BOCA RATON, Fla., Nov. 16, 2012 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first calorie burning drink backed by clinical science, today reported its results of operations for the third quarter ended September 30, 2012.
Net revenues for the three months ended September 30, 2012 totaled $1.4 million as compared to $2.5 million for the same period in 2011, a 43% decrease. A significant portion of this decrease is attributable to a 2010 return reserve adjustment realized in 2011 which accounted for $508,000 of the difference, timing of international shipments, and a reduction in distribution outlets, which was offset in part by increased sales to existing domestic accounts. The Company recorded a net loss of $764,000 for the third quarter compared to a net loss of $278,000 for the same quarter a year ago, or ($0.04) and ($0.02) per share, respectively. The increase in net loss is associated with the return reserve adjustment discussed above, increased product input costs, and continued investments in human resources and marketing programs directed toward growth in the direct to consumer, international and retail segments of our business.
Net Revenue for the nine months ended September 30, 2012 totaled $5.8 million compared to $6.8 million for the same period in 2011, a 15% decrease. The decrease is attributable to an accumulative 2010 return reserve adjustments realized in 2011 which amounted to $560,000, and reductions in distribution outlets, which was offset in part by increased domestic and international existing account sales. The Company recorded a net loss of $2.4 million for the nine months ended September 30, 2012 compared to a net loss of $1.2 million for the same period a year ago, or ($0.12) and ($0.06) per share respectively.
"There were many complex decisions that had to be made during the first nine months of 2012 in order to ensure the long-term viability of Celsius," said Gerry David, Celsius CEO. "We were very determined and extremely focused on building for growth in 2013 and identifying areas that will contribute to our future success. Some of those decisions included hiring the right team with significant experience who we expect will help direct our growth, relocating our manufacturing and warehousing to increase our profit margins, and the development and execution of a new brand strategy, which coincides with the launch of a new brand image and our singles distribution strategy. Celsius is now poised for growth with a solid foundation for us to build on. I am both confident and excited about the future of our company."
Notwithstanding the financial results, the third quarter of 2012 showed gains in distribution both domestically as well as internationally.
In addition, Celsius has signed distribution agreements with:
Other noteworthy developments included:
In addition, after 2 1/2 years of Celsius being offered through Costco, a decision was made to end the relationship. "Costco is an outstanding organization that provides consumers the opportunity to join their club, and purchase name brand products that they are already buying through traditional retail channels at a lower price," stated Gerry David. "Celsius sales within several Costco geographic markets, exceeded the thresholds established for success, but on a national basis, Celsius did not meet those criteria."
Mr. David continued, "Celsius has several thousand loyal consumers who purchased Celsius through Costco, and we are confident that the majority of these loyal consumers will continue to purchase through other Celsius points of distribution. We look forward to having the opportunity to partner with Costco again at the appropriate time."
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Other OTC:CELH) markets Celsius®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. For more information, please visit www.celsius.com.
The Celsius Holdings logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15323
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.
|Celsius Holdings, Inc. and Subsidiaries|
|Condensed Consolidated Balance Sheets|
|September 30||December 31|
|Cash and cash equivalents||$ 116,501||$ 130,536|
|Accounts receivable, net||511,048||537,867|
|Other current assets||468,690||69,340|
|Total current assets||1,747,483||1,609,522|
|Property, fixtures and equipment, net||54,369||67,000|
|Total Assets||$ 1,801,852||$ 1,676,522|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Accounts payable, accrued expenses and other liabilities||$ 1,213,541||$ 694,914|
|Due to related parties, short-term portion||141,391||172,989|
|Total current liabilities||1,354,932||867,903|
|Due to related parties, long-term portion||0||114,000|
|Convertible note payable, related party||1,500,000||1,500,000|
|Note due to related parties||5,025,000||3,000,000|
|Stockholders' Equity (Deficit):|
|Additional paid-in capital||36,869,018||36,722,893|
|Total Stockholders' Equity (Deficit)||(6,078,080)||(3,805,381)|
|Total Liabilities and Stockholders' Equity (Deficit)||$ 1,801,852||$ 1,676,522|
|Celsius Holdings, Inc. and Subsidiaries|
|Condensed Consolidated Statements of Operations|
|For the Three Months||For the Nine Months|
|Ended September 30,||Ended September 30,|
|Net revenue||$ 1,442,196||$ 2,535,557||$ 5,750,780||$ 6,773,655|
|Cost of revenue||1,012,980||1,626,397||4,072,107||4,211,522|
|Selling and marketing expenses||703,178||593,480||2,399,991||2,236,889|
|General and administrative expenses||405,399||528,114||1,473,911||1,330,241|
|Loss from operations||(679,361)||(212,434)||(2,195,229)||(1,004,997)|
|Interest expense, net||84,309||65,406||223,596||188,529|
|Net loss||$ (763,670)||$ (277,840)||$ (2,418,825)||$ (1,193,526)|
|Basic and diluted:|
|Weighted average shares outstanding||20,182,242||18,533,591||20,182,242||18,521,680|
|Loss per share||$ (0.04)||$ (0.02)||$ (0.12)||$ (0.06)|
CONTACT: John Fieldly, CFO, (866) 4-CELSIUS, (561) 276-2239, email@example.com