Celsius Holdings Reports Second Quarter 2012 Results

Celsius Holdings Reports Second Quarter 2012 Results

London : United Kingdom | Aug 27, 2012 at 10:18 AM PDT
Source: PRWeb
Views: Pending

the creator and marketer of the Celsius® brand, today reported results of operations for the three and six months ended June 30, 2012.

Net Revenue for the three months ended June 30, 2012 totaled $1.8 million as compared to $2.0 million for the same quarter in 2011, a decrease of 10%. The decrease is attributable to the Company’s shift in 2012 to emphasize direct to consumer and international distribution as opposed to retail distribution.

Net Revenue for the six months ended June 30, 2012 totaled $4.3 million as compared to $4.2 million during the same period in 2011, a 2% increase. The increase in net revenue is mainly due to new international sales and a reduction of discounts, promotions, and returns compared to 2011, off-set by a decrease of approximately $402,000 in retail accounts and distribution outlets from 2011.

The Company recorded a net loss of $1,119,000 for the second quarter compared to a net loss of $456,000 in the same quarter a year ago, or ($.06) and ($.02) per share, respectively. The increase in net loss is mainly due to decreased revenues, increases in option expense associated with our new fitness ambassador Tony Little, enhanced sales and marketing programs, and a significant increase in cost of goods. This increase of $255,000 relates primarily to a 2010 reserve adjustment realized in 2011 and increased product rework and component costs. Additionally we continue to invest in human resources directed toward growth in the direct to consumer, and international distribution and retail segments of our business.

For the six months ended June 30, 2012, the Company recorded a net loss of $1,655,000 as compared to $916,000 for the same period last year, or ($.08) and ($.05) per share, respectively. The increase in net loss is mainly due to increases in option expense, enhanced sales and marketing programs and a significant increase in cost of goods ($475,000 ) associated with the 2010 reserve adjustments realized in 2011 and increased product rework and component costs.

The Company also announced an amendment of its long term line of credit with CDS Ventures of South Florida, LLC (CDS). On June 28, 2012, the line of credit limit was increased to $5.275 million. Celsius' Fitness Ambassador">Tony Little has sold over $4 billion of fitness and wellness products to over 45 million consumers over the past 20 years. Mr. Little has been seen on television in 81 countries. Tony Little is a daily consumer of Celsius and says, "I enjoy drinking Celsius before my workouts and could truly feel the benefits afterwards,” says Tony Little. “As I used Celsius, it became clear that this was a product that I wanted to recommend and be a part of."

•A successful geo-targeted radio campaign was launched featuring Tony Little. The Company realized a lift in both retail store and online sales. This campaign will be rolled out regionally in Q3.

•The "Earn while you Burn" program was kicked off in Q2. This program incentivizes the consumer to purchases and directs them to our corporate website to purchase the product.    

•A new digital marketing initiative was tested in the south Florida market. The Celsius brand received approval for distribution in the UK, Singapore and New Zealand.

•The Company implemented the Great Plains accounting and reporting platform. This software now provides a real time accounting and management information system. In addition, the Company is developing a new corporate website scheduled for release in October and is working on the relocating of our manufacturing and warehousing to reduce cost of goods.

To view Celsius Holdings, Inc. PK) markets Celsius®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. Information about Celsius Holdings, Inc. and Celsius is available at http://www.celsius.com.

Forward-Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” “would,” or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/8/prweb9782389.htm

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