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 second quarter ended June 30, 2011. The Company reported a net loss of $1.8 million, or ($0.06) per share, for the second quarter of 2011, compared to a net loss of $1.6 million, or ($0.06) per share, for the second quarter 2010. William Meissner, President & Chief Executive Officer, stated, “Our legacy Jones Soda business and our newly re-launched WhoopAss Energy Drink continued to capture share in our North American markets. Since my arrival, we have repositioned resources and made additional investments in personnel to support growth of these two product lines and we remain optimistic that this strategy will lead to improved top and bottom line performances for the full year. Longer-term, we are focused on leveraging our core competencies to develop and market exciting brand extensions to drive sustainable growth and profitability.” Second Quarter Review — Comparison of Quarters Ended June 30, 2011 and 2010
- Revenue decreased 8% to $4.9 million, compared to $5.4 million last year, and included a decline resulting from the discontinuation in the second half of 2010 of underperforming product lines and SKU offerings (stock keeping units) of approximately 4% of total revenue compared to the prior year period.
- Gross profit increased 10% to $1.4 million, or 28.8% of revenue, compared to $1.3 million, or 24.1% of revenue, last year. Second quarter 2010 gross profit was negatively impacted by the write-down of excess GABA inventory totaling $178,000.
- Operating expenses increased 13% to $3.2 million compared to $2.8 million last year and included a $350,000 charge accrued to the second quarter in connection with the termination of our New Jersey Nets sponsorship agreement in August 2011. Our ongoing sponsorship commitments have been reduced by approximately $7.0 million through 2017.
- Net loss was $1.8 million, or ($0.06) per share, from a net loss of $1.6 million, or ($0.06) per share, last year.
- Cash used in operations was $769,000 versus cash provided by operations of $6,000 last year.
- Revenue decreased 3% to $9.0 million, compared to $9.3 million last year, and included a decline resulting from the discontinuation in the second half of 2010 of underperforming product lines and SKU offerings of approximately 9% of total revenue compared to the prior year period.
- Gross profit increased 15% to $2.4 million, or 26.9% of revenue, compared to $2.1 million, or 22.7% of revenue, last year. Gross profit for the 2010 period was negatively impacted by the write-down of excess GABA inventory totaling $178,000.
- Operating expenses increased 4% to $5.9 million compared to $5.7 million last year and included a $350,000 charge accrued to the second quarter in connection with the termination of our New Jersey Nets sponsorship agreement in August 2011.
- Net loss improved to $3.5 million, or ($0.11) per share, compared to a net loss of $3.7 million, or ($0.14) per share, last year.
- Inventories were $3.0 million as of June 30, 2011, down approximately $400,000 compared to inventories of $3.4 million as of June 30, 2010, due to our transition out of underperforming product lines and SKU offerings.
|JONES SODA CO. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except share data) (Unaudited)|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of goods sold||3,497||3,894||6,584||6,979|
|Write-down of excess GABA inventory||—||178||—||178|
|Gross profit %||28.8||%||24.1||%||26.9||%||22.7||%|
|Promotion and selling||1,873||1,078||3,153||2,302|
|General and administrative||1,313||1,745||2,793||3,428|
|Loss from operations||(1,762||)||(1,522||)||(3,517||)||(3,611||)|
|Other income (expense), net||6||(3||)||78||(8||)|
|Loss before income tax||(1,756||)||(1,525||)||(3,439||)||(3,619||)|
|Income tax expense, net||(64||)||(29||)||(51||)||(67||)|
|Net loss per share — basic and diluted||$||(0.06||)||$||(0.06||)||$||(0.11||)||$||(0.14||)|
|Weighted average basic and diluted common shares outstanding||31,990,645||26,451,211||31,724,816||26,439,596|
|JONES SODA CO. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)|
|June 30, 2011||December 31, 2010|
|Cash and cash equivalents||$||4,628||$||5,448|
|Prepaid expenses and other current assets||212||305|
|Total current assets||10,445||10,732|
|Liabilities and Shareholders’ Equity|
|Capital lease obligations, current portion||22||—|
|Total current liabilities||3,464||2,591|
|Capital lease obligations||94||—|
|Long-term liabilities — other||2||2|
|Common stock, no par value:|
|Issued and outstanding: 31,992,581 and 30,418,301 shares, respectively||50,089||47,917|
|Additional paid-in capital||6,866||6,570|
|Accumulated other comprehensive income||510||450|
|Total shareholders’ equity||7,908||8,870|
|Total liabilities and shareholders’ equity||$||11,468||$||11,463|