Source: Celsius Holdings
BOCA RATON, Fla., Aug. 8, 2014 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius®, the world's first Negative Calorie beverage backed by clinical science, today reported its results of operations for the three and six months ended June 30, 2014.
Results for the second quarter reflect investments in transitioning international production to Dusseldorf, Germany which provides the Company a firm footing for continued international expansion and reduced inventory lead times for customers resulting in more frequent inventory turns. Revenues for the quarter were impacted due to this transition. Domestically, the Company continues to invest in key "Drill Deep" regions through Social and Digital Media, Celebrity Endorsements, and Ambassador Teams.
"We are making excellent progress and our products are resonating well with consumers both domestically and abroad. Over the last nine months we worked diligently and took steps to improve the Company's sales cycle and lead times for our current and future customers abroad with much success. In addition, as a result of our marketing initiatives, we continue to attract new daily consumers and industry-wide brand recognition," said Mr. Gerry David, Chief Executive Officer. According to IRI domestic data for a 52 week rolling period ending 6-15-14, Celsius was ranked 112 out of 599 brands in the Energy, RTD Coffee/Tea, Waters, Isotonic, Functional, Water and Coconut Water. Celsius was +43%/dollar volumes, +88%/unit volumes. Of the top 125 brands, 59 (47%) are declining in sales while Celsius continues its growth domestically. Celsius is now outperforming brands such as FRS, Activate, Karma and others domestically, David added.
Second Quarter Highlights – Comparison of Quarters Ended June 30, 2014 and 2013:
Year-to-Date Highlights – Comparison of Six Months Ended June 30, 2014 and 2013:
More information about the Company's operations or financial results is included in its most recent quarterly disclosure statement filed with the OTC Marketplace.
|Celsius Holdings, Inc. and Subsidiaries|
|Consolidated Balance Sheets|
|June 30, 2014||December 31, 2013|
|Cash and cash equivalents||$ 179,652||$ 221,906|
|Accounts receivable, net||1,233,947||1,491,550|
|Prepaid expenses and other current assets||1,016,975||426,270|
|Total current assets||3,493,122||2,960,997|
|Property, fixtures and equipment, net||58,995||68,713|
|Total Assets||$ 3,552,117||$ 3,029,710|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Accounts payable and accrued expenses||$ 1,001,472||$ 840,057|
|Accrued preferred dividend||112,935||46,567|
|Deferred revenue and other current liabilities||338,019||448,991|
|Total current liabilities||1,452,426||1,335,615|
|Convertible note payable, related party||1,500,000||1,500,000|
|Note payable-related party||7,575,000||6,100,000|
|Stockholders' Equity (Deficit):|
|Preferred Stock, $0.001 par value; 2,500,000 shares authorized, 2,200 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively.||2||2|
|Common stock, $0.001 par value; 50,000,000 shares authorized, 20,429,032 and 20,179,032 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively||20,429||20,179|
|Additional paid-in capital||39,652,873||39,263,208|
|Total Stockholders' Equity (Deficit)||(6,975,309)||(5,905,905)|
|Total Liabilities and Stockholders' Equity (Deficit)||$ 3,552,117||$ 3,029,710|
|Celsius Holdings, Inc. and Subsidiaries|
|Consolidated Statements of Operations|
For the three months
ended June 30,
For the six months
ended June 30,
|Revenue||$ 2,729,525||$ 3,018,759||$ 6,597,009||$ 5,361,130|
|Cost of revenue||1,656,450||1,830,873||4,140,984||3,303,608|
|Selling and marketing expenses||1,140,003||926,237||2,634,753||1,796,596|
|General and administrative expenses||535,901||376,102||981,620||751,511|
|Total operating expense||1,675,904||1,302,339||3,616,373||2,548,107|
|Loss from operations||(602,829)||(114,453)||(1,160,348)||(490,585)|
|Other Income (Expense):|
|Interest expense, net||(119,863)||(113,894)||(232,603)||(217,562)|
|(Loss) on change in fair value of derivative liability||--||--||--||(6,000)|
|Gain from termination of option agreement||--||--||--||80,400|
|Total Other Income (Expense)||(119,863)||(113,894)||(232,603)||(143,162)|
|Net loss||$ (722,692)||$ (228,347)||$ (1,392,951)||$ (633,747)|
|Accrued preferred stock dividend||(33,367)||--||(66,368)||--|
|Net loss available to common stockholders||$ (756,059)||$ (228,347)||$ (1,459,319)||$ (633,747)|
|Weighted average shares outstanding||20,429,032||20,179,032||20,332,347||20,179,032|
|Loss per share, basic and diluted common shareholders||$ (0.04)||$ (0.01)||$ (0.07)||$ (0.03)|
About Celsius Holdings, Inc.
Celsius Holdings Inc. (OTC:CELH) is a science-based functional beverage company, founded in April 2004 to launch the world's first negative calorie beverage. The evolution of the beverage market has evolved from high calorie to low calorie to zero calorie. Celsius® negative calorie beverage is unique worldwide and deeply rooted in science. The first clinical study was conducted in 2005. Six additional studies, including five from the University of Oklahoma, were conducted over the next five years. The studies validated the unique benefits Celsius provides to the consumer. For more information, please visit www.celsius.com.
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.
Media Contact: 5W Public Relations (646) 763 8878 Jacolyn Gleason