DENVER, CO / ACCESSWIRE / August 14, 2018 / NEW AGE BEVERAGES CORPORATION (NASDAQ: NBEV), the Colorado-based organic and natural healthy functional beverage company intending to become the world's leading healthy beverage company, today announced revenues for the second quarter $15.2 million.
KEY HIGHLIGHTS:
- Gross revenues of $15.2 million impacted by a $2.7 million inventory shortfall during the quarter leading to decline of 2.3% vs. prior year
- Gross margin also negatively impacted by 10pts due to higher costs of goods sold and shipping expense associated with production and transfers to meet customer needs
- Retail distribution doubled in the US Division in the first half, DSD continued to grow at high single digits, and International was up more than 300% in the quarter
Chuck Ence, Chief Financial Officer of New Age Beverages commented, "Despite having continuing negative inventory shortfall impact of $2.7 million, gross revenue still reached $15.2 million in revenue for the quarter. The tangible and intangible issues PNC bank caused us from not closing our initial ABL after committing and approving it have been significant. New Age has not had any available capital for investing in our brands for over a year, but now with continuing strong inventory and receivables of almost $19 million, de minimis debt of less than $5 million, and our new asset based loan at what we believe are very attractive terms, our handcuffs are now off to capture the full potential of an outstanding portfolio of brands."
Q2 2018 FINANCIAL RESULTS
For the three-month period ending June 30, 2018, gross revenues reached $15,223,779 versus $16,038,638 in the prior year, a decrease of 2%. Net revenues less discounts, returns and billbacks reached $13,362,408 versus $15,104,795 in the prior year.
Gross profit was 16.4% of net sales, down 9 points vs. the 1st quarter of 2018 and the prior year, due 100% to the working capital impact on production and shipping. Total operating expenses for the quarter were $5,004,645 as compared to $5,104,056 and $3,724,749 in the prior quarter and year respectively. The increase in OPEX vs. prior year is primarily attributed to non-cash expenses including increased amortization on the $20 million of intangible assets added to the balance sheet, and the stock option and stock expense associated with the 5 acquisitions and company integrations over the past two years. Adjusted EBITDA for the three-month period ending June 30, 2018 was ($1,602,810), primarily as a result of the impact on revenue from the inventory shortfall.
About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based healthy functional beverage company that was created in 2016 and 2017 with the combination of Búcha Live Kombucha®, XingTea®, Coco-Libre®, and Marley®, to create a one-stop-shop solution for retailers and distributors providing healthier beverages in the disruptive growth segments of the $1 trillion-dollar non-alcoholic beverage industry. In that period, New Age has become the 56th largest beverage company, one of the largest healthy beverage companies, and the fastest growing in the world over the past two years. New Age competes Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters, Functional Waters, and Rehydration Beverages with the brands Búcha® Live Kombucha, XingTea®, XingEnergy®, Marley One Drop®, Marley Mellow Mood®, Marley Mate™, Marley Cold Brew™, Coco-Libre®, PediaAde™, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company's brands are sold across all 50 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.newagebev.com, www.newagehealth.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, www.cocolibre.com, and https://shop.newagebev.com.
New Age has exclusively partnered with the world's 5th largest water charity, WATERisLIFE, to end the world water crisis with the most innovative technologies available. Donate at WATERisLIFE.com to help us EnditToday.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission might affect the Company's operations. Unless required by applicable law, NBEV undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries about New Age Beverages Corporation please contact:
Cody Slach, Liolios Group, Inc.
Investor Relations Counsel
Tel 949-574-3860
NBEV@Liolios.com
New Age Beverages Corporation
Chuck Ence, CFO
303-289-8655
Cence@newagebev.com
SOURCE: New Age Beverages Corporation
