May 17, 2021

Topsfield, Massachusetts

 

As fiscal year 2021 comes to a close, it is a good time to reflect on the past year. Needless to say, it was a year of enormous challenges and we at Huntwicke Capital Group were not immune to the effects of the pandemic. But despite these challenges, I anticipate that after all the cash financing and operational results are in, our net earnings will be $1.35M (before depreciation and after cash-financing activities) due in large part to the management teams at each subsidiary who met the challenges head-on and with forethought.

 

Huntwicke Securities and Essex Private Wealth Management both had record years for revenue and earnings. Assets under management grew to $400 million at EPWM. In addition, HS added four new, well-established advisory representatives. I anticipate that the growth of these subsidiaries will continue into FY 2022.

 

Mercury Brewing navigated a very difficult year by responding quickly to the changing landscape of demand for beer. As restaurants remained closed throughout the region demand for beer on tap dried up overnight. MB responded by quickly making the difficult decision to trim all non-essential staff. The remaining staff responded by taking on new roles above and beyond their usual responsibilities. MB was still able to can beer and off-premise sales grew slightly. We are fortunate that our core brands were still in demand. The quality of the products were exceptional as was new product development. Ipswich Brewer’s Table Restaurant re-opened and managed profitably through take-out business and compacted hours. Rob Martin and Myles Eason deserve accolades for their exceptional performance in 2020. Our top initiative for ‘21-‘22 is to acquire additional contracts to increase production in the facility.

 

Huntwicke properties and real estate performed well, in general. Four of the six properties remained fully rented while the others remain at about 70% capacity. HCG is currently re-evaluating the assets as we would like to expand our holdings into other communities.

 

Aztec Soccer Club (ASC) and Skillz Check Academy (SCA) achieved record numbers of players, teams and programming in FY2021. ASC responded to the times by adding and expanding virtual programming. In addition, ASC expanded into new regions, adding about 25 teams in the last two years. SCA operations nearly tripled in the last two years with an increase in revenue as well as programming. ASC and SCA remain poised for future growth and expansion. The management teams deserve much credit for the growth they experienced during this incredibly challenging time.

 

HCG’s balance sheet has remained strong. As a result, I look forward to the opportunities that are ahead of us. HCG will look to grow all the subsidiaries and perhaps expand into other businesses in the future. Our top goals for this coming year are to

1. grow each subsidiary in line with its specific growth initiatives

2. grow the revenue, assets and earnings of HCG for our shareholders

3. establish a consistent cash dividend and grow our liquidity options by the end of this calendar year

4. establish a charitable arm to be a good corporate citizen in the community

 

Overall it was a very good year for HCG and I look forward to the future. Please reach out to investor relations at inverstorrelations@huntwicke.com if you have any questions. Thank you for being a shareholder in Huntwicke Capital Group.

 

Brian Woodland

President

 

The views, statements and opinions expressed in this letter by Brian Woodland are his alone and may not represent the Management or the Business.