Bravo! Foods International Corp. Reports Record 2005 Revenue
31 Mars 2006 - 12:05AM
PR Newswire (US)
Case Volume of 1,236,000, Up 419% from Prior Year NORTH PALM BEACH,
Fla., March 30 /PRNewswire-FirstCall/ -- Bravo! Foods International
Corp. (OTC:BRVO) (BULLETIN BOARD: BRVO) , a brand development and
marketing company that manufactures, promotes and distributes
vitamin- fortified, flavored milk drinks and other beverages,
announced today that total revenue for 2005 was a record $11.9
million, an increase of 257% over the prior year's revenue of $3.3
million. Bravo! reported a net loss applicable to common
shareholders of $14.8 million compared to a $4.2 million loss in
the prior year. The net loss on a per share basis was $0.11 in 2005
compared to a $0.10 per share loss in 2004 on a 236% increase in
weighted average shares outstanding. Net income in 2005 was
negatively impacted by a one-time, non-recurring finder's fee as
well as a significant increase in selling expenses. Roy Warren,
Chief Executive Officer commented, "2005 was an extremely
gratifying year for us. Not only did we deliver record revenue, we
laid the foundation for sustainable growth thanks to our
distribution agreement with Coca-Cola Enterprises. Equally as
important, our balance sheet has been strengthened providing us
with the financial flexibility to support our future growth." Added
Mr. Warren, "As we move into 2006, we are extremely excited. Demand
is strong, we have unparallel distribution with Coca-Cola
Enterprises, we have contracted for more production and we have a
robust pipeline of new products." 2005 Discussion Total revenue in
the United States was $11.5 million in 2005, up from $2.8 million
in 2004, while international sales, which consist of sales in the
Middle East and United Kingdom, were $412 thousand in 2005. The
significant increase in U.S. sales was primarily the result of new
product introductions in fourth quarter 2004 and the first half of
2005 as well as increased distribution. Cost of goods sold in 2005
was $8.9 million, up from $2.4 million in 2004. Cost of goods sold
increased in line with the higher level of sales. The gross margin
of 25.2% in 2005 was down from 29.0% in 2004 reflecting the lower
sales prices in 2005. Selling expenses in 2005 were $8.4 million
and represented 70% of revenue compared with selling expenses of
$1.8 million in 2004 or 54% of revenue. Higher selling expenses
reflected increased freight, distribution and promotional expenses
associated with the expanded product line. General and
administrative (G&A) expenses were $5.0 million in 2005
compared with $2.6 million in the prior year. The increase in
absolute terms reflects the increase in infrastructure, as well as
payroll costs to support a higher level of revenue as well as some
investment banking fees. As a percentage of revenue G&A
expenses were 42.1% in 2005, down from 78.9% in 2004 as the company
was able to leverage the increased G&A costs over a higher
revenue base. During 2005, the company incurred a non-recurring
finder's fee expense of $3.0 million relating to the Company's
Master Distribution Agreement with Coca-Cola Enterprises. The
weighted average shares outstanding for 2005 were 135 million, up
from 40 million in 2004 and partially reflect the fourth quarter
2005 private placement of 40 million shares. Balance Sheet The
company ended 2005 with approximately $4.9 million in cash and
total assets of roughly $24.3 million compared to $114 thousand and
$1.1 million, respectively at year-end 2004. Conference Call Bravo!
will host a conference call using VCall, March 30, 2006 at 04:30
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 today's call is 877-407-9205 (International:
201-689-8054); No Passcode required. The call will be webcast live
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 March 31,
2006 at 11:59 p.m. Eastern Time and can be accessed by dialing
1-877-660-6853 (International: 1-201-612-7415); enter account
number 286; conference identification number 197933. About the
Company Bravo! Foods International Corp. develops, brands, markets,
distributes and sells nutritious, flavored milk products throughout
the 50 United States, Great Britain and various Middle Eastern
countries. 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,
Dutch Farms, Giant Food Stores, Jewel, Kings, Pathmark, Safeway,
Sam's Club, Shaw's, ShopRite, Speedway, SuperTarget, Unified,
Waldbaums and Walgreens. Many of Bravo! Foods' Slammers(R) lines of
shelf-stable, single-serve milk drinks are co-branded through
exclusive partnerships with Masterfoods, a division of Mars
Incorporated, 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 Integrated Corporate Relations Kathleen
Heaney 203-803-3585 Company Contact Jeffrey J. Kaplan, Chief
Financial Officer 561-625-1411 DATASOURCE: Bravo! Foods
International Corp. CONTACT: Investor Relations, Kathleen Heaney,
Integrated Corporate Relations, +1-203-803-3585, for Bravo! Foods;
or Jeffrey J. Kaplan, Chief Financial Officer, Bravo! Foods,
+1-561-625-1411 Web site: http://www.bravobrands.com/
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