LOS ANGELES, CA -- (Marketwire) -- 03/26/12 -- Reed's, Inc. (
Financial Highlights:
Operational Highlights:
"Our multi-front strategies for increasing revenues are paying off," stated Chris Reed, Founder, Chairman and CEO of Reed's Inc. "We are taking bold steps to capitalize on our many capabilities and to introduce new products and extend the reach of our great brands."
"Our business is accelerating, and all systems are firing," stated James Linesch, Reed's Chief Financial Officer. "Our sales and distribution network is expanding, our production capabilities are increasing and improving, and we have a great pipeline of new products. 2012 will be a pivotal year for our company."
Conference Call
The Company will conduct a conference call @ 4:15PM EDT on Monday, March 26th to discuss its 2011 results and outlook for the rest of 2012. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time (866) 240-5139. International callers should dial (713) 481-0091.
A replay will be available within a few days after the meeting in the investor relations section of the Company's website at: http://www.reedsinc.com/investor-relations/
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. 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. In 2009, Reed's started producing private label natural beverages for select national chains.
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/ReedsGingerBrew
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.
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2011 and 2010
2011 2010
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Sales $ 25,013,000 $ 20,376,000
Cost of tangible goods sold 15,847,000 13,118,000
Cost of goods sold - idle capacity 1,761,000 1,195,000
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Gross profit 7,405,000 6,063,000
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Operating expenses:
Delivery and handling expenses 2,307,000 1,728,000
Selling and marketing expense 2,470,000 2,319,000
General and administrative expense 2,878,000 2,740,000
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Total operating expenses 7,655,000 6,787,000
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Loss from operations (250,000) (724,000)
Interest expense (691,000) (586,000)
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Net loss (941,000) (1,310,000)
Preferred stock dividend (65,000) (73,000)
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Net loss attributable to common stockholders $ (1,006,000) $ (1,383,000)
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Loss per share available to common
stockholders - basic and diluted $ (0.09) $ (0.14)
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Weighted average number of shares outstanding
- basic and diluted 10,785,719 10,186,600
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MODIFIED EBITDA SCHEDULE
Year ended December 31,
--------------------------
2011 2010
(unaudited) (unaudited)
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Net loss $ (941,000) $ (1,310,000)
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Modified EBITDA adjustments:
Depreciation and amortization 653,000 616,000
Interest expense 691,000 586,000
Stock option and warrant compensation 300,000 198,000
Other stock compensation for services and
finance fees 131,000 366,000
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Total EBITDA adjustments 1,775,000 1,766,000
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Modified EBITDA income from operations $ 834,000 $ 456,000
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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.
BALANCE SHEETS
December 31, December 31,
2011 2010
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ASSETS
Current assets:
Cash $ 713,000 $ 1,084,000
Inventory 6,099,000 4,555,000
Trade accounts receivable, net of allowance
for doubtful accounts and returns and
discounts of $135,000 and $105,000,
respectively 1,626,000 1,295,000
Prepaid inventory 168,000 138,000
Prepaid and other current assets 123,000 78,000
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Total Current Assets 8,729,000 7,150,000
Property and equipment, net of accumulated
depreciation of $1,739,000 and $1,178,000,
respectively 3,512,000 3,650,000
Brand names 1,029,000 1,029,000
Deferred financing fees, net of amortization
of $50,000 and $8,000, respectively 85,000 47,000
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Total assets $ 13,355,000 $ 11,876,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,310,000 $ 2,586,000
Accrued expenses 196,000 162,000
Dividends payable 83,000 44,000
Recycling fees payable 111,000 325,000
Line of credit 3,095,000 2,038,000
Current portion of long term financing
obligation 71,000 55,000
Current portion of capital leases payable 56,000 39,000
Current portion of note payable - 71,000
Current portion of term loan 152,000 -
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Total current liabilities 6,074,000 5,320,000
Long term financing obligation, less current
portion, net of discount of $626,000 and
$677,000, respectively 2,247,000 2,268,000
Capital leases payable, less current portion 153,000 146,000
Term loan, less current portion 576,000 -
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Total Liabilities 9,050,000 7,734,000
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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,
80,415 and 85,766 shares issued and
outstanding, respectively 804,000 858,000
Common stock, $.0001 par value, 19,500,000
shares authorized, 10,885,833 and
10,446,090 shares issued and outstanding,
respectively 1,000 1,000
Additional paid in capital 22,924,000 21,701,000
Accumulated deficit (19,890,000) (18,884,000)
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Total stockholders' equity 4,305,000 4,142,000
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Total liabilities and stockholders' equity $ 13,355,000 $ 11,876,000
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Investor Relations Contact:
Reed's Inc.
(310)217-9400
Email: Email Contact
www.reedsinc.com