Rocky Mountain's Q2 comprehensive income at $174,272

Executive Summary

• Rocky Mountain Liquor Inc. reported its Q2 and six-month financial results for the period ended June 30, 2025, showing a return to profitability and significant improvement in adjusted EBITDA despite a reduced store count.
• The company is actively evaluating strategic options to enhance shareholder value, which may include a full or partial sale, asset divestitures, or mergers, though no timetable or decisions have been made.
• Sales growth in Q2 was driven by improved per-store performance and a new loyalty program, while cost reductions from store closures and completed POS system implementation contributed to margin expansion.

Key Details

• Q2 2025 Financial Performance:
  • Net comprehensive income: $174,272 (return to profitability after Q1 seasonal softness).
  • Adjusted EBITDA: $357,592, up significantly from $148,042 in Q2 2024.
  • Gross margins improved in both the three-month and six-month periods due to disciplined inventory management and strategic limited-time offers.
  • Operating and administrative expenses declined year-over-year due to reduced occupancy/wage costs from store closures, lower salary expenses, and reduced professional fees.
• Six-Month Period (YTD) Performance:
  • Adjusted EBITDA turned positive at $120,348, compared to a loss of $177,433 in the prior year.
  • Sales were slightly lower year-over-year, reflecting the reduced store base and the absence of negative external factors (adverse weather, road closures, heightened competition) that impacted 2024.
• Operational Updates:
  • Store count reduced from 24 to 22.
  • Launched a chain-wide loyalty program, strengthening customer engagement.
  • Point-of-sale system rollout completed in 2024; no implementation costs incurred in 2025.
• Strategic Review:
  • Board of directors is evaluating strategic options to enhance shareholder value.
  • Potential options include full or partial sale, asset divestitures, mergers, or other strategic transactions.
  • No timetable set; no decisions made; review not initiated in response to any specific proposal.
  • No assurance that exploration will result in a transaction.
• Company Profile:
  • Public company traded on the TSX Venture Exchange.
  • Parent to wholly owned subsidiary Andersons Liquor Inc., headquartered in Edmonton, Alta.
  • Operates 22 private liquor stores in Alberta.

Notable Quotes

• "Sales for the second quarter increased compared with the same period in 2024, despite a reduction in the company's store count from 24 to 22. This growth reflects improved per-store performance and the successful launch of the company's chain-wide loyalty program, which has strengthened customer engagement."
• "Adjusted EBITDA improved significantly, rising to $357,592 for Q2 2025 from $148,042 in Q2 2024. For the six-month period, adjusted EBITDA turned positive at $120,348, compared with a loss of $177,433 in the prior year."
• "The company's board of directors, with management's support, is continuing to evaluate strategic options to enhance shareholder value. These options may include a full or partial sale, asset divestitures, mergers, or other strategic transactions."