This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Drinks Americas Sales Increase 758% For The Quarter, Margins Improve 131%

WILTON, Conn., Dec. 12, 2011 /PRNewswire/ -- Drinks Americas Holdings, Ltd., ("Drinks") (OTCBB: DKAM), a leading developer and marketer of beverage products, announced that the Company had a net sales increase of 758% and a 131% improvement in gross margin for the quarter ending October 31, 2011.  Sales for the three months ending October 31, 2011 were $1,270,589 with a gross margin of 23.8% compared to the prior three months (ended July 31, 2011) of $148,080 with a gross margin of 10.3%.  Drinks Americas had a net increase in sales of 758% and a 131% improvement in gross margin for the quarter. 

Comparing the same period last year (three months ended October 31, 2010) Drinks Americas sales increased by $1,126,947 from $143,642 or 784% with margins of 23.8% compared to 20.8% same period last year (a 14.4% improvement).

On a year to date basis (six months ended October 31, 2011) Drinks Americas sales were up 477% reaching $1,418,669 compared to $245,898 for the same period last year.  Margins improved 62.5%.  Margins were 22.4% for the current period compared to 13.8% for the same period last year. 

Drinks Americas net loss for the three months ended October 31, 2011 decreased by 54.2% to $384,203 as compared to $850,415, an improvement of $466,212.  Year to date (six months ended October 31, 2011) was $730,471 compared to $1,748,853 for the same period last year a $1,018,382 or a 58.3% improvement.  The result is primarily attributable to the Company's increased sales volume coupled with gross margin improvements.

The Company continued to extinguish debt with an additional $322,000 in gain recognized in settlement of debt. Also impacting results were onetime expenses in the quarter ending October 31, 2011 that were in excess of $380,000. Interest expenses for the quarter were reduced from $204,000 to $56,000.

SGA over six months increased 6.2% however sales commission increases based on increased rate of sales had an $80,000 impact on the continued reduction of costs. Without increased commissions from incremental sales, SGA actually decreased 13%.

The Company's growth was accelerated by access to inventory on favorable terms as a result of Drinks Americas' recent transaction with Worldwide Beverage Imports, LLC and the sales of KAH Tequila, Old Whiskey River Bourbon, and Rheingold Beer.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs