Message #2 From:
Stock News Bot Date: March 23, 2005 08:49:21 AM
BRAVO Bravo! Foods International Reports Record Year End Results
Bravo! Foods International Reports Record Year End Results
NORTH PALM BEACH, Fla. - PRNewswire-FirstCall - March 22
NORTH PALM BEACH, Fla., March 22 /PRNewswire-FirstCall/ -- Bravo! Foods International Corp. (BULLETIN BOARD: BRVO) , a brand development and marketing company that manufactures, promotes and distributes vitamin- fortified, flavored milks, announced record year end results for the period ended December 31, 2004. For a complete copy of the filing, visit: http://www.bravobrands.com/ or http://www.otcfn.com/brvo .
For the year ended December 31, 2004, Bravo! reported revenue of $3,344,699, up 178.69%, or $2,144,557 over revenue of $1,200,142 reported for the same period in 2003.
This increase is the result of a change in the Company's method of revenue recognition in the United States, commencing January 1, 2004, when Bravo! began acting as the principal in these transactions, rather than as an agent. In addition, in the first quarter of 2004, Bravo! began to phase out its Looney Tunes(TM) flavored milk products and to develop four new branded product lines in the United States, including the launch of the Slammers(R) line of Marvel Comics Super Heroes(R) branded flavored milks during the second quarter 2004. Bravo! also began to do business with a third-party Middle East dairy processor during the second quarter 2004.
The following table presents revenue by source and type against costs of goods sold, as well as combined gross revenues and gross margins. In countries other than the United States, revenues for the period ended December 31, 2004 were generated by kit sales to third-party processors. Bravo!'s revenue from the sale of finished product to retail outlets is recorded as "unit sales" on the following table.
United Middle Total
2004 States Canada Mexico East Company
Revenue -
unit
sales $2,726,702 $-- $-- $-- $2,726,702
Revenue -
gross kit
sales 44,379 -- 119,968 453,650 617,997
Total
revenue 2,771,081 -- 119,968 453,650 3,344,699
Cost of
goods
sold (2,262,055) -- (55,609) (57,141) (2,374,805)
Gross
margin $509,026 $-- $64,359 $396,509 $969,894
United Total
2003 States Canada Mexico China Company
Revenue -
unit
sales $356,985 $-- $-- $-- $356,985
Revenue -
net kit
sales 2,737 -- -- -- 2,737
Revenue -
gross kit
sales 629,999 43,745 145,362 21,314 840,420
Total
revenue 989,721 43,745 145,362 21,314 1,200,142
Cost of
goods
sold (127,647) (10,403) (45,247) (9,201) (192,498)
Gross
margin $862,074 $33,342 $100,115 $12,113 $1,007,644
As a percentage of total revenue, Bravo! general and administrative expenses decreased from 187.5% in the period ended December 31, 2003, to 78.9% for the current period in 2004, resulting from the change in the way the Company conducts its business and recognizes revenue. The Company expects a continued effort to reduce these expenses as a percentage of sales through revenue growth, cost cutting efforts and the refinement of business operations.
Bravo! accrued dividends payable of $388,632 to various series of preferred stock during the period ended December 31, 2004. The Company's accrued dividends increased for this period by $48,728, or 14.33%, from $339,904 for the same period in 2003. The net loss before accrued dividends increased by $782,939, from $3,016,987 for the period ended December 31, 2003 to $3,799,926 for the current period, and the increase in accrued dividends was offset by the increase in the weighted average number of common shares outstanding, resulting in a decrease in our current period loss per share from $0.15 for the same period in 2003, to a loss per share of $0.10 for the current period.
Bravo! CEO Roy Warren said, "We are pleased to report significant growth in revenue for 2004, which resulted from a number of key initiatives developed during the year. We expect to continue to narrow losses as we explore new points of sale for our branded, flavored milk, including school and vending markets, which should significantly impact revenue for 2005."
Warren continued, "Similarly, we expect that the greater control over sales resulting from our refined business model and the anticipated expansion into bodega stores as well as national chains, such as 7-Eleven, will have a positive impact on revenues in the coming months."
About Bravo! Foods
Bravo! Foods International Corp. licenses, markets, distributes and sells high-quality, nutritious, flavored milk products throughout the 50 states, Puerto Rico, the U.S. Virgin Islands, Mexico and nine Middle East countries. The Company recently established a successful sales division to market Bravo!'s growing line of co-branded products throughout Canada.
The Company's milk drinks are available in the United States and internationally through production agreements with regional milk processors. Bravo!'s products currently are available under the brand name Slammers(R), and can be purchased in retail outlets throughout the country and in some international markets. Bravo! recently introduced its Slammers(R) line of Starburst(TM)-flavored milk drinks with initial shipments to 13,000 retail outlets nationwide.
Bravo! Foods' Slammers(R) line is now available at more than 10,000 stores nationwide including such popular chains as 7-Eleven, A&P, Albertsons, Associated Grocers, BI LO, Brunos, C/S Metro, Dutch Farms, Food Lion, HEB, Mars, Pathmark, Piggly Wiggly, Ralph's, SuperTarget, Unified, Wake Fern, and White Rose.
For more information visit: http://www.bravobrands.com/ or http://www.otcfn.com/brvo .
Contact: Roy Warren, CEO Bravo! Foods, 561-625-1411 or James Dryer, Investor Relations, 561-837-8057 or Jamie@otcfn.com .
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.
Bravo! Foods International Corp.
Web site: http://www.bravobrands.com/
http://www.otcfn.com/brvo
