Long Island Iced Tea Corp. Announces 2017 Second Quarter and First Half Net Sales
August 11 2017 - 5:06PM
Marketwired
Long Island Iced Tea Corp. Announces 2017 Second Quarter and
First Half Net Sales
- Second Quarter Branded Business Net Sales Increase of 23%
Year-over-Year -
- First Half Branded Business Net Sales Increase of 33%
Year-over-Year -
HICKSVILLE, NY-(Marketwired - Aug 11, 2017) - Long Island Iced
Tea Corp. (NASDAQ: LTEA) (the "Company"), a growth-oriented company
focused on the non-alcoholic ready-to-drink ("NARTD") segment in
the beverage industry, today reported unaudited net sales results
for the three and six-month periods ended June 30, 2017.
Philip Thomas, Chief Executive Officer of the Company,
commented, "We had a transformative quarter, announcing many
significant new partnerships, including our most significant
distribution agreement to date with Big Geyser, the largest
independent non-alcoholic beverage distributor in the New York
metro area. This partnership creates the potential to increase our
metro New York footprint by over ten times to 25,000 doors. New
chain account wins included Kinney Drugs in the Northeast, Sam's
Club in Puerto Rico and Loblaws in Canada, the largest
international chain account agreement in Company history. These
initiatives align with an increased focus on our 'Long Island'
branded business."
During the second quarter the Company:
- Transitioned from 20oz Long Island Iced Tea® brand packaging
into new slimline 18oz packaging
- Launched Long Island Original Brand Lemonade™ in select test
markets
- Entered into the distribution agreement with Big Geyser,
consolidating out of a group of smaller distributors and
independent owner drivers. The Company also brought in a
significant number of new sales people to service the Big Geyser
ramp up and added a 24-pack product offering for Big Geyser and
other high volume distributors.
- Recruited Virginia Morris, who has over 20 years of experience
managing and growing iconic brands, to the Company's leadership
team as the new Chief Sales & Marketing Officer
Note: Net sales figures listed below are shown after being
reduced by all promotional rebates issued to distributors and
customers.
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3 Months Ended June 30,
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6 Months Ended June 30,
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(Dollars in Thousands)
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2016
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2017
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2016
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2017
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Net Sales - Branded Business
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$1,171
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$1,435
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(1)
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$1,591
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$2,116
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YoY Growth
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23
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%
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33
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%
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Net Sales - ALO Juice® and Other
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$432
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$55
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$520
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$487
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YoY Growth
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(87
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)%
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(6
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)%
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Total Net Sales
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$1,604
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$1,490
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$2,112
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$2,603
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YoY Growth
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(7
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)%
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23
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%
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(1) Net Revenue stated above for branded business is before a
non-cash sign on incentive of $257,022 in connection to warrants
issued for the Big Geyser distribution agreement.
Net sales highlights for the three and six-months ended June 30,
2017:
- Net sales growth for the Company's branded business is due to a
combination of an increase in sales distribution, including the
recently announced distribution agreement with Big Geyser, and the
launch of Long Island Brand Lemonade™
- Net sales for the Company's branded business increased
approximately 23% to approximately $1,435,016 for the three months
ended June 30, 2017, as compared to $1,171,246 for the comparable
prior-year period
- Net sales decline for the Company's ALO Juice® product was
primarily due to certain deliveries for which revenue recognition
criteria was not met in the three months ended June 30, 2017, but
are expected to be met in the future
- Net sales increased approximately 23% to approximately
$2,603,000 for the six months ended June 30, 2017, as compared to
$2,111,836 for the comparable prior-year period
About Long Island Iced Tea Corp. Headquartered in Long Island,
NY, Long Island Iced Tea Corp. operates in the non-alcohol
ready-to-drink segment of the beverage industry. The Company's
flagship brand 'The Original Long Island Brand Iced Tea®', together
with 'The Original Long Island Brand Lemonade™' are marketed as
premium beverages made with non-GMO ingredients. The company also
imports and markets 'ALO Juice®' a functional Aloe Vera based
beverage. The Company's portfolio of premium brands sits within the
'better-for-you' category of the beverage industry, and are offered
to consumers at an affordable price, reflecting the Company's
mission. Its beverages are sold primarily through a network of
regional chains and distributors primarily on the East Coast and
the Midwest of the United States, as well as Canada and Latin
America. The Company's website is www.longislandicedtea.com.
Forward Looking Statements This press release includes
statements of the Company's expectations, intentions, plans and
beliefs that constitute "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and are intended to come
within the safe harbor protection provided by those sections. These
statements, which involve risks and uncertainties, relate to the
discussion of the Company's business strategies and its
expectations concerning future operations, margins, sales, new
products and brands, potential joint ventures, potential
acquisitions, expenses, profitability, liquidity and capital
resources and to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet
determinable. These statements include any statement that does not
directly relate to a historical or current fact. You can also
identify these and other forward-looking statements by the use of
such words as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "thinks," "estimates," "seeks,"
"predicts," "could," "projects," "potential" and other similar
terms and phrases, including references to assumptions. These
forward looking statements are made based on expectations and
beliefs concerning future events affecting the Company and are
subject to uncertainties, risks and factors relating to its
operations and business environments, all of which are difficult to
predict and many of which are beyond its control, that could cause
its actual results to differ materially from those matters
expressed or implied by these forward looking statements. These
risks include the Company's history of losses and expectation of
further losses, its ability to expand its operations in both new
and existing markets, its ability to develop or acquire new brands,
its relationships with distributors, the success of its marketing
activities, the effect of competition in its industry and economic
and political conditions generally, including the current economic
environment and markets. More information about these and other
factors are described in the reports the Company files with the
Securities and Exchange Commission, including but not limited to
the discussions contained under the caption "Risk Factors." When
considering these forward looking statements, you should keep in
mind the cautionary statements in this press release and the
reports the Company files with the Securities and Exchange
Commission. New risks and uncertainties arise from time to time,
and the Company cannot predict those events or how they may affect
it. The Company assumes no obligation to update any forward looking
statements after the date of this press release as a result of new
information, future events or developments, except as required by
the federal securities laws.
For Investors Phil Thomas Long Island Iced Tea Corp.
1-855-542-2832 info@longislandteas.com