Turnaround Plan Delivers 35% Net Loss
Improvement for 2013
Jones Soda Co. (the Company or Jones Soda) (OTCQB:JSDA), a
leader in the premium soda category and known for its unique
branding and innovative marketing, today announced results for the
fourth quarter and year ended December 31, 2013.
Results for 2013 continue to reflect the efforts of our
Turnaround Plan, which was initiated with the change in management
in the second half of 2012. These results also reflect investments
to support our emerging partnerships with distributors and
retailers in certain key markets, while continuing to work within a
reduced and more prudent general and administrative cost
structure.
For the year ended December 31, 2013, net loss improved to $1.9
million, or $(0.05) per share, compared to a net loss of $2.9
million, or $(0.08) per share, in the prior year. Cash at December
31, 2013 was $1.5 million compared to $1.7 million in the prior
year, a decrease of $190,000.
“With six quarters into the Turnaround, we have made tremendous
strides as evident in our dramatically-improved net operating
results, stabilized balance sheet, cash position, and cash used in
operations for the year approaching breakeven. The fourth quarter
results are illustrative of the bumps along the way toward
recalibrating a business to profitable growth in an industry that
is undergoing rapid change,” stated Jennifer Cue, CEO of Jones Soda
Co. Ms. Cue continued, “Still, the foundation for Jones’ future is
very strong. We’ve got a powerful brand, an entrepreneurial team
and a mindset to driving future growth through innovation once
again.”
For the fourth quarter of 2013, revenues decreased by 32.1% to
$2.1 million compared to the prior year quarter of $3.1 million.
Net loss increased to $1.1 million, or $(0.03) per share, compared
to a net loss of $448,000, or $(0.01) per share, for the fourth
quarter 2012. The fourth quarter results were impacted by reduced
revenue due to tradespend associated with a seasonal program, as
well as general softness in sales across the CSD industry compared
to a year ago. In addition, the results for 2012 were favorably
impacted by sales of seasonal holiday packs.
Full Year Review - Comparison of Years Ended December 31,
2013 and 2012
- Revenue decreased 16.4% to $13.7
million, compared to $16.4 million last year.
- Gross margin decreased to 23.8% of
revenue, compared to 27.4% of revenue last year.
- Operating expenses decreased 29.9% to
$5.1 million, compared to $7.3 million last year.
- Net loss decreased to $1.9 million, or
$(0.05) per share, compared to a net loss of $2.9 million, or
$(0.08) per share, last year, an improvement of 34.8%.
- Cash used in operations was $317,000
compared to $2.9 million last year.
Fourth Quarter Review - Comparison of Quarters Ended December
31, 2013 and 2012
- Revenue decreased 32.1% to $2.1
million, compared to $3.1 million last year.
- Gross margin decreased to 12.2% of
revenue, compared to 22.9% of revenue last year.
- Operating expenses increased 15.2% to
$1.3 million, compared to $1.1 million last year.
- Net loss increased to $1.1 million, or
$(0.03) per share, compared to a net loss of $448,000 or $(0.01)
per share, last year, an increase of 138.6%.
- Cash provided by operations was
$306,000 versus cash provided by operations of $247,000 last
year.
Conference Call
The Company will discuss its results for the quarter and fiscal
year ended December 31, 2013, on its scheduled conference call
today, March 6, 2014, 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) 325-2435 (confirmation code: 2097268). In addition, a
telephone replay will be available by dialing (858) 384-5517
(confirmation code: 2097268) through March 13, 2014, at 11:59 p.m.
Eastern time.
About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co.® markets
and distributes its premium beverages under the Jones® Soda, Jones
Zilch®, Natural Jones™ Soda and WhoopAss™ Energy Drink brands. A
leader in the premium soda category, Jones Soda is known for its
variety of flavors, high 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 2014; 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.CONSOLIDATED
STATEMENTS OF OPERATIONS(In thousands, except share
data)
Three months ended December 31,
Twelve months ended December 31, 2013
2012 2013 2012 (Unaudited)
(Unaudited) Revenue $ 2,096 $ 3,089 $ 13,696 $ 16,384 Cost
of goods sold 1,841 2,383 10,433
11,902 Gross profit 255 706 3,263 4,482 Gross
profit % 12.2 % 22.9 % 23.8 % 27.4 % Operating expenses:
Promotion and selling 578 509 2,322 3,357 General and
administrative 722 619 2,779
3,922 1,300 1,128
5,101 7,279 Loss from operations (1,045
) (422 ) (1,838 ) (2,797 ) Other (expense) income, net (8 )
(8 ) 10 (15 ) Loss before income taxes
(1,053 ) (430 ) (1,828 ) (2,812 ) Income tax expense, net
(16 ) (18 ) (65 ) (91 ) Net loss $ (1,069 ) $
(448 ) $ (1,893 ) $ (2,903 ) Net loss per share - basic and
diluted $ (0.03 ) $ (0.01 ) $ (0.05 ) $ (0.08 ) Weighted average
basic and diluted common shares outstanding 38,688,658 38,534,212
38,593,465 37,909,278
Three months ended December 31,
Twelve months ended December 31, Case sale data
(288-ounce equivalent) 2013 2012 2013
2012 Finished product cases 178,000 225,400 1,036,000
1,190,500
JONES SODA CO.CONSOLIDATED
BALANCE SHEETS(In thousands, except share data)
December 31, 2013 2012
(Unaudited) ASSETS Current assets: Cash and cash
equivalents $ 1,464 $ 1,654 Accounts receivable, net of allowance
of $42 and $93 1,034 1,742 Inventory 2,315 2,223 Prepaid expenses
and other current assets 410 264 Total
current assets 5,223 5,883 Fixed assets, net of accumulated
depreciation of $1,194 and $1,787 232 497 Other assets 59
640 Total assets $ 5,514 $ 7,020
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Accounts payable $ 871 $ 885 Accrued expenses 892 767 Taxes payable
37 45 Deferred rent, current portion 35 30 Capital lease
obligations, current portion 13 24
Total current liabilities 1,848 1,751 Capital lease obligations 16
58 Long-term liabilities — other 390 427 Shareholders’ equity:
Common stock, no par value: Authorized — 100,000,000; issued and
outstanding shares — 38,710,416 and 38,530,416 shares, respectively
52,981 52,867 Additional paid-in capital 7,941 7,590 Accumulated
other comprehensive income 355 451 Accumulated deficit
(58,017 ) (56,124 ) Total shareholders’ equity 3,260
4,784 Total liabilities and shareholders’
equity $ 5,514 $ 7,020
Jones Soda Co.Carrie L. Traner, 206-624-3357Vice President of
Financectraner@jonessoda.com
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