Pulse Provides Q3 Report And Outlook

DENVER, Nov. 14, 2016 (GLOBE NEWSWIRE) -- The Pulse Beverage Corporation ("Pulse") (OTCQX:PLSB), makers of Natural Cabana® Lemonades/Limeades and Coconut Waters, and PULSE® Heart & Body Health functional beverages, today provided its Q3 Report and Outlook.

Business Highlights for Q3-2016 to Date:

During Q3-2016 Pulse continued its strategic decision to move from a direct store delivery distribution system ("DSD") to a hybrid system of 75 of its strongest Class "A" DSDs and 20 wholesalers, concentrating placements into high volume cold box sets. During this time Pulse eliminated a number of weaker, non-performing DSDs in certain geographical areas in order to move its distribution to a warehouse direct to wholesaler system. This decision was made to reduce overhead associated with the effort to manage a direct store delivery distribution system. Pulse rationalized the number and placement of salespeople in the field. The overall effect was a reduction of $437,000 in overhead during the nine months ended September 30, 2016 compared to 2015. Fixed overhead has been reduced to below $80,000 per month going into Q4-2016.

The decrease in net sales and gross profit during Q3-2016 was planned in order to grow sales from a more profitable fixed overhead base. During Q3-2016 Pulse reduced freight-out and costly promotional programs which increased gross profit and contribution margins. During Q3-2016 we provided an additional $107,495 to fully allow for a doubtful account in Mexico. We expect to partially recover this account receivable in the future. We also wrote-off a $40,000 financing fee during Q3-2016.

During Q3 Pulse introduced its newest private label product, "Citrus Tree®", which is Natural Cabana® Lemonade/Limeade formula in a 16.9oz glass bottle in four flavors: Natural, Strawberry, Tropical Mango and Cherry Limeade. This new product is a private label brand sold through Acme Markets, a division of Albertsons, a 176 store supermarket chain in New York and Philadelphia metro areas having a population of more than 40 million. Pulse has sold more than 5,000 cases to date since its introduction. Robert E. Yates, CEO of Pulse, said, "We are in the midst of a major thrust in the American Northeast and are thrilled to bring on Citrus Tree® to help broaden our reach into the American Northeast, a highly populated and influential region."

If you liked this article you might like

Today's Financial Winners & Losers

Today's Financial Winners & Losers

Wednesday's Winners & Losers: Alcoa

Wednesday's Winners & Losers: Alcoa