Waterloo Brewing Investment Highlights
Executive Summary
Our Background
Founded in 1984, Waterloo Brewing is a
publicly traded Canadian beer, ready-to-drink
("RTD"), cider and co-pack beverage
company
Went public in 1986 and is currently traded on
the Toronto Stock Exchange (TSX: BRB)
Shareholder Summary(1)
Our Business
We brew and blend high quality beers,
RTDs and cider products in our flexible state
of art facility in Kitchener, Ontario
We produce all products for our owned
brands and co-pack customers
Our long-term strong organic growth is
driven by expansion of our owned brands
and co-pack business
FY18A Gross Revenue
☐
(C$ in millions, except per share values)
Our Markets
We sell our products primarily in Ontario, with
coverage across Canada and into parts of the
U.S.
We sell mainly through The Beer Store, a
brewer-owned Ontario retail business
In Ontario, craft beer has legally protected
shelf space at retail
Legalization of cannabis in Canada is
anticipated to drive growth in cannabis-infused
beverages ("CIBS")
FY18A Gross Revenue by
Channel
Co-Pack
9.4%
Other
38.4%
Insiders
37.7%
Management
5.3%
Institutional
18.6%
Capitalization Table
Share Price (3/19/19)
Fully Diluted Shares Outstanding (mm)
Equity Value
(2)
0.8% 2.6%
2.9%
25.0%
Owned
Brands
90.6%
68.8%
The Beer Store
■LCBO
■Grocery
■Retail
■ Other
Operating Performance and Trading Multiples
$4.06
35.4
LFY
$144
Owned Brands Volume (HL)
238,100
FY19E
238 to 240
YoY
Growth (%)
FY19E
Multiple
0.5%
13.86
Net Revenue
(1.1)
SM&A
$49.1
$9.1
$49.5 to $50.2
1.9%
2.7x
$9.0 to $9.2
0.0%
$13
EBITDA (excl. one-time costs)
$8.8
$9.8 to $10.1
12.4%
13.5
$157
Net Income
$2.6
$2.7 to $2.9
3.8%
44.7
Plus: Debt
Less: Cash & Cash Equivalents
Net Debt
Enterprise Value
Note: Waterloo Fiscal Results exclude the Formosa brands sold by Waterloo in FY18A
(1)
(2)
As of 18/01/19. Management refers to the share ownership of George Croft (CEO), Russell Tabata (COO), David Birch (CFO)
Includes C$3mm equipment lease
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WATERLOO0
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