NewAge Reports 386% Full Year 2019 Revenue Growth

Strong Balance sheet with over $250 million in assets and cash of $61 million

Business transformation resulted in developing an infrastructure across 60 countries and a near 5-fold increase in full year revenue

DENVER, March 16, 2020 (GLOBE NEWSWIRE) -- NewAge Beverages Corporation (Nasdaq: NBEV), the Colorado-based healthy products company dedicated to inspiring and educating the planet to “live healthy”, today announced financial results for the year ended December 31, 2019 with revenue growth of 386%.

Highlights for Full Year 2019 Compared to Full Year 2018:

• Net revenue increased 386% to $253.7 million versus prior year of $52.2 million
• Gross margins increased to 60.2% compared to 17.8% in the prior year
• Net loss was $89.8 million, driven primarily by a non-cash impairment charge
• Adjusted EBITDA* loss improved by $1.7 million to $13.4 million from $15.2 million in 2018

* Adjusted EBITDA is a non-GAAP financial measure. See the discussion and reconciliation of non-GAAP financial measures below.

Brent Willis, Chief Executive Officer of NewAge commented, “In 2019 we increased our scale five times, evolving from a $50 million company to one with net revenue above $250 million. Whilst doing so, we gained access to a range of new channels and opportunities across our infrastructure that now spans 60 countries worldwide. We also added global iconic brands like Nestea, Volvic, Illy, and Evian to our portfolio, strengthened our platform worldwide and made important investments in our leadership team.  We believe there is no better time to be in the business of healthy products, with a system like ours that primarily delivers directly to consumers’ homes.  We are extremely well positioned to address consumer concerns for staying healthy around the world with our unique portfolio of healthy products and omnichannel route to market.”

Full Year 2019 Financial Results                                                                                                                       

In 2019, net revenue was $253.7 million compared to $52.2 million in 2018, an increase of 386%.

Gross profit for 2019 increased 16-fold to $152.7 million compared to $9.3 million in 2018. Gross margin increased to 60.2% for 2019 compared to 17.8% for 2018, which reflects a significant improvement in product portfolio, penetration of more profitable channels, and access to new, more profitable markets.

Net loss was $89.8 million, or $1.16 per share, during 2019 compared to a net loss of $12.1 million, or $0.26 per share, in 2018. The increase in net loss during 2019 was significantly impacted by the $44.9 million non-cash impairment charge taken during the year related to our U.S. retail brands business.  Adjusted EBITDA loss improved by $1.7 million to $13.4 million from $15.2 million in the prior year period.

Gregory A. Gould, Chief Financial Officer, commented, “I believe we are well positioned for 2020 following our business transformation during 2019.  We have a strong balance sheet with over $60 million of cash and over $250 million in assets with less than $30 million of debt, as well as a scale and revenue base that is almost five times the size we were in the prior year. Growing at this pace is always a challenge, but in the process we have kept our balance sheet and capital structure strong, providing us with flexibility for our next steps in 2020.  We have impaired a majority of our U.S. retail business as we focus our efforts on our strongest and most profitable assets, which we expect to drive a meaningful improvement on our EBITDA in 2020.”

Fourth Quarter 2019 Financial Results                                                                                                                       

During the fourth quarter of 2019, net revenue increased 323% to $59.2 million compared to $14.0 million in the fourth quarter of 2018.

Gross profit in the fourth quarter of 2019 increased 10-fold to $32.2 million compared to $3.2 million in the fourth quarter of 2018. Gross margin increased to 54.3% for the fourth quarter of 2019 compared to 23.0% for the fourth quarter of 2018, reflecting the positive change in both product and channel mix, especially with our direct-to-consumer business.

Net loss was $65.9 million, or $0.83 per share, during the fourth quarter of 2019 compared to a net loss of $2.6 million, or $0.04 per share, in the fourth quarter of 2018. The increase in net loss was significantly impacted by the $44.9 million non-cash impairment charge taken during the fourth quarter of 2019.

Adjusted EBITDA was a loss of $17.4 million compared to an adjusted EBITDA loss of $8.7 million in the prior year period. The increased adjusted EBITDA loss was due primarily to the impact of the U.S. retail brands that are under strategic review, as well as continued softness in China that have been a consistent industry challenge since government intervention in the early part of 2019.

The full report may be viewed here.