Jones Soda Co. Reports Third Quarter 2010 Results
Jones Soda Co. (the Company) (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the third quarter ended September 30, 2010. The Company reported a net loss of $578,000, or ($0.02) per share, for the quarter ended September 30, 2010, a 61% improvement from the third quarter 2009 net loss of $1.5 million, or ($0.06) per share.
William Meissner, President & Chief Executive Officer, stated, “Our improved bottom line performance in the third quarter is an indication that the initial phase of our turnaround strategy is tracking on plan. Over the past several months we have continued to exit unprofitable distribution channels and lower our general and administrative costs, while simultaneously investing in our sales and marketing teams and platforms to better support our core bottle business and our recently re-launched energy drink, WhoopAss. While there is still much work to be done, the recent sell-through results of our glass bottled soda are encouraging and give us a heightened degree of confidence about our long-term growth prospects. We move forward focused on expanding our market share in a strategic and profitable manner and committed to returning greater value to our shareholders in the future.”
Third Quarter Review – Comparison of Quarters ended September 30, 2010 and September 30, 2009
- Revenue decreased 28% to $5.1 million for the quarter ended September 30, 2010, compared to $7.2 million in the third quarter of 2009.
- Gross profit decreased 8.5% to $1.4 million for the quarter ended September 30, 2010, compared to $1.5 million in the corresponding period a year ago. The third quarter 2010 included an additional write-down of excess GABA inventory totaling $166,000. For the quarter ended September 30, 2010, gross profit as a percentage of revenue increased to 27%, compared to 21% in the third quarter of 2009, with the difference being primarily the result of charges in 2009 as the result of packaging changes.
- Operating expenses decreased 22% to $2.4 million, compared to the corresponding period a year ago, and were benefited by cost containment measures including the reductions in workforce enacted during 2009.
- Provision for income taxes for the quarter ended September 30, 2010 and 2009 was a benefit of $370,000 and $87,000, respectively, and reflects a credit for the quarters ended September 30, 2010 and 2009 due to non-recurring tax refunds allowed from our Canadian operations.
- Net loss improved 61% to $578,000, or ($0.02) per share, for the quarter ended September 30, 2010, from the third quarter 2009 net loss of $1.5 million, or ($0.06) per share.
- Cash used in operations during the quarter was $1.0 million versus cash used in operations of $823,000 during the prior year period primarily due to sponsorship payments. Our cash for the quarter increased $40,000 as a result of completing our first draw down on our equity line for net proceeds of approximately $1.0 million.
Balance SheetAs of September 30, 2010, the Company had cash and cash equivalents of approximately $2.6 million and working capital of approximately $6.9 million. Cash used in operations during the quarter ended September 30, 2010 totaled $1.0 million. As of September 30, 2010, inventories were $2.7 million compared to $3.7 million as of December 31, 2009. As previously disclosed, subsequent to quarter end, we completed a second draw down and sale under our equity line of credit arrangement for gross proceeds of $1 million.
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