BOCA RATON, Fla., July 29, 2013 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first and only negative calorie drink backed by clinical science, today reported its results of operations for the three and six months ended June 30, 2013.
Results for the second quarter continue to reflect the efforts of our Turnaround Plan, which was initiated with the change in management in the fourth quarter of 2011. As part of this Plan, the Company introduced new packaging design which featured a focus on "Burn More Calories Plus Lasting Energy", implemented a nationwide single serving strategy and successfully implemented the "Drill Deep" model in five key regions.
Second Quarter 2013 Highlights:
- Net Revenue was $3.0 million, an increase of 66% year-over-year
- Gross Profit was $1.2 million, an increase of 211% year-over-year
- Net Loss was $0.2 million, a decrease in loss of $0.9 million or 80% year-over-year increase
- Net Revenue from International sales was $1.4 million, an increase of 2,744% year-over-year
- Net Revenue from Domestic sales was $1.6 million, a decrease of 10% year-over-year, Excluding 2012 discontinued warehouse club sales of $813 thousand, Domestic sales increased 66%.
"We are very pleased to report strong financial results for the second quarter 2013 as revenues grew 66% from the comparable year-ago quarter and margins improved. The quarter was highlighted by the growth in international sales and continued growth in all Domestic channels of distribution. Celsius brand awareness is being driven by multiple marketing efforts including Pandora radio ads, PR events including radio and television interviews and social digital media," said Mr. Gerry David, Chief Executive Officer.
Second Quarter 2013 Financial Results:
Revenue: Net revenues for the three months ended June 30, 2013 totaled $3.02 million as compared to $1.82 million for the same period in 2012, a 66% increase. This increase was driven primarily by increases in international sales totaling $1.38 million and increases in domestic sales totaling $630 thousand, off-set by the elimination of 2012 Costco Wholesale sales of $813 thousand. Domestically, we are seeing double & triple digit growth in all domestic segments, domestic retail accounts are up 46% versus the prior year when excluding Costco sales from 2012, Health & Fitness accounts are up 214%, internet retail accounts are up 156%, and direct to consumer sales are up 28%.
Gross Profit: Gross profits for the three months ended June 30, 2013 totaled $1.19 million or 39% of net sales as compared to $382 thousand or 21% for the same period in 2012. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the three months ended June 30, 2013 totaled $1.30 million as compared to $1.43 million for the same period in 2012, a 9% decrease. A significant portion of this decrease is attributable to decreases in option expense off-set by increases in marketing programs and additional investment in human resources.
Net Loss: The Company recorded a net loss of $228,000 for the three months ended June 30, 2013 compared to a net loss of $1,119,000 for the same quarter a year ago, or ($0.01) and ($0.06) per share, respectively.
For the six months ending June 30, 2013 Financial Results:
Revenue: Net revenues for the six months ending June 30, 2013 totaled $5.36 million as compared to $4.31 million in 2012, a 24% increase. This increase was driven primarily by increases in international sales totaling $1.63 million and increases in domestic sales totaling $1.04 million, off-set by the elimination of 2012 Costco Wholesale sales of $1.62 million. Domestically, we are seeing double & triple digit growth in all domestic segments, domestic retail accounts are up 38% versus the prior year when excluding Costco sales from 2012, Health & Fitness accounts are up 178%, internet retail accounts are up 152%, and direct to consumer sales are up 37%.
Gross Profit: Gross profits for the six months ending June 30, 2013 totaled $2.06 million or 38% of net sales as compared to $1.25 million or 29% for the same period in 2012. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the six months ending June 30, 2013 totaled $2.47 million as compared to $2.77 million for the same period in 2012, an 11% decrease. A significant portion of this decrease is associated with option expense savings and other sales expense savings.
Net Loss: The Company recorded a net loss of $634 thousand for the six months ending June 30, 2013 compared to a loss of $1.66 million for the same period a year ago, or ($0.03) and ($0.08) per share, respectively.
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Other OTC:CELH) markets Celsius®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. For more information, please visit www.celsius.com.
Forward-Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.
| Celsius Holdings, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (Unaudited) | ||
| June 30 | December 31 | |
| ASSETS | 2013 | 2012 |
| Current assets: | ||
| Cash and cash equivalents | $ 211,507 | $ 108,981 |
| Accounts receivable, net | 764,052 | 620,325 |
| Inventories, net | 1,190,508 | 921,709 |
| Other current assets | 572,972 | 295,314 |
| Total current assets | 2,739,286 | 1,946,329 |
| Property, fixtures and equipment, net | 82,117 | 104,690 |
| Total Assets | $ 2,821,403 | $ 2,051,019 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 751,502 | $ 861,640 |
| Short-term liabilities – other | 44,108 | 173,557 |
| Short-term liabilities to related parties | 75,000 | 0 |
| Total current liabilities | 870,610 | 1,035,197 |
| Long-term liabilities | ||
| Convertible note payable, related party | 1,500,000 | 1,500,000 |
| Note due to related parties | 7,450,000 | 5,950,000 |
| Total Liabilities | 9,820,610 | 8,485,197 |
| Stockholders' Equity (Deficit): | ||
| Common stock | 20,179 | 20,179 |
| Additional paid-in capital | 36,912,133 | 36,843,414 |
| Accumulated deficit | (43,931,519) | (43,297,771) |
| Total Stockholders' Equity (Deficit) | (6,999,206) | (6,434,178) |
| Total Liabilities and Stockholders' Equity (Deficit) | $ 2,821,403 | $ 2,051,019 |
| Celsius Holdings, Inc. and Subsidiaries | ||||
| Condensed Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Net revenue | $ 3,018,758 | $ 1,822,742 | $ 5,361,129 | $ 4,308,584 |
| Cost of revenue | 1,830,873 | 1,440,600 | 3,303,608 | 3,059,127 |
| Gross profit | 1,187,885 | 382,142 | 2,057,521 | 1,249,457 |
| Selling and marketing expenses | 851,837 | 1,002,790 | 1,722,197 | 1,848,813 |
| General and administrative expenses | 450,502 | 423,392 | 751,510 | 916,512 |
| Total operating expense | 1,302,339 | 1,426,182 | 2,473,707 | 2,765,325 |
| Loss from operations | (114,454) | (1,044,040) | (416,186) | (1,515,868) |
| Interest expense, net | 113,894 | 74,856 | 217,562 | 139,289 |
| Net loss | $ (228,348) | $ (1,118,896) | $ (633,748) | $ (1,655,157) |
| Basic and diluted: | ||||
| Weighted average shares outstanding | 20,181,408 | 20,181,408 | 20,181,408 | 20,181,408 |
| Loss per share | $ (0.01) | $ (0.06) | $ (0.03) | $ (0.08) |