Message #8 From:
NewsBot Date: March 16, 2007 05:00:00 AM
JAVO News Javo(R) Beverage Company Reports 67% Growth for Fiscal Year 2006
SAN DIEGO--(BUSINESS WIRE)--Javo Beverage Company, Inc. (OTCBB:JAVO) – a leading provider of coffee- and tea-based beverages to the food service industry – today announced fourth quarter and fiscal year financial results for 2006, which ended on December 31st.
For the year, revenue was $10,321,655, an increase of 67% versus the previous year’s revenue of $6,200,327. Gross profit for the year increased to $3,142,902 versus $2,019,402 for the prior fiscal year, an increase of 56%. The Company reported a net full year loss from operations of $9,926,072 after a non-cash expense of $5,384,994 that was non-recurring and related to an exchange by holders of the Company’s outstanding Promissory Notes for non-convertible, non-voting Series B Preferred Stock. The Company closed the year with a cash position of $18.3 million.
For the fourth quarter, Company revenue was $2,498,117, an increase of 72% over the year ago period of $1,450,184. Javo’s revenue is derived primarily from beverage concentrates sold to distributors and used by food service operators seeking convenient dispensed solutions for hot and iced specialty coffees and teas. The strong revenue growth by the Company was due largely to the addition of 775 new customer beverage installations versus the prior year period.
“We accomplished the two primary goals we had set for the year,” said Cody C. Ashwell, CEO and Chairman of Javo Beverage Company. “First, we dramatically increased our distribution footprint through the addition of distributors like Shamrock Foods, Gordon Food Service, Core-mark and McLane. Second, we made several moves during the year that improved our balance sheet and added financial flexibility. Our improved access to national chain customers along with important additions to our sales force will pay dividends in 2007 and beyond,” added Ashwell.
About Javo® Beverage Company, Inc.
Based in Vista, California, Javo Beverage Company (OTCBB:JAVO) is an innovator and leader in the manufacture of coffee- and tea-based dispensed beverages, drink mixes and flavor systems. The Company has successfully commercialized a proprietary brewing technology that yields fresh-brewed coffees and teas that are flavorful, concentrated and stable. As a result, they have broad applications in the food service, food manufacturing and beverage industries. For food service operators, Javo makes it possible to serve great tasting hot coffees and cold specialty coffee beverages from convenient dispenser-based systems. Javo also assists food and beverage processors seeking authentic and robust coffee and tea flavors with the development and supply of customized ingredients for their packaged foods and ready-to-drink beverages. Through its sales, service and distribution operations, Javo supplies a growing list of national and international food service operations, specialty coffee retailers, restaurant chains and food manufacturers. More information about Javo Beverage Company is available at www.javobeverage.com.
This release contains forward-looking statements made by or on behalf of Javo Beverage Company, Inc. All statements, which address operating performance that the Company expects will occur in the future, including statements relating to volume growth, share of sales, or statements expressing general optimism about future operating results, are forward-looking statements. These forward-looking statements are based on management’s current views and we cannot assure that anticipated results will be achieved.
