Bravo! Foods International Provides Conference Call Highlights
Tuesday November 15, 10:47 am ET
NORTH PALM BEACH, Fla., Nov. 15 /PRNewswire-FirstCall/ -- Bravo! Foods International Corp. (OTC Bulletin Board: BRVO - News), a brand development and marketing company that manufactures, promotes and distributes vitamin- fortified, flavored milks, provided a corporate update today with select highlights from its recent third quarter conference call. The Company has also filed an SEC Form 8-K, available at: sec.gov , detailing material information from the call.
During the conference call, Bravo! CEO Roy Warren discussed the Company's results of operations for the third quarter and nine-months ended September 30, 2005, which included revenue growth of 293% over the same period in 2004 and a one-time, non-recurring $3,000,000 charge for a finder's fee payable in connection with the execution of a Master Distribution Agreement with Coca- Cola Enterprises (CCE).
The Company added that present capital surplus is $7.5 million, owing to the computed value of warrants issued to CCE in conjunction with the CCE Master Distribution Agreement, which was booked as a deferred asset. Additionally, the Company's debt structure has been reduced, owing to conversions of the outstanding convertible preferred stock and notes issued by the Company in prior periods for financing.
Warren also reported that Bravo! had shipped a total of 294,000 cases of its milk drinks for all of the third quarter, 2005, and an additional 223,000 12-unit cases have been shipped in October 2005, representing slightly in excess of $2 million in sales for that month alone.
In September 2005, the Company delayed shipments representing approximately $500,000 in sales to retail customers to build inventory for CCE and Bravo!'s new Breakfast Blenders(TM) product line. During the call, Bravo! also reported that it has signed contracts to sell its products to 150 US Military commissaries on a national basis.
During the conference call, management reiterated plans to increase its present domestic capacity for Slammers® of 2.5 million units per month to 2.8 million units per month for November 2005, with additional capacity increases to 3.3 million units per month and ultimately 7.5 million units per month in the spring of 2006. Bravo! is actively seeking additional capacity, having begun preliminary discussions with other aseptic dairy processors and is exploring third party agreements that may provide additional capacity in 2007.
Bravo! also reported on a number of strategic initiatives currently underway, including planned full-scale launch of its Breakfast Blenders(TM) line of milk drinks, launched in 7-Eleven convenience stores nationwide, and on-going advertising promotions and marketing campaigns. New lines are being explored to reach additional target audiences. A product line designed to reach the toddler demographic is being contemplated. The Company also reduced the fat content of its Pro Slammers(TM) line in order to better position the product for school business opportunities.
Bravo! recruited several new personnel during the third quarter of 2005 as a result of its growth, including new CFO Jeffrey Kaplan and Michael Comerford, Director of Operations.
Bravo! CEO Roy Warren said, "While the third quarter of 2005 showed a sharp increase in revenue over 2004, additional costs were incurred in preparation for pending initiatives while laying the groundwork for continued growth. Having established comprehensive distribution networks, management is focused on growing capacity while enhancing our popular products to best serve new markets."
Management also reiterated guidance during the call, expecting gross revenues to rise to $6-7 million for the fourth quarter of 2005, with $70-100 million in gross revenues anticipated for the full year 2006. Bravo! will host a conference call in January of 2006, upon completion of budgeting and forecasting for 2006 and 2007 to update guidance.
A recording of the conference call in its entirety can be accessed at Bravo!'s investor relations web site: otcfn.com or investorcalendar.com , or dial 877-660-6853 (International: 201-612-7415); enter account number 286; conference identification number 177233.
The recording is available until November 15, 2005 at 11:59 p.m |
