Tinley Grows Asset Base to over $7 Million at Its Long Beach Facility and Experiences Rapid Revenue and Margin Growth

LOS ANGELES and TORONTO, May 27, 2020 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (“Tinley” or the “Company”) is pleased to announce the release of its financial and operating results for the fourth quarter and fiscal year ended December 31, 2019, and provide revenue guidance on the 3-month period ended March 31, 2020 (“Q1/2020”).

Highlights:

• Capital expenditures grew Tinley’s asset base to over $7 million, notably in Property and Equipment, by the completion of the Company’s Phase 3 bottling facility development in Long Beach, California
   
• Revenue guidance for Q1/2020 of over $170,000, more than double all of fiscal 2019, with gross margins turning positive and exceeding 40%, driven by growth across all product lines

Tinley’s flagship bottling facility in Long Beach, California represented the majority of the Company’s expenditures in fiscal 2019 as well as the installation of a Phase 2 bottling line, which is now slated for installation in an expansion territory outside California, and the addition  of transportation vehicles to support marketing and distribution of its products in California.  The Phase 3 facility in Long Beach is now largely complete, and it is progressing through final building inspections with the City of Long Beach and State regulators.

Simultaneous to the Long Beach buildout, the Company began building revenue via production at a Phase 2 bottling line, which was also built in 2019.  Significant revenue growth began in Q4, 2019, and the Company expects to approximately double its 2019 annual revenue in Q1/2020.  With this added scale, the Company’s gross margin is expected to turn positive and be in excess of 40%.  The Company believes this growth is attributable to (1) the winning of the #1 and #2 awards at the Emerald Cup in December, 2019, (2) the addition of Shelf Life Distributing, (3) enhanced brand awareness and consumer reviews, (4) the launch of the Company’s non-infused “Beckett’s” product line and (5) the cannabis beverage category becoming the second-fastest-growing category in the cannabis industry, which occurred at the start of the COVID-19 pandemic.  Further, this level of revenue growth was achieved despite the closure of one of the Company’s key distributors.  The inventory in this distributor’s possession represented a potential of up to an additional $25,000 of sales.