LOS ANGELES, May 14 /PRNewswire-FirstCall/ -- AVP, Inc. (OTC:AVPI)
(BULLETIN BOARD: AVPI) , a lifestyle sports entertainment company
focused on professional beach volleyball, today announced financial
results for its 2008 first quarter ended March 31, 2008. First
Quarter 2008 Highlights: -- Hot Winter Nights -- The national
indoor beach volleyball tour in partnership with Anschutz
Entertainment Group (AEG). The inaugural tour schedule included 19
stops throughout the country. -- Crocs Tour Australia -- Five beach
volleyball events held in prominent beach locations throughout
Australia. For the three months ended March 31, 2008, the Company
reported revenue of $1.0 million compared to $0.2 million for the
three months ended March 31, 2007, a $0.8 million increase, which
resulted primarily from the addition of the Australian Tour. The
net loss for the three months ended March 31, 2008 was $3.0
million, or $0.15 loss per share, as compared to the three months
ended March 31, 2007 net loss of $2.1 million, or $0.11 loss per
share. The increase in the net loss of $0.9 million was primarily
the result of $0.5 million in a third-party service provider
accrual and a $0.2 million of non-cash transactions related to
share based payments for employee option grants. AVP's business has
been historically seasonal; therefore revenues, gross profits and
operating income or loss amounts and percentages for the first and
fourth quarters are not representative of our performance. The
majority of AVP's revenues are derived from sponsorship and
advertising contracts with national and local sponsors. AVP
recognizes sponsorship and advertising revenue only during the tour
season as the events occur and collections are reasonably assured.
"2008 has started as a very exciting year for the AVP," said
Leonard Armato, Chief Executive Officer of AVP, Inc. "This year,
with the introduction of the AVP Crocs Hot Winter Nights Tour,
which took place this past winter, we have added 19 additional tour
stops in new markets. The AVP has also acquired the rights to the
five-stop national tour in Australia, taking our brand and partners
international. Both of these tours provide the AVP and partners
added opportunities to reach new audiences and grow together."
"Additionally, at a time when the AVP is moving forward with
dynamic initiatives, we are taking the steps necessary to show the
continued growth of the company while concurrently creating
increased shareholder value. We are pleased to have recently
welcomed several new, and highly qualified, directors to our Board
who share a vision of sustainable growth and a focus on
profitability." "We are looking forward to another successful
season on the AVP Crocs Tour, our flagship property. This is a big
year for beach volleyball with many events taking place this summer
including the Olympics and the continuation of the AVP Crocs Tour,
that will highlight this tremendous sport. We are excited to share
our sport on the national stage with an enhanced national network
television presence over the summer in 2008." About AVP, Inc AVP,
Inc. is a leading lifestyle sports entertainment company focused on
the production, marketing and distribution of professional beach
volleyball events worldwide. One of the fastest growing entities in
the sports world, the AVP operates two of the industry's most
prominent national outdoor touring series, the AVP Pro Beach
Volleyball Tour (1983) and the AVP Hot Winter Nights Indoor Tour
(launched in 2008). The AVP is set to stage more than 35 events
throughout the United States in 2008 and features more than 150 of
the top men and women competitors in the sport. At the 2004 Athens
Olympics, AVP athletes representing the United States won gold and
bronze. The medals were the first won by the U.S. women in
professional beach volleyball, and the 2007 World Champions in each
gender are AVP athletes. AVP is headquartered in Los Angeles,
Calif., and the company's stock trades under the symbol AVPI on the
OTC Bulletin Board. For more information, please visit
http://www.avp.com/. Forward-Looking Statements Some of the
information in this press release may contain projections or other
forward-looking statements regarding future events or the future
financial performance of the Company. We wish to caution you that
these statements involve risks and uncertainties and actual results
might differ materially from those in the forward-looking
statements, if we receive less sponsorship and advertising revenue
than anticipated, or if attendance is adversely affected by
unfavorable weather. Event-related expenses, such as for the
stadium, transportation and accommodations, or security might be
greater than expected; or marketing or administrative costs might
be increased by our hiring, not currently planned, of a
particularly qualified prospect. Additional factors have been
detailed in the Company's filings with the Securities and Exchange
Commission, including our recent filings on Forms 10-KSB and
10-QSB. AVP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) March 31,
December 31, 2008 2007 ASSETS CURRENT ASSETS Cash and cash
equivalents $3,530,182 $2,257,453 Accounts receivable, net of
allowance for doubtful accounts of $150,871 and $149,748 2,420,017
2,008,253 Prepaid expenses 531,625 388,649 Other current assets
54,546 116,393 TOTAL CURRENT ASSETS 6,536,370 4,770,748 PROPERTY
AND EQUIPMENT, net 447,474 392,447 OTHER ASSETS 32,562 115,496
TOTAL ASSETS $7,016,406 $5,278,691 LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable $1,712,930
$908,020 Accrued expenses 2,348,687 1,663,975 Deferred revenue
3,143,915 101,245 TOTAL CURRENT LIABILITIES 7,205,532 2,673,240
NON-CURRENT LIABILITIES 84,392 96,419 TOTAL LIABILITIES 7,289,924
2,769,659 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
(DEFICIT) Preferred stock, 2,000,000 shares authorized: Series A
convertible preferred stock, $.001 par value, 1,000,000 shares
authorized, no shares issued and outstanding - - Series B
convertible preferred stock, $.001 par value, 250,000 shares
authorized, 44,944 and 47,152 shares issued and outstanding 46 48
Common stock, $.001 par value, 80,000,000 shares authorized,
21,089,626 and 20,490,096 shares issued and outstanding 21,090
20,490 Additional paid-in capital 39,935,262 39,732,837 Accumulated
deficit (40,229,916) (37,244,343) TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) (273,518) 2,509,032 TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $7,016,406 $5,278,691 AVP, INC. CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31,
2008 2007 REVENUE Sponsorships/Advertising $875,520 $- Other
115,470 169,000 TOTAL REVENUE 990,990 169,000 EVENT COST 1,044,234
52,299 GROSS PROFIT (LOSS) (53,244) 116,701 OPERATING EXPENSES
Sales and Marketing (1) 1,271,655 875,713 Administrative (2)
1,670,713 1,446,303 TOTAL OPERATING EXPENSES 2,942,368 2,322,016
OPERATING LOSS (2,995,612) (2,205,315) OTHER INCOME (EXPENSE)
Interest income 11,189 56,457 Gain on sale of asset - 8,449 TOTAL
OTHER INCOME 11,189 64,906 LOSS BEFORE INCOME TAXES (2,984,423)
(2,140,409) INCOME TAXES (1,150) (800) NET LOSS $(2,985,573)
$(2,141,209) Loss per common share: Basic $(0.15) $(0.11) Diluted
$(0.15) $(0.11) Shares used in computing loss per share: Basic
20,535,159 19,783,309 Diluted 20,535,159 19,783,309 (1) Sales and
marketing expenses includes stock based expenses of $18,182 and
$72,907 for the three months ended March 31, 2008 and 2007,
respectively. (2) Administrative expenses includes stock based
expenses of $203,023 and $21,360 for the three months ended March
31, 2008 and 2007, respectively. DATASOURCE: AVP, Inc. CONTACT:
AVP, Inc. Investor Relations, +1-310-426-7177; or Media, Crystal
Fukumoto of Brener Zwikel & Associates, +1-818-462-5605, , for
AVP, Inc. Web site: http://www.avp.com/
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