Pulse Beverage Releases Its Second Quarter FY2017 Earnings
Report and Announces That It Has Eliminated Almost $500,000 in
Secured Debt and Continues to Trim Expenses and Narrows the
Non-GAAP Net Loss by 9.3% Over the Same Period in 2016
DENVER, CO-(Marketwired - Aug 18, 2017) - The Pulse Beverage
Corporation ("Pulse") (OTCQB: PLSB) announced today that it had
filed its Q2 FY2017 Quarterly Report (10-Q) with the United States
Securities and Exchange Commission for the period ended June 30,
2017.
For the 3-month period ended June 30, 2017, The Company reported
gross sales of $428,264 vs $1,003,780 for the comparable period in
2016. This represents a decrease of $575,516 or 57.3%. This
decrease is consistent with the planned restructuring that
continues in 2017 of the Company's operations that was designed to
achieve higher sales per employee and to allow the Company to sell
their wares directly to strategic retailers. While these changes
negatively affected revenues during the second quarter of 2017,
management believes these changes will yield benefits in the future
in the form of future profitability.
For the 3-month period ended June 30, 2017 the Company's GAAP
net operating loss was $1,212,264 compared to a loss of $576,267
for the comparable period in 2016.
On a non-GAAP basis when non-cash charges due to the accretion
of discount on convertible debt and changes in the fair value of
derivative liabilities are excluded, the loss narrows to $522,671
which is directly comparable to the $576,267 comparable period loss
in 2016. This means that on a non-GAAP basis the Company's
quarterly loss narrowed by $53,596 or nearly 9.3%.
Also affecting Q2: FY2017 results was a 9-day computer outage at
the Port of Los Angeles at the end of June 2017, due to a reported
computer "hack", which stopped all shipments scheduled for release
during that period. This resulted in approximately $150,000 of
product that was in Pulse's backlog that was not shipped during Q2.
If this product had been shipped as planned, the Company would have
been able to report gross revenues of $578,000 vs the $428,264
reported. When considering the higher margins the Company earns on
its coconut waters of nearly 40.0%, the non-GAAP net loss would
have been 11.4% better ($60,000) than the non-GAAP loss reported.
This would have represented a 19.7% improvement over the same
period in 2016 and would have been more in line with management's
expectations. Since that time, the Port of Los Angeles has resumed
normal operations and the product in transit has been delivered to
customers and will be reflected in Pulse's Q3:FY2017 results.
For the 6 months ended June 30, 2017 and June 30, 2016 revenues
were $796,706 and $1,741,195 respectively and represent a decline
of $944,489 or 54.2%. non-GAAP net income for the same periods was
$921,283 and $1,133,539. This represents a narrowing of losses of
$212,256 or 18.7%
Robert Yates, CEO of Pulse, said, "Our team is working hard to
expand our customer base and build distribution channels. We made
significant inroads in the second quarter and expect to continue
winning accounts at an accelerated pace in the second half of the
year. At the same time, we are continuing to make progress on
reducing our overhead expenses and think that we will soon be able
to show profitability."
Mr. Yates continued, "The Company is expecting to continue to
reduce its debt exposure to TCA over the course of 2017, which may
further positively impact our bottom line. As of August 14, 2017,
we have reduced our debt to TCA by $463,000." (For more information
about the Company's finances and prospects please see our recently
filed form 10-Q for the period ended June 30, 2017).
Mr. Yates explained some of the Company's future plans, "We are
working on some very exciting developments for the Company that we
would consider transformative in nature. There are several
opportunities to expand our product portfolio that are in front of
us. With the debt reductions in place, we are now actively looking
for acquisitions to transform our Company for the benefit of our
shareholders. We look forward to being able to announce progress in
this area when the time is right."
About Pulse Beverage Corporation
Pulse Beverage Corporation ("Pulse") is an emerging beverage
company that offers Natural Cabana® Lemonade/Limeade in 7 great
tasting, low-calorie flavors and Natural Cabana® Coconut Water in
pineapple and natural flavors. With Pulse's revamped business
model, utilizing warehouse direct and key accounts, Pulse directly
teams up with major retailers like Walmart, Albertsons/Safeway,
Kroger, Stater Bros, Food Max, Houchens, Kmart, 7-Eleven, United
C-stores, Weis Markets, King Kullen, Dierbergs Markets, Hy-Vee
Supermarket, WinCo Foods, Price Less Markets, Gristede's Foods,
Toot n Totem and Travel America. Consumers easily find Pulse's
prominently displayed products thereby increasing revenue and
earnings for shareholders of Pulse.
For more information, please visit: www.pulsebeverage.com or
email info@pulsebeverage.com. Follow Pulse Beverage on Twitter at
https://twitter.com/drinkpulsebev. Become a Pulse Beverage Facebook
Fan at https://www.facebook.com/PulseBeverageCorporation.
Forward-Looking Statements This news release contains
"forward-looking statements" as that term is defined in Section 27A
of the United States Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended. Statements
in this press release which are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Such forward-looking statements include, among other things,
regulatory incentives, the development of new business
opportunities, and projected costs, revenue, profits and results
operations. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
new projects and development stage companies. These forward-looking
statements are made as of the date of this news release, and we
assume no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those
projected in the forward-looking statements. Although we believe
that any beliefs, plans, expectations and intentions contained in
this press release are reasonable, there can be no assurance that
any such beliefs, plans, expectations or intentions will prove to
be accurate. Investors should consult all of the information set
forth herein and should also refer to the risk factors disclosure
outlined in our annual report on Form 10-K for the most recent
fiscal year, our quarterly reports on Form 10-Q and other periodic
reports filed from time-to-time with the Securities and Exchange
Commission.
Investor Relations Contact: Tom Nelson Ten Associates, LLC
Email: Tenassociates33@gmail.com Phone: 1-480-326-8577