Celsius Holdings reports Q1 net loss of US$405,000, compared with loss of US$536,000 in year-ago period; net revenues fall 6% to US$2.3M
BOCA RATON, Florida
May 13, 2013
– Celsius Holdings, Inc., (Other OTC:CELH) the creator and marketer of Celsius(R), the world's first calorie burning drink backed by clinical science, today reported its results of operations for the first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights:
Revenue: Net revenues for the three months ended March 31, 2013 totaled $2.34 million as compared to $2.49 million for the same period in 2012, a 6% decrease. A significant portion of this decrease is attributable to loss revenues from Costco $805 thousand. Excluding 2012 Costco revenues, 2013 revenues increased 39% from the same period in 2012. The increase was driven primarily by increased international sales 34%, health & fitness channel 130%, internet retail sales 148%, direct to consumer sales 47%, and excluding Costco our direct to retail business increased 27% from the same period in 2012. The results for the first quarter reflect the efforts of our turnaround strategy that we implemented in 2012. As part of our turnaround strategy, we redeployed resources to focus on key core markets which have resulted in increased revenues. Furthermore, revenues increased 21% from the fourth quarter of 2012.
Gross Profit: Gross profits for the three months ended March 31, 2013 totaled $870,000 or 37% of net sales as compared to $867,000 or 35% for the same period in 2012. For comparative purposes when excluding Costco gross profits of $308 thousand from the first three months of 2012, gross profits increased 55%. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the three months ended March 31, 2013 totaled $1.17 million as compared to $1.34 million for the same period in 2012, a 13% decrease. A significant portion of this decrease is attributable to decreases in in-store demo's mainly at Costco $208 thousand, option expense savings mainly associated with the termination of Tony Little's option agreement $32 thousand, and severance $38 thousand, offset by increases in marketing programs $240 thousand, and additional investment in human resources.
Net Loss: The Company recorded a net loss of $405,000 for the three months ended March 31, 2013 compared to a net loss of $536,000 for the same quarter a year ago, or ($0.02) and ($0.03) per share, respectively. During the first quarter of 2013 resources were redeployed from Costco which produced a negative contribution of $16 thousand in 2012 to key core markets and accounts which produced positive contributions. Our 2013 turnaround strategy is focused on deploying resources to focus on key core markets which result in increased revenues and profitable.
"We're pleased to see that our turnaround efforts continue to deliver positive results," said Gerry David, CEO of Celsius. "We will continue to focus on the execution of our strategic plan and continue to grow product availability and awareness globally."
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Other OTC:CELH) markets Celsius(R), which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. For more information, please visit www.celsius.com.
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