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 third quarter ended September 30, 2012. Revenue for the third quarter of 2012 decreased 16% to $4.2 million compared to revenue of $5.0 million for the third quarter of 2011. The Company reported a net loss of $324,000, or $(0.01) per share, for the third quarter of 2012, compared to a net loss of $1.7 million, or $(0.05) per share, for the third quarter 2011.
“The quarter's results demonstrate our progress in reducing expenses and focusing on markets where we can generate the highest return within our available resources,” said Jennifer Cue, CEO of Jones Soda Co. “Since rejoining the Company four months ago, we have taken a hard look at our sales execution strategy and are making changes that we believe will be conducive to longer-term growth while operating within a more disciplined cost structure.”
For the quarter, revenue declined by 16% due in part to shifting attention to higher priority core markets. While revenues declined, comparable gross profit for the quarter was down only 2%.
“Together we are enjoying the first signs of progress of our turnaround strategy with a renewed sense of our old Jones entrepreneurial spirit and a commitment to a sustainable and growing company,” added Ms. Cue.Third Quarter Review - Comparison of Quarters Ended September 30, 2012 and 2011
- Revenue decreased 16% to $4.2 million, compared to $5.0 million last year.
- Gross margin increased to 28% of revenue, compared to 24% of revenue last year.
- Operating expenses decreased 48% to $1.5 million, compared to $2.8 million last year.
- Net loss improved to $324,000, or $(0.01) per share, for the third quarter of 2012, compared to a net loss of $1.7 million, or $(0.05) per share, last year, an 81% improvement and included non-cash expenses (depreciation, amortization and stock-based compensation) of $326,000, compared to $159,000 last year.
- Revenue decreased 5% to $13.3 million compared to $14.0 million last year.
- Gross margin increased to 28% of revenue, compared to 26% of revenue, last year.
- Operating expenses decreased 30% to $6.2 million, compared to $8.8 million last year.
- Net loss improved to $2.5 million, or $(0.07) per share, compared to a net loss of $5.2 million, or $(0.16) per share, last year, a 53% improvement and included non-cash expenses of $613,000, compared to $540,000 last year.
JONES SODA CO. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
|Three Months Ended September 30,||Nine Months Ended September 30,|
|(In thousands, except share data)|
|Cost of goods sold||3,009||3,802||9,519||10,386|
|Gross profit %||27.7||%||23.5||%||28.3||%||25.7||%|
|Promotion and selling||571||1,557||2,848||4,710|
|General and administrative||893||1,282||3,303||4,075|
|Loss from operations||(308||)||(1,661||)||(2,375||)||(5,178||)|
|Other income (expense), net||9||1||(7||)||79|
|Loss before income taxes||(299||)||(1,660||)||(2,382||)||(5,099||)|
|Income tax expense, net||(25||)||(24||)||(73||)||(75||)|
|Net loss per share - basic and diluted||$||(0.01||)||$||(0.05||)||$||(0.07||)||$||(0.16||)|
|Weighted average basic and diluted common shares outstanding||38,545,118||32,029,389||37,698,661||31,827,698|
Three Months Ended September 30,
Nine Months Ended September 30,
Case sale data (288-ounce equivalent)
Finished product cases
JONES SODA CO. CONDENSED CONSOLIDATED BALANCE SHEETS
|September 30, 2012||December 31, 2011|
|Cash and cash equivalents||$||1,456||$||1,709|
|Prepaid expenses and other current assets||130||204|
|Total current assets||6,815||6,265|
|Liabilities and Shareholders' Equity|
|Other current liabilities||52||48|
|Total current liabilities||2,336||2,713|
|Long-term liabilities - other||500||539|
|Common stock, no par value:|
|Issued and outstanding: 38,538,640 and 32,100,882 shares, respectively||52,904||50,090|
|Additional paid-in capital||7,508||7,116|
|Accumulated other comprehensive income||457||420|
|Total shareholders' equity||5,193||4,405|
|Total liabilities and shareholders' equity||$||8,029||$||7,657|
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