Jones Soda Co. (the Company) (OTCQB: JSDA), a leader in the
premium soda category and known for its unique branding and
innovative marketing, today announced results for the second
quarter ended June 30, 2013.
Results for the second quarter continue to reflect the efforts
of our Turnaround Plan, which was initiated with the change in
management in the second half of 2012.
For the second quarter of 2013, the Company achieved a 79%
improvement in bottom line performance, reporting a net loss of
$95,000, or $0.00 per share, compared to a net loss of $459,000, or
$(0.01) per share, for the second quarter 2012. Revenue declined
19% to $4.3 million compared to revenue of $5.3 million for the
second quarter of 2012 reflecting management's strategy to
reallocate resources to certain targeted markets.
“Twelve months ago when I returned to Jones Soda as CEO, I
stated that our priority was to become a financially-sustainable
company by aligning our operating expenses with our capital
resources and size of our Company. Our efforts are delivering
results evident by the breakeven EPS this quarter as well as
positive EBITDA. Jones Soda today is a stronger business
because we act like owners and make decisions with an eye to the
Company's long-term profitability,” stated Jennifer Cue, CEO of
Jones Soda Co.
Ms. Cue added, “We will continue doing what we've been doing,
maintaining our focus and discipline in executing our Turnaround
Plan. With our emphasis on making our product more widely available
in independent accounts, we believe we have a more balanced and
diversified distribution strategy.”
Second Quarter Review - Comparison of Quarters Ended
June 30, 2013 and 2012
- Revenue decreased 19% to $4.3 million,
compared to $5.3 million last year.
- Gross margin decreased to 29% of
revenue, compared to 30% of revenue last year.
- Operating expenses decreased 34% to
$1.3 million, compared to $2.0 million last year.
- Net loss improved 79% to $95,000, or
$0.00 per share, compared to a net loss of $459,000, or $(0.01) per
share, last year.
- EBITDA (earnings before interest,
income taxes, depreciation and amortization and stock-based
compensation) was $54,000, compared to negative EBITDA of $312,000
last year.
Year-to-Date Review - Comparison of Six Months Ended
June 30, 2013 and 2012
- Revenue decreased 19% to $7.4 million,
compared to $9.1 million last year.
- Gross margin decreased to 27% of
revenue, compared to 29% of revenue last year.
- Operating expenses decreased 47% to
$2.5 million, compared to $4.7 million last year.
- Net loss improved 77% to $494,000, or
$(0.01) per share, compared to a net loss of $2.1 million, or
$(0.06) per share, last year.
- Negative EBITDA was $204,000, compared
to $1.8 million last year.
Conference Call
The Company will discuss its results for the quarter ended
June 30, 2013 on its scheduled conference call today,
August 8, 2013 at 4:30 p.m. Eastern time (1:30 p.m. Pacific
time). This call will be webcast and can be accessed by visiting
our website at www.jonessoda.com or
www.jonessoda.com/company/jones-press/webcasts.
Investors may also listen to the call via telephone by dialing
(719) 325-2491 (confirmation code: 5875107). In addition, a
telephone replay will be available by dialing (858) 384-5517
(confirmation code: 5875107) through August 15, 2013, at 11:59 p.m.
Eastern Time.
Presentation of Non-GAAP Information
This press release contains disclosure of the Company's EBITDA,
which is a non-GAAP financial measure. The difference between
EBITDA (a non-GAAP measure) and Net Loss (the most comparable GAAP
financial measure) is the exclusion of interest expense, income tax
expense, depreciation and amortization expense and stock-based
compensation. We have included a reconciliation of EBITDA to Net
Loss in our Non-GAAP Reconciliation in this press release. There
are material limitations to using EBITDA. In addition, because
EBITDA may not be calculated identically by all companies, the
presentation here may not be comparable to other similarly titled
measures of other companies.
We believe that EBITDA provides useful information to management
about the Company's operating results attributable in part to the
Turnaround Plan, in particular by eliminating the impact of
non-cash charges related to stock-based compensation, amortization
and depreciation. These adjustments to the Company's GAAP results
are made with the intent of providing a more complete understanding
of the Company's underlying operational results and performance.
This non-GAAP financial measure is not intended to be considered in
isolation or as a replacement for, or superior to either net income
(loss) as an indicator of the Company's operating performance, or
cash flow, as a measure of its liquidity. EBITDA should be reviewed
in conjunction with Net Loss as calculated in accordance with
GAAP.
About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co.® markets
and distributes premium beverages under the Jones® Soda, Jones
Zilch®, Natural Jones™ Soda and WhoopAss™ Energy Drink brands and
sells through its distribution network. A leader in the premium
soda category, the Company is known for its variety of flavors,
highest quality ingredients, including pure cane sugar and
innovative labeling technique that incorporates always-changing
photos sent in from its consumers. Jones Soda is sold through
traditional beverage retailers in markets primarily across North
America. For more information, visit www.jonessoda.com or www.myjones.com.
Forward-Looking Statements Disclosure
Certain statements in this press release are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all passages
containing words such as “will,” “aims,” “anticipates,” “becoming,”
“believes,” “continue,” “estimates,” “expects,” “future,”
“intends,” “plans,” “predicts,” “projects,” “targets,” or
“upcoming.” Forward-looking statements also include any other
passages that are primarily relevant to expected future events or
that can only be evaluated by events that will occur in the future.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made and are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those anticipated or implied in the
forward-looking statements. Factors that could affect the Company's
actual results include, among others: its ability to successfully
execute on its operating plans for 2013; its ability to maintain
and expand distribution arrangements with distributors, independent
accounts, retailers or national retail accounts; its ability to
manage operating expenses and generate sufficient cash flow from
operations; its ability to increase revenues and achieve case sales
goals on reduced operating expenses; its ability to develop and
introduce new products to satisfy customer preferences; its ability
to market and distribute brands on a national basis; changes in
consumer demand or market acceptance for its products; its ability
to increase demand and points of distribution for its products or
to successfully innovate new products and product extensions; its
ability to maintain relationships with co-packers; its ability to
maintain a consistent and cost-effective supply of raw materials;
its ability to maintain brand image and product quality; its
ability to attract, retain and motivate key personnel; its ability
to protect its intellectual property; the impact of future
litigation; the impact of intense competition from other beverage
suppliers; and its ability to access the capital markets for any
future equity financing, and any actual or perceived limitations by
being traded on the OTCQB Marketplace. More information about
factors that potentially could affect the Company’s operations or
financial results is included in its most recent annual report on
Form 10-K for the year ended December 31, 2012, filed with the
Securities and Exchange Commission on March 27, 2013, and in
its quarterly reports on Form 10-Q filed in 2013. Readers are
cautioned not to place undue reliance upon these forward-looking
statements that speak only as to the date of this release. Except
as required by law, the Company undertakes no obligation to update
any forward-looking or other statements in this press release,
whether as a result of new information, future events or
otherwise.
JONES SODA CO. CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS (Unaudited) Three Months
Ended June 30, Six Months Ended June 30, 2013
2012 2013 2012 (In thousands,
except share data) Revenue $ 4,287 $ 5,263 $ 7,383 $ 9,130 Cost
of goods sold 3,053 3,696 5,389 6,510
Gross profit 1,234 1,567 1,994 2,620 Operating expenses:
Promotion and selling 625 920 1,098 2,277 General and
administrative 690 1,078 1,365 2,410
1,315 1,998 2,463 4,687
Loss from operations (81 ) (431 ) (469 ) (2,067 ) Other (expense)
income, net (9 ) (5 ) 4 (16 ) Loss before income
taxes (90 ) (436 ) (465 ) (2,083 ) Income tax expense, net (5 ) (23
) (29 ) (48 ) Net loss $ (95 ) $ (459 ) $ (494 ) $
(2,131 ) Earnings (loss) per share - basic and diluted $
0.00 $ (0.01 ) $ (0.01 ) $ (0.06 ) Weighted average basic and
diluted common shares outstanding 38,530,416 38,544,140 38,530,416
37,268,386
Three Months Ended June 30, Six Months
Ended June 30, Case sale data (288-ounce equivalent):
2013 2012 2013 2012 Finished product
cases 306,000 376,200 531,000 672,200
JONES SODA CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2013
December 31, 2012
(Unaudited)
(In thousands, except share
data)
ASSETS Current assets: Cash and cash equivalents $ 1,328 $
1,654 Accounts receivable, net of allowance of $55 and $93 1,782
1,742 Inventory 2,800 2,223 Prepaid expenses and other current
assets 178 264 Total current assets 6,088 5,883 Fixed
assets, net of accumulated depreciation of $1,871 and $1,787 348
497 Other assets 619 640 Total assets $ 7,055
$ 7,020
LIABILITIES AND SHAREHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 1,590 $ 885 Accrued expenses 604
767 Taxes payable 20 45 Other current liabilities 45 54
Total current liabilities 2,259 1,751 Long-term liabilities
— other 434 485 Shareholders’ equity: Common stock, no par value:
Authorized — 100,000,000; issued and outstanding shares —
38,530,416 shares 52,867 52,867 Additional paid-in capital 7,737
7,590 Accumulated other comprehensive income 376 451 Accumulated
deficit (56,618 ) (56,124 ) Total shareholders’ equity 4,362
4,784 Total liabilities and shareholders’ equity $ 7,055
$ 7,020
JONES SODA CO.
Non-GAAP Reconciliation
Three Months Ended June 30, Six Months
Ended June 30,
2013 2012 2013 2012
(In thousands) GAAP net loss $ (95 ) $ (459 ) $ (494 ) $
(2,131 ) Other expense (income), net 9 5 (4 ) 16 Income tax
expense, net 5 23 29 48 Depreciation and amortization 56 73 118 151
Stock-based compensation 79 46 147 136
Non-GAAP EBITDA $ 54 $ (312 ) $ (204 ) $ (1,780 )
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