SEATTLE, May 2, 2002 (PRIMEZONE) -- Jones Soda Co. (the "Company" or "Urban") (OTCBB:JSDA) (CDNX:JSD) today announced financial results for the first quarter ended March 31, 2002.
Net sales for the first quarter of fiscal 2002 were $3,973,554 compared to $5,247,358 for the first quarter of fiscal 2001. Operating loss for the first quarter of fiscal 2002 was $322,534 versus $320,529 for the first quarter of fiscal 2002. Net loss was $315,575, or $0.02 per diluted share versus a net loss of $260,490, or $0.01 per diluted share during the same period a year ago.
For the first three months of fiscal 2002 gross margin was 36.0% compared to 36.9% for the first quarter of fiscal 2001. Operating expenses as a percentage of sales were 44.2% for the first quarter of 2001 compared to 43.0% in the corresponding period a year ago
Peter van Stolk, President and C.E.O commented, "Our results for the quarter were primarily affected by transition issues with our newest distributors who replaced our three prior distributors that went bankrupt or out of business in late 2001, coupled with a general weakness in the overall New Age Beverage market. We believe our new distributors are now fully ramped up and the environment is improving, evidenced by a significant pickup in our business for April."
Mr. van Stolk further commented, "We continue to focus on profitability, and to this end, we have named Matt Kellogg as Executive Chairman. Matt will concentrate his efforts on streamlining operations and improving our financial position. His management expertise and years of experience investing and operating in small companies, make him the ideal candidate for this role."
Mr. van Stolk concluded, "Our brand equity remains strong and our core products are performing well in the marketplace. We continue to achieve meaningful gains in our most profitable territories and we are increasing shelf space at our major accounts. Simultaneously, we have substantially reduced our cost structure and per case spending, and will continue to do so, creating an improved platform for leverage and profitability. Most importantly, the Jones name has never been more popular, our momentum is good and we are committed to long-term growth, profitability and increased shareholder value."
Headquartered in Seattle, Washington, Jones Soda Co., manufactures its Jones Soda, Jones Naturals, Jones Energy and Whoopass brands and sells them through its distribution network in select markets across North America. A leader in the premium soda category, Jones is known for its innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers and everywhere you'd never expect to find a soda.
Statements in this press release, and elsewhere that look forward in time or include anything other than historical information involve risks and uncertainties that may affect the Company's actual results of operations. Statements contained in this release regarding the Company's anticipated future results of operations, and on the Company's ability to expand the Jones Soda, Jones Naturals, Jones Energy and Whoopass brands are "forward-looking statements" as the phrase is defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements by the Company are subject to certain risks, including future demand for Jones Soda products, the Company's ability to maintain and expand its distributor network, the ability of its distributors to increase product sales, competition from other businesses providing similar products and the Company's ability to successfully execute its business strategy. These risks and uncertainties, as well as other risks that are relevant to the Company's business and results of operations, are discussed in more detail in the Company's periodic reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including the Company's Annual Report on Form 10-KSB for the 2001 fiscal year.
(The following attached exhibits provide a summary of our financial statements. For a complete set of the Company's financial statements, please visit our website at www.jonessoda.com or contact us directly.)
JONES SODA CO.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
($US)
Three Months Ended
($US) March 31,
-----------------------------
(Unaudited)
2002 2001
----------- -----------
Net Sales $ 3,973,554 $ 5,247,358
Cost of Goods Sold 2,541,449 3,311,424
Gross Profit 1,432,105 1,935,934
Gross Margin 36.0% 36.9%
Operating Expenses:
Promotion and Selling 1,106,833 1,560,635
General & Admin 602,518 625,961
Dep'n & Amortization 45,288 69,867
Total operating expenses 1,754,639 2,256,463
Operating income (loss) (322,534) (320,529)
Interest Income (13,750) (5,568)
Other income (expense) 20,709 65,607
Net income (loss) (315,575) (260,490)
=========== ===========
Earnings (Loss) per share ($ 0.02) ($ 0.01)
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JONES SODA CO.
INTERIM CONSOLIDATED BALANCE SHEET
(Unaudited -US$)
($US) Mar. 31, 2002 Mar. 31, 2001
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ASSETS
Current Assets $5,176,224 $8,671,065
Capital Assets 641,077 666,828
Intangible Assets 141,272 116,372
$5,958,573 $9,454,265
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $2,917,978 $5,491,772
Capital Lease Obligations 48,422 53,643
Deferred Revenue 187,500 --
Shareholders' Equity 2,804,673 3,908,850
$5,958,573 $9,454,265
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