Volume Was a Record 1,687,909 Cases
NORTH PALM BEACH, Fla., April 2 /PRNewswire-FirstCall/ -- Bravo! Brands
Inc. (OTC Bulletin Board: BRVO), a brand development and marketing company
that promotes and distributes vitamin-fortified, flavored milk drinks and
other beverages, announced today total revenue for the year ended December
31, 2006 was a record $14.7 million, an increase of 23% over the prior
year. Gross margin (excluding shipping costs) for 2006 decreased to 13.7%
from 25.2% in 2006. Bravo! reported a net loss applicable to common
shareholders of $37.7 million compared to an $80.9 million loss in 2005.
The net loss on a per share basis was $0.20 in 2006 compared to a $0.60 per
share loss in 2005.
Summary of Key Events for 2006
- Expanded annual production capacity from 30 million to 160 million
bottles.
- Developed the first 8 ounce vendible bottle for Coca Cola and other
vending machines.
- Developed 12 ounce vendible bottles for high schools that meet the new
American Beverage Association serving size guidelines.
- Reduced average costs per 14 ounce bottle by 13%.
- Established the Allied Brands sales channel to focus on expanding
business beyond CCE.
- Introduced an organic milk line through partnership with Organic
Valley's Cooperative Regions of Organic Producer Pools.
- Signed licensing agreement with General Mills for use of the Cocoa
Puffs(R), Trix(R), FrankenBerry(R), BooBerry(R) and Wheaties(R) products
that will introduce the Slammers(R) brand to a younger demographic.
- Negotiated Masterfoods license to 2012 (five year extension) and
broadened the co-branded offering to include Dove(R) Dark and Dove(R)
Milk Chocolate.
- Added talent and resources across all departments to support company
growth.
- Roy Warren, Chief Executive Officer commented, "2006 was a challenging
as well as a rewarding year for us. We ended the year far stronger and
much better positioned to take advantage of the opportunities available
to us in the market place than when we started 2006." Mr. Warren
further added, "We now have additional production capacity and will
focus on aggressively marketing our pipeline of products in 2007".
2006 Discussion
Total revenue was $14.7 million in 2006, a 23% increase from revenue of
$11.9 million in 2005. The increase in revenues was primarily due to a full
year of revenue from the Coca Cola Enterprises (CCE) contract as compared
to only two months in 2005. Sales through the CCE distribution network
accounted for 78% of the company's revenue in 2006.
Cost of goods sold in 2006 was $12.6 million, an increase of 42% from
$8.9 million in 2005, primarily reflecting increased production. The gross
margin (excluding shipping costs) of 13.7% in 2006 was down from 25.2% in
2005 due primarily to pricing concessions agreed to with CCE and to
challenges associated with implementing the CCE Master Distribution
Agreement. As provided for in our agreement with CCE, we anticipate
increasing selling prices to CCE in early 2007.
Selling expenses in 2006 increased approximately $6.0 million from $5.9
million in 2005 to $11.9 million in 2006. The increased selling expense
primarily reflected the hiring of additional sales personnel and a national
sales campaign. Selling expense as a percentage of revenue was 81% for the
year ended December 31, 2006 as compared to 49% for the prior year.
Marketing and advertising expense in 2006 increased by $5.9 million
from $1.5 million in 2005 to $7.4 million in 2006. During 2006, we
significantly increased our marketing budget by sponsorship of National Hot
Rod Association pro stock race cars and by traditional mediums of
television, radio, and point of sale advertising.
General and administrative (G&A) expenses were $10.7 million in 2006
compared with $7.3 million in the prior year. The increase was due
primarily to a $2.8 million penalty incurred for unused capacity as a
result of our manufacturing agreement with Jasper Products. These
expenditures were a necessary byproduct of our strategic plan for securing
additional available capacity with FDA approved processors of shelf-stable
milk products. As a percentage of revenue G&A expenses were 73% in 2006, up
from 61% in 2005.
The weighted average shares outstanding for 2006 were 195 million, up
from 135 million in 2005 primarily due to conversions of convertible and
preferred instruments into common stock.
Balance Sheet
The company ended 2006 with approximately $3.8 million in cash and
total assets of approximately $30.4 million compared to $4.9 million and
$28.4 million, respectively at year-end 2005.
Conference Call
Bravo! will host a conference call on Monday, April 2, 2007 at 4:15
p.m. Eastern Time to discuss these results. Roy G. Warren the company's
Chief Executive Officer, and Jeffrey J. Kaplan the company's Chief
Financial Officer will be hosting the call. The call in number for the call
is 877-407-9205 (International: 201-689-8054); No Passcode required. The
call will be webcast and can be accessed from the company's website at
http://www.bravobrands.com with the webcast link available under the investor
section. If you are unable to join the call, a replay will be available
until April 4, 2007 at 11:59 p.m. Eastern Time and can be accessed by
dialing 877-660-6853 (International: 201-612- 7415); enter account number
286; conference identification number 236295.
About the Company
Bravo! Brands Inc. develops, brands, markets, distributes and sells
nutritious, flavored milk products throughout the 50 United States, Mexico
and Puerto Rico. Bravo!'s products are available in the United States and
internationally through production agreements with regional aseptic milk
processors and are currently sold under the brand names Slammers(R) and
Bravo!(TM). Bravo!'s Slammers(R) products are available nationwide in
popular chains such as: 7-Eleven, A&P, Allsup's, BP Petroleum, Brookshire
Grocery, Circle K, Cumberland Farms, CVS, Discount Drug, Eckerd Drug, Giant
Food Stores, Hannaford, Hess, Kings, Krasdale, Pathmark, QFC, Schnucks,
Sheetz, ShopRite, Speedway, Stator Bros, Sunoco, Tedeshi, United
Supermarkets, USA/Super D Drug, Waldbaums, Walgreens, Quick Trip, Wal-Mart
Supercenter and Pilot Oil.
Many of Bravo! Brands' Slammers(R) lines of shelf-stable, single-serve
milk drinks are co-branded through exclusive partnerships with Masterfoods
USA, a division of Mars Incorporated, General Mills, Organic Valley, and MD
Enterprises (Moon Pie(R)), providing superior name recognition packaged
with quality, great-tasting drinks.
On November 1, 2005, Coca-Cola Enterprises, Inc. began distribution of
the Slammers(R) Masterfoods line, as well as the Bravo!'s Slim Slammers(R)
and Pro Slammers(TM) products, under a Master Distribution Agreement with
Bravo!
For more information, visit: http://www.bravobrands.com.
Forward Looking Statements
Safe Harbor under the Private Securities Litigation Reform Act of 1995:
The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with the
uncertainty of future financial results, regulatory approval processes, the
impact of competitive products or pricing, technological changes, the
effect of economic conditions and other uncertainties as may be detailed in
the Company's filings with the Securities and Exchange Commission.
Investor Relations Contact Company Contact
Kathleen Heaney Jeffrey J. Kaplan
Integrated Corporate Relations Chief Financial Officer
(203) 803-3585 (561) 625-1411
| |
SOURCE Bravo! Brands Inc.
 back to top
Related links:
http://www.bravobrands.com
CONTACT:
Jeffrey J. Kaplan, Chief Financial Officer of
Bravo! Brands Inc., +1-561-625-1411; or Investor Relations -
Kathleen Heaney of Integrated Corporate Relations,
+1-203-803-3585
| |
|
