DENVER, CO / ACCESSWIRE / August 23, 2016 / New Age Beverages Corporation (OTC: NBEV) (formerly ABRW) the Colorado-based owner of the XingTea®, XingEnergy®, Aspen Pure®, and the Búcha® Live Kombucha brands today announced earnings for its second quarter, with Net Revenues achieving $13,950,735, an increase of 2% on a pro forma basis versus the second quarter in 2015.
nBev reported a consolidated balance sheet for the 1st half in its most recent 10Q filing, but only filed a standalone income statement for Búcha, Inc. as the acquisition of New Age/Xing did not close until June 30, 2016. On a consolidated proforma basis, nBev net revenues for the quarter ended June 30, 2016 were $15,015,620 on a gross sales basis and $13,950,735 in net revenues on a pro forma basis, a 2% increase versus the 2nd quarter in 2015. As previously reported, the consolidated company had its highest recorded month in history in June versus any comparative measure (prior quarter, prior year, or trailing twelve months).
For the six months ended June 30, 2016, consolidated revenues for the quarter ended June 30, 2016 were $26,480,825 on a gross sales basis and $24,038,350 in net revenues on a pro forma basis, a 1% decline vs. prior year. Revenue reflects the impact of the Búcha acquisition transition in 2015 and weaker Q1 performance in Xing, offset by significantly improved performance in Q2 across all business segments. In adjusted EBITDA for the 1st half (non-GAAP), the company lost $160,000, when removing the one-time expenses associated with the acquisition of Xing of $1.4 million and an estimated $400 thousand in other one-time, non-recurring expenses. In addition to the non-recurring expenses, the reduction of more than $500 thousand in interest expenses and other cost synergies emanating from the acquisition are expected to materially impact net income performance.
Brent Willis, Chief Executive of New Age Beverages Corporation commented, "Normally acquisition integrations run into snags or difficulties of some sort, but so far so good. Our primary focus has been on defining and rolling out a new performance-focused, metric-driven culture and capturing cost and revenue synergies. We have given ourselves 12-18 months to achieve these, so we will only start to see the benefit of these in Q3. We are pleased with the progress so far, and although we had plenty of one-time costs with the merger, our operating performance substantially improved in the quarter. We expect more progress in Q3 as our initial synergies begin to have impact, and Búcha benefits from the scale and resources of the new Company."
About New Age Beverages Corporation (OTC: nBev)
New Age Beverage Corporation is a Colorado-based, healthy functional beverage company originally founded in 2003 and re-created via the combination of XingTea®, Aspen Pure® Artesian Water, Búcha® Live Kombucha, and New Age Beverages in June 2016. The Company trades under the newly issued symbol nBev (formerly ABRW) on the OTC exchange. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, Kombucha, Energy Drinks and Functional Waters with the Brands XingTea®, Búcha® Live Kombucha, XingEnergy®, and Aspen Pure®. The brands are sold in 46 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.mybucha.com, www.xingtea.com, www.aspenpure.com.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission might affect the Company's operations. Unless required by applicable law, nBev undertakes no obligation to update or revise any forward-looking statements.
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SOURCE: New Age Beverages Corporation