Edmonds, WA / ACCESSWIRE / November 7, 2014 / American Brewing Company, Inc., (ABRW) ("ABC"), an award-winning micro-brewing company based out of the Pacific Northwest, today announced financial results for its third quarter ending September 30, 2014.
Third Quarter 2014 Highlights:
- Total net revenues increased 14.9% in Q3 2014 compared to Q3 2013
- Expanded brewery to boost its efficiencies and total brewing capacity
- In British Columbia, ABC was approved for distribution into 670 private stores and the Company is now waiting on approval for 197 government stores
- Signed a new distributor in Canada - Nexus Global Trading Ltd - to its dealer network
- Recorded the first order of ABC's new line of 12oz cans to its existing distribution partner, Freedom Beverage Company
- Acclaimed author, food writer and broadcaster, Simon Majumdar, elected to ABC's Board of Directors
"This was a terrific quarter for us as we were able to grow our revenues even though our brewery was occasionally shut down throughout the quarter due to its expansion and remodel," said Neil Fallon, CEO of ABC. "Now that the remodel is complete, we are able to brew six times faster with the same amount of labor and our total capacity has been increased in terms of barrels per year. This boost in efficiency and output will help us better meet the demands of our budding customer base, especially for our new 12oz cans. Along with adding a new distributor plus new distribution points in Canada, we believe that ABC is on a clear path to deliver even stronger results the rest of this year and on into 2015. Our focus in the coming quarters will be on further driving revenues through the development and release of new beers, the establishment of new packaging formats and geographical territories, as well as the exploration of acquisitions for potential accretive mergers."
Review of Third Quarter 2014 Operating Results in Aggregate
ABC generated $306,110 in revenue for the three-month period ended September 30, 2014 compared to $266,340 during the same period in 2013. The Company's revenues increased during the three-month period ended September 30, 2014 due to increased sales of its products. As ABC has now been in operation for several years, it has begun to generate new consumers that become aware of the Company's products either through word of mouth, new restaurant or bar placements, advertising or self placements in grocery stores. While ABC's overall capacity was fixed, the Company simply had more consumer demand, including more customers who purchased ABC's beer products and merchandise in the Company's tasting room.
Also during the three months ended September 30, 2014, ABC's brewery was shut down on several occasions during the Company's expansion and remodel project, meaning that although ABC's revenue increased during the three month period ended September 30, 2014 as compared to the same period in 2013, its sales and operations were limited to the periods in which the brewery was open and functioning during ABC's remodel. The result of the shut down period was that ABC's gross profit margins for the three-month period ended September 30, 2014 was lower than the gross profit margin during the same period in 2013. Now that ABC's remodel has been substantially completed, the Company does not foresee any additional shut down periods.
ABC's cost of goods sold for the three-month period ended September 30, 2014 was $131,334 compared to cost of goods sold of $81,546 during the same period in 2013. The Company's revenue increased during the three-month period ended September 30, 2014, and as ABC's revenue increased, its cost of goods sold correspondingly increased.
Operating expenses-which consisted of advertising, promotional and selling costs, as well as compensation and general and administrative expenses - for the three-month period ended September 30, 2014, were $413,560. This compares with operating expenses of $192,863 during the same period in 2013. The increase in ABC's operating expenses is primarily related to the Company's auditing and legal expenses and non-cash stock based consulting and director expenses.
About American Brewing Company
Founded in 2010, American Brewing Company, Inc., is an award-winning micro-brewing company based out of Edmonds, Washington. American Brewing Company's current offerings include Breakaway IPA (named 'Best in the West' by Beer West Magazine), American Blonde (featured in GQ Magazine), Flying Monkey Dogfight Pale Ale, and Caboose Oatmeal Stout. American Brewing Company also produces seasonal brew batches, two of which - The Brave American and Polska Porter - won Bronze Medals at the Great American Beer Festival in 2011 and 2012, respectively. American Brewing Company's current U.S. sales network includes Washington and North Carolina. American Brewing Company also has international sales in Canada and Japan.
For more information, please visit: http://www.americanbrewing.com/.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. These statements include, without limitation, predictions and guidance relating to the company's future financial performance and the research, development and commercialization of its technologies. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements, as the result of such factors, risks and uncertainties as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, (3) other factors detailed in the company's public filings with the SEC, which are available at http://www.sec.gov/. You are urged to consider these factors carefully in evaluating the forward-looking statements.
Contacts
Corporate:
Neil Fallon, CEO
American Brewing Company
Email: [email protected]
Investor Relations:
Kevin Fickle, President
Nuwa Group LLC
Tel: 925.330.8315
Email: [email protected]
SOURCE: American Brewing Company, Inc.