Jones Soda Co. (the Company) (OTCQB:JSDA), a leader in the
premium soda category and known for its unique branding and
innovative marketing, today announced results for the second
quarter ended June 30, 2014.
The Company reported a net loss of $429,000 or $(0.01) per
share, for the second quarter of 2014 compared to a net loss of
$95,000 or $(0.00) per share, for the second quarter 2013. Results
for the second quarter of 2014 were impacted by key distributor
transitions in certain regions and increased costs of production
due to commodity glass prices and special packaging for a major
retail chain.
Jennifer Cue, CEO of Jones Soda Co., stated, “As we complete the
restructuring process of our business, we are now shifting the
management team’s focus from stability towards growth and
profitability. I am extremely pleased with the significant
improvements we have achieved in our operating structure over the
long term. We have made some key investments in the second quarter
of 2014 that impacted our net loss; however, these were
mission-critical expenditures to build new distribution in certain
regions and to foster a growing relationship with a major
international retailer. With the diverse Jones product portfolio
and upcoming innovations in products, programs and partnerships, we
are excited for our future.”
Second Quarter Review - Comparison of Quarters Ended June 30,
2014 and 2013
- Revenue decreased 9.5% to $3.9 million,
compared to $4.3 million last year.
- Gross margin decreased to 22.5% of
revenue, compared to 28.8% of revenue last year due to higher costs
of commodity glass and special packaging for a major retail
chain.
- Operating expenses decreased slightly
by $41,000, or 3.1%, to $1.27 million, compared to $1.32 million
last year.
- Net loss increased to $429,000, or
$(0.01) per share, compared to a net loss of $95,000 or $(0.00) per
share, last year.
Conference Call
The Company will discuss its results for the quarter ended June
30, 2014, on its scheduled conference call today, August 7, 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
719-325-2177 (confirmation code: 2936909). In addition, a telephone
replay will be available by dialing 858-384-5517 (confirmation
code: 2936909) through August 14, 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® and Jones Stripped™ 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 organic
agave syrup, 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. 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, 2013, filed with the
Securities and Exchange Commission on March 31, 2014, and in
its quarterly reports on Form 10-Q and current reports on Form 8-K
filed in 2014. 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.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three months ended June 30, Six months ended June
30, 2014 2013 2014 2013
(In thousands, except share data) (Unaudited) Revenue
$ 3,879 $ 4,287 $ 6,769 $ 7,383 Cost of goods sold 3,007
3,053 5,204 5,389
Gross profit 872 1,234 1,565 1,994 Gross profit % 22.5 % 28.8 %
23.1 % 27.0 % Operating expenses: Selling and marketing 591
625 1,089 1,098 General and administrative 683
690 1,388 1,365 1,274
1,315 2,477 2,463
Loss from operations (402 ) (81 ) (912 ) (469 ) Other (expense)
income, net 3 (9 ) (8 ) 4
Loss before income taxes (399 ) (90 ) (920 ) (465 ) Income tax
expense, net (30 ) (5 ) (48 ) (29 ) Net
loss $ (429 ) $ (95 ) $ (968 ) $ (494 ) Net loss per share -
basic and diluted $ (0.01 ) $ 0.00 $ (0.02 ) $ (0.01 ) Weighted
average basic and diluted common shares outstanding 39,078,592
38,530,416 38,894,504 38,530,416
Three
months ended June 30, Six months ended June 30, Case
sale data (288-ounce equivalent) 2014 2013
2014 2013 Finished product cases 278,000 306,000
491,000 531,000
JONES SODA CO.
CONDENSED CONSOLIDATED BALANCE
SHEETS
June 30, 2014 December 31, 2013
(Unaudited) (In thousands, except share data)
ASSETS Current assets: Cash and cash equivalents $ 519 $
1,464 Accounts receivable, net of allowance of $48 and $42 2,648
1,034 Inventory 3,420 2,315 Prepaid expenses and other current
assets 185 410 Total current assets
6,772 5,223 Fixed assets, net of accumulated depreciation of $1,245
and $1,194 126 232 Other assets 36 59
Total assets $ 6,934 $ 5,514
LIABILITIES AND
SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $
3,036 $ 871 Accrued expenses 776 892 Taxes payable 17 37 Other
current liabilities 50 48 Total current
liabilities 3,879 1,848 Long-term liabilities — other 381 406
Shareholders’ equity: Common stock, no par value: Authorized —
100,000,000; issued and outstanding shares — 39,134,582 and
38,710,416 shares, respectively 53,117 52,981 Additional paid-in
capital 8,128 7,941 Accumulated other comprehensive income 413 355
Accumulated deficit (58,984 ) (58,017 ) Total
shareholders’ equity 2,674 3,260 Total
liabilities and shareholders’ equity $ 6,934 $ 5,514
Jones Soda Co.Mark Miyata, 206-624-3357mmiyata@jonessoda.comVice
President of Finance
Jones Soda (QB) (USOTC:JSDA)
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