LOUISVILLE, CO--(Marketwire - August 12, 2008) - Eldorado Artesian Springs, Inc. (OTCBB: ELDO) today announced financial results for its first quarter ended June
30, 2008.
Revenue increased 2.4% in the first quarter to $2.2 million from $2.1
million in the first quarter last year. The increase is primarily
attributable to two major factors: First, the Company's new Organic
Vitamin Charged Spring Water, introduced in September 2007, continues to
gain market acceptance with sales increasing 84% in the first quarter
versus the fourth quarter ended March 31, 2008. Second, a 27%
year-over-year increase in sales of the Company's private label PET
products.
Total operating expense increased during the first quarter to $1.9 million
from $1.7 million as the Company incurred higher delivery and fuel costs
associated with gasoline price increases as well as higher professional
fees and employee costs related to wages and insurance. In addition, the
Company increased its investment in advertising and promotion in support of
the rollout of its Organic Vitamin Charged Spring Water and incurred higher
expenses related to strengthening its water rights portfolio. Net loss was
$206,500, or $0.03 per basic and diluted share, versus a net loss of
$49,000, or $0.01 per basic and diluted share, in the same quarter last
year. The net loss included more than $116,000 in non-cash depreciation
and amortization.
Doug Larson, president and CEO, said results were generally in line with
management's expectations, adding that new product and distribution
activities in recent months bode well for continued year-over-year revenue
gains well into the future.
"We have invested considerably over the past two years into projects that
make us optimistic for significant revenue growth in the coming months,"
Larson said. "Our new Organic Vitamin Charged Spring Water and a new
one-gallon private label program initiated in June with one of the world's
largest retailers are expected to be the two principal drivers of our
future. Our strategy is to continue to improve core operations and to use
capital generated internally to expand distribution and promotion of the
Organic Vitamin Charged Spring Water line. Major distribution channels for
our Organic Vitamin Charged Spring Water include Albertson's, Vitamin
Cottage, K&G (Jenny's Markets), and one of the nation's premier health food
supermarkets. Other distributors and food service organizations make the
products available to more than 2,000 other retail outlets."
About Eldorado Artesian Springs, Inc.
Eldorado Artesian Springs, Inc. is a leading bottler, marketer, and
distributor of natural spring water beverages in the Rocky Mountains. The
Company's growing product portfolio includes the nation's only Organic
Vitamin Charged Spring Water, which was recently introduced in six flavors
and has generated strong market acceptance. The Company also markets
five-gallon and three-gallon bottles of water directly to homes and
businesses, national retail grocery chains, and regional distributors.
Additionally, the Company markets its water in smaller, more convenient
size packaging to retail food stores. The source of the natural spring
water is located on property owned by the Company in Eldorado Springs,
Colorado. More information about the Company can be found at
http://www.eldoradosprings.com.
Safe Harbor Statement
Some portions of this press release, particularly those describing
Eldorado's goals and strategies, contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. While
Eldorado is working to achieve those goals and strategies, actual results
could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties, including
difficulties in marketing its products and services, need for capital,
competition from other companies and other factors, any of which could have
an adverse effect on the business plans of Eldorado, its reputation in the
industry or its expected financial return from operations and results of
operations. In light of significant risks and uncertainties inherent in
forward-looking statements included herein, the inclusion of such
statements should not be regarded as a representation by Eldorado that it
will achieve such forward-looking statements. For further details and a
discussion of these and other risks and uncertainties, please see our most
recent reports on Form 10-KSB and Form 10-Q, as filed with the Securities
and Exchange Commission, as they may be amended from time to time. Eldorado
undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.
Statements of Operations
(Unaudited) Three months ended
June 30,
2008 2007
----------- -----------
Revenues
Water and related $ 2,175,050 $ 2,118,823
Resort operations 42,288 46,203
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Net revenue 2,217,338 2,165,026
----------- -----------
Cost of goods sold 521,696 446,247
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Gross profit 1,695,642 1,718,779
----------- -----------
Operating expenses
Salaries and related 971,322 899,781
Administrative and general 506,396 429,941
Delivery 238,565 199,971
Advertising and promotions 96,618 70,089
Depreciation and amortization 116,568 104,321
----------- -----------
Total operating expenses 1,929,469 1,704,103
----------- -----------
Operating (loss) income (233,827) 14,676
----------- -----------
Other income (expense)
Interest income 6,743 15,227
Interest expense (89,456) (84,919)
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Total other expense (82,713) (69,692)
----------- -----------
Net loss before provision for income taxes (316,540) (55,016)
Income tax benefit 110,000 6,000
----------- -----------
Net loss $ (206,540) $ (49,016)
=========== ===========
Basic loss per common share $ (0.03) $ (0.01)
=========== ===========
Diluted loss per common share $ (0.03) $ (0.01)
=========== ===========
Basic weighted average common
shares outstanding 6,579,365 6,032,670
=========== ===========
Diluted weighted average common
shares outstanding 6,579,365 6,032,670
=========== ===========
Balance Sheet
June 30, March 31,
2008 2008
----------- -----------
ASSETS
Current Assets
Cash $ 215,232 $ 389,440
Accounts receivable - trade, net 1,006,454 893,660
Inventories 441,989 437,171
Prepaid expenses and other 81,555 107,144
Deferred tax asset 29,648 29,648
----------- -----------
Total current assets 1,774,878 1,857,063
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Non-current assets
Property, plant and equipment - net 4,287,879 4,177,350
Notes receivable - related party 324,093 318,138
Water rights - net 432,871 432,871
Deposits 149,148 135,785
Long-term deferred tax asset - net 145,944 35,944
Other - net 68,120 72,878
----------- -----------
Total non-current assets 5,408,055 5,172,966
----------- -----------
Total assets $ 7,182,933 $ 7,030,029
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 556,927 $ 417,929
Accrued expenses 254,629 318,352
Customer deposits 83,517 80,530
Line of credit 140,000 -
Current portion of capital lease obligations 41,881 -
Current portion of long-term debt 52,835 56,748
----------- -----------
Total current liabilities 1,129,789 873,559
Non-current liabilities
Capital lease obligations, less current portion 106,900 -
Long-term debt, less current portion 4,393,539 4,403,789
Deferred gain on the sale of real estate 178,822 178,822
----------- -----------
Total non-current liabilities 4,679,261 4,582,611
----------- -----------
Total liabilities 5,809,050 5,456,170
----------- -----------
Stockholders' equity
Preferred stock - -
Common stock 6,696 6,426
Additional paid-in capital 1,640,453 1,634,159
Accumulated deficit (273,266) (66,726)
----------- -----------
Total stockholders' equity 1,373,883 1,573,859
----------- -----------
Total liabilities and stockholders' equity $ 7,182,933 $ 7,030,029
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Contact Information: Contacts:
Doug Larson
Chief Executive Officer
Eldorado Artesian Springs, Inc.
303-499-1316
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044