MIAMI, April 20 /PRNewswire-FirstCall/ — ChampionLyte Holdings, Inc. (OTC Bulletin Board: CPLY) today reported its annual operating results for the year ended December 31, 2003.
As a result of a company-wide, strategic restructuring, the Company has begun to show revenues on the initial sales of its reformulated sugar-free ChampionLyte(R) isotonic sports drink. Additionally, the Company is also reporting revenues in the first full quarter from the recently reclaimed Old Fashioned Syrup Company subsidiary, which historically accounted for a significant percentage of its revenues.
Revenues from operations during the year ended December 31, 2003 were $410,351 as compared to $951,890 for the year ended December 31, 2002. For the year ended December 31, 2003, the Company recorded a one-time licensing revenue of $157,900, which is included in other income. The decrease in sales was due to the restructuring, including but not limited to the Company’s entire management team as well as reformulating its products and creating a new marketing and distribution system. The Company also did not benefit from revenues of its Old Fashioned Syrup Company subsidiary until August of 2004, when it was reclaimed.
“We had nominal operations during the first six months of the year and did not begin shipping products until June 2003,” said David Goldberg, president of ChampionLyte Holdings, Inc. “Prior to June 2003, we reformulated our product and ceased distribution at the beginning of the fiscal year and did not begin shipping product until after June 2003.
“The reformulation was basically a total makeover of the product, which was facilitated by switching flavor houses, reducing sweetener levels, adding flavor and taking out preservatives,” Goldberg said. “The newly reformulated product has gained excellent acceptance in the marketplace and recently received a very favorable review from BevNet a respected industry publication (see link: http://bevnet.com/reviews/championlyte/). What’s particularly gratifying is that we are seeing more and more re-orders indicating a positive sell through at the retail level.”
“We also re-acquired the Old Fashioned Syrup Company in August 2003,” said Goldberg. “The operations of Old Fashioned Syrup Company have been included in our operating results for the year ended December 31, 2002 and the period August 20, 2003 (re-acquisition) to December 31, 2003.”
ChampionLyte Holdings, through its wholly owned subsidiary ChampionLyte Beverages, Inc., manufactures, markets, sells and distributes ChampionLyte(R), the first completely sugar-free entry in the multi-billion dollar isotonic sports drink market. The Old Fashioned Syrup Company subsidiary manufactures, distributes and markets three flavors of sugar-free syrups. The products are sold in more than 20,000 retail outlets, including some of the nation’s largest supermarket chains.
Goldberg said the Company is in the process of establishing a no-carb, low-carb subsidiary, Be-Lyte.
“Obviously, this is one of the fastest growing categories in the food industry,” said Goldberg. “Through Be-Lyte we will soon introduce a line of low-carb chips and three flavors of dips. We believe that the products are outstanding and we hope to take advantage of the marketing and distribution synergies with our sports drink and syrup products.”
Goldberg said that subsequent to year-end the Company has made strides in furthering sales and distribution, including:
* The Company delivered its largest order of sugar-free ChampionLyte in its history — 18,000 cases (10 tractor trailer loads) to Havana International Incorporated.
* Received an initial purchase order from the world’s largest specialty retailer devoted solely to manufacturing and selling vitamins and nutritional supplements.
* Reduced production costs and increased quality with the selection of a new bottling facility.
* The Company received its first purchase order from Baja Miller for distribution of ChampionLyte in Mexico.
* The Company received an initial order from Kroger Mid-South Division.
“We are very confident that we have a great lineup of products that are meeting the demands of a very discerning public which is becoming more and more conscious about what they choose to put in their bodies,” Goldberg said. “ChampionLyte offers great tasting products without sugar and unwanted calories. We are executing our business plans and anticipate further market penetration during fiscal 2004.”
About ChampionLyte Holdings, Inc.
ChampionLyte Holdings, Inc. is a fully reporting public company whose shares are quoted on the OTC Bulletin Board under the trading symbol CPLY. Its recently formed beverage division, ChampionLyte Beverages, Inc., a Florida corporation, manufactures, markets and sells ChampionLyte(R), the first completely sugar-free entry into the multi-billion dollar isotonic sports drink market. Its The Old Fashioned Syrup Company subsidiary manufactures, distributes and markets three flavors of sugar-free syrups. The products are sold in more than 20,000 retail outlets including some of the nation’s largest supermarket chains.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission.