SEATTLE — Jones Soda Co. (the Company), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the fourth quarter ended December 31, 2012.
Results for the fourth quarter reflect the efforts of our turnaround strategy that we implemented in the 2nd half of the year. As part of our turnaround focus, we redeployed resources from certain markets while refocusing efforts on key core markets, and this resulted in a decrease in revenue for the fourth quarter of 2012 of 10% to $3.1 million compared to revenue of $3.4 million for the fourth quarter of 2011. Despite the revenue decline for the quarter, gross profit was slightly up for the comparable quarters due to our turnaround efforts. Also evidencing the turnaround is a 77% improvement in our bottom line performance, in which we reported a net loss of $448,000, or $(0.01) per share, for the fourth quarter of 2012, compared to a net loss of $2.0 million, or $(0.06) per share, for the fourth quarter 2011.
For the year, revenue decreased 6% to $16.4 million compared to $17.4 million in 2011. Again, even with the decline in revenue for the year, gross profit for the year improved to $4.5 million compared to gross profit for 2011 of $4.3 million, up 4%. We reported a net loss of $2.9 million, or $(0.08) per share, for 2012, compared to a net loss of $7.2 million, or $(0.22) per share for 2011, a 59% improvement.
“Our turnaround strategy is working. Over the 2nd half of 2012, we have worked to bring our company back to its core entrepreneurial principles, while also reducing costly selling, general & administrative expenses. We have found the right balance for our operating expenses and are investing in distribution and product lines that we believe will drive longer term volume growth in a profitable way,” said Jennifer Cue, CEO of Jones Soda Co.
Fourth Quarter Review – Comparison of Quarters Ended December 31, 2012 and 2011
- Revenue decreased 10% to $3.1 million, compared to $3.4 million last year.
- Gross profit increased to 23% of revenue, compared to 20% of revenue last year.
- Operating expenses decreased 59% to $1.1 million, compared to $2.7 million last year.
- Net loss improved 77%, to $448,000, or $(0.01) per share, for the fourth quarter of 2012, compared to a net loss of $2.0 million, or $(0.06) per share, last year.
Full Year Review – Comparison of Year Ended December 31, 2012 and 2011
- Revenue decreased 6% to $16.4 million compared to $17.4 million in the prior year.
- Gross profit increased to 27% of revenue, compared to 25% of revenue last year.
- Operating expenses decreased 37% to $7.3 million, compared to $11.5 million in the prior year.
- Net loss improved 59%, to $2.9 million, or $(0.08) per share, compared to a net loss of $7.2 million, or $(0.22) per share, last year.
Balance Sheet
As of December 31, 2012, we had cash and cash-equivalents of approximately $1.7 million and working capital of approximately $4.1 million. We had positive cash flow of $247,000 provided by operating activities during the quarter ended December 31, 2012.
Conference Call
The Company will discuss its results for the quarter and fiscal year ended December 31, 2012 on its scheduled conference call today, March 7, 2013 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may also listen to the call via telephone by dialing (719) 325-2329 (confirmation code: 9747246). In addition, a telephone replay will be available by dialing (858) 384-5517 (confirmation code: 9747246) through March 14, 2013, at 11:59 p.m. Eastern Time.
About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co. markets and distributes premium beverages under the Jones® Soda and WhoopAss™ Energy Drink brands and sells through its distribution network, in markets primarily across North America. A leader in the premium soda category, Jones is known for its variety of flavors, highest-quality ingredients, including pure cane sugar, and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers.