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EDMONTON, AB / ACCESSWIRE / November 16, 2023/ Rocky Mountain Liquor Inc. (TSXV:RUM) (the “Company” or “Rocky Mountain”), which is listed on the TSX Venture Exchange (the “Exchange”), has announced its financial results for the three and nine-month periods ending September 30, 2023.

KEY OPERATING AND FINANCIAL HIGHLIGHTS

Three-month comparison from July 1 – September 30:

The gross margin experienced an increase of 8%, rising to 24.2% (from 22.4% in 2022).

EBITDA increased 6% to $536,675 (2022 $505,613)

Operating margin increased 3% to $909,564 (2022 $884,749)

Nine month comparison January 1 – September 30:

Gross margin increased 6% to 23.9% (2022 22.5%)

EBITDA saw an 11% growth, reaching $961,555 (2022 $868,848)

The operating margin exhibited an increase of 4%, amounting to $2,008,247 (2022 $1,931,217)

Notably, the EBITDA for the three and nine-month periods ending Q3 2023 maintains its sustained outperformance compared to 2022. Moreover, the organization succeeded in debt reduction of $1.4M within the past year, thereby enhancing the balance sheet status — resultant of offsetting interest costs due to a surge in the prime rate.

Allison Radford, the CEO, stated, “The management will unceasingly strive to boost category management — via optimization of purchasing, pricing strategies, and emphasizing the fulfillment of the consumer’s market-driven demand. Additionally, the Company is in a constant state of evaluation concerning its marketing plans — with the agenda of whether the tactics effectively generate both brand awareness and engagement, alongside driving customer footfall in stores.”

The following table provides a summary of the pivotal operating and financial metrics of the Company’s performance for the three and nine month periods ending on September 30, 2023, and 2022.

For the 3 months ended

For the 9 months ended

September 2023

Sep 2022

Sep 2023

Sep 2022

Sales

11,057,847

11,867,942

30,361,418

31,564,891

Sales of Existing Stores (1)

11,057,847

11,674,363

30,361,418

31,010,536

Average Sales Per Existing Store (2)

442,314

449,014

1,214,457

1,192,713

Gross Margin

24.2

22.4

23.9

22.5%

Operating Margin (3)

909,564

884,749

2,008,247

1,931,217

EBITDA (3)

536,675

505,613

961,555

868,848

Net Comprehensive Income

261,436

270,303

283,869

288,821

Number of Stores in Operating at Period End

Total Credit Facility Use

2,442,836

3,838,326

2,442,836

3,838,326

Sales existing stores are sales from stores that are in operation during the applicable period.

Average sales per existing store is based on sales of existing stores.

Calculation of Operating Margin and EBITDA are described under the heading “Non-IFRS Measures” in the Company’s Management Discussion and Analysis.

Calculation of credit facility can be found on page 7 under the heading “Summary of Credit Facilities” in the Company’s Management Discussion and Analysis.

The Company increased its operating margin by 3% in Q3 2023 over the same quarter in 2022 by focusing on cost efficiencies and from selling an under-performing store in 2022. Sales of existing stores for the three months ending September 30, 2023, are lower than the same period in 2022 due to the sale of a store in Q4 2022. The weather throughout the summer, particularly on weekends, played a large role in the sales trends for the third quarter ending 2023 as it was not as favourable as 2022.

Average sales per existing store increased by 2% for the nine month period ending September 30, 2023, over September 30, 2022, primarily due to inflationary pressures on pricing. Sales of existing stores for the nine month period ending September 30, 2023, are 2% lower than the same period in 2022. For the first two months in 2022, restrictions were in place to on-site liquor consumption establishments resulting in a positive effect on retail liquor sales in that period.

Gross margins are higher by 8% at 24.2% for the three months ending September 30, 2023, compared to 22.4% for the same period in 2022, and higher by 6% at 23.9% for the nine month period in 2023 compared to 22.5% in 2022 as management has been focusing on its marketing, pricing, and promotional strategies to support profitable growth.

Detailed information in the form of the Company’s interim consolidated financial statements and Management Discussion and Analysis are available under the Company’s profile on SEDAR at www.sedar.com and also on the Company’s website at www.ruminvestor.com. After accessing the website, please choose the “Investor Relations” tab to view Quarterly Reports.

About Rocky Mountain

Rocky Mountain owns 100% of Andersons Liquor Inc. (“Andersons”), headquartered in Edmonton, Alberta, which now owns and operates 25 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. It is listed on the TSX Venture Exchange (TSX-V:RUM).

Forward-Looking Statements

This news release presents statements and information with a forward-looking stance, abiding by the applicable laws of securities. These statements seem to predict future occurrences and performances. One must note that statements are not strictly historical facts but include forward-looking details. Often words like “appear”, “anticipate”, “continue”, “expect”, “intend”, and “believe” serve to clear the ambiguity.

Such forward-looking information and statements serve to shed light on the management’s future plans and expectations of the company. Admirers and stockholders are forewarned that depending on such information for investment orientated decisions may not be the correct approach. In the coming year 2023, favourable results might paint a different picture, subjected to risks like change in management policies, market tendencies, and strategic orientations. The COVID-19 pandemic made it all the more uncertain, with its potential to impact not just our operations but also third-party suppliers. The uncertainty of the future makes these forward-looking statements risky. It is possible that the actual results might vary greatly from what is being currently anticipated. The aforementioned risks, along with additional ones, have been discussed thoroughly in the section named “Risk Factors” in RUM’s Management Discussion and Analysis, which can be accessed here.

In case of any reason leading to non-execution, it is advised to not completely depend on this forward-looking timeline information. In case of any new information or future developments, there is no commitment to update or revise this information, unless TSX-V or the applicable securities laws demand so. This cautionary note qualifies all the future-looking statements furnished in this news release.

Finally, it is to be noted that neither the TSX Venture Exchange nor its Regulation Services Provider carries the responsibility of warranty or precision of this release.

For further information:

Allison Radford

Sarah Stelmack

Chief Executive Officer

Chief Financial Officer

(780) 483-8183

(780) 483-8177

SOURCE: Rocky Mountain Liquor Inc.

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