November 10, 2016 - Niagara-on-the-Lake, Ontario
Diamond Estates Wines & Spirits Inc. (“Diamond Estates” or “the Company”) (DWS-TSX Venture) today
announced strong growth in revenue and net earnings for the three and six-months ended September
30, 2016 (“Q2 2017” and “YTD 2017” respectively).
Q2 2017 Highlights:
•Revenue increased 28.5% to $10.3 million from $8.0 million Q2 2016, driven primarily by robust
•EBITDA improved 42.8% to $1.4 million from $1.0 million last year, as the company benefits
from enhanced operating leverage;
•Net earnings increased 104.6% to $0.8 million from $0.4 million in Q2 2016;
•Cash flow from operating activities, before changes in non-cash working capital items, increased
87.1% to $2.1 million in YTD 2017 from $1.1 million in YTD 2016;
•The Company's debt to equity ratio improved to 1.50:1 from 1.76:1 as at March 31, 2016; and
•Management successfully renegotiated terms of the Company’s credit facility, providing for
enhanced operating flexibility to support growth.
“Our strong year-over-year earnings improvement in Q2 2017 demonstrates the scalability of our platform as there was no material growth in the fixed cost base to support the increased revenue. We expect this trend to continue given the favourable environment for VQA wine in Ontario as we have listings with all chains and large independent grocery stores now carrying wine,” stated Murray Souter, President and CEO of Diamond Estates. “Not only are we benefitting from the growing consumer demand for our diverse portfolio of brands in Ontario, we are also participating strongly in the growing desirability for Canadian wines in Asia.”
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada. The company operates two wineries in the Niagara region of Ontario producing VQA and blended wines under such well-known brand names as 20 Bees, EastDell Estates, Lakeview Cellars, Dois Amigos, Dan Aykroyd, Benchmark and Seasons. Through its partnership, Kirkwood Diamond Canada, the Company is the sales agent for top selling international brands in all regions of the country as well as being a distributor in the western provinces. These recognizable brands include Fat Bastard wines from France, Kaiken wines from Argentina, Charles Wells beers from England, Hpnotiq Liqueur from France, Anciano wines from Spain, Francois Lurton wines from France and Argentina, Blue Nun wines from Germany, coolers and spirits from Independent Distillers in New Zealand, Brick Brewing from Canada, Evan Williams Bourbon from USA, Flor de Cana rum from Nicaragua, Iceberg Vodka from Canada and many others. For further information on the company, please visit the company’s SEDAR profile at www.sedar.com.
Diamond Estates Wines & Spirits Inc. common shares trade on the TSX Venture Exchange (symbol: DWS). For more information, please contact:
J. Murray Souter
President & CEO
Diamond Estates Wines & Spirits Inc.
905 641 1042 Ext 234
Alan Stratton, CPA, CA
Chief Financial Officer
Diamond Estates Wines and Spirits Inc.
905-641-1042 Ext 225
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statement
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates Wines and Spirits Inc.to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; and anticipated and unanticipated costs. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.