SEATTLE, March 7, 2002 (PRIMEZONE) -- Jones Soda Co. (the "Company" or "Jones") (OTCBB:JSDA) (CDNX:JSD) today announced financial results for the fourth quarter and year ended December 31, 2001.
Peter van Stolk, President and C.E.O, commented, "2001 was a year marked by unprecedented events that had ripple effects through the economy and affected both consumer spending and the overall retail environment. Jones Soda, like so many other companies, was not immune to these external challenges. In particular, three of our top distributors filed for bankruptcy or went out of business, which negatively impacted our financial performance during the year. Over the past few months we have been able to secure larger, more established distributors and we now enter fiscal 2002 better positioned for the future."
Net sales for the fourth quarter of fiscal 2001 was to $3,996,676 compared to $4,085,695 for the fourth quarter of fiscal 2000. Net loss was $1,420,260, or $0.07 per diluted share, versus a net loss of $1,343,282, or $0.07 per diluted share, for the same period last year.
For the twelve months ended December 31, 2001, net sales rose 24.2% to $23,615,911 versus $19,016,496 for the 2000 fiscal year. Net loss was $1,702,228, or $0.09 per diluted share, during versus earnings of $1,596,356, or $0.08 per diluted share, for the 2000 fiscal year. Losses from operations decreased to ($1,787,377) during the year versus a loss from operations of ($2,624,841) for the 2000 fiscal year.
Gross margin for the year ended 2001 was 36.1% compared to 40.0% for the twelve-month period ended December 31, 2000. Operating expenses as a percentage of sales improved to 43.7% for the year ended 2001 compared to 53.8% in the corresponding period a year ago.
During the year, three of Jones Soda's major distributors filed for bankruptcy or went out of business. As a result, the Company incurred bad debt expense of $525,896 during the fourth quarter, and a total of $702,909 for the fiscal year. This compares to total bad debt expense of $95,948 in 2000. In 2001 and early 2002, Jones Soda has secured new distribution relationships for these three markets. In January 2002, Jones Soda Co. has received $270,000 for the rights to distribute the brands and anticipates another $100,000 for these rights.
Mr. van Stolk continued, "Despite the many challenges we faced during the year, we were still able to achieve double-digit top line growth and report record sales, significantly reduce expenses and further our position in the market. Perhaps most important, our brand equity remains in tact and our name recognition and popularity within the teenage and young adult market is stronger than it has ever been in the past."
Mr. van Stolk concluded, "Our strategy is sound and our management team is focused on translating top-line growth into bottom line profitability.
Headquartered in Seattle, Washington, Jones Soda Co., manufactures its Jones Soda, Jones Jones Juice, Jones Energy and Whoopass brands and sells it through its distribution network in select markets across North America. A leader in the premium soda category, Jones is known for its innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers and everywhere you'd never expect to find a soda.
Statements in this press release, and elsewhere, that look forward in time or include anything other than historical information involve risks and uncertainties that may affect the Company's actual results of operations. Statements contained in this release regarding the Company's anticipated future results of operations, and on the Company's ability to expand its Jones Soda and Jones Soda Whoopass brands are "forward-looking statements" as the phrase is defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements by the Company are subject to certain risks, including future demand for Jones Soda and Jones Soda Whoopass, competition from other businesses providing similar products and the Company's ability to successfully execute its business strategy. Those risks and uncertainties are discussed in more detail in the Company's periodic reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information herein.
JONES SODA CO.
CONSOLIDATED STATEMENT OF OPERATIONS
($US)
Three Months Ended Twelve Months Ended
($US) December 31, December 31,
(Unaudited) (Audited)
2001 2000 2001 2000
---- ---- ---- ----
Net Sales $ 3,996,676 $ 4,085,695 $23,615,911 $19,016,496
Cost of Goods
Sold 2,642,791 2,493,468 15,085,213 11,404,440
Gross Profit 1,353,885 1,592,227 8,530,698 7,612,056
Gross Margin 33.8% 39.0% 36.1% 40.0%
Operating
Expenses:
Promotion
and
Selling 1,408,315 2,418,676 6,665,519 7,647,892
General &
Admin. 1,202,282 657,614 3,302,387 2,360,458
Dep'n &
Amortiza-
tion 53,011 12,516 231,669 183,390
Stock Based
Compensa-
tion 96,000 (24,163) 118,500 45,157
Total
operating
expenses 2,759,608 3,064,643 10,318,075 10,236,897
Operating
income
(loss) (1,405,723) (1,472,416) (1,787,377) (2,624,841)
Other income
(expense) (14,537) 129,134 85,149 4,221,197
Net income
(loss) $(1,420,260) $(1,343,282) $(1,702,228) $ 1,596,356
=========== =========== =========== ===========
Basic Income
(Loss) per
share $ (0.07) $ (0.07) $ (0.09) $ 0.08
===== ===== ===== =====
Diluted
Income (Loss)
per share $ (0.07) $ (0.07) $ (0.09) $ 0.08
===== ===== ===== =====
JONES SODA CO.
CONSOLIDATED BALANCE SHEET
(Audited -US$)
($US)
Dec. 31, 2001 Dec. 31, 2000
------------- -------------
ASSETS
Current Assets $5,018,703 $6,905,045
Capital Assets 666,081 735,482
Intangible Assets 138,834 112,922
$5,823,618 $7,753,449
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities $2,440,075 $3,527,011
Capital Lease Obligations 63,295 70,029
Deferred Revenue 200,000 --
Shareholders' Equity 3,120,248 4,156,409
$5,823,618 $7,753,449
========== ==========