Reed's, Inc. (NASDAQ: REED) (OTCBB: REEDP), maker of the
top-selling sodas in natural food stores nationwide, today
announced its financial results for its third fiscal quarter and
the nine months ended September 30, 2010.
Financial Highlights:
- Third quarter sales increased 35% to a record $5.4 million.
Nine month 2010 sales were $14.3 million, 23% ahead of 2009.
- Gross profit was 20% of sales during the third quarter, as
compared to 25% in 2009, reflecting start up costs incurred during
the period.
- Operating expenses increased by 3% in the quarter due primarily
to some non-recurring charges.
- EBITDA income for the third quarter 2010 was $32,000, as
compared to $15,000 in the third quarter of 2009. For the nine
month period, EBITDA income was $400,000, as compared to a loss of
$140,000 in the prior year period. (See EBITDA table at end of this
release for further non-GAAP information).
- Net loss for the quarter narrowed slightly to $398,000, or
$0.04 per share, from $402,000 a year earlier.
- Working capital at September 30, 2010 was $2.1 million, as
compared to $2.0 million at December 31, 2009.
- Cash availability was $1.1 million at September 30, 2010, as
compared to $1.3 million at December 31, 2009.
Third Quarter Operational Highlights:
- Introduced new ZERO line of Virgil's Stevia-sweetened diet
sodas and gained authorization into Whole Foods
- Continued expansion into Canada with new distribution and Bulk
Barn penetration
- Became first bottling plant in North America to launch
swing-top bottles from U.S. factory
- Expanded sales of 'Reed's Rx' Natural Ginger Nausea Relief into
Publix Super Markets and Fred Meyer Stores
- Launched first-ever marketing pull campaign utilizing Google
AdWords and radio campaign with Clear Channel and Fresh & Easy
Neighborhood Markets
"Sales are accelerating for our branded and private label
products," stated Chris Reed, Founder, Chairman and CEO of Reed's,
Inc. "We came in ahead of our revenue estimates. Profit margin on
our new private label customers is expected to improve as we digest
the start up costs. Our branded business is growing nicely with our
private label business expanding faster. Our plan is to use private
label to increase gross profits and invest these funds into the
growth of our brands. For the record, we are only making
non-competitive products for our private label customers." Mr. Reed
added, "Our fourth quarter is going very strong. We see sales
acceleration in 2011 for both our brands and private label
business."
James Linesch, Reed's Chief Financial Officer, said, "Our fiscal
quarter results reflect a proof of concept on many levels. Our
marketing efforts delivered sales of 23% more cases of branded
sodas during the third quarter than last year, without margin
erosion. Our Los Angeles plant produced record volumes as we
continued to fulfill significant private label orders, with strong
backlog, and we are successfully introducing our new ZERO product
line with minimal product introduction costs." Mr. Linesch added,
"Our third quarter margins were hit by costs associated with plant
upgrades and product introductions, and this will continue in the
fourth quarter to some extent. Our margins on our sales of branded
sodas, however, have remained as strong as ever and are expected to
increase in 2011 with new pricing and promotion plans. Private
label margins will increase too, as we move into 2011 contracts.
Operating expenses remain steady, despite our high growth,
reflecting the scalability of our business."
See financial statements and EBITDA schedule at the end of this
release.
Conference Call
The Company will conduct a conference call at 4:15 p.m. Eastern
Standard Time on Tuesday, November 9, 2010 to discuss its third
quarter 2010 results. To participate in the call, please dial the
following number five to ten minutes prior to the scheduled call
time: 888-240-4700. International callers should dial 512-225-9559.
The conference ID for this call is 936603#.
About Reed's, Inc.
Reed's, Inc. makes the top selling natural sodas in the natural
foods industry sold in over 10,500 natural food markets and
supermarkets nationwide. In 2009, Reed's started producing Private
Label natural beverages for select national chains. Its six
award-winning non-alcoholic Ginger Brews are unique in the beverage
industry, being brewed, not manufactured and using fresh ginger,
spices and fruits in a brewing process that predates commercial
soft drinks. The Company owns the top selling root beer line in
natural foods, the Virgil's Root Beer product line, and the top
selling cola line in natural foods, the China Cola product line.
Recently, Reed's introduced its Reed's All Natural Ginger Nausea
Relief product for the over-the-counter stomach aisle for all
retail channels and acquired the Sonoma Sparkler brand, a sparkling
juice celebration drink with an established customer base. Other
product lines include: Reed's Ginger Candies and Reed's Ginger Ice
Creams.
Reed's products are sold through specialty gourmet and natural
food stores, mainstream supermarket chains, retail stores and
restaurants nationwide, and in Canada, as well as through private
label relationships with major supermarket chains. For more
information about Reed's, please visit the company's website at:
http://www.reedsinc.com or call 800-99-REEDS.
Follow Reed's on Twitter at
http://twitter.com/reedsgingerbrew
Reed's Facebook Fan Page at:
http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/57143529039?ref=nf
Subscribe to Reed's RSS feed at:
http://www.irthcommunications.com/REED_rss.xml
More information can be found at:
http://www.irthcommunications.com/clients_REED.php
SAFE HARBOR STATEMENT
Some portions of this press release, particularly those
describing Reed's goals and strategies, contain "forward-looking
statements." These forward-looking statements can generally be
identified as such because the context of the statement will
include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also
forward-looking statements. While Reed's is working to achieve
those goals and strategies, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of risks and uncertainties. These risks and
uncertainties include difficulty in marketing its products and
services, maintaining and protecting brand recognition, the need
for significant capital, dependence on third party distributors,
dependence on third party brewers, increasing costs of fuel and
freight, protection of intellectual property, competition and other
factors, any of which could have an adverse effect on the business
plans of Reed's, its reputation in the industry or its expected
financial return from operations and results of operations. In
light of significant risks and uncertainties inherent in
forward-looking statements included herein, the inclusion of such
statements should not be regarded as a representation by Reed's
that they will achieve such forward-looking statements. For further
details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-KSB
and Form 10-Q, as filed with the Securities and Exchange
Commission, as they may be amended from time to time. Reed's
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
-- FINANCIAL TABLES FOLLOW --
CONDENSED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2010 and 2009
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Sales $ 5,428,000 $ 4,027,000 $14,345,000 $11,658,000
Cost of sales 4,365,000 3,038,000 11,047,000 8,722,000
------------ ------------ ------------ ------------
Gross profit 1,063,000 989,000 3,298,000 2,936,000
------------ ------------ ------------ ------------
Operating expenses:
Selling and marketing
expense 570,000 646,000 1,632,000 1,853,000
General and
administrative expense 742,000 623,000 2,066,000 1,896,000
Impairment of assets - - - 641,000
------------ ------------ ------------ ------------
Total operating
expenses 1,312,000 1,269,000 3,698,000 4,390,000
------------ ------------ ------------ ------------
Loss from operations (249,000) (280,000) (400,000) (1,454,000)
Interest expense (149,000) (122,000) (421,000) (319,000)
------------ ------------ ------------ ------------
Net loss (398,000) (402,000) (821,000) (1,773,000)
Preferred stock dividend (12,000) - (62,000) (23,000)
------------ ------------ ------------ ------------
Net loss attributable to
common stockholders $ (410,000) $ (402,000) $ (883,000) $(1,796,000)
============ ============ ============ ============
Loss per share -
available to common
stockholders basic and
diluted $ (0.04) $ (0.04) $ (0.09) $ (0.20)
============ ============ ============ ============
Weighted average number
of shares outstanding -
basic and diluted 10,245,471 9,215,171 10,117,906 9,125,887
============ ============ ============ ============
EBITDA SCHEDULE
For the Three Months and Nine Months Ended September 30, 2010 and 2009
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Net loss $ (398,000) $ (402,000) $ (821,000) $(1,773,000)
------------ ------------ ------------ ------------
EBITDA adjustments:
Depreciation and
amortization 160,000 109,000 465,000 324,000
Interest expense 149,000 122,000 421,000 197,000
Stock option
compensation 35,000 122,000 189,000 269,000
Other stock compensation
for services 86,000 64,000 146,000 202,000
------------ ------------ ------------ ------------
Total EBITDA
adjustments 430,000 417,000 1,221,000 1,633,000
------------ ------------ ------------ ------------
EBITDA income (loss)
from operations $ 32,000 $ 15,000 $ 400,000 $ (140,000)
============ ============ ============ ============
The Company defines EBITDA (a non-GAAP measurement) as net loss before
interest, taxes, depreciation and amortization, and non-cash expense for
securities. Other companies may calculate EBITDA differently. Management
believes that the presentation of EBITDA provides a meaningful measure of
performance that approximates cash flow before interest expense, and is
meaningful to investors.
REED'S, INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
2010 2009
---------------- ----------------
ASSETS (unaudited)
Current assets:
Cash $ 958,000 $ 1,306,000
Inventory 3,957,000 2,884,000
Trade accounts receivable, net of
allowance for doubtful accounts and
returns and discounts of $105,000 and
$90,000, respectively 1,473,000 866,000
Prepaid and other current assets 625,000 99,000
---------------- ----------------
Total Current Assets 7,013,000 5,155,000
Property and equipment, net of accumulated
depreciation of $1,062,000 and $727,000,
respectively 3,693,000 3,655,000
Brand names 1,029,000 1,029,000
Deferred financing fees, net of
amortization of $102,000 and $10,000,
respectively 39,000 131,000
---------------- ----------------
Total assets $ 11,774,000 $ 9,970,000
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,643,000 $ 954,000
Accrued expenses 129,000 127,000
Dividends payable 36,000 -
Recycling fees payable 359,000 456,000
Line of credit 1,518,000 1,415,000
Current portion of long term financing
obligation 51,000 40,000
Current portion of capital leases payable 38,000 24,000
Current portion of note payable 97,000 102,000
---------------- ----------------
Total current liabilities 4,871,000 3,118,000
Long term financing obligation, less
current portion, net of discount of
$689,000 and $726,000, respectively 2,271,000 2,274,000
Capital leases payable, less current
portion 157,000 130,000
Note payable, less current portion - 71,000
---------------- ----------------
Total liabilities 7,299,000 5,593,000
---------------- ----------------
Commitments and contingencies
Stockholders' equity:
Series A Convertible Preferred stock, $10
par value, 500,000 shares authorized,
46,621 shares issued and outstanding,
respectively 466,000 466,000
Series B Convertible Preferred stock, $10
par value, 500,000 shares authorized,
91,442 and 120,820 shares issued and
outstanding, respectively 914,000 1,208,000
Common stock, $.0001 par value,
19,500,000 shares authorized, 10,353,884
and 9,606,127 shares issued and
outstanding, respectively 1,000 1,000
Additional paid in capital 21,478,000 20,203,000
Accumulated deficit (18,384,000) (17,501,000)
---------------- ----------------
Total stockholders' equity 4,475,000 4,377,000
---------------- ----------------
Total liabilities and stockholders'
equity $ 11,774,000 $ 9,970,000
================ ================
Add to Digg Bookmark with del.icio.us Add to Newsvine
Investor Relations Contact: Mr. Andrew Haag Managing
Partner IRTH Communications, LLC Tel: +1-888-825-6456 E-mail: Email
Contact Website: www.irthcommunications.com
Reeds (NASDAQ:REED)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Reeds (NASDAQ:REED)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
