Tuesday, October 14, 2008

Liquor Group Wholesale, Inc. Announces Fiscal 2008 Results

Liquor Group Wholesale, Inc. Announces Fiscal 2008 Results; Operating Income at 22% - Profitable for the year, Unaffected by the Credit Crunch

Liquor Group Wholesale, Inc. (OTCBB: LIQR) today announced its results for their fiscal fourth quarter of 2008. Form 8K filed with the SEC as follows:

The Company announced unaudited net income on a U.S. GAAP basis of $324,923 or $0.037 per share, for the fourth quarter of its fiscal year and overall unaudited results of fiscal 2008. These figures include the costs of the merger with North American Food & Beverage including the time consuming and costly process of bringing the newly merged Company back into full reporting compliance with the Securities and Exchange Commission to allow it to trade again on the public markets.
Some of the Company’s key financial highlights for the fiscal year of 2008 include the following:
  • Gross margin of 30%
  • Operating income of 22.6%
  • Cash Flow from Operations of $0.034 pershare (9.5 Million weighted average in Q4)
  • $19,025,702 Market Capitalization ($2.00 per share S1 price)
  • 33.5% Net Income
  • Current Ratio of +1.21 (Liquidity)
C. J. Eiras, President and CEO commented, “The Company has continued to see positive developments in its operations as evidenced by the strong performance in the final quarter of our fiscal year. The Net Income of $324,923 from fourth quarter operations demonstrates that even in this tough economy our Company was still profitable. The continued expansion of high margin brand sales coupled with increased market presence and continued growth of our portfolio has led to positive sales.”

Mr. Eiras continued, “The areas of our core business operations that have been positively impacted by our current business practices are increased sales in Control States due to new additions to our brand representation portfolio as well as the expansion of our sales force selling products with increased margins due to our buying power leverage. We believe that with some of the US’s leading premium products we can take advantage of the growing trends in the spirit and wine market as well as the value priced products that are increasingly becoming more main stream.”

The Company earned net income per share of $0.038 for the quarter which would be higher except for the one-time costs of the merger with North American Food and Beverage Corp. The Company provides these results to investors so that they might gain better insight into its underlying business trends from continuing operations. The Company also enjoys the use of a $22 million dollar net operating tax loss captured from North American Food and Beverage in the merger in August of 2007, an asset that has already come in handy every quarter this year to offset tax due on net profits.

Liquor Group Wholesale does not utilize any form of bank financing, floor plans or other credit facilities in its’ business operations. The Liquor Group business model provides us insulation from the current credit market squeeze. Distributors following the "traditional" business model for spirits distribution must have access to the credit market in order to pay for the large supplies of products that they buy for distribution over many months and they count on proceeds from their sales to re-pay the funds that were used to finance the purchase. The Patent Pending Bailment system allows us to pay only for the product sold with collected funds, eliminating the need to go to increasingly expensive and tight credit sources for funding. This essential difference between the "traditional" and Liquor Group’s Innovative Distribution business model increases our access to many specialty and mid-level mass market brands for our portfolio as other distributors following the "traditional" model are forced to eliminate brands in their portfolios as the credit crunch makes it increasingly difficult for them to find backing to floor plan their product purchases.

The Company currently represents more than 1700 spirit and wind brands in 31 US States and is one of the top emerging national distributors of alcoholic beverages in the US. The Company uses 31 state level customer distribution centers to make available many of the world’s leading alcohol beverage brands, including Happy Vodka, Happy Tequila, Happy Rum and Happy Gin, Trump Vodka and Trump Flavored Vodkas, Pendleton’s Canadian Whisky, Pravda Vodka, Old St. Andrews Scotch, Azzaro Wines, Willie Nelson’s Old Whisky River ranging from value priced to super premium. Liquor Group’s Single Malt Scotch selection is among the largest in the United States representing many top Scotch Specialists with offerings from all major Scotch Distillers including: Macallan, Highland Park, Glenlivet, Ardmore, Bowmore, Bruichladdich, Cao Isla, Longmorn, Edradour, Rosebank, Mortlach, Glen Elgin, Old Pulteney and Craiganmore.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. The Company undertakes no obligation to publicly update, revise or restate any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by securities laws. Investors are referred to the full discussion of risks and uncertainties included in the Company’s registration statement on Form S-1, and in other documents filed by the Company with the Securities and Exchange Commission.

Many other challenges and successes are more completely described in the document entitled: LiquorGroup Wholesale Year End Financial Statement 8-31-2008 available at: LiquorGroup.com  

Liquor Group Wholesale, Inc.