Anticipated Record Revenue Between $16.4 and
$16.6 Million
The Company Continues to Grow on Its Pathway to
Profitability
The Company Reiterates Full Fiscal 2023 Revenue
Guidance of $70 Million
(All amounts in U.S. dollars) (unaudited)
The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the
“Company”), the country’s largest independent alkaline water
company and the Clean Beverage® company, today announced it expects
to report record revenue of $16.4-$16.6 million for the first
quarter of fiscal year 2023. The projected double-digit
year-over-year growth rate through the first quarter supports the
Company’s full-fiscal-year guidance of $70 million.
“Even as The Alkaline Water Company focuses on a pathway to
profitability, we anticipate Q1 to be our best sales quarter ever,”
said Frank Lazaran, The Alkaline Water Company’s President and CEO.
“We are not sacrificing topline growth as we work to enhance
shareholder value by improving our bottom line. A record first
quarter sets us firmly on track to deliver on our revenue guidance
of $70 million this fiscal year."
On Tuesday of this week, the Company announced that it has
identified an additional $2 million in cost-reductions and margin
enhancements as part of their pathway to profitability. This brings
the total benefits identified in the company-wide review to an
estimated $7 million annually, once fully implemented.
"As economic headwinds persist and companies across various
industries temper their expectations for this coming year, we are
confident in our ability to continue to deliver strong
year-over-year comps in fiscal 2023 because Alkaline88’s products,
production, and distribution are stronger than ever," concluded Mr.
Lazaran.
Selected preliminary financial results
for the first quarter of Fiscal 2023
This news release presents preliminary results, for the period
presented, of the Company. Included above are certain estimated
preliminary unaudited financial results for the first quarter of
fiscal 2023. These results are preliminary and subject to change,
and there is a possibility that the Company’s actual results may
differ materially from these preliminary estimates. These results
are based on the information available to the Company as of the
date of this news release.
These estimated preliminary results for the first quarter of
fiscal 2023 are derived from the preliminary internal financial
records of the Company and are subject to revisions based on the
Company’s procedures and controls associated with the completion of
the Company’s financial reporting, including all the customary
reviews and approvals.
These estimated preliminary results should not be viewed as a
substitute for financial statements prepared in accordance with
U.S. GAAP. The Company’s independent registered public accounting
firm has not conducted a review of, and does not express an opinion
or any other form of assurance with respect to, these estimated
preliminary results. It is possible that the Company or its
independent registered public accounting firm may identify items
that would require the Company to make adjustments to the
preliminary estimates set forth above as the Company completes its
financial statements and that the Company’s actual results may
differ materially from these preliminary estimates. Accordingly,
undue reliance should not be placed on these preliminary estimates.
Except for the statements relating to the full fiscal year 2023
revenue guidance and the statements relating to cost-reductions and
margin enhancements, these preliminary estimates are not
necessarily indicative of any future period and should be read
together to the risk factors disclosure outlined in the reports and
other documents the Company files with the SEC, available at
www.sec.gov, and on the SEDAR, available at www.sedar.com.
About The Alkaline Water Company:
The Alkaline Water Company is the Clean Beverage® company making
a difference in the water you drink and the world we share.
Founded in 2012, The Alkaline Water Company (NASDAQ and CSE:
WTER) is headquartered in Scottsdale, Arizona. Its flagship
product, Alkaline88®, is a leading premier alkaline water brand
available in bulk and single-serve sizes along with eco-friendly
aluminum packaging options. With its innovative, state-of-the-art
proprietary electrolysis process, Alkaline88® delivers perfect 8.8
pH alkaline drinking water with trace minerals and electrolytes and
boasts our trademarked “Clean Beverage” label. In 2021, The
Alkaline Water Company was pleased to welcome Shaquille O’Neal to
its board of advisors and to serve as the celebrity brand
ambassador for Alkaline88®.
To purchase The Alkaline Water Company’s products online, visit
us at www.alkaline88.com.
To learn more about The Alkaline Water Company, please visit
www.thealkalinewaterco.com or connect with us on Facebook, Twitter,
Instagram, or LinkedIn.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements.”
Statements in this news release that 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, the
following: the statements relating to anticipated record revenue
between $16.4 and $16.6 million for first quarter of fiscal year
2023 and the projected double-digit year-over-year growth rate
through the first quarter and the Company’s anticipation of Q1 to
be the Company’s best sales quarter ever; the statements relating
to the Company’s revenue guidance of $70 million for fiscal year
2023; the statements relating to the Company’s identification of an
additional $2 million in cost-reductions and margin enhancements
and the total benefits identified in the Company-wide review to an
estimated $7 million annually, once fully implemented; the
statement relating to the Company's pathway to profitability; and
that the Company is confident in its ability to continue to deliver
strong year-over-year comps in fiscal 2023.
The material assumptions supporting these forward-looking
statements include, among others, that the Company’s cost-saving
measures will be effective to reduce the Company’s annual expense
and enhance the Company’s margin to the extent anticipated by the
Company; that the Company’s burn rate to trend downward and,
eventually, settle between 25 and 50% less than it is right now as
a result of the Company’s proactive reduction in its monthly burn
rate; that the demand for the Company’s products will continue to
significantly grow; that the past production capacity of the
Company’s co-packing facilities can be maintained or increased;
that there will be increased production capacity through
implementation of new production facilities, new co-packers and new
technology; that there will be an increase in number of products
available for sale to retailers and consumers; that there will be
an expansion in geographical areas by national retailers carrying
the Company’s products; that there will be an expansion into new
national and regional grocery retailers; that there will be an
expansion into new e-commerce, home delivery, convenience, and
healthy food channels; that there will not be interruptions on
production of the Company’s products; that there will not be a
recall of products due to unintended contamination or other adverse
events relating to the Company’s products; and that the Company
will be able to obtain additional capital to meet the Company’s
growing demand and satisfy the capital expenditure requirements
needed to increase production and support sales activity. In
addition, the Company’s fiscal year 2023 revenue guidance is based
on the Company’s expectation that the Company’s topline to be
driven by the momentum the Company is carrying forward as one of
the fastest-growing top-ten brands in one of the fastest-growing
beverage categories; the Company’s belief that the Company will
continue to see continued organic growth within the Company’s
existing retail clients and distribution expansion to new clients
throughout the country; and the assumption that the Company will
have another record quarter for the first quarter of fiscal year
2023. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, governmental regulations being implemented
regarding the production and sale of alkaline water or any other
products, including products containing hemp/CBD; the fact that
consumers may not embrace and purchase any of the Company’s
CBD-infused products; the fact that the Company may not be
permitted by the FDA or other regulatory authority to market or
sell any of its CBD-infused products; additional competitors
selling alkaline water and enhanced water products in bulk
containers reducing the Company’s sales; the fact that the Company
does not own or operate any of its production facilities and that
co-packers may not renew current agreements and/or not satisfy
increased production quotas; the fact that the Company has a
limited number of suppliers of its unique bulk bottles; the
potential for supply-chain interruption due to factors beyond the
Company’s control; the fact that there may be a recall of products
due to unintended contamination; the inherent uncertainties
associated with operating as an early stage company; changes in
customer demand and the fact that consumers may not embrace
enhanced water products as expected or at all; the extent to which
the Company is successful in gaining new long-term relationships
with new retailers and retaining existing relationships with
retailers; the Company’s ability to raise the additional funding
that it will need to continue to pursue its business, planned
capital expansion and sales activity; and competition in the
industry in which the Company operates and market conditions. These
forward-looking statements are made as of the date of this news
release, and the Company assumes 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, except as required by applicable law, including the
securities laws of the United States and Canada. Although the
Company believes that any beliefs, plans, expectations and
intentions contained in this news release are reasonable, there can
be no assurance that any such beliefs, plans, expectations or
intentions will prove to be accurate. Readers should consult all of
the information set forth herein and should also refer to the risk
factors disclosure outlined in the reports and other documents the
Company files with the SEC, available at www.sec.gov, and on the
SEDAR, available at www.sedar.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005153/en/
The Alkaline Water Company Inc. Jeff Wright Director of
Investor Relations 866-242-0240 investors@thealkalinewaterco.com
Media Jessica Starman 888-461-2233
jessica@elev8newmedia.com
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