Canada: Big Rock Brewery Income Trust announces Q1 2005 financial results
Big Rock Brewery Income Trust (the "Trust") reported on May 4 its unaudited consolidated financial results for the three month period ended March 31, 2005. These results reflect the consolidated operations of the Trust, Big Rock Brewery Ltd. and its wholly owned subsidiaries Kamloops Brewery Ltd. and Whistler Brewing Company Ltd.
Financial Highlights for the three months ended March 31, 2005 compared with the same period for 2004 are as follows: Big Rock finished what is traditionally the slowest quarter of its fiscal year in strong financial condition. As at March 31, 2005 Big Rock continued to have no bank indebtedness and no long term debt.
Big Rock continued to grow its premium brands in the quarter. Net income for the quarter ending March 31, 2005 was $1,001,425 compared to $1,423,451 for the three months ended March 31, 2004. Net income per unit decreased to $0.17 for the three months ended March 31, 2005 from $0.25 for the three months ended March 31, 2004. These decreases are largely due to the $379,492 year-over-year swing in future income tax expense.
Cash distributions declared to unitholders for the three months ended March 31, 2005 were $1,761,517 or $0.30 per unit. During the same quarter last year the Trust declared total cash distributions of $0.21 per trust unit amounting to $1,197,075 in total.
Sales volume was down by 5% from 44,064 HL for the three months ended March 31, 2004 to 41,825 HL for the three months ended March 31, 2005. This decrease is due primarily to the reduction in sales in the value brand segment caused by 2004 price increases. Our premium high margin brands experienced positive growth during the quarter compared to the same period last year.
For the three months ended March 31, 2005, net sales revenue decreased by $337,356 from $8,285,896 last year to $7,948,540, a 4% decrease. Net revenue per hectoliter increased by $2 resulting from a beneficial increase in sale of premium beers compared to value beers.
Cost of sales decreased from $3,201,368 for the three months last year to $3,164,715 for the three months ending March 31, 2005. This is commensurate with the decrease in sales volume.
Gross profit for the year was down 6% from $5,084,528 for the three months last year to $4,783,825 for three months this year due to the decrease in net sales.
Selling expenses for the three months ended March 31, 2005 decreased to $2,275,352 compared to $2,389,789 for the three month period last year, a 5% decrease. Selling expenses also include the cost of delivering beer. As the 1st quarter is the slowest for beer sales, selling and marketing program expenditures will increase as the summer season approaches.
During the quarter ended March 31, 2005, general and administrative expenses decreased to $812,597 from $951,940 for the three months ending March 31, 2004, a $139,343 (15%) decrease. The decrease resulted from a reduction of training, insurance, and salary expenses during the quarter compared with the same quarter last year.
Amortization for the three months ended March 31, 2005 increased by $44,920 (10%) compared to the same period last year due to the increase in capital assets.
Income tax expense of $190,641 for the quarter of (three months ended March 31, 2004 - $(190,424) recovery) is comprised of $29,273 in current income tax expense and $161,368 in future income tax expense.
Big Rock is a regional producer and marketer of premium quality beers, headquartered in Calgary, Alberta, Canada. Big Rock's products are available in draught, bottles and cans. The Company also produces or distributes cider and cooler products. Big Rock products are marketed in seven provinces and two territories in Canada.
Wstecz
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