DENVER, CO / ACCESSWIRE / August 15, 2017 / New Age Beverages Corporation (NASDAQ: NBEV) the Colorado-based leading all-natural and organic healthy functional beverage company whose brands include XingTea®, XingEnergy®, Aspen Pure®, Búcha® Live Kombucha, Marley One Drop®, Marley Mellow Mood®, Marley Mate®, and Coco-Libre® today announced earnings for its second quarter ended June 30, 2017.
Q2 2017 HIGHLIGHTS
Includes the results of Marley only from June 13 through June 30.
In Q2 2017 New Age delivered $16.0 million in gross revenue, up $1,876% versus prior year and up 6.7% organically on a pro-forma basis. As the Marley acquisition closed on June 13, 2017, the results only include the benefits of the Marley acquisition for last 16 days of the quarter.
Brent Willis, Chief Executive Officer of New Age Beverages commented, "Although we are still a very new company, the benefits of our scale and discipline are beginning to show through on the income statement and balance sheet. Although a big part of our initial activities has been to build our business and financial platforms (accelerated via acquisition including three new companies in 2017) success is all about the cost and revenue synergies and the strategic benefit that accrues from the acquisitions. In Q2 we started to see their benefit and we expect significantly more impact as we leverage the brand platforms through our network and drive new products within their identities."
Q2 2017 FINANCIAL RESULTS
For the three-month period ending June 30, 2017, gross revenues reached $16,038,638 vs. $811,569 in the prior year, up 1,876%. Less discounts, returns, and billbacks, net revenues reached $15,104,795 vs. $686,740 in the prior year, up 2,099%, reflective of the significant impact of the Xing and Coco-Libre acquisitions.
Gross Margin (minus a one-time $175,000 impact for Marley expenses before completing the acquisition) reached $4,120,544 vs. $135,415 in the prior year. Gross Margin percentage (less the Marley one-time) reached 28.4% vs. 26.4% in the prior quarter and 21.4% in the prior year. Cost of goods sold decreased to 71.5% of net sales from 73.5% of net sales in the first quarter 2017 and 80.3% in the prior year. The significant improvement is due to the effects of value engineering in product and packaging, improved scale benefits and mix improvement. Shipping expense was 4.8% of net sales vs. 7.2% in the prior year. Shipping expense was higher than normal in April and May as the Company integrated the Coco-Libre acquisition.
Total operating expenses were $3,724,749, which included a 28% increase in Marketing to support the brands, overall was down to 24.7% of net sales vs. 26.7% in the prior quarter and down significantly vs. the prior year. The reduced operating expenses as a percent of net sales is reflective of the New Age business model gearing whereby the infrastructure is already established and new brands and companies drop a predominance of their contribution margin to the bottom line.
Net Income for the quarter reached $2.496 million in the quarter vs. a loss of ($1,997,619) in the prior year. EBITDA reached $2,953 million in the quarter when removing the one-time expenses associated with the Marley expenses before consolidation on June 13, 2017.
About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based, leading all-natural and organic healthy functional beverage company that was founded in 2003. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters and Functional Waters with the brands XingTea®, Marley One Drop®, Búcha® Live Kombucha, XingEnergy®, Marley Mellow Mood®, Marley Mate®, Coco-Libre®, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company's brands are sold across all 50 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 http://newagebev.us, http://newagehealth.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, and www.cocolibre.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