Canada: Brick Brewing Co. Ltd., posted record financial results for the fourth quarter and full year

Canadian brewery, Brick Brewing Co. Ltd, released on April 26 record financial results for the fourth quarter and year ended January 31, 2005.

"It is quite gratifying to mark our 20th Anniversary milestone with a record performance this past year," said Jim Brickman, Executive Chairman and Founder. "This momentum continues into our new fiscal year and we look forward to the opportunities we see ahead. From Brick's perspective, I can't think of a better time to be in the beer business," he added.

Net revenue for the fourth quarter ended January 31, 2005 increased to C$5.3 million compared to C$3.1 million for the same period last year, an increase of 69%. Net beer revenues increased 88% to C$5.2 million over the fourth quarter last year, primarily as a result of growth in the Company's value and mainstream beer brands, coupled with the launch of the PC brands in Ontario and Quebec earlier in the ear. Beer volumes grew by 134% in the quarter, compared to the same quarter last year.

Net income Q4 was a record C$220 thousand compared to a loss of C$180 thousand in the fourth quarter last year, an improvement of C$400 thousand. For the first time in the Company's history it was profitable in the fourth quarter. Historically in this quarter the Company's sales are seasonally reduced and resulting gross margins are inadequate to cover overheads. In spite of intense competitive promotional and pricing activity in the value category during the quarter which forced reduced prices of the Company's Laker brands to the minimum C$23.70 per case of 24 beers during virtually the entire quarter, the Company remained profitable and grew its volumes.

During the year the Company's beer volumes rose 225% overall. Volumes of the Company's premium brands declined 17% while management conducted a review of the premium brand marketing strategies. However this was more than offset by an 82% increase in mainstream brand volumes, a 325% increase in value brand volumes and the introduction of licensed brands for Big Rock and PC during the year.

Net revenues for the year ended January 31, 2005 were C$22.7 million as compared to C$15.4 million in the previous year, an increase of 47%. Net beer revenues increased during the year to C$21.7 million compared to C$9.4 million last year. At the same time net revenues from co-packing alcoholic beverages for other customers were C$1.0 million in this period, down from C$6.0 million in the prior year, as the Company used more of its production capacity for its higher margin beer volumes.

Net earnings increased to C$1.9 million, or C$0.11 per share on a diluted basis, compared to C$0.1 million, or C$0.01 per share last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to C$3.4 million compared to C$1.3 million for the same period last year, an increase of 160%.

Doug Berchtold, President and CEO said: "Last year was a transformational year for Brick Brewing. We successfully stabilized the business by identifying opportunities and then aggressively expanding our presence in the value beer market with our Laker brand family. In parallel, we realigned several other key brands to present to consumers a diverse portfolio of value and mainstream brands. Notwithstanding our short term successes we believe we also established a comprehensive long term plan to sustain our growth and profitability into the future. As a result, I am optimistic that Fiscal 2006 will be an even more outstanding year for our business."

Brick Brewing Co. Limited is a regional brewer of award winning premium quality beers. The Company, founded by Jim Brickman in 1984, 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 complimented its successful line of premium craft beers with other popular brands such as Laker, Red Cap and Formosa Springs Draft. Brick trades on the TSX under the symbol BRB.

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