Financial Analysis Report
Big Rock Income Trust
Table of Contents
Executive Summary and Recommendation 2
Overview of Company 2
Management 2
Strategy 3
Income Trust 3
Competitors 3
Government 3
Operations and Performance 4
Activity (Turnover) 4
Financing 4
Liquidity / Solvency / Warning 5
Investment Recommendation 5
Financial Statements and Ratios 1
Financial Analysis Report
Executive Summary and Recommendation
Big Rock is a specialty brewing company that concentrates its efforts and resources on its core, high margin, and specialty brands. Continued focus on products that target the super-premium segment of the markets continues to provide strong margins. Government policy changes create a barrier to entry for other potential firms. Reduced interest costs by changing banks and the sale of Kamloops' Brewery will continue to improve Big Rock's operating expenses. AMI recommends continued investment in Big Rock Brewery Income Trust.
Big Rock is positioned well to expand in the future or would be a viable business acquisition for a multi-national brewing company.
Overview of Company
Big Rock Brewery was founded in 1984 by Chairman Ed McNally. Big Rock commenced operations in 1985. The first three beers Big Rock produced were Traditional Ale, Bitter and Porter. All were full flavored natural unpasteurized beers. The original Brewery was an existing building on Barlow Trail in SE Calgary. The new brewery was completed and opened in 1996. The Brewery as of 2005 celebrated 20 years of distribution and production in quality craft beers.
Management
Ed McNally, Chairman of the Board, is a native Albertan, a former lawyer, rancher and farmer, foresaw t ...