BOCA RATON, Fla., May 13, 2013 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first calorie burning drink backed by clinical science, today reported its results of operations for the first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights:
Revenue: Net revenues for the three months ended March 31, 2013 totaled $2.34 million as compared to $2.49 million for the same period in 2012, a 6% decrease. A significant portion of this decrease is attributable to loss revenues from Costco $805 thousand. Excluding 2012 Costco revenues, 2013 revenues increased 39% from the same period in 2012. The increase was driven primarily by increased international sales 34%, health & fitness channel 130%, internet retail sales 148%, direct to consumer sales 47%, and excluding Costco our direct to retail business increased 27% from the same period in 2012. The results for the first quarter reflect the efforts of our turnaround strategy that we implemented in 2012. As part of our turnaround strategy, we redeployed resources to focus on key core markets which have resulted in increased revenues. Furthermore, revenues increased 21% from the fourth quarter of 2012.
Gross Profit: Gross profits for the three months ended March 31, 2013 totaled $870,000 or 37% of net sales as compared to $867,000 or 35% for the same period in 2012. For comparative purposes when excluding Costco gross profits of $308 thousand from the first three months of 2012, gross profits increased 55%. 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 March 31, 2013 totaled $1.17 million as compared to $1.34 million for the same period in 2012, a 13% decrease. A significant portion of this decrease is attributable to decreases in in-store demo's mainly at Costco $208 thousand, option expense savings mainly associated with the termination of Tony Little's option agreement $32 thousand, and severance $38 thousand, offset by increases in marketing programs $240 thousand, and additional investment in human resources.
Net Loss: The Company recorded a net loss of $405,000 for the three months ended March 31, 2013 compared to a net loss of $536,000 for the same quarter a year ago, or ($0.02) and ($0.03) per share, respectively. During the first quarter of 2013 resources were redeployed from Costco which produced a negative contribution of $16 thousand in 2012 to key core markets and accounts which produced positive contributions. Our 2013 turnaround strategy is focused on deploying resources to focus on key core markets which result in increased revenues and profitable.
"We're pleased to see that our turnaround efforts continue to deliver positive results," said Gerry David, CEO of Celsius. "We will continue to focus on the execution of our strategic plan and continue to grow product availability and awareness globally."
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Other OTC:CELH) 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.
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Celsius Holdings, Inc. and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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March 31 |
December 31 |
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ASSETS |
2013 |
2012 |
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Current assets: |
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Cash and cash equivalents |
$ 124,344 |
$ 108,981 |
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Accounts receivable, net |
824,265 |
620,325 |
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Inventories, net |
1,172,961 |
921,709 |
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Other current assets |
527,195 |
295,314 |
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Total current assets |
2,648,765 |
1,946,329 |
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Property, fixtures and equipment, net |
92,714 |
104,690 |
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Total Assets |
$ 2,741,479 |
$ 2,051,019 |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ 869,884 |
$ 861,640 |
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Short-term liabilities – other |
356,666 |
173,557 |
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Total current liabilities |
1,226,550 |
1,035,197 |
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Convertible note payable, related party |
1,500,000 |
1,500,000 |
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Note due to related parties |
6,825,000 |
5,950,000 |
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Total Liabilities |
9,551,550 |
8,485,197 |
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Stockholders' Equity (Deficit): |
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Common stock |
20,179 |
20,179 |
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Additional paid-in capital |
36,873,415 |
36,843,414 |
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Accumulated deficit |
(43,703,665) |
(43,297,771) |
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Total Stockholders' Equity (Deficit) |
(6,810,071) |
(6,434,178) |
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Total Liabilities and Stockholders' Equity (Deficit) |
$ 2,741,479 |
$ 2,051,019 |
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Celsius Holdings, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations |
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(Unaudited) |
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For the Three Months Ended |
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March 31, |
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2013 |
2012 |
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Net revenue |
$ 2,342,371 |
$ 2,485,842 |
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Cost of revenue |
1,472,735 |
1,618,527 |
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Gross profit |
869,636 |
867,315 |
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Selling and marketing expenses |
870,360 |
846,023 |
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General and administrative expenses |
301,008 |
493,120 |
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Total operating expenses |
1,171,368 |
1,339,143 |
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Loss from operations |
(301,732) |
(471,828) |
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Interest expense, net |
(103,668) |
(64,431) |
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Net loss |
$ (405,400) |
$ (536,259) |
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Basic and diluted: |
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Weighted average shares outstanding |
20,179,032 |
20,182,242 |
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Loss per share |
$ (0.02) |
$ (0.03) |
CONTACT: John Fieldly, CFO, (866) 4-CELSIUS, (561) 276-2239,
jfieldly@celsius.com
Media Contact:
5W Public Relations
(646) 430-5146
Anna Brodetsky
abrodetsky@5wpr.com
