|By Marketwired .||
|June 23, 2014 06:05 PM EDT||
NIAGARA-ON-THE-LAKE, ONTARIO -- (Marketwired) -- 06/23/14 -- Diamond Estates Wines & Spirits Inc. ("Diamond Estates" or "the Company") (TSX VENTURE: DWS) today announced its results for the fiscal year ending March 31, 2014 ("FY2014").
Sales for FY2014 were $20,587,964 compared to $23,398,883 for the fiscal year ended March 31, 2013 ("FY2013"), representing a decline of 12.0%%. Gross margin for FY2014 was 47.4% compared to 48.1% for FY2013. Total operating expenses for FY2014 were $9,107,758 versus $8,974,028 for FY2013, a change of $133,730. Loss before certain non-cash and one-time costs for FY2014 was $2,769,694 compared to $2,011,841 for FY2013. Net loss and comprehensive loss for FY2014 was $4,075,413 versus $2,438,716, resulting in loss per share of $0.09 in FY2014 versus $0.17 for FY2013.
The sales decrease was primarily due to the flow through effect of agency agreements terminated in fiscal 2013 for third party wines and spirits. Manufactured wines saw some softness in the LCBO channel offset by growth in retail at the wineries, licensee and export sales channels which continue to perform well.
"At Diamond Estates, we are focussed on executing to our long-term business strategy," stated J. Murray Souter, President & CEO of Diamond Estates Wines & Spirits Inc. "The organization continues to evolve and is well positioned to accelerate growth in our key business segments and brands over the coming months. We anticipate significantly improving the company's competitive position and profitability in fiscal 2015, which is why we just hired a full-time operational CFO based in Niagara."
On September 24, 2013, the Company became a publicly traded stock through the reverse take-over ("RTO") of Whiteknight Acquisitions II Inc., a Capital Pool Company listed on the TSX Venture Exchange. Coincident with this transaction, the Company also raised an additional $8,351,000 in equity and renegotiated its credit facilities to significantly improve its working capital position by over $17,000,000, net of restructuring, finance and share issue costs totalling $1,246,000 incurred in the period. This increase in working capital will assist the achievement of the Company's long-term goals and will help create a platform for the future growth of the business.
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer, marketer and distributor of wines and spirits in 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, Lakeview, Dois Amigos, Hat Trick, Dan Aykroyd, Benchmark and Seasons. The company also imports fine wines and spirits from around the world and serves as the marketing and sales agent for these brands in all regions of the country. These brands include Fat Bastard wines from France, Fireball Whiskey Shooter from Canada, Hpnotiq Liqueur from France, Anciano wines from Spain, Francois Lurton wines from France and Argentina and a number of top bourbons. For further information on the company, please visit the company's SEDAR profile at www.sedar.com.
This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Diamond Estates Wines & Spirits Inc. common shares trade on the TSX Venture Exchange (symbol DWS).