DENVER, Dec. 17, 2013 (GLOBE NEWSWIRE) -- Marley Coffee (OTC:JAMN) ( www.marleycoffee.com ), the sustainably grown, ethically farmed and artisan-roasted gourmet coffee company, reports financial results for the three and nine months ended October 31, 2013 and 2012, including increases in revenue, gross profit and gross profit margins, for the year-over-year periods.
Highlights of the third fiscal quarter and nine months include:
- Revenue for the 2014 third fiscal quarter (i.e., the three months ended October 31, 2013) increased 309 percent to $2.2 million vs. $536 thousand compared with fiscal 3Q 2013. For the nine-month period ended October 31, 2013, revenue increased 228 percent to $4.6 million compared with $1.4 million in the year-ago nine-month period.
- Increased grocery retailer penetration to 8,000 authorized locations as of October 31, 2013, compared with 500 locations at the end of the third quarter last year helped contribute to the growth in revenue.
- Gross profit increased to $811 thousand in the 2014 third fiscal quarter compared with $153 thousand in the year-ago third fiscal quarter. For the nine months ended October 31, 2013, gross profit was $1.8 million compared with $295 thousand in the year-ago nine-month period.
- Gross profit margins increased to 37 percent in the third quarter of fiscal 2014 from 29 percent in the year-ago third fiscal quarter.
- Operating expenses for the third fiscal quarter 2014 were $1.5 million compared with $1.0 million in the year-ago third fiscal quarter, and $3.1 million for the nine months ended October 31, 2013 compared with $3.0 million in the year-ago nine-month period. While operating expenses increased by 50%, revenues increased by 309% highlighting the companies ability to scale well.
- Net loss was $1.4 million or $0.01 per share for the third fiscal quarter of 2014, compared with a net loss of $945 thousand, or $0.01 per share, in the year-ago third fiscal quarter. October 31, 2013 was a non-cash loss on extinguishment of debt of $684 thousand and $1.1 million, respectively and non-cash equity compensation of $601 thousand and $1.6 million, respectively. That loss on extinguishment of debt was specifically due to the financing transaction by Ironridge. The losses relate to a non-cash true up of certain amounts due to Ironridge under the July 2013 transaction and represent the value of shares of common stock issuable to satisfy certain liabilities previously purchased by Ironridge. Moreover, excluding these non-cash transactions, net loss for the three months ending October 31, 2013 would have been $93 thousand or $0.00 per share and net income for the nine-month period would have been $200 thousand or $0.00 per share.
- Cash flows from operations improved from a net cash burn of $998 thousand for the nine months ending October 31, 2012 to a positive net cash flow of $990 thousand for the nine months ending October 31, 2013. The positive cash flow was due to the significant increase in revenues during the period, in addition to the use of equity financing to pay down and manage debt. The Company believes that this decrease in debt will help minimize the risk for any current and potential investors, and plans to transition from equity-based compensation to cash compensation for the management team during the fiscal year ending January 31, 2015.
- Generated distribution with several leading supermarket chains and retail outlets including Giant Food Stores, Stop & Shop, Natural Grocers by Vitamin Cottage ®, AKiN's Natural Food Markets, Chamberlin's Market & Cafe, Richard's Foodporium, Market District, Vitamin Discount Center, Hen House Market, Ball's Price Chopper, and Brookshire Brothers, were added during the fiscal third quarter.
- Garden of Life ®, named the #1 selling brand in the natural products industry by SPINScan, launched fair trade Marley Coffee flavors of its best-selling Raw Protein and Raw Meal.
- AVT, Inc., a leader in automated retailing systems, self-service stores and kiosks, placed 360 Marley Coffee automated kiosk in Los Angeles' Westwood Pavilion.
- Introduced three varieties of Marley Coffee espresso capsules for the Coscolina and Verona espresso machines, manufactured by the Martello Cafe line.
- Marley Coffee named as primary refreshment option at the New York City headquarters of Spotify, the innovative online music streaming service.
- Launched "Smile Jamaica," a blend of 20 percent Jamaican Blue Mountain (JBM) coffee and 80 percent Rainforest Alliance Certified coffee, the first authorized JBM blend in North America.
- Company management featured in a series of media outlets including Bloomberg TV and Fox Business News.
- Subsequent to the end of the quarter, the Company generated distribution with Kroger-owned Quality Food Centers, Fred Meyer, Ralphs and all 14 New York City metropolitan area locations of Fairway Market.
- Subsequent to the end of the quarter, the Company purchased the majority of assets of BikeCaffé Franchising Inc., a Denver-based company that owns and sells mobile coffee carts worldwide.
Rohan Marley, Founder and Chairman of Marley Coffee, said, "The progress during this quarter was a result of our company's dedication and vision for Marley Coffee. As we continue to grow our business and introduce more and more customers to our unique blends, we also intend to remain true to our ideals—including sustainability, environmental awareness and community-based responsibility—that truly sets Marley Coffee apart as a coffee company."