Reed's, Inc. Announces Record Revenues for Fiscal 2008
30 Março 2009 - 10:00AM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, released financial results for the
year ending December 31, 2008 after the market closed on Friday,
March 27th. Results included record revenue and a gross profit
increase of 68% over 2007 to $3.4 million.
The Company's outlook for 2009 anticipates gross profit
improvements of 20%-40%, a further reduction in operating expenses
(OPEX) of $2.5 million for full year 2009 and operating cash flow
of breakeven by the end of the year.
Chris Reed, Founder and CEO commented, "Our success in natural
foods is transitioning to the mainstream and it is showing in our
financial results." Mr. Reed added, "Our Company is currently being
valued at less than one times revenues, while, as recently as
December 2008 private beverage companies were receiving two to
three times revenues in sales transactions; and, in spring of 2007
Glaceau, the maker of Vitamin Water, sold in a cash deal valued at
$4.1 billion, which is over 11 times its prior year revenues."
Mr. Reed continued, "Reed's products are premium products. As we
continue to grow, we believe the market will recognize the strength
of our brand, and will value our company accordingly. In the
meantime we will continue to move our company forward to add value
for our shareholders."
Fiscal 2008 Highlights:
-- Net Sales increased 17% to $15.3 million compared to 2007
-- Gross Margin expands 700 basis points to over 22%
-- Gross Profit increases 68% over 2007 to $3.4 million
-- Implemented cost cutting initiatives during 2008 that decreased
operating expenses (OPEX) from $2.5 million in Q1 to $1.4 million in Q4
-- Refocused and strengthened Executive management and sales team
-- Expanded product line to include new 12-pack packaging, Virgil's Orange
Cream Soda and diet Virgil's sodas
-- Announced the planned release of Reed's Natural Energy Elixir, giving
the company presence in one of the fastest growing segments of the beverage
market
Fiscal 2009 Outlook:
-- Anticipates additional improvement in 2009 gross profit of 20%-40%
-- Expects to achieve over $2.5 million in additional OPEX savings during
2009 over 2008
-- Anticipates 2009 operating cash flow to be breakeven as a result of
gross profit expansion and additional operating expense savings
For more complete information, please see the company's 10K
report as filed with the SEC at www.sec.gov.
About Reed's, Inc.
Reed's, Inc. makes the top selling sodas in natural food markets
nationwide and is currently selling in 10,500 supermarkets in
natural foods and mainstream. 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. In addition, 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. 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. For more information about
Reed's, please visit the company's website at:
http://www.reedsgingerbrew.com or call 800-99-REEDS.
Follow Reed's on Twitter at:
http://www.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:
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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.
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Contact IRTH Communications, LLC Mark B. Moline Managing Partner
760-458-4899 Email Contact http://www.irthcommunications.com
http://www.twitter.com/irthcomm
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