SEATTLE, WA — Bill the Butcher, Inc., a leading retailer of organic and natural, grass-fed meats, today announced results for its fiscal year ended August 31, 2010.
Bill the Butcher commenced ownership and operations of its retail stores in the quarter ended May 31, 2010. Revenues for the year ended August 31, 2010 were $1,129,000. On a pro forma basis, if Bill the Butcher had commenced operations at the beginning of the fiscal year, total sales would have been approximately $1,400,000.
Sales for the three months ended August 31, 2010 were $653,000 with five stores in operation. The company's strategy includes opening up to 14 additional stores in fiscal 2011, which the company believes will generate additional revenue growth from new store sales. Bill the Butcher opened its sixth store in September of 2010, revenues from which are not included in the fiscal 2010 or quarterly results.
Cost of goods sold was $879,000 during the year ended August 31, 2010, which resulted in a gross profit of $250,000, or approximately 22% of sales. Direct store expenses were $610,000 for the fiscal year ended August 31, 2010. General and administrative expenses were approximately $1,100,000, resulting in a loss from operations of $1,450,000 for year ended August 31, 2010. Net loss for the fiscal year was $1,457,000 million or $(0.06) per share.
Bill the Butcher is experiencing rapid sales growth through new store openings. By specializing in retailing organic and natural grass-fed meat, the company is an innovator in the $200 billion U.S. meat marketplace. Organic and natural meat is the fastest-growing segment of the $28 billion organic food business, according to the Organic Trade Association.
Bill the Butcher's business model and cost structure enable a rapid expansion strategy. Each shop has been opened for less than $100,000 and on average requires fewer than 3 full-time employees to operate. Bill the Butcher's stores are serviced by a central commissary, which works directly with local ranchers and farmers and eliminates the high costs associated with traditional large-scale meat distributors. The company believes that its model is reproducible in other markets with similar demographic profiles including major metro regions in the American West such as Portland, San Francisco, Los Angeles, San Diego, Las Vegas, Phoenix, Dallas, Austin, and Denver.
"We are very pleased with the sales we've achieved in our first year of operations. We've proven our business model, our branding, and our retail strategy work. Bill the Butcher has quickly established itself as a leader in the fastest growing segment of the booming organic foods market. Based on the firm foundation we've created this year, we look forward to building what we believe will become one of the leading brand names in America," stated J'Amy Owens, CEO of Bill the Butcher.
About Bill the Butcher, Inc.
Seattle-based Bill the Butcher, Inc. sells organic, grass fed and natural meats through corporate-owned neighborhood butcher shops. The Company works directly with local ranchers and farmers, who follow sustainable and organic practices, to deliver the highest quality meat that is healthiest for consumers while being good for the environment. Founded in 2009, Bill the Butcher is publicly traded under the symbol BILB.OB. Learn more at http://www.billthebutcher.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to our expansion plans and anticipated revenue growth. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including our ability to raise additional capital to fund our business and continue as a going concern and to successfully implement our growth plan; our dependence on the financial performance of stores located in one geographic area; our ability to differentiate ourselves and compete effectively against meat purveyors with greater resources and established customer bases; and uncertainties related to expansion into new geographic markets. These and other factors that could cause future results to materially differ from our recent results or those projected in our forward-looking statements are described under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K and in our other periodic reports filed with the Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. We undertake no duty to publicly announce or report revisions to these statements as new information becomes available that may change our expectations.
Source: Bill the Butcher, Inc.
