BOCA RATON, Fla., Oct. 28, 2014 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first Negative Calorie beverage backed by clinical science, today reported its results of operations for the three and nine month ended September 30, 2014.
Third Quarter 2014 Highlights:
- Revenue increased 47% to $3.42 million, compared to $2.33 million last year
- International revenue increased 60% to $1.55 million, compared to $0.97 million last year
- Domestic revenue increased 38% to $1.87 million, compared to $1.36 million last year
- Gross margin remained consistent at 39%
- Net Loss excluding special charges decreased to $550,000, a 21% improvement compared to the net loss of $700,000 last year.
- The GAAP net loss increased to $830,000 compared to a net loss of $700,000 last year.
"We are very pleased to report record third quarter financial results as third quarter revenues grew to $3.42 million. The quarter was highlighted by the growth in existing international accounts and expansion into Brazil. Domestically, we continued our sales growth and are making excellent progress and our products are resonating well with consumers," said Mr. Gerry David, Chief Executive Officer. "Our partnerships with multi-platinum recording artist, Flo Rida, and NASCAR race team TriStar Motorsports and driver Blake Koch, are opening up new demographics for our one of a kind drink that promotes weight management," David continued. "Our scheduled launch in Brazil with our partners, two time world Formula One Champion, Emerson Fittipaldi, and Latco Beverages, will provide an exciting opportunity for growth."
Three months ending September 30, 2014 Financial Results:
Revenue: Revenues for the three months ended September 30, 2014 totaled $3.42 million as compared to $2.33 million for the same period in 2013, a 47% increase. This increase was associated with increased international sales increasing 60% or $582 thousand as a result of increases from existing accounts and initial sales to Brazil. In addition, domestic sales increased 38% or $513 thousand, this increase was mainly associated with increases in domestic retail accounts increasing 53% and health & fitness accounts increasing 66%, off-set by internet segment decreases of 6% and the elimination of a liquidator sale which took place during the same period in 2013.
Gross Profit: Gross profits for the three months ended September 30, 2014 totaled $1.32 million or 39% of sales as compared to $904 thousand or 39% during the same period in 2013. 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, 2014 totaled $1.99 million as compared to $1.50 million for the same period in 2013, a $495 thousand or 33% increase. A significant portion of this increase is associated with increases in stock based compensation expense increasing $365 thousand, additional increases in marketing programs, and investment in human resources.
Net Loss: The Company recorded a net loss of $828 thousand for the three months ended September 30, 2014 compared to a net loss of $698 thousand for the same quarter a year ago, or ($0.04) and ($0.03) per share, respectively. On a non-GAAP basis, excluding special one-time items including celebrity endorsements, Net loss decreased to $546 thousand, or $.03 per share, compared to a net loss of $698 thousand, or $0.03 per share last year.
Nine months ending September 30, 2014 Financial Results:
Revenue: Revenues for the nine months ending September 30, 2014 totaled $10.02 million as compared to $7.69 million in 2013, a 30% increase. This increase was associated with a 45% increase in international sales increasing $1.53 million and increases in domestic sales increasing 19% or $801 thousand, this increase in domestic sales was mainly associated with increases in domestic retail accounts increasing 27% and health & fitness accounts increasing 42%, off-set by internet segment decreases of 10% and the elimination of liquidator sales which took place during the same period in 2013.
Gross Profit: Gross profits for the nine months ending September 30, 2014 totaled $3.78 million or 38% of sales as compared to $2.96 million or 39% for the same period in 2013. Gross profit margins were impacted by increases in international sales mix. 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, 2014 totaled $5.61 million as compared to $4.04 million for the same period in 2013, a 38% increase. A significant portion of this increase is associated with increases in stock based compensation expense increasing $683 thousand, additional increases in marketing programs of $617 thousand, and additional investment in human resources.
Net Loss: The Company recorded a net loss of $2.29 million for the nine months ending September 30, 2014 compared to a loss of $1.33 million for the same period a year ago, or ($0.11) and ($0.07) per share, respectively. On a non-GAAP basis, excluding special one-time items including celebrity endorsements, Net loss increased to $1.71 million, or $.08 per share, compared to a net loss of $1.41 million, or $0.07 per share last year.
| Celsius Holdings, Inc. and Subsidiaries | ||
| Consolidated Balance Sheets | ||
| (Unaudited) | ||
| September 30, 2014 | December 31, 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 427,160 | $ 221,906 |
| Accounts receivable, net | 1,196,442 | 1,491,550 |
| Inventories, net | 1,413,263 | 821,271 |
| Prepaid expenses and other current assets | 685,065 | 426,270 |
| Total current assets | 3,721,930 | 2,960,997 |
| Property, fixtures and equipment, net | 53,087 | 68,713 |
| Total Assets | $ 3,775,017 | $ 3,029,710 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 869,222 | $ 840,057 |
| Accrued preferred dividend | 146,669 | 46,567 |
| Deferred revenue and other current liabilities | 73,728 | 448,991 |
| Total current liabilities | 1,089,619 | 1,335,615 |
| Long-term liabilities | ||
| Convertible note payable, related party | 1,500,000 | 1,500,000 |
| Note payable-related party | 8,575,000 | 6,100,000 |
| Total Liabilities | 11,164,619 | 8,935,615 |
| Stockholders' Equity (Deficit): | ||
| Preferred Stock, $0.001 par value; 2,500,000 shares authorized, 2,200 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively. | 2 | 2 |
| Common stock, $0.001 par value; 50,000,000 shares authorized, 20,459,032 and 20,179,032 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 20,459 | 20,179 |
| Additional paid-in capital | 40,067,028 | 39,263,208 |
| Accumulated deficit | (47,477,091) | (45,189,294) |
| Total Stockholders' Equity (Deficit) | (7,389,602) | (5,905,905) |
| Total Liabilities and Stockholders' Equity (Deficit) | $ 3,775,017 | $ 3,029,710 |
| Celsius Holdings, Inc. and Subsidiaries | ||||
| Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| For the Three Months | For the Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue | $ 3,422,300 | $ 2,327,039 | $ 10,019,309 | $ 7,688,169 |
| Cost of revenue | 2,100,539 | 1,422,582 | 6,241,523 | 4,726,190 |
| Gross profit | 1,321,761 | 904,457 | 3,777,786 | 2,961,979 |
| Selling and marketing expenses | 1,163,584 | 1,084,345 | 3,798,337 | 2,880,941 |
| General and administrative expenses | 826,657 | 410,778 | 1,808,277 | 1,162,289 |
| Total operating expense | 1,990,241 | 1,495,123 | 5,606,614 | 4,043,230 |
| Loss from operations | (668,480) | (590,666) | (1,828,828) | (1,081,251) |
| Other Income (Expense): | ||||
| Interest expense, net | (126,264) | (94,504) | (358,867) | (312,066) |
| (Loss) on change in fair value of derivative liability | -- | -- | -- | (6,000) |
| Gain from termination of option agreement | -- | -- | -- | 80,400 |
| Total Other Income (Expense) | (126,264) | (94,504) | (358,867) | (237,666) |
| Net loss | $ (794,744) | $ (685,170) | $ (2,187,695) | $ (1,318,917) |
| Accrued preferred stock dividend | (33,734) | (12,833) | (100,102) | (12,833) |
| Net loss available to common stockholders | $ (828,478) | $ (698,003) | $ (2,287,797) | $ (1,331,750) |
| Weighted average shares outstanding | 20,444,684 | 20,179,032 | 20,370,204 | 20,179,032 |
| Loss per share, basic and diluted common shareholders | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.07) |
About Celsius Holdings, Inc.
Celsius Holdings Inc. (OTC:CELH) is a science-based functional beverage company, founded in April 2004 to launch the world's first negative calorie beverage. The evolution of the beverage market has evolved from high calorie to low calorie to zero calorie. Celsius® negative calorie beverage is unique worldwide and deeply rooted in science. The first clinical study was conducted in 2005. Six additional studies, including five from the University of Oklahoma, were conducted over the next five years. The studies validated the unique benefits Celsius provides to the consumer. 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.