BOCA RATON, Fla., Oct. 21, 2013 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first and only negative calorie drink backed by clinical science, today reported its results of operations for the three and nine months ended September 30, 2013.
Results for the third quarter continue to reflect the efforts of our Turnaround Plan. During the third quarter, the Company expanded distribution domestically 32% increasing access to consumers. Internationally, the Company shipped its first order to China and partnered with Latco Beverages to lead its global expansion into South America. For the third quarter of 2013, the Company achieved a 61% increase in net revenue, reporting net revenue of $2.3 million compared to net revenues of $1.4 million for the third quarter of 2012.
Third Quarter Highlights – Comparison of Quarters Ended September 30, 2013 and 2012
- Net Revenue increased 61% to $2.3 million, compared to $1.4 million last year-over-year
- Gross Profit increase 111% to $0.9 million, compared to $0.4 million last year-over-year
- Net Loss decreased 9% to $0.7 million, compared to $0.8 million year-over-year
- Net Revenue from International sales increased 131% to $1.0 million
- Net Revenue from Domestic sales increased 33% to $1.3 million
Year-to-Date Highlights – Comparison of Nine Months Ended September 30, 2013 and 2012
- Net Revenue increased 34% to $7.7 million, compared to $5.8 million last year-over-year
- Gross Profit increase 76% to $3.0 million, compared to $1.7 million last year-over-year
- Net Loss decreased 45% to $1.3 million, compared to $2.4 million year-over-year
- Net Revenue from International sales increased 182% to $3.4 million
- Net Revenue from Domestic sales increased 49% to $4.3 million, when excluding Costco Wholesale sales of $1.7 million from the prior year
"We are very pleased to report continued strong financial results for the third quarter 2013 as revenues grew 61% from the comparable year-ago quarter and margins improved. The quarter was highlighted by the growth in international sales and continued growth in all Domestic channels of distribution. Our partnership with Latco Beverages will provide Celsius solid footing in the countries of Brazil, Argentina, Paraguay and Uruguay. The timely introduction of our brand with Brazil hosting the World Cup 2014 and the Olympics 2016 provides an exciting opportunity. Our first shipments arrived in China, initiating our brand distribution within this vast opportunity. Celsius Public Relations efforts have generated over 551 million impressions year to date while our digital radio campaign continues to deliver 7.8 million ads each month that are focused in our 'Drill Deep' markets," said Mr. Gerry David, Chief Executive Officer
Third Quarter 2013 Financial Results:
Revenue: Net revenues for the three months ended September 30, 2013 totaled $2.33 million as compared to $1.44 million for the same period in 2012, a 61% increase. This increase was driven primarily by increases in international sales totaling $551 thousand and increases in domestic sales totaling $334 thousand. Domestically, we are seeing mainly double & triple digit growth in all domestic segments, domestic retail accounts are up 33% versus the prior year when excluding Costco sales from 2012, Health & Fitness accounts are up 74%, internet retail accounts are up 142%, and direct to consumer sales are up 3%.
Gross Profit: Gross profits for the three months ended September 30, 2013 totaled $904 thousand or 39% of net sales as compared to $429 thousand or 30% for the same period in 2012. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the three months ended September 30, 2013 totaled $1.50 million as compared to $1.11 million for the same period in 2012, a 35% increase. A significant portion of this increase is associated with increases in marketing programs and additional investment in human resources.
Net Loss: The Company recorded a net loss of $698 thousand for the three months ended September 30, 2013 compared to a net loss of $764 thousand for the same quarter a year ago, or ($0.04) and ($0.04) per share, respectively.
For the nine months ending September 30, 2013 Financial Results:
Revenue: Net revenues for the nine months ending September 30, 2013 totaled $7.7 million as compared to $5.8 million in 2012, a 33% increase. This increase was driven primarily by increases in international sales totaling $2.18 million and increases in domestic sales totaling $1.42 million, off-set by the elimination of 2012 Costco Wholesale sales of $1.67 million. Domestically, we are seeing double & triple digit growth in all domestic segments, domestic retail accounts are up 49% versus the prior year when excluding Costco sales from 2012, Health & Fitness accounts are up 136%, internet retail accounts are up 148%, and direct to consumer sales are up 25%.
Gross Profit: Gross profits for the nine months ending September 30, 2013 totaled $2.96 million or 39% of net sales as compared to $1.68 million or 29% for the same period in 2012. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the nine months ending September 30, 2013 totaled $3.97 million as compared to $3.87 million for the same period in 2012, a 2% increase. A significant portion of this increase is associated with increased marketing programs off-set by decreases associated with option expense savings and other sales expense savings.
Net Loss: The Company recorded a net loss of $1.33 million for the nine months ending September 30, 2013 compared to a loss of $2.42 million for the same period a year ago, or ($0.07) and ($0.12) per share, respectively.
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Other OTC:CELH.PK) markets Celsius®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. For more information, please visit www.celsius.com.
Forward-Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.
| Celsius Holdings, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| (Unaudited) | ||
| September 30 | December 31 | |
| ASSETS | 2013 | 2012 |
| Current assets: | ||
| Cash and cash equivalents | $ 273,901 | $ 108,981 |
| Accounts receivable, net | 846,939 | 620,325 |
| Inventories, net | 1,148,268 | 921,709 |
| Other current assets | 451,881 | 295,314 |
| Total current assets | 2,720,989 | 1,946,329 |
| Property, fixtures and equipment, net | 73,219 | 104,690 |
| Total Assets | $ 2,794,208 | $ 2,051,019 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 850,516 | $ 861,640 |
| Short-term liabilities – other | 17,751 | 173,557 |
| Total current liabilities | 868,267 | 1,035,197 |
| Long-term liabilities | ||
| Convertible note payable, related party | 1,500,000 | 1,500,000 |
| Note due to related parties | 5,875,000 | 5,950,000 |
| Total Liabilities | 8,243,267 | 8,485,197 |
| Stockholders' Equity (Deficit): | ||
| Preferred Stock | 2 | 0 |
| Common stock | 20,179 | 20,179 |
| Additional paid-in capital | 39,160,283 | 36,843,414 |
| Accumulated deficit | (44,629,523) | (43,297,771) |
| Total Stockholders' Equity (Deficit) | (5,449,059) | (6,434,178) |
| Total Liabilities and Stockholders' Equity (Deficit) | $ 2,794,208 | $ 2,051,019 |
| Celsius Holdings, Inc. and Subsidiaries | ||||
| Condensed Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| For the Three Months | For the Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Net revenue | $ 2,327,039 | $ 1,442,196 | $ 7,688,168 | $ 5,750,780 |
| Cost of revenue | 1,422,582 | 1,012,980 | 4,726,190 | 4,072,107 |
| Gross profit | 904,457 | 429,216 | 2,961,978 | 1,678,673 |
| Selling and marketing expenses | 1,084,345 | 703,178 | 2,880,942 | 2,399,991 |
| General and administrative expenses | 410,778 | 405,399 | 1,087,888 | 1,473,911 |
| Total operating expense | 1,495,123 | 1,108,577 | 3,968,830 | 3,873,902 |
| Loss from operations | (590,666) | (679,361) | (1,006,852) | (2,195,229) |
| Interest expense, net | 107,337 | 84,309 | 324,899 | 223,596 |
| Net loss | $ (698,003) | $ (763,670) | $ (1,331,751) | $ (2,418,825) |
| Basic and diluted: | ||||
| Weighted average shares outstanding | 20,179,032 | 20,181,408 | 20,179,032 | 20,182,242 |
| Loss per share | $ (0.04) | $ (0.04) | $ (0.07) | $ (0.12) |