PR Newswire
VANCOUVER, May 1, 2017
VANCOUVER, May 1, 2017 /PRNewswire/ - RYU Apparel Inc. (TSX VENTURE: RYU & Frankfurt Stock Exchange: RYA), creator of tailored innovation for the urban athlete, is pleased to report its financial results for the three months ended March 31, 2017.
Revenue in the first quarter of 2017 was $467,003, 80% higher than revenue of $259,727 during the same period in 2016. Now into its second year of operations the RYU team is encouraged with its sales record to date and a 47% gross profit for the quarter. This is RYU's seventh consecutive quarter of increasing gross profit.
Three months ended | ||
March 31, | ||
(unaudited) | ||
In Canadian dollars |
2017 |
2016 |
Revenue |
$467,003 |
$259,727 |
Gross profit |
$219,256 |
$134,994 |
Gross profit % |
47% |
52% |
First quarter 2017 results are consistent with fourth quarter 2016 revenue of $474,844 and gross profit of $214,336 (45%). The first quarter in a calendar year tends to be much slower than the previous fourth quarter, skewed by the Holiday Season and markdowns, and this indicates that sales have continued to grow in line with awareness for the brand. RYU products are not placed on sale at retail.
During the three months ended March 31, 2017 the Company achieved the following milestones:
Retail store expansion plan |
Square |
Opening Date | |
Existing Stores |
|||
Vancouver – West 4th Avenue (Flagship) |
3,920 |
November 2015 | |
Vancouver – Thurlow Street |
1,100 |
November 2016 | |
Vancouver – Park Royal South |
3,967 |
March 2017 | |
New Stores Under Construction |
|||
Vancouver – Metrotown |
2,002 |
Q3 2017 | |
Toronto – Queen Street West |
2,220 |
Q3 2017 |
First quarter summary:
Full details of the Company's financial performance can be obtained by viewing the unaudited condensed consolidated interim financial statements and corresponding MD&A available on SEDAR.
For regular updates on RYU Apparel visit: http://ryu.com
About RYU
RYU Apparel Inc. is tailored innovation for the urban athlete. An award winning athletic apparel and accessories brand engineered for the fitness, training and performance of the multi-discipline athlete. Designed without compromise for comfort, style and durability, RYU exists to facilitate human performance. For more information, visit: http://ryu.com
On Behalf of the Board
RYU APPAREL INC.
"Marcello Leone"
Marcello Leone, CEO, President and Chairman of the Board
Tel: 604-235-2880
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as statements that revenues would have been higher, that the expansion plan is to have five stores open by the end of 2017, and the intention to open the Toronto store on Queen Street West and the Company's first enclosed mall location in Metrotown, all within the second half of 2017. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including the ability of the company to finance operations, the ability of the management team to execute on its business plan, risks in the apparel industry in general, and delays and risks associated with renovating and opening new store locations. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
RYU APPAREL INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian dollars)
As at
March 31, 2017 (unaudited) |
December 31, 2016
| ||||
ASSETS |
|||||
Current |
|||||
Cash |
$ |
1,361,528 |
$ |
767,263 | |
Accounts receivable |
69,691 |
82,297 | |||
Inventory |
1,001,667 |
1,067,560 | |||
Prepaid expenses and deposits |
671,892 |
263,912 | |||
3,104,778 |
2,181,032 | ||||
Non-current |
|||||
Deposits |
160,759 |
172,521 | |||
Property and equipment |
1,690,787 |
1,439,500 | |||
Intangible assets |
4,453 |
6,549 | |||
$ |
4,960,777 |
$ |
3,799,602 | ||
LIABILITIES AND EQUITY |
|||||
Current |
|||||
Accounts payable |
$ |
597,858 |
$ |
745,894 | |
Accrued liabilities |
159,421 |
169,404 | |||
Current portion of finance lease |
14,706 |
14,779 | |||
Deferred revenue |
80,878 |
64,732 | |||
852,863 |
994,809 | ||||
Non-current |
|||||
Finance lease |
58,990 |
63,296 | |||
Derivative liability |
- |
7,703 | |||
911,853 |
1,065,808 | ||||
Equity |
|||||
Share capital |
45,342,978 |
42,230,355 | |||
Equity reserve |
7,229,304 |
6,927,354 | |||
Deficit |
(48,590,452) |
(46,491,009) | |||
Accumulated other comprehensive income |
67,094 |
67,094 | |||
4,048,924 |
2,733,794 | ||||
$ |
4,960,777 |
$ |
3,799,602 |
RYU APPAREL INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS - UNAUDITED
(Expressed in Canadian dollars)
For the three months ended March 31
2017 |
2016 | |||||
Revenue |
$ |
467,003 |
$ |
259,727 | ||
Cost of sales |
247,747 |
124,733 | ||||
Gross profit |
219,256 |
134,994 | ||||
47% |
52% | |||||
Expenses |
||||||
Depreciation |
66,687 |
57,826 | ||||
Foreign exchange loss (gain) |
25,975 |
(147,448) | ||||
Interest and bank charges |
30,166 |
60,657 | ||||
Investor relations |
53,448 |
219,209 | ||||
Office and general |
457,168 |
261,649 | ||||
Product creation |
202,481 |
15,999 | ||||
Professional fees |
22,400 |
453,918 | ||||
Salaries and benefits |
754,469 |
585,633 | ||||
Selling and marketing |
485,044 |
351,136 | ||||
Share based payments |
203,082 |
62,484 | ||||
Travel and entertainment |
25,482 |
9,627 | ||||
(2,326,402) |
(1,930,690) | |||||
Other items |
||||||
Gain on settlement of debt |
- |
49,337 | ||||
Recovery of warrant derivative liability |
7,703 |
1,006,263 | ||||
Comprehensive loss |
$ |
(2,099,443) |
$ |
(740,096) | ||
Loss per share - Basic and diluted |
$ |
(0.01) |
$ |
(0.01) | ||
Weighted average number of common shares outstanding - basic and diluted |
176,590,322 |
83,021,474 |
RYU APPAREL INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - UNAUDITED
(Expressed in Canadian dollars)
For the three months ended March 31
2017 |
2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||
Net loss |
$ |
(2,099,443) |
$ |
(740,096) | ||
Items not affecting cash: |
||||||
Depreciation |
66,687 |
57,826 | ||||
Share-based payments |
203,082 |
62,484 | ||||
Foreign exchange |
- |
7,369 | ||||
Accrued interest |
- |
27,779 | ||||
Gain on settlement of debt |
- |
(49,337) | ||||
Recovery of warrant derivative liability |
(7,703) |
(1,006,263) | ||||
Changes in non-cash working capital |
||||||
Accounts receivable |
12,606 |
123,375 | ||||
Inventory |
65,893 |
(122,812) | ||||
Prepaid expenses and deposits |
(396,218) |
(44,668) | ||||
Accounts payable and accrued liabilities |
(206,659) |
439,098 | ||||
Deferred revenue |
16,146 |
989 | ||||
Net cash flows used in operating activities |
(2,345,609) |
(1,244,256) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||
Property and equipment |
(267,239) |
(27,230) | ||||
Net cash flows used in investing activities |
(267,239) |
(27,230) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||
Issuance of common shares |
3,734,441 |
1,132,625 | ||||
Cash share issuance costs |
(531,750) |
(51,773) | ||||
Short-term loans received |
- |
379,050 | ||||
Repayment of short-term loans |
- |
(210,000) | ||||
Exercise of warrants |
8,800 |
- | ||||
Finance lease |
(4,378) |
(3,997) | ||||
Net cash flows provided by financing activities |
3,207,113 |
1,245,905 | ||||
Change in cash |
594,265 |
(25,581) | ||||
Cash – beginning |
767,263 |
104,518 | ||||
Cash – end |
$ |
1,361,528 |
$ |
78,937 | ||
Supplemental cash flow disclosure – non cash transactions |
||||||
Additions of property and equipment included in accounts payable |
$ |
48,640 |
$ |
26,965 | ||
Common shares issued for settlement of accounts payable |
$ |
- |
$ |
197,347 |
SOURCE RYU Apparel Inc.