VANCOUVER, Nov. 17, 2017 /CNW/ - RYU Apparel Inc. (TSX VENTURE: RYU & Frankfurt Stock Exchange: RYA) (the "Company"), creator of urban athletic apparel, is pleased to report its financial results for the nine months ended September 30, 2017.
Revenue in the third quarter of 2017 was $745,226 125% higher than revenue of $331,700 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 45% gross profit for the quarter.
Three months ended |
Nine months ended | |||
September 30, |
September 30, | |||
(unaudited) |
(unaudited) | |||
In Canadian dollars |
2017 |
2016 |
2017 |
2016 |
Revenue |
$745,226 |
$331,700 |
$1,853,460 |
$892,199 |
Gross profit |
$338,789 |
$139,352 |
$852,821 |
$413,530 |
Gross profit % |
45% |
42% |
46% |
46% |
Third quarter 2017 results included additional revenue from the Company's new retail store locations in Downtown Vancouver, Park Royal South in West Vancouver and Queen St. West in Toronto, whereas third quarter revenue in 2016 was comprised primarily of sales from the Flagship retail store and e-commerce sales. The Queen St. West location in Toronto was only open for twelve days within the quarter.
During the nine months ended September 30, 2017, the Company achieved the following milestones:
Third quarter summary:
Year-to-date summary:
For convenience, copies of the Company's unaudited condensed consolidated interim statements of financial position, comprehensive loss and cash flows for the periods discussed herein are attached to this news release. Readers are encouraged to review such statements in their entirety, including the notes thereto, on SEDAR. 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
Respect Your Universe is an award winning urban athletic apparel and accessories brand. Designed without compromise for fit, comfort, 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: (i) the expansion plan is to have five stores open by the end of 2017, and the intention to open the Company's first enclosed mall location in Metrotown within the fourth quarter of 2017; (ii) the intention to open its New York City location during the second quarter of 2018; (iii) that high priority tasks with netamorphosis will start to deploy in the fourth quarter of 2017 to accelerate and expand e-commerce revenue and performance and will continue into the first half of 2018; and (iv) that deliveries of inventory are expected to continue into the first quarter of 2018. 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. | ||||||
September 30, 2017 (unaudited) |
December 31, 2016
| |||||
ASSETS |
||||||
Current |
||||||
Cash |
$ |
701,582 |
$ |
767,263 | ||
Accounts receivable |
98,383 |
82,297 | ||||
Inventory |
1,857,378 |
1,067,560 | ||||
Prepaid expenses and deposits |
736,145 |
263,912 | ||||
3,393,488 |
2,181,032 | |||||
Non-current |
||||||
Deposits |
397,306 |
172,521 | ||||
Property and equipment |
2,226,455 |
1,439,500 | ||||
Intangible assets |
342 |
6,549 | ||||
$ |
6,017,591 |
$ |
3,799,602 | |||
LIABILITIES AND EQUITY |
||||||
Current |
||||||
Accounts payable |
$ |
541,535 |
$ |
745,894 | ||
Accrued liabilities |
277,714 |
169,404 | ||||
Current portion of finance lease |
13,930 |
14,779 | ||||
Deferred revenue |
75,832 |
64,732 | ||||
909,011 |
994,809 | |||||
Non-current |
||||||
Finance lease |
48,360 |
63,296 | ||||
Derivative liability |
- |
7,703 | ||||
957,371 |
1,065,808 | |||||
Equity |
||||||
Share capital |
50,711,949 |
42,230,355 | ||||
Equity reserve |
7,419,847 |
6,927,354 | ||||
Deficit |
(53,138,670) |
(46,491,009) | ||||
Accumulated other comprehensive income |
67,094 |
67,094 | ||||
5,060,220 |
2,733,794 | |||||
$ |
6,017,591 |
$ |
3,799,602 |
RYU APPAREL INC. | |||||||||||||
Three months ended September 30 |
Nine months ended September 30 | ||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||
Revenue |
$ |
745,226 |
$ |
331,700 |
$ |
1,853,460 |
$ |
892,199 | |||||
Cost of sales |
406,437 |
192,348 |
1,000,639 |
478,669 | |||||||||
Gross profit |
338,789 |
139,352 |
852,821 |
413,530 | |||||||||
45% |
42% |
46% |
46% | ||||||||||
Expenses |
|||||||||||||
Depreciation |
117,709 |
65,972 |
308,318 |
184,618 | |||||||||
Foreign exchange loss (gain) |
(9,167) |
37,333 |
24,347 |
(93,636) | |||||||||
Interest and bank charges |
20,859 |
38,293 |
57,176 |
145,506 | |||||||||
Investor relations |
36,970 |
16,077 |
172,081 |
657,215 | |||||||||
Office and general |
720,079 |
297,232 |
1,756,584 |
774,836 | |||||||||
Product creation |
121,354 |
139,119 |
437,138 |
323,598 | |||||||||
Professional fees |
164,178 |
158,005 |
352,182 |
991,450 | |||||||||
Salaries and benefits |
1,030,507 |
638,951 |
2,691,296 |
2,032,972 | |||||||||
Selling and marketing |
396,156 |
245,657 |
1,255,778 |
608,705 | |||||||||
Share-based payments |
35,686 |
114,002 |
291,454 |
267,076 | |||||||||
Travel and entertainment |
71,582 |
40,991 |
161,831 |
75,884 | |||||||||
2,705,913 |
1,791,632 |
7,508,185 |
5,968,224 | ||||||||||
Other items |
|||||||||||||
Gain on settlement of debt |
- |
- |
- |
214,620 | |||||||||
Recovery of warrant |
- |
232,105 |
7,703 |
1,499,609 | |||||||||
Comprehensive loss |
$ |
(2,367,124) |
$ |
(1,420,175) |
$ |
(6,647,661) |
$ |
(3,840,465) | |||||
Loss per share - Basic and diluted |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.03) |
$ |
(0.04) | |||||
Weighted average number of |
|||||||||||||
common shares outstanding - |
|||||||||||||
basic and diluted |
241,662,635 |
107,514,076 |
202,393,879 |
95,424,718 |
RYU APPAREL INC. | ||||||
2017 |
2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss |
$ |
(6,647,661) |
$ |
(3,840,465) | ||
Items not affecting cash: | ||||||
Depreciation |
308,318 |
184,618 | ||||
Share-based payments |
291,454 |
267,076 | ||||
Foreign exchange |
- |
(76,228) | ||||
Accrued interest |
- |
95,698 | ||||
Gain on settlement of debt |
- |
214,620 | ||||
Recovery of warrant derivative liability |
(7,703) |
(1,499,609) | ||||
Changes in non-cash working capital | ||||||
Accounts receivable |
(16,086) |
132,927 | ||||
Inventory |
(789,818) |
62,298 | ||||
Prepaid expenses and deposits |
(697,017) |
(174,948) | ||||
Accounts payable and accrued liabilities |
(14,158) |
89,396 | ||||
Deferred revenue |
11,100 |
18,950 | ||||
Net cash flows used in operating activities |
(7,561,572) |
(4,525,667) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||
Property and equipment |
(1,140,493) |
(218,161) | ||||
Net cash flows used in investing activities |
(1,140,493) |
(218,161) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Issuance of common shares |
9,724,782 |
4,787,686 | ||||
Cash share issuance costs |
(1,086,430) |
(173,960) | ||||
Short-term loans received |
154,000 |
1,009,050 | ||||
Repayment of short-term loans |
(154,000) |
(1,257,676) | ||||
Share subscriptions received in advance |
- |
508,022 | ||||
Exercise of warrants |
8,800 |
- | ||||
Finance lease |
(10,768) |
(11,896) | ||||
Net cash flows provided by financing activities |
8,636,384 |
4,861,226 | ||||
Change in cash |
(65,681) |
117,398 | ||||
Cash ? beginning |
767,263 |
104,518 | ||||
Cash ? end |
$ |
701,582 |
$ |
221,916 | ||
Cash paid for interest |
$ |
999 |
$ |
64,176 | ||
Supplemental cash flow disclosure ? non cash transactions | ||||||
Additions of property and equipment included in accounts payable |
$ |
112,410 |
$ |
117,040 | ||
Reversal of prior year property and equipment included in accounts payable |
$ |
(163,838) |
$ |
- | ||
Common shares issued for settlement of accounts payable |
$ |
- |
$ |
748,310 | ||
Common shares issued for services |
$ |
35,481 |
$ |
140,600 | ||
Finders' warrants issued for share issuance cost |
$ |
201,039 |
$ |
26,335 |
SOURCE RYU Apparel Inc.
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