Brick Brewing reports financial results for the third quarter, with EBITDA improvement of $1.2 million

WATERLOO - Brick Brewing Co. Limited, Ontario's largest Canadian-owned and Canadian-based publicly held brewery, released its financial results for the third quarter of fiscal 2010.

"The success of Waterloo Dark and Red Baron brands continued into the third quarter inspiring the launch of two new products, Red Baron Lime and Red Baron Light," said George Croft, President & CEO. "Red Baron's clear bottle provides a significant point of difference compared to other brands at a similar price point. Differentiation is crucial in a marketplace that is fundamentally changed from a year ago."

The experience of this past year has made it clear that the increase in the Minimum Retail Price of beer has reduced the price gap between the value segment and mainstream beer prices and put significant downward pressure on the Laker brand. The Laker brand must undergo a transformation to stem the decline and the Company is in the midst of a strategic review of the brand with a focus on all facets of the marketing mix.

"Management is constantly seeking opportunities to reduce costs. During the third quarter, the Company signed a distribution outsourcing agreement with Ryder to reduce shipping costs by approximately $0.5 million annually," said Russell Tabata, Chief Technical Officer. "The Company has also been diligent in reducing costs with respect to packaging materials. The Company has made strides in the year to improve margin per hectoliter through targeted capital spending. We will continue this approach in fiscal 2011 with a capital plan of approximately $2.3 million designed to deliver annual savings of $0.5 million."

Financial highlights for the quarter include:

- Net revenue has remained flat compared to the third quarter of fiscal
2009 and grew 4.0% on a year-to-date basis
- Gross profit percentage has increased to 26.1% for the first nine
months of fiscal 2010 versus 17.7% in the comparable period
- EBITDA for the third quarter of fiscal 2010 and nine months ending
October 31, 2009 of $0.7 million and $3.2 million respectively,
representing an increase of $1.2 million (258%), and $2.7 million
(588%) from the same periods last year
- Net income of $0.2 million in the third quarter, compared to a loss
of $0.6 million last year
- Net income of $1.1 million for the first nine months of fiscal 2010
compared to a loss of $0.7 million last year

"I am very proud of Brick's progress in fiscal 2010 and look forward to
conveying results for the balance of fiscal 2010 and onward," said George
Croft.