NEW YORK, Dec. 15, 2015 (GLOBE NEWSWIRE) -- Soupman, Inc. (OTCQB:SOUP), makers of the best-tasting soup in the world, today announced financial results for the twelve months ending August 31, 2015.
Highlights of fiscal 2015:
- Cash position increase of $0.6 million
- Total liability decrease of $2.2 million
- Operating expense reduction of $1.9 million
- Operating loss reduction of $1.8 million
“Soupman has made significant progress since my appointment as Chairman and CEO this past summer. We have focused on decreasing liabilities and concurrently, increasing revenues by expanding our distribution channels and product assortment,” said Jamieson Karson, CEO of Soupman, Inc. “Additionally, after August 31, 2015 we have restructured all of our senior debt and have further reduced our overall liabilities by another $1.3 million, which shall be reflected in our next quarterly filing.”
“As we move forward, we intend to reduce liabilities and expand our product line and distribution channels supported by targeted, data-driven marketing. We began shipping product to 2,200 Kroger stores in August and our full year fiscal 2016 results will reflect those shipments. Our product is performing well in the stores and we have begun to process re-orders. Our marketing efforts have targeted regional DMAs around the country utilizing the ‘Soupman’ to make personal appearances and perform radio ads, resulting in dramatic sales increases in those designated markets.
We are also testing our Original Soupman branded soup in a national restaurant chain and since the test is proving highly successful, we expect to expand the test and at such time make an announcement in the coming fiscal quarter.
In fiscal 2016 and beyond, we expect to invest in supporting the grocery and restaurant channels of distribution as these two channels represent large potential revenue growth over the long term. Specifically, we are introducing new varieties of soup including an Organic Gluten-Free Lentil soup which is to begin shipping in January to select Costco stores in the Los Angeles region. We believe that new product offerings such as Gluten-free Lentil and others will open up new accounts and markets for us. We intend to support our new product introductions with marketing campaigns designed to build brand awareness and to drive consumer sales across all channels. Brand recognition of the iconic Original Soupman remains high and, combined with our progress on balance sheet restructuring and expense reduction, strengthens our position for future growth,” concluded Mr. Karson.
Net revenue was $1.9 million for the twelve months ended August 31, 2015 compared to revenue of $3.1 million for the twelve months ended August 31, 2014. The decrease reflects the product recall of Lobster Bisque, the Company’s best-selling variety, in September 2014. The recall was due to a labeling error, not a product deficiency, and the labeling error has since been corrected. Also contributing to the revenue decrease in fiscal 2015 is the payment by the Company on a one-time basis of slotting fees to certain of its key grocery partners. Under GAAP, we are required to deduct the slotting fees from top line revenues rather than expense them as an operating expense. Our revenues for fiscal 2015 reflect the netting out of the slotting fees. Notwithstanding, the Company views the payment of slotting fees as investment in our future growth with our key partners. Gross profit was $0.2 million, or 8.7% of revenue, compared to $0.3 million, or 8.3% of revenue, for fiscal 2014. Operating expenses were $1.9 million compared to $3.8 million last year. Operating loss was $1.7 million in fiscal 2015 compared to a $3.5 million operating loss in fiscal 2014. The noted improvement is a $1.8 million reduction in general and administrative expenses.
Net loss for fiscal 2015 was $2.9 million, or $.05 per share, compared to a net loss of $3.3 million, or $0.08 per share for fiscal 2014. In 2014, there was an increase in the fair value of derivative liabilities of $1.8 million which did not repeat in 2015. Per share results are based on average weighted shares outstanding of 62,129,481 and 40,783,004 for fiscal 2015 and 2014 respectively. Soupman had cash and equivalents of $0.6 million as of August 31, 2015.
About Soupman, Inc.
The Original Soupman® offers over 50 varieties of soups including such famous flavors as Lobster Bisque, Crab Bisque, Chicken Gumbo, Crab Corn Chowder, Mulligatawny, Butternut Squash, Jambalaya, Shrimp Bisque, Italian Sausage, Eggplant Parmigiana, Tomato Basil and many more. The Original Soupman® soups are also available in 6 varieties in 17 ounce Tetra Pak cartons in grocery stores including Publix, Kroger, Ralph's, Vons, Pavilions, HEB and Safeway among many others. The soups can also be ordered online and at Amazon.com. For a store tracker or to order, go to www.originalsoupman.com.
Consumers can visit the Soupman at his original store in NYC on 55 Street & 8th Ave, on soupmobiles at local events throughout the nation and ladling soup for fans at MetLife stadium during the football season.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. We sell soup across America to in Tetra Pak cartons grocery stores next to Campbell's and Progresso as well in our franchise restaurants, soupmobiles and foodservices. Shaquille O'Neal is an advisor and equity partner, as are Mr. October, Reggie Jackson and the award-winning actor, Jason Alexander. Jamieson Karson, former CEO of Steve Madden Shoes, is our Chairman and CEO. Soupman Inc., is a fully reporting public company trading on the OTCQB under the symbol SOUP. For additional information on our company please visit: www.originalsoupman.com OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding, continuing to reduce liabilities and expand our product line and distribution, expanding our national restaurant chain test, supporting the grocery and restaurant channels of distribution revenue channels, using new varieties to open up new accounts and markets for us and supporting our new product introductions with marketing campaigns. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as , our ability to continue to reduce liabilities and expand our product line and distribution, our ability to raise capital and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
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