Message #6 From:
Stock News Bot Date: November 16, 2006 05:00:00 AM
JAVO News Javo(R) Beverage Company Reports Strong Revenue Increase as Pace of Beverage Dispenser Installations Accelerates
SAN DIEGO--(BUSINESS WIRE)--Javo Beverage Company, Inc. (OTCBB:JAVO) -- a leading provider of coffee
and tea-based beverages to the foodservice industry -- today announced
financial results for the third quarter of fiscal year 2006, which ended
September 30th. Third quarter revenue of $2,308,365 brought year-to-date
sales to $7,823,538, up 65% versus sales during the same period last
year of $4,750,143.
Gross profit for the first three quarters increased to $2,899,383 versus
$1,563,169 for the same period last year. Noteworthy was the 420 basis
point increase in profit margin, from 32.9% to 37.1%, as the higher
sales volume has given the Company a greater ability to lower prices
paid to suppliers and leverage its fixed costs. An important factor in
the strong revenue growth by the Company was the addition of 739 new
customer beverage installations over the last 12 months.
“Customer equipment installations are
accelerating rapidly as Javo has achieved national sales, distribution
and service coverage,” said Cody C. Ashwell,
CEO and Chairman of Javo Beverage Company. “Specifically,
the combination of a roll-out of our iced coffee program by 7-Eleven in
the Northeast and our initial successes at important new distributors
such as Shamrock Foods and Gordon Food Service are having a substantial
and positive effect on Javo’s performance,”
added Ashwell.
Third quarter revenue was 14% below the year ago period that included a
$1.1 million shipment that, primarily, loaded distribution for a major
customer. Gross profit for the quarter was $875,587, and on a percentage
basis was up 590 basis points to 37.9% versus 32.1% in the year ago
period. The Company had a loss of $709,141 for the quarter, compared to
a loss of $844,636 during the previous year. The net loss included a
non-cash expense of $ 187,074, which 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.
About Javo®
Beverage Company, Inc.
Based in Vista, California, Javo Beverage Company (OTC Bulletin Board:
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 foodservice, food manufacturing and beverage industries. For
foodservice 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
foodservice 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.
