Liquor Group Wholesale, Inc. Announces Profitable Fiscal 2009 Operating Results
Jacksonville, Florida – August 31, 2009 – Liquor Group Wholesale, Inc. (OTCBB: LIQR) announced its unaudited results for fiscal fourth quarter of 2009, prior to the annual shareholder conference.
Fiscal year net income (before expensing non-cash transactions of $256,000) was $729,828, or $0.0682 basic weighted earnings per share before non-cash expenses. The Company enjoys all profits through the use of a $25 million net operating tax loss captured in the merger of August 2007, an asset utilized to offset tax due on net profits every quarter.
Key Financials:
Key financial highlights for fiscal 2009 include:
Gross margin of 38.8%
Net income of 40.2%
Current liquid ratio of +1.85
C. J. Eiras, President and CEO commented, “Liquor Group Wholesale, which represents approximately 8% of Liquor Group associated worldwide operations continued to see positive developments in operations again this year, as evidenced by strong performance in the final quarter of our fiscal year. Once again our profitability demonstrates that even in this tough economy our operational system works. Our continued portfolio expansion of high-margin brands coupled with increased market presence has again led to positive results for our shareholders.”
Eiras continued “Our core business operations were again positively impacted by the advantages of our patent-pending business model. Increased sales are partly attributed to some new additions to our brand portfolio as well as the expansion of our sales force and territories, which continued to outpace supplies of products due to our buying power and leverage. Some of the leading premium products in the market have begun taking advantage of our growing operation; and our business model is increasingly becoming more accepted by the alcohol beverage industry.”
The Company provides these results to investors so that they might gain better insight into its underlying business trends from continuing operations.
Patent-Pending Business Model:
Liquor Group Wholesale does not utilize any form of bank financing, floor plans or other credit facilities in its’ business operations. The Liquor Group uses a patent-pending business model that provides the company insulation from the credit market squeeze. Distributors following "traditional" business models for spirits distribution must have access to credit markets 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 funds used to finance the purchase. This Patent-Pending Bailment system allows us to pay only for the product sold once collected, using only a portion of the collected funds, eliminating the need to go to increasingly expensive and tight credit sources for funding. This essential difference between "traditional distributors" and Liquor Group’s Innovative Distribution business model increases our access to many specialty and mid-level mass market brands for our portfolio while 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.
Fiscal year net income (before expensing non-cash transactions of $256,000) was $729,828, or $0.0682 basic weighted earnings per share before non-cash expenses. The Company enjoys all profits through the use of a $25 million net operating tax loss captured in the merger of August 2007, an asset utilized to offset tax due on net profits every quarter.
Key Financials:
Key financial highlights for fiscal 2009 include:
Gross margin of 38.8%
Net income of 40.2%
Current liquid ratio of +1.85
C. J. Eiras, President and CEO commented, “Liquor Group Wholesale, which represents approximately 8% of Liquor Group associated worldwide operations continued to see positive developments in operations again this year, as evidenced by strong performance in the final quarter of our fiscal year. Once again our profitability demonstrates that even in this tough economy our operational system works. Our continued portfolio expansion of high-margin brands coupled with increased market presence has again led to positive results for our shareholders.”
Eiras continued “Our core business operations were again positively impacted by the advantages of our patent-pending business model. Increased sales are partly attributed to some new additions to our brand portfolio as well as the expansion of our sales force and territories, which continued to outpace supplies of products due to our buying power and leverage. Some of the leading premium products in the market have begun taking advantage of our growing operation; and our business model is increasingly becoming more accepted by the alcohol beverage industry.”
Many other challenges and successes are more completely
described in the document entitled: LiquorGroup Wholesale Year End Financial Statement 8-31-2009 available at: LiquorGroup.com
The Company provides these results to investors so that they might gain better insight into its underlying business trends from continuing operations.
Patent-Pending Business Model:
Liquor Group Wholesale does not utilize any form of bank financing, floor plans or other credit facilities in its’ business operations. The Liquor Group uses a patent-pending business model that provides the company insulation from the credit market squeeze. Distributors following "traditional" business models for spirits distribution must have access to credit markets 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 funds used to finance the purchase. This Patent-Pending Bailment system allows us to pay only for the product sold once collected, using only a portion of the collected funds, eliminating the need to go to increasingly expensive and tight credit sources for funding. This essential difference between "traditional distributors" and Liquor Group’s Innovative Distribution business model increases our access to many specialty and mid-level mass market brands for our portfolio while 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.
posted by Liquor Group at
10:24 AM
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