Urban Juice three-month results
Urban Juice and Soda Company Ltd UJS
Shares issued 14,236,164 May 5 close $1.10
Thu 6 May 99 News Release
Mr. Peter van Stolk reports
Consolidated sales for the first quarter ended March 31, 1999, were
$2,849,720, up 109 per cent from sales for the first quarter 1998. Sales of
Jones Soda increased over the previous year due to a combination of
increasing sales in existing markets as well as the addition of new
distributors. At the end of the first quarter 1999, the company maintained
a network of approximately 130 distributors in North America.
Gross profit for the first quarter 1999 increased to $807,425 compared with
$448,122 for the first quarter ended March 31, 1998. Gross profit is up for
the quarter over last year due to higher sales. Gross margin for the
quarter ending March 31, 1999, was 28.3 per cent compared with 32.9 per
cent for the same period last year. Gross margin was down over the same
period in 1998 due to four packs being included in sales subsequent to the
first quarter in 1998 and which have a higher per case cost. Gross margin
for the first quarter 1999 compares with a gross margin for the 12 month
period ending Dec. 31, 1998, of 27.0 per cent.
Total expenses of $1,240,993 were up from $824,690 from the previous year
due primarily to a combination of increased promotion and selling expenses
as well as administrative expenses. Promotion and selling increased due to
the increased level of distributors and the associated programs in place
for the distributors. Increased administrative expenses are primarily due
to increased costs associated with the company's litigation against
Tastemaker.
Other expense primarily consists of interest expense incurred on
outstanding indebtedness on the company's operating line of credit.
The company's net loss increased from $337,359 for the three months ended
March 31, 1998, to $437,704 for the period ending March 31, 1999. As a
percentage of total sales, the net loss decreased from 24.8 per cent for
the period ended March 31, 1998, to 15.4 per cent for the period ended
March 31, 1999, due primarily to a higher level of sales.
The repeat case sales coming through the company's distributor network and
the interest building from the grocery chain business is confirming strong
consumber brand acceptance of Jones. As announced in Stockwatch May 5,
1999, the company closed a private placement raising approximately
$2.5-million. This equity financing will assist with the continued growth
of the brand in 1999.
STATEMENT OF EARNINGS
Three months ended March 31
1999 1998
Net sales $ 2,849,720 $ 1,361,179
Cost of goods
sold 2,042,295 913,057
----------- -----------
Gross profit 807,425 448,122
----------- -----------
Operating
expenses:
Promotion and
selling 729,323 479,607
General and
admin 433,825 282,583
Depreciation and
amortization 77,845 62,500
----------- -----------
Total operating
expenses 1,240,993 824,690
----------- -----------
Operating income
(loss) (433,568) (376,568)
Other expense
(loss) (4,136) 39,209
----------- -----------
Net earnings
(loss) $ (437,704) $ (337,359)
=========== ===========
Earnings (loss)
per share (3 cents) (6 cents)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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