New Leaf Brands (NLEF) Reports 3Q2012 Equity Increase, Better Cash Use and Decreased Net Loss
July 23 2013 - 9:06AM
Marketwired
New Leaf Brands, Inc. (PINKSHEETS: NLEF), a diversified beverage
holding company acquiring brands, distributors and co-packers in
North America, filed its financial results for the third quarter of
2012 on June 27, 2013. Key positive results during the Company's
third quarter and second full quarter of restructuring included:
- A decrease in stockholder deficit of $631,963 for the nine
months;
- A reduction in net cash used in continuing operating activities
of $2,530,399, representing a decrease in this key indicator of 74%
during the first nine months for 2012;
- A significant cut in net losses, dropping to $1,306,651 for the
three months ending September 30, 2012, a reduction of 49.0% from
3Q2011.
Third Quarter 2012 Financial
Highlights:
Revenue: During the three months ended
September 30, 2012, net sales were $86,367, as compared to $128,796
for the same period in 2011. The decrease in sales was primarily
due to capital constraints that delayed production and shipment of
open customer orders and inventory.
Gross Profit: Gross profits were $10,141
or 12.2% of net sales for 3Q2012, as compared to $13,519 or 10.5%
of net sales for 3Q2011. Gross profits were up, as a percentage of
sales, due to reduced production costs.
Operating Expenses: Operating expenses for
3Q2012 totaled $1.2 million as compared to $2.5 million for 3Q2011,
a decrease of 51.7%. Most of this decrease was attributable to
restrained overhead and limited marketing expenses.
Net loss: The Company recorded a net loss
attributable to common stockholders' of $1.306 million for 3Q2012,
as compared to a net loss of $2.563 million for 3Q2011, or ($0.00)
and ($0.02) per basic and diluted share, respectively. The reduced
net loss is attributable to the Company's improved operating
results and gains achieved during its second full quarter of debt
restructuring.
Impairment: During the period, the Company
also recorded a write down of $845,000 relating to the core value
of its New Leaf beverage brands. The impairment was due to a
decrease in projected sales and continued restructuring efforts
into 2013.
During 3Q2012 New Leaf began to implement
initiatives to create the basis for growth:
- Focus and deliver growth in its core product markets
- Focus on the Northeast Corridor from Maine to Maryland
- Reduce supply chain costs
- Focus on key distributors and value-added partnerships
- Identify acquisition targets
- Restructure corporate operations and product mix to improve
operating margins.
- Achieve significant debt restructurings and interim financings
to both strengthen the balance sheet and support sustainable
growth
"During the third quarter of 2012, New Leaf took critical steps
to continue its restructuring. The improved results were evident in
the quarter," said Mr. Fuselier. "We are pleased with our financial
results for the period and expect to file our reports for the final
quarter of 2012 soon."
Mr. Fuselier said that, "We continue to move forward in
exploring various strategic alternatives, including business
combinations and private placements of debt and equity securities,
to raise capital to grow New Leaf. We also intend to expand our
business through the acquisition of brands, distributors and
co-packers in our industry. Our lenders, shareholders and vendors
have shown extraordinary support for our brand and our company's
change in strategic direction. Our financial results for the third
quarter of 2012 show that support."
"Our recent acquisition in April 2013 of Beverage Network of
Maryland and its strong DSD distribution system in the Mid-Atlantic
region further our efforts to build and expand our company. We will
be filing a revised 8K relating to the acquisition which will
include Beverage Network's audited financials and pro formas," said
Mr. Fuselier.
About New Leaf Brands, Inc.
New Leaf Brands, Inc. (PINKSHEETS: NLEF) is a diversified
beverage holding company acquiring brands, distributors and
co-packers in North America. For our customers, we provide
high-quality, great-tasting beverages in well-placed consumer
markets. For our shareholders, we acquire companies that build,
maintain and nourish shareholder value. Our corporate mission is to
be the best small-cap beverage holding company in North
America.
This press release may contain forward-looking statements, made
in reliance upon Section 21D of the Exchange Act of 1934, which
involve known and unknown risks, uncertainties or other factors
that could cause actual results to differ materially from the
results, performance, or expectations implied by these
forward-looking statements. The Company's expectations, among other
things, are dependent upon economic conditions, continued demand
for its products, the availability of raw materials, retention of
its key management and operating personnel, its ability to operate
its subsidiary companies effectively, need for and availability of
more capital as well as other uncontrollable or unknown factors
which are more fully disclosed in the Company's 10-Ks and 10-Qs on
file with the Securities and Exchange Commission.
Contact Information David Fuselier Chief Executive
Officer (646) 660-4337