First Quarter Revenue Grew 20% to a Record $4.65 Million and Company Delivers Second Consecutive Profitable Quarter
BOCA RATON, FL / ACCESSWIRE / May 11, 2015 / Celsius Holdings, Inc., (OTC: CELH) the creator and marketer of Celsius(R), the world's first Negative Calorie beverage backed by clinical science, today reported results for the first quarter of 2015.
First Quarter 2015 Financial Highlights Include:
- Revenue grew 20% to $4.65 million, from $3.87 million in the first quarter of last year
- International revenue grew 39% to $3.16 million, from $2.28 million in the comparable 2014 period
- Domestic revenue decreased 6% to $1.49 million, from $1.59 million last year
- Gross profit margins improved to 39.5% from 35.8% in last year's quarter
- Net Profit amounted to $213,000, as compared to a net loss of ($703,000) in the 2014 first quarter
- Non-GAAP Adjusted EBITDA, excluding interest, stock based compensation, and depreciation expenses, increased to $559,000 from ($271,000) in the comparable 2014 period
"Significant milestones were achieved with record first quarter revenues growing to $4.65 million. Growth in existing international accounts highlighted the success of our second consecutive profitable quarter.
Sales at the cash registers were up significantly, although domestic revenues were affected by increases in promotional allowances and the timing of customer replenishment systems. Domestically, Amazon.com sales broke monthly sales records in February, followed by a new record in March. Our recent expansion into corporate-owned Gold's Gym locations and product expansion in The Vitamin Shoppe reflect our continued growth in the health and fitness channel. Distribution into national and regional grocery chains, as well as convenience stores throughout the United States continues to expand," said Mr. Gerry David, Chief Executive Officer. "As we leverage our recently announced strategic partnership and equity investment led by Horizons Ventures, Mr. Russell Simmons and Ms. Kimora Lee Simmons, we believe that it will broaden our reach across consumer channels and will further strengthen our position in both domestic and global markets."
Quarter ending March 31, 2015 Financial Results:
Revenue: Revenues for the three months ended March 31, 2015 totaled a record $4.65 million as compared to $3.87 million for the same period in 2014, a 20% increase. This increase was associated with growth in existing international sales of 39% or $885 thousand versus the same period in 2014, respectively. Domestic sales decreased 6% or $103 thousand primarily associated with increases in promotional allowances and timing in customer order patterns. As a result, domestic retail accounts decreased 7% and health and fitness accounts decreased 13%, which was offset by growth in internet sales of 5% from the same period in 2014, respectively.
Gross Profit: Gross profits for the three months ended March 31, 2015 totaled $1.84 million as compared to $1.38 million for the same period in 2014. Gross profit margins improved 3.7% to 39.5% during the three months ended March 31, 2015 from the same period in 2014. The Company continues to focus on further cost savings initiatives and efficiencies to improve gross profit margins.
Operating Expenses: Operating Expenses for the three months ended March 31, 2015 totaled $1.46 million as compared to $1.94 million for the same period in 2014, a $480 thousand or 25% decrease. A significant portion of this savings is associated with savings achieved in celebrity endorsements, the timing of marketing programs, warehousing, and other sales expenses versus the same period in 2014.
Net Profit (Loss): The Company recorded a net profit of $213 thousand for the three months ended March 31, 2015 compared to a net loss of ($703) thousand for the same quarter a year ago. On a non-GAAP Adjusted EBITDA basis, excluding interest, stock based compensation, and depreciation expenses, non-GAAP Adjusted EBITA increased to $559 thousand, from ($271) thousand in the same period in 2014.
Disclosures can be found on the Company's online disclosure portal at: http://www.otcmarkets.com/stock/CELH/filings.
About Celsius Holdings, Inc.
Celsius Holdings Inc. (OTC: CELH) is a science-based functional beverage company, founded in April 2004 to launch the world's first negative calorie beverage. The evolution of the beverage market has evolved from high calorie to low calorie to zero calorie. Celsius(R) negative calorie beverage is unique worldwide and deeply rooted in science. The first clinical study was conducted in 2005. Six additional studies, including five from the University of Oklahoma, were conducted over the next five years. The studies validated the unique benefits Celsius provides to the consumer. For more information, please visit www.celsius.com.
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission and currently files with OTC Markets, Inc. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.
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SOURCE: Celsius Holdings, Inc.