Javo Beverage
Company, Inc. Reports Jump in First Quarter Revenue and
Gross Profit
Other Topics: Coffee
Emission Monitoring,
Healthy Coffee Drinking,
Coffee Challenge,
Coffee Licensing Package
Business Wire
May 10, 2007
San Diego, CA -- Javo Beverage Company, Inc. (OTC BB: JAVO),
a leading provider of coffee- and tea-based beverages to
the food service industry, today announced its financial
results for the quarter ended March 31, 2007.
Financial highlights for the first quarter 2007 include:
- Revenues increased 18%
from 1Q 2006 to $2.7 million
- Gross profits
increased 33% from a year ago to $1.1 million
- EPS reaches $0.01 per
share versus a $0.01 per share loss in 1Q 2006
Cody C. Ashwell, CEO and
Chairman of Javo Beverage Company said, "The Company made
important progress during the quarter with several of our
key food service customers and completed operational
improvements that will support expansion of the enterprise
over the remainder of the year. The increase in revenues
and gross profits demonstrate the Company's growing
reputation and distribution strength in the national
foodservice industry. Over the last year, we have proven
our ability to sell and service large national chain
customers such as 7-Eleven and others. As these chain
operators move our coffee and tea programs to new
geography within their store network, there is the
opportunity for significant growth in revenues."
Ashwell added, "The first quarter also reflects the
momentum of a strong year and fourth quarter in 2006 where
revenues rose 67% and 72%, respectively. We are committed
to continuing to broaden our distribution footprint and
building shareholder value through financial discipline."
The Company reported revenues of $2,748,205, up 18% from
$2,337,493 in the first quarter 2006. The increase in
revenue was driven by additional dispenser placements of
Javo's coffee and tea beverages at food service locations
throughout the United States. The Company added 819
revenue generating dispensers versus the same period last
year. Gross profits increased to $1,105,089, up 33% from
$829,343 a year ago. Selling and marketing expenses rose
to $757,672 in the first quarter, from $382,905 in the
first quarter a year ago. This increase reflects
management's commitment to building Javo Beverage's
national sales force and the intensifying its national
distribution capabilities.
The Company reported net income for the first quarter 2007
of $409,473, or $0.01 per share, compared to a net loss of
$1,153,963, or ($0.01) per share a year ago. The
difference was primarily due to the recording of non-cash
derivative income and increased interest income.
Ashwell also said, "Iced coffee beverages are growing
dramatically in prominence as convenience stores and quick
service restaurants add these options to their beverage
menus. Javo has the best dispenser-based iced coffee
solution available and we expect significant growth in our
revenue as we expand to additional convenience oriented
locations. Chilled beverages like iced coffee and tea tend
to be seasonal with sales concentrated in the spring and
summer when the weather is warmest. Our hot dispensed
coffee business is counter-seasonal, with its peak in the
fall and winter months."
Ashwell added, "Javo's coffee concentrates and beverages
are the optimal solution for food service operators
needing to prepare high volumes of coffee or who are
challenged by the high waste associated with traditional
on-site brewing. Javo's on-demand coffee system eliminates
the chores of grinding, loading, batch brewing and holding
coffee. Our products cater to America's increasingly
sophisticated taste in coffee while making it easy and
economical for the retail operator to produce the perfect
cup each and every time."
In 2007, the Company intends to significantly increase its
number of food service distributor customers and to deepen
its relationship with current customers such as: Sysco
Food Services, US Foodservice, Shamrock Foods, Gordon Food
Service, Core-mark International and McLane Company. To
achieve this, Ashwell said, "We have already added
substantially to our staff of sales professionals in the
first quarter of 2007 and by the end of the year we will
have a force with the reach to effectively sell and
service all regions of the country."
About Javo(R) 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. |