New Age Beverages Reports Record 2016 Earnings
Source New Age Beverages Corporation
DENVER, CO--(Marketwired - Apr 3, 2017) - New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based leading all-natural tea and healthy functional beverage company whose brands include XingTea®, XingEnergy®, Aspen Pure®, Búcha® Live Kombucha, Marley One Drop®, Marley Mellow Mood®, and CocoLibre® today announced earnings for its fourth quarter and full year ended December 31, 2016.
In recent developments in Q1 2017, the Company also uplisted onto the NASDAQ Capital Markets Exchange, completed a 4x oversubscribed raise for $17.5 million, eliminated 100% of debt, developed and launched shelf stable Búcha® Live Kombucha, developed and launched Aspen Pure® Probiotic, the world's first shelf-stable probiotic water, and completed the Marley Beverage Company and Coco-Libre® acquisitions.
Brent Willis, Chief Executive Officer of New Age Beverages, commented, "2016 was a transformational year for New Age. Overall growth across all financial metrics was excellent, especially considering we integrated Marley in Q4, built our first national sales force, and only saw the beginning of the cost and revenue synergies taking hold. We could not have asked for more from the organization in the first six months of being together. We have started 2017 off at a torrid pace, and now have the business platform, financial platform, the brands, and the experienced team to build a powerful and focused company, solely competing in the growth segments of the beverage industry."
2016 FINANCIAL RESULTS
Fully consolidated profit and loss results for 2016 include twelve months of Búcha, Inc. and six months of XingTea, which was integrated with Búcha, Inc. on June 30, 2016.
For the twelve-month period ending December 31, 2016, gross revenues reached $$27,278,606 vs. $2,686,658 in the prior year. Less discounts, returns, and billbacks, net revenues reached $25,301,806 vs. $2,421,752 in the prior year, reflective of the significant impact of the acquisition of XingTea.
Gross profit reached (not including shipping expense) $6,893,056 vs. $642,009 for the full year in 2016. Gross Profit reached 27.2% vs. 26.5% in the prior year and 26.6% in Q3 2016, the first quarter of fully integrated results. Positively impacting gross profit was improved cost of goods sold from increased scale production and the initial benefits of value engineering of the Búcha portfolio. Shipping costs were $1,096,830 or 4.3% of net sales vs. $228,633 in the prior year. Shipping costs in the prior quarter were 4.8% of sales reflecting the cost synergies of shipping full loads, cross docking, and improved scale and terms with freight carriers.
Total operating expenses were $9,422,983 reflective of numerous one-time expenses associated with the acquisition and uplisting. Total personnel expenses were down for the full year as a percent of net sales to 11.8% versus prior year apples to apples of 12.2% of net sales.
Adjusted EBITDA (non-GAAP) was $262,117, when removing the expenses associated with the acquisition of Xing, contractual bonuses as part of the acquisition, and one-time expenses associated with uplist to the NASDAQ. In addition to the one-time expenses, the company absorbed more than $2.5 million of losses associated with the Búcha Inc. standalone company, yet still delivered profitability and cash from operations of $975,176.
