- Revenue decreased 27% to $3.1 million for the quarter ended December 31, 2010, compared to $4.3 million in the fourth quarter of 2009.
- Gross profit increased to $557,000 for the quarter ended December 31, 2010, compared to a negative $1.1 million in the corresponding period a year ago. This increase primarily resulted from the impact of a $2.0 million charge in the fourth quarter of 2009, consisting of a $1.6 million write-down of excess GABA inventory and a $422,000 impairment of equipment located at a co-packer relating to our concentrate soda distribution (CSD) channel. The fourth quarter of 2010 includes an additional write-down of the remaining GABA inventory totaling $162,000. For the quarter ended December 31, 2010, gross profit as a percentage of revenue increased to 18%.
- Operating expenses decreased 21% to $2.6 million, compared to the corresponding period a year ago, and were benefited by cost containment measures, including the reductions in workforce enacted during 2009.
- Net loss improved 59% to $1.8 million, or ($0.06) per share, for the quarter ended December 31, 2010, from the fourth quarter 2009 net loss of $4.5 million, or ($0.17) per share.
- Cash provided by operations during the quarter ended December 31, 2010 was $83,000 versus cash used in operations of $1.1 million during the fourth quarter of 2009. Our cash for the fourth quarter 2010 increased $2.9 million as a result of completing two draw downs under our equity line credit arrangement for net proceeds of approximately $3.0 million.
- Revenue decreased 33% to $17.5 million for the year ended December 31, 2010, compared to $26.0 million in 2009.
- Gross profit increased 4% to $4.0 million for the year ended December 31, 2010, compared to gross profit of $3.9 million a year ago. This increase primarily resulted from a $2.2 million charge in the prior year, consisting of a $1.8 million write-down of excess GABA inventory and a $422,000 impairment of equipment located at a co-packer relating to our CSD channel. An additional write-down of the remaining GABA inventory totaling $506,000, was recorded in 2010. For the year ended December 31, 2010, gross profit as a percentage of revenue increased to 23%, compared to 15% for the year ended December 31, 2009.
- Operating expenses for the year ended December 31, 2010 decreased 26% to $10.7 million, compared to the prior year and were benefited by cost containment measures, including our reductions in workforce during 2009.
- Provision for income taxes for the year ended December 31, 2010 was a benefit of $338,000, and reflects a credit due to a non-recurring tax refund allowed from our Canadian operations, compared to an expense of $72,000 a year ago.
- Cash used in operations during 2010 decreased to $3.5 million, from $7.3 million during the prior year.
Conference CallThe Company will discuss its results for the quarter and year ended December 31, 2010 and its business outlook on its scheduled conference call today, March 10, 2011 at 1:30 p.m., Pacific time (4:30 p.m. ET). This call is being webcast and can be accessed by visiting the Investor section of our website at www.jonessoda.com. Investors may also listen to the call via telephone by dialing (719) 325-2418 (confirmation code: 7200608). In addition, a telephone replay will be available by dialing (858) 384-5517 (confirmation code: 7200608) through March 17, 2011, at 11:59 p.m. Eastern Time. About Jones Soda Co. Headquartered in Seattle, Washington, Jones Soda Co.® markets and distributes premium beverages under the Jones Soda, Jones Pure Cane Soda® and Whoopass Energy Drink® brands and sells through its distribution network in markets primarily across North America. A leader in the premium soda category, Jones is known for its variety of flavors and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers. For more information, visit www.jonessoda.com or www.myjones.com. Forward-Looking Statements Disclosure Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the continuing effectiveness of Jones Soda's turnaround strategy and cost-containment measures, Jones Soda's prospects for long-term growth, and Jones Soda's ability to increase demand and profitably expand market share in the future. Forward-looking statements include all passages containing words such as "aims," "anticipates," "becoming," "believes," "continue," "estimates," "expects," "future," "intends," "plans," "predicts," "projects," "targets," or "upcoming". Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could affect Jones Soda's actual results include, among others, its ability to successfully execute on its 2011 operating plan; its ability to secure additional financing or to generate sufficient cash flow from operations; its ability to use the net proceeds from any financings to improve its financial condition or market value; its ability to increase demand and points of distribution for its products or to successfully innovate new products and product extensions; its ability to establish distribution arrangements with distributors, retailers or national retail accounts; its ability to maintain relationships with co-packers; its ability to maintain a consistent and cost-effective supply of raw materials; its ability to receive returns on its trade spending and slotting fee expenditures; its ability to maintain brand image and product quality; its ability to protect its intellectual property; the impact of current and future litigation; and its ability to develop new products to satisfy customer preferences; and the impact of intense competition from other beverage suppliers. More information about factors that potentially could affect Jones Soda's financial results is included in Jones Soda's most recent annual report on Form 10-K and in the Company’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission in 2010. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Jones Soda undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
|JONES SODA CO. CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except share data)|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Cost of goods sold||2,424||3,390||12,978||19,875|
|Write-down of excess GABA inventory and impairment of fixed assets||162||2,038||506||2,248|
|Gross profit %||17.7||%||(26.1||)%||23.1||%||15.0||%|
|Promotion and selling||1,265||1,669||4,676||7,820|
|General and administrative||1,298||1,589||5,983||6,596|
|Loss from operations||(2,000||)||(4,371||)||(6,586||)||(10,445||)|
|Other income (expense), net||123||35||142||(30||)|
|Loss before income tax||(1,877||)||(4,336||)||(6,444||)||(10,475||)|
|Income tax benefit, net||35||(161||)||338||(72||)|
|Net loss per share, basic and diluted||$||(0.06||)||$||(0.17||)||$||(0.22||)||$||(0.40||)|
|Weighted average basic and diluted common shares outstanding||28,342,274||26,426,171||27,172,697||26,433,645|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Case Sale Data (288-ounce equivalent):||2010||2009||2010||2009|
|Finished products cases||228,220||365,200||1,324,100||2,057,000|
|JONES SODA CO. CONSOLIDATED BALANCE SHEETS (In thousands, except share data)|
|December 31, 2010||December 31, 2009|
|Cash and cash equivalents||$||5,448||$||4,975|
|Prepaid expenses and other current assets||305||487|
|Total current assets||10,732||11,692|
|Liabilities and Shareholders’ Equity|
|Note payable, current portion||—||125|
|Total current liabilities||2,591||3,162|
|Long-term liabilities — other||2||—|
|Common stock, no par value:|
|Issued and outstanding: 30,418,301 and 26,427,989 shares, respectively||47,917||43,925|
|Additional paid-in capital||6,570||5,771|
|Accumulated other comprehensive income||450||418|
|Total shareholders’ equity||8,870||10,153|
|Total liabilities and shareholders’ equity||$||11,463||$||13,534|