LOS ANGELES, Nov. 13 /PRNewswire-FirstCall/ -- AVP, Inc. (OTC:AVPI)
(BULLETIN BOARD: AVPI) , a lifestyle sports entertainment company
focused on professional beach volleyball, today announced financial
results for its 2008 third quarter ended September 30, 2008. Third
Quarter 2008 Highlights: -- AVP CROCS TOUR -- Successfully
completed the 25th season of AVP Inc.'s flagship property, the AVP
Crocs Tour. The summer-long tour season brings the world's best
beach volleyball competition and entertainment to each of the 18
tour stops. The tour in Q3 featured both the men's and women's 2008
Olympic gold medal winning teams. -- NATIONAL TELEVISION BROADCASTS
-- Two AVP Crocs Tour finals were featured on national network
television. Following the Olympics, NBC extended its coverage of
Beach Volleyball airing the women's final of the AVP Crocs Cup
Shootout presented by Bud Light Mason and the AVP's Flagship event,
the AVP Crocs Cup Shootout presented by Bud Light Manhattan Beach
Open women's final featured on FOX Sports. For the three months
ended September 30, 2008, the Company reported revenue of $14.0
million, compared to the $12.8 million reported for the same period
in 2007. Net loss for the third quarter of 2008 was ($0.04
million), or a loss of ($0.00) per share, as compared to a net loss
of ($0.76 million), or ($0.04) per share, for the same period last
year. Net loss for the first nine months of 2008 was ($3.3
million), or a loss of ($0.15) per share, as compared to a net loss
of ($2.0 million), or ($0.10) per share, for the same period last
year. "Throughout these trying economic times, we continue to
maintain our focus on the growth and development of our sport and
brand and sharpen our focus on increasing value to our
shareholders," said Leonard Armato, Chief Executive Officer of AVP,
Inc. "We could not be more proud of the performance of our athletes
this summer on the AVP Crocs Tour and in Beijing. Without a doubt
our athletes are instrumental in the continued growth, awareness,
and success of our sport and we look forward to seeing many of our
world class athletes continue to compete in the winter tour." "As
we prepare to extend our elite competition into the winter months
for a second year of the AVP Johnsonville Hot Winter Nights Indoor
Beach Volleyball Tour, we are sure this one-of-a-kind tour will
provide a slice of our summer tour at each stop, something we are
confident everyone will enjoy." About AVP, Inc AVP, Inc. is a
leading lifestyle sports entertainment company focused on the
production, marketing and distribution of professional beach
volleyball events worldwide. One of the fastest growing entities in
the sports world, the AVP operates two of the industry's most
prominent national outdoor touring series, the AVP Pro Beach
Volleyball Tour (1983) and the AVP Hot Winter Nights Indoor Tour
(launched in 2008). The AVP is set to stage more than 35 events
throughout the United States in 2008 and features more than 150 of
the top men and women competitors in the sport. AVP athletes won
both the women's and men's gold medals at the 2008 Games in
Beijing, marking the first sweep of Olympic beach volleyball gold
medals by a single country. AVP is headquartered in Los Angeles,
Calif., and the company's stock trades under the symbol AVPI on the
OTC Bulletin Board. For more information, please visit
http://www.avp.com/. Forward Looking Statements Some of the
information in this press release may contain projections or other
forward-looking statements regarding future events or the future
financial performance of the Company. We wish to caution you that
these statements involve risks and uncertainties and actual results
might differ materially from those in the forward-looking
statements, if we receive less sponsorship and advertising revenue
than anticipated, or if attendance is adversely affected by
unfavorable weather. Event-related expenses, such as for the
stadium, transportation and accommodations, or security might be
greater than expected; or marketing or administrative costs might
be increased by our hiring, not currently planned, of a
particularly qualified prospect. Additional factors have been
detailed in the Company's filings with the Securities and Exchange
Commission, including our recent filings on Forms 10- KSB and
10-QSB. AVP, INC CONSOLIDATED BALANCE SHEETS (Unaudited) September
30, December 31, 2008 2007 ASSETS CURRENT ASSETS Cash and cash
equivalents $3,225,432 $2,257,453 Accounts receivable, net of
allowance for doubtful accounts of $251,756 and $149,748 5,108,785
2,008,253 Prepaid expenses 429,660 388,649 Other current assets
43,543 116,393 TOTAL CURRENT ASSETS 8,807,420 4,770,748 PROPERTY
AND EQUIPMENT, net 384,232 392,447 OTHER ASSETS 42,562 115,496
TOTAL ASSETS $9,234,214 $5,278,691 LIABILITIES AND STOCKHOLDERS'
EQUITY CURRENT LIABILITIES Accounts payable $3,421,529 $908,020
Accrued expenses 2,346,670 1,663,975 Deferred revenue 115,953
101,245 TOTAL CURRENT LIABILITIES 5,884,152 2,673,240 OTHER
NON-CURRENT LIABILITIES 256,571 96,419 TOTAL LIABILITIES 6,140,723
2,769,659 NOTE/RESTRICTED SHARES 2,621,413 - COMMITMENTS AND
CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, 2,000,000
shares authorized: Series B convertible preferred stock, $.001 par
value, 250,000 shares authorized, 94,944 and 47,152 shares issued
and outstanding 96 48 Common stock, $.001 par value, 80,000,000
shares authorized, 21,089,626 and 20,490,096 shares issued and
outstanding 21,090 20,490 Additional paid-in capital 40,979,914
39,732,837 Accumulated deficit (40,529,022) (37,244,343) TOTAL
STOCKHOLDERS' EQUITY 472,078 2,509,032 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $9,234,214 $5,278,691 - - AVP, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months
Ended Nine Months Ended September 30, September 30, 2008 2007 2008
2007 REVENUE Sponsorships/ Advertising (1) $11,185,387 $10,228,458
$18,253,405 $19,219,248 Other 2,853,899 2,577,980 4,605,005
4,604,591 TOTAL REVENUE 14,039,286 12,806,438 22,858,410 23,823,839
EVENT COST 11,524,174 10,761,071 18,285,360 17,998,538 GROSS PROFIT
2,515,112 2,045,367 4,573,050 5,825,301 OPERATING EXPENSES Sales
and marketing (2) 868,221 919,872 2,939,985 2,658,089
Administrative (3) 1,636,953 1,919,833 4,878,281 5,324,373 TOTAL
OPERATING EXPENSES 2,505,174 2,839,705 7,818,266 7,982,462
OPERATING INCOME (LOSS) 9,938 (794,338) (3,245,216) (2,157,161)
OTHER INCOME (EXPENSE) Interest expense - (745) - (745) Interest
income 769 44,748 17,972 158,725 Gain on disposal of asset - -
3,500 9,774 Foreign exchange loss 14 - (5,567) - TOTAL OTHER INCOME
783 44,003 15,905 167,754 INCOME (LOSS) BEFORE INCOME TAXES 10,721
(750,335) (3,229,311) (1,989,407) INCOME TAXES (9,793) (8,610)
(10,943) (9,410) NET INCOME (LOSS) 928 (758,945) (3,240,254)
(1,998,817) Deemed Dividend to Series B Preferred Stock
Shareholders 44,425 - 44,425 - Net Loss Available to Common
Shareholders $(43,497) $(758,945) $(3,284,679) $(1,998,817) Loss
per common share: Basic $- $(0.04) $(0.15) $(0.10) Diluted $-
$(0.04) $(0.15) $(0.10) Shares used in computing loss per share:
Basic 22,151,979 20,443,269 21,262,181 20,064,693 Diluted
22,151,979 20,443,269 21,262,181 20,064,693 (1)
Sponsorship/Advertising includes $0 and $507,800 in stock based
contra-revenue for the three months ended September 30, 2008 and
2007, respectively and $0 and $507,800 for the nine months ended
September 30, 2008 and 2007, respectively. (2) Sales and marketing
expenses includes stock-based expenses of $18,182 and $19,045 for
the three months ended September 30, 2008 and 2007, respectively,
and $54,545 and $101,266 for the nine moths ended September 30,
2008 and 2007, respectively. (3) Administrative expenses includes
stock-based expenses of $156,216 and $21,236 for the three months
ended September 30, 2008 and 2007, respectively, and $552,009 and
$64,192 for the nine months ended September 30, 2008 and 2007,
respectively. DATASOURCE: AVP, Inc. CONTACT: AVP, Inc. Investor
Relations, +1-310-426-7177; or media, Crystal Fukumoto of Brener
Zwikel & Associates, +1-818-462-5605, , for AVP Web site:
http://www.avp.com/
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