Thursday March 18, 9:40 am Eastern Time
Company Press Release
Urban Juice & Soda Year-End Results
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 18, 1999--Urban
Juice(VSE:UJS. - news) Urban Juice & Soda Company Ltd. (the ''Company'' or ''Urban''),
announced today results for the year ended December 31, 1998.
Consolidated sales for the year ended December 31, 1998 were $7,011,046, up 115 percent from sales for the year ended
December 31, 1997. Sales are comprised primarily (98 percent) of Jones Soda, with the balance representing sales of the
Company's water brand, WAZU Natural Spring Water. Sales of Jones Soda increased year over year due to a combination of
increasing sales in existing markets as well as the addition of new distributors. The Company ended the 1998 year end with
approximately 100 distributors in North America.
Gross profit for the year ended 1998 increased to $1,888,030 compared to $575,420 for the year ended December 31, 1997.
Gross profit is up for the year due to the higher sales as well as improving margins reflected in the Jones brand. Gross margin for
the year ending December 31, 1998 was 27 percent compared to 17.6 percent for the same period last year.
Total expenses of $4,051,235 were down from $4,263,456 from the previous year due primarily to a reduction in office and
administration costs. The Company has been able to reduce its administration expenses through increased controls put into
place.
The Company's bad debt expense decreased from $463,471, or 14.2 percent of sales in 1997 to 483,566, or 1.2 percent of
sales in 1998. Improvement in bad debt expense is due to a higher quality distribution network in place as well as better
management of credit risk.
Promotion and selling expense of $2,221,537 for 1998 increased slightly from $2,111,116 for 1997. Promotion and selling
consists mainly of selling expenses associated with the Company's sales force, as well as regional marketing programs with
distributors and consumer marketing such as event sponsorship, cross promotions, and athlete sponsorship.
Other expense primarily consists of a write down of intangibles of $102,781 that related to marketing research and
development.
Combined with higher sales, improved gross margins and slightly reduced expenses, the Company's net loss for the year end
improved from $(3,970,577) for 1997 to $(2,341,707) in 1998.
The strategy for the Company moving forward is to build sales by adding new distributors in new markets as well as effecting
statewide coverage in existing markets. In addition, the Company will continue to introduce Jones to higher volume channels
such as convenience chain stores and supermarkets.
URBAN JUICE & SODA COMPANY LTD.
CONSOLIDATED INCOME STATEMENT
Year Ended December 31, 1998
($CDN) Twelve Months Twelve Months
Ended Ended
December 31, 1998 December 31, 1997
Net Sales $ 7,011,046 $ 3,265,317
Cost of Goods Sold 5,123,016 2,689,897
-----------------------------
Gross Profit 1,888,030 575,420
Gross Margin (percent) 27.0 17.6
Operating Expenses:
Promotion and Selling 2,221,537 2,111,116
General and admin. 1,512,249 1,954,586
Dep'n and Amortization 317,449 197,754
-----------------------------
Total operating expenses 4,051,235 4,263,456
Operating income (loss) (2,163,205) (3,688,036)
Other expense (178,502) (282,541)
-----------------------------
Net Loss $(2,341,707) $(3,970,577)
-----------------------------
Loss per share $(0.17) $(0.33)
-----------------------------
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the
information herein.
Contact:
Urban Juice & Soda Company Ltd.
Jennifer Cue, 604/ 654-6055
Website: www.urbanjuice.com
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Urban Juice & Soda Company Ltd (Vancouver:UJS.V - news; Vancouver:UJS.V - news)
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