Exhibit
99.1
 |
Denver, Colorado
|
NEW AGE
BEVERAGES CORPORATION ACHIEVES FULL YEAR 2017
EBITDA
OF $5.2 MILLION ON REVENUES 2X GREATER THAN 2016
DENVER, COLORADO, APRIL 17, 2018 – NEW AGE BEVERAGES
CORPORATION (NASDAQ: NBEV), the
Colorado-based organic and natural healthy functional beverage
company dedicated to making a difference for consumers with
better-for-you alternatives, today announced the achievement of
2017 full year financial results with gross revenue up 107% to 56.7
million, gross margin improving to 29%, and adjusted EBITDA
reaching $5.2 million.
KEY HIGHLIGHTS:
-
Net revenues up 106% to $52.2 million for the year, more than twice
that of 2016 at $25.3 million.
-
Gross margin improved to 29%, up 200 basis points, and Adjusted
EBITDA reached $5.2 million exclusive of non-recurring expenses, a
2,344% increase vs prior year.
-
Innovative new products within core brands, at significantly higher
margins, gaining success and positively impacting blended gross
margin.
Brent Willis, Chief Executive Officer of New Age Beverages,
commented, “2017 results were excellent, but we know we have
so much more potential and opportunity. We acquired and integrated
three companies in the year, and uplisted onto the NASDAQ, in
addition to hundreds of other things to build the foundation of a
much bigger scale company. We have developed the only one-stop-shop
of healthy beverages in the industry, and now we are driving that
portfolio in expanded distribution and new channels. We have a lot
of confidence in our team, our execution capabilities and our
brands, and are just beginning to hit our
stride.”
Q4 2017 FINANCIAL RESULTS
For the three-month period ending December 31, 2017, gross revenues
reached $12,379,799 versus $11,274,174 in the prior year. Net
revenues less discounts, returns and billbacks reached $11,246,317
versus $10,544,254 in the prior year.
Gross profit (not including shipping expense) reach 29.4% of net
sales, flat versus the prior year in 2016. Shipping costs in the
year were $676,318 or 6.0% of sales versus $450,853 in the prior
year period. The increase in shipping costs was due to the
integration, absorption, and transfer of inventory from the
acquisitions, and the shift to three consolidated national
warehouses.
Total operating expenses for the quarter were $7,501,957 as
compared to $4,371,640 in 2016, reflective of numerous one-time
costs absorption and integration expenses associated with the three
acquisitions.
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EBITDA on an adjusted basis for the three month period ending
December 31, 2017 achieved $789,079 versus was $422,957 in the
prior year, an 86.6% increase. The adjustments to EBITDA were
independently assessed by a third party during the Company’s
quality of earnings analysis, validating the add back of the
one-time costs with the acquisitions and financing of the
Company.
2017 FINANCIAL RESULTS
For the twelve-month period ending December 31, 2017, gross
revenues reached $56,636,287 versus $27,278,606 in the prior year.
Net revenues, less discounts, returns and billbacks, reached
$52,188,295 versus $25,301,806 in the prior year, reflective of the
growth of key core brands, the DSD Division, and the contributions
of the three acquisitions completed throughout the
year.
Gross profit (not including shipping expense) reach 29% of net
sales versus 27% in the prior year and 16% in 2015. Shipping costs
in the year were $2,674,379 or 5.1% of sales versus $1,096,830 in
the prior year period. The slight increase in shipping costs was
due to the integration, absorption, and transfer of inventory from
the acquisitions, and the shift to three consolidated national
warehouses.
Total operating expenses were $18,448,964 as compared to $9,422,983
in 2016, a 200 basis point reduction vs. prior year, and reflective
of numerous one-time expenses associated with the three
acquisitions and uplisting onto the NASDAQ Capital Market exchange.
Not including one-time expenses, OPEX was 25% of net
sales.
EBITDA on an adjusted basis achieved $5,182,451 versus was just
over $200 thousand in the prior year. The adjustments to EBITDA
were independently assessed by a third party during the
Company’s quality of earnings analysis, validating the add
back of the one-time costs with the acquisitions and financing of
the Company.
About New
Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based healthy
functional beverage company that was created in 2016 and 2017 with
the combination of Búcha Live Kombucha®, XingTea®,
Coco-Libre®, and Marley®, to create a one-stop-shop
solution for retailers and distributors providing healthier
beverages in the disruptive growth segments of the $870
Billion-dollar non-alcoholic beverage industry. In that period, New
Age has become the 54th
largest beverage company, the
8th
largest healthy beverage company, and
the fastest growing in the world. New Age competes Ready to Drink
(RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks,
Coconut Waters, Functional Waters, and Rehydration Beverages with
the brands Búcha® Live Kombucha, XingTea®,
XingEnergy®, Marley One Drop®, Marley Mellow Mood®,
Marley Mate™,
Marley Cold Brew™,
Coco-Libre®, PediaAde™, and Aspen Pure® PH and
Aspen Pure® Probiotic Water. The Company’s brands are
sold across all 50 states within the US and in more than 10
countries internationally across all channels via direct and store
door distribution systems. The company operates the websites
www.newagebev.com,
www.newagehealth.us,
www.mybucha.com,
www.xingtea.com,
www.aspenpure.com,
www.drinkmarley.com,
www.cocolibre.com,
and https://shop.newagebev.com.
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New Age has exclusively partnered with the world's 5th largest
water charity, WATERisLIFE, to end the world water crisis with the
most innovative technologies available. Donate at WATERisLIFE.com
to help us #EnditToday.
Safe Harbor Disclosure
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are any statement reflecting
management's current expectations regarding future results of
operations, economic performance, financial condition and
achievements of the Company including statements regarding New Age
Beverage’s expectation to see continued growth. The
forward-looking statements are based on the assumption that
operating performance and results will continue in line with
historical results. Management believes these assumptions to be
reasonable but there is no assurance that they will prove to be
accurate. Forward-looking statements, specifically those concerning
future performance are subject to certain risks and uncertainties,
and actual results may differ materially. New Age Beverages
competes in a rapidly growing and transforming industry, and other
factors disclosed in the Company's filings with the Securities and
Exchange Commission might affect the Company’s operations.
Unless required by applicable law, NBEV undertakes no obligation to
update or revise any forward-looking statements.
For investor inquiries about New Age Beverages
Corporation please
contact:
Cody Slach, Liolios Group,
Inc.
Investor Relations Counsel
Tel 949-574-3860
NBEV@Liolios.com
New Age Beverages Corporation
Chuck
Ence, CFO
303-289-8655
Cence@newagebev.com
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