288 
Net increase/(decrease) in cash   -   - 
Cash, beginning of year   -   - 
Cash, end of year$   -  $- 
Non-cash investing and financing activities:  
Acquisition of assets under lease$   1,450,509  $- 

About Brick Brewing

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 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 by the use of 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 Company 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 Company 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, gain 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 J. Birch, Chief Financial Officer
(519) 742-2732 Ext. 106