SAN DIEGO, Oct. 16, 2008 (GLOBE NEWSWIRE) -- Javo(r) Beverage Company, Inc. (OTCBB:JAVO), a leading provider of premium dispensable coffee and tea-based beverages to the food service industry, announced that is has secured and funded asset and receivable-based financing that will provide additional liquidity as it continues to grow its beverage dispenser-based business.
Richard Gartrell, chief financial officer of Javo Beverage Company, said, "Liquidity provided by this financing can expand to as much as $6 million as revenues grow behind the more than 9,000 recurring revenue dispensers at foodservice operations nationally. Each dispenser has historically generated between $3,000 and $6,000 in annual product sales."
Raymond James & Associates, Inc. (NYSE:RJF) advised in structuring the facility and continues to assist the Company in strategic financial planning.
Cody Ashwell, chief executive officer of Javo Beverage Company, said, "During these difficult economic times, we have continued to see demand for our coffee programs grow nationally, especially in health care facilities which typically are not impacted by economic cycles and in convenience stores, hotels, colleges and universities looking to capture incremental beverage purchases that in better times may have gone to specialty coffee retailers. Everything we are seeing in the marketplace today confirms the validity and profitability of Javo's dispensed specialty coffee business model. To date, we have increased revenue and gross margins substantially year over year while growing fixed expenses modestly; we look to maintain this trend as we enter fiscal 2009 with a base of more than 10,000 dispensers."
About Javo(r) Beverage Company, Inc.
Based in Vista, California, Javo(r) Beverage Company (OTCBB:JAVO) is an innovator and leader in the manufacture of coffee and tea-based dispensed beverages, drink mixes and flavor systems. The company has successfully commercialized a proprietary brewing technology that yields fresh brewed coffees and teas that are flavorful, concentrated and stable, with broad applications in the food service, food manufacturing and beverage industries. For food service operators, Javo makes it possible to serve great tasting hot coffees and cold specialty coffee beverages from convenient dispenser-based systems. Javo also assists food and beverage processors seeking authentic and robust coffee and tea flavors through its development and supply of customized ingredients for packaged foods and ready-to-drink beverages. The company supplies a growing list of national and international food service operations, specialty coffee retailers, restaurant chains and food manufacturers. For information about Javo Beverage Company, please visit www.javobeverage.com.
Forward-looking statements
This release contains forward-looking statements made by or on behalf of Javo(r) Beverage Company, Inc. All statements that address operating performance that the Company expects will occur in the future, including statements relating to operating results for fiscal 2008, revenue growth, annual revenue per dispenser, volume growth, share of sales, or statements expressing general optimism about future operating results, are forward-looking statements. These forward-looking statements are based on management's current views and we cannot assure that anticipated results will be achieved. These statements are subject to numerous risks and uncertainties, including those set forth in the Company's risk factors contained in the Company's most recent annual report on Form 10-K and in subsequent quarterly reports on Form 10-Q, copies of which are available from the Company without charge and from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements and are encouraged to review the risk factors that could affect actual results. The Company disclaims any intent to update forward looking statements.