Reed's, Inc. (NASDAQ: REED) Maker of the top-selling sodas in
natural food stores nationwide, today announced the financial
results for its second fiscal quarter ending June 30, 2011.
Financial Highlights:
- Revenues during the second quarter of 2011 increased by 26% to
6.2 million from 4.9 million in the prior year period.
Approximately 70% of the increase is due to branded products and
30% is due to an over twofold increase in private label products
sold.
- Gross profit margin in the quarter increased by 27%,or $407,000
to 1.9 million, from 1.5 million in 2010 despite increases in the
costs of certain raw materials and packaging
- Sales and administration costs increased by only 6% over the
prior year period, indicating scalability of the business.
- Earnings before non-cash items and finance costs (modified
EBITDA) increased to $395,000 during the second quarter, as
compared to $210,000 in the prior year period. (See EBITDA table at
end of this release for further non-GAAP information)
- Net loss for the quarter was $55,000, or $0.01 per share,
compared to a loss of $164,000, a year earlier.
- Working capital at June 30, 2011 was $2.3 million, as compared
to $1.8 million at December 31, 2010.
- Cash availability was $1.1 million at June 30, 2011, as
compared to $1.1 million at December 31, 2010.
Operational Highlights:
- Introduced Virgil's "Dr. Better" in both regular and ZERO
calories.
- Gained distribution in 350 Stop and Shop, Winn Dixie chains and
increased distribution in Publix Supermarkets.
- Expanded DSD distribution in Florida, Georgia, Arizona,
Colorado and other markets.
- Completed Safety Quality in Foods(SQF) certification for the
Los Angles plant.
- Continued Los Angeles plant upgrades designed to increase
capacity and efficiency.
"This is our 7th quarter of back-to-back growth, with an average
of 30%," stated Chris Reed, Founder, Chairman and CEO of Reed's,
Inc. "We have a solid business model and see no reason why we won't
continue to grow at a significant rate for years to come"
"We are committed to meeting the challenge of using high quality
natural ingredients in our premium sodas while also preserving and
growing the gross margin contributions from our sales," stated
James Linesch, Reed's Chief Financial Officer. "Our overall EBITDA
earnings before non-cash costs exceed our interest costs by about
$100,000 during the second quarter, indicating a cash contribution
from operations. We are just starting to gain economies of scale in
our operations, in relation to our expanded sales base, bringing us
above breakeven into profitable contributions that support our
strong growth initiatives."
Conference Call
The Company will conduct a conference call at 4:15pm Eastern
Daylight Time on August 11, 2011 to discuss its 2011 second quarter
results and outlook for the rest 2011. To participate in the call,
please dial the following number five to ten minutes prior to the
scheduled call time: 1-877-852-0653 International callers should
dial 1-512-225-9559. The conference ID for this call is
645933#.
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.
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
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 --
REED'S, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2011 and 2010
(Unaudited)
Three months ended June 30, Six months ended June 30,
---------------------------- ----------------------------
2011 2010 2011 2010
------------- ------------- ------------- -------------
Sales $ 6,191,000 $ 4,905,000 $ 11,331,000 $ 8,917,000
Cost of tangible
goods sold 3,762,000 3,062,000 7,083,000 5,450,000
Cost of goods
sold - idle
capacity 493,000 314,000 895,000 555,000
------------- ------------- ------------- -------------
Gross profit 1,936,000 1,529,000 3,353,000 2,912,000
------------- ------------- ------------- -------------
Operating
expenses:
Delivery and
handling
expenses 544,000 360,000 932,000 677,000
Selling and
marketing
expense 601,000 538,000 1,181,000 1,062,000
General and
administrative
expense 676,000 672,000 1,331,000 1,324,000
------------- ------------- ------------- -------------
Total operating
expenses 1,821,000 1,570,000 3,444,000 3,063,000
------------- ------------- ------------- -------------
Income (loss)
from
operations 115,000 (41,000) (91,000) (151,000)
Interest expense (170,000) (123,000) (329,000) (272,000)
------------- ------------- ------------- -------------
Net loss (55,000) (164,000) (420,000) (423,000)
Preferred stock
dividends (33,000) (36,000) (44,000) (50,000)
------------- ------------- ------------- -------------
Net loss
attributable to
common
stockholders $ (88,000) $ (200,000) $ (464,000) $ (473,000)
============= ============= ============= =============
Loss per share
available to
common
stockholders,
basic and
diluted $ (0.01) $ (0.02) $ (0.04) $ (0.05)
============= ============= ============= =============
Weighted average
number of shares
outstanding -
basic and
diluted 10,818,170 10,215,185 10,719,256 10,025,991
============= ============= ============= =============
MODIFIED EBITDA SCHEDULE
Three months ended June 30, Six months ended June 30,
--------------------------- --------------------------
2011 2010 2011 2010
------------ ------------- ------------ ------------
Net loss $ (55,000) $ (164,000) $ (420,000) $ (423,000)
------------ ------------- ------------ ------------
Modified EBITDA
adjustments:
Depreciation and
amortization 165,000 156,000 308,000 305,000
Interest expense 170,000 123,000 329,000 272,000
Stock option and
warrant
compensation 80,000 47,000 129,000 104,000
Other stock
compensation for
services 35,000 48,000 77,000 84,000
------------ ------------- ------------ ------------
Total EBITDA
adjustments 450,000 374,000 843,000 765,000
------------ ------------- ------------ ------------
Modified EBITDA $ 395,000 $ 210,000 $ 423,000 $ 342,000
============ ============= ============ ============
The Company defines modified EBITDA (a non-GAAP measurement) as net loss
before interest, taxes, depreciation and amortization, and non-cash
expense for securities. Other companies may calculate modified EBITDA
differently. Management believes that the presentation of modified EBITDA
provides a measure of performance that approximates cash flow before
interest expense, and is meaningful to investors.
REED'S, INC.
CONDENSED BALANCE SHEETS
June 30, December 31,
2011 2010
------------------ ------------------
ASSETS (unaudited)
Current assets:
Cash $ 1,114,000 $ 1,084,000
Inventory 4,578,000 4,555,000
Trade accounts receivable, net of
allowance for doubtful accounts
and returns and discounts of
$105,000 and $105,000,
respectively 2,006,000 1,295,000
Prepaid inventory 384,000 138,000
Prepaid and other current assets 146,000 78,000
------------------ ------------------
Total Current Assets 8,228,000 7,150,000
Property and equipment, net of
accumulated depreciation of
$1,444,000 and $1,178,000,
respectively 3,613,000 3,650,000
Brand names 1,029,000 1,029,000
Deferred financing fees, net of
amortization of $25,000 and $8,000,
respectively 29,000 47,000
------------------ ------------------
Total assets $ 12,899,000 $ 11,876,000
================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,891,000 $ 2,586,000
Accrued expenses 179,000 162,000
Dividends payable 87,000 44,000
Recycling fees payable 263,000 325,000
Line of credit 2,387,000 2,038,000
Current portion of long term
financing obligation 63,000 55,000
Current portion of capital leases
payable 43,000 39,000
Current portion of note payable 18,000 71,000
------------------ ------------------
Total current liabilities 5,931,000 5,320,000
Long term financing obligation, less
current portion, net of discount of
$651,000 and $677,000, respectively 2,261,000 2,268,000
Capital leases payable, less current
portion 124,000 146,000
------------------ ------------------
Total Liabilities 8,316,000 7,734,000
------------------ ------------------
Commitments and contingencies
Stockholders' equity:
Series A Convertible Preferred
stock, $10 par value, 500,000
shares authorized, 46,621 shares
issued and outstanding 466,000 466,000
Series B Convertible Preferred
stock, $10 par value, 500,000
shares authorized, 81,866 and
85,766 shares issued and
outstanding, respectively 819,000 858,000
Common stock, $.0001 par value,
19,500,000 shares authorized,
10,824,708 and 10,446,090 shares
issued and outstanding,
respectively 1,000 1,000
Additional paid in capital 22,645,000 21,701,000
Accumulated deficit (19,348,000) (18,884,000)
------------------ ------------------
Total stockholders' equity 4,583,000 4,142,000
------------------ ------------------
Total liabilities and
stockholders' equity $ 12,899,000 $ 11,876,000
================== ==================
Add to Digg Bookmark with del.icio.us Add to Newsvine
Investor Relations Contact: Mr. Michael Sclafani
President Wall Street Communications Group, Inc Tel: 303-903-2090
E-mail: Email Contact
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
