CORRECTION From Source: Clearly Canadian Announces Third Quarter Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Nov. 6, 2002 Clearly Canadian This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Beverage Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCBC CCBC Community College of Baltimore County (Maryland) CCBC Community College of Beaver County (Monaca, Pennsylvania) CCBC Caerphilly County Borough Council (Wales, UK) ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CLV (Constant Linear Velocity) Rotating a disk at varying speeds. By changing speed depending on which track is being accessed, the density of bits in each track can be made uniform. ) today reported financial results for its third fiscal quarter ended September September: see month. 30, 2002. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS). As previously announced (February February: see month. 27, 2002), during the year ended December December: see month. 31, 2001, the Company's wholly owned U.S. subsidiary, CC Beverage (U.S.) Corporation, sold certain of its business assets. These divestitures involved the sale of two business segments: firstly, its home and office five-gallon water business (which sale was completed in April 2001) and secondly, its private label co-pack bottling business, Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Clear business and related production assets (which sale was completed in February 2002). As a result of these divestitures, for reporting purposes, the results and financial position of the Company now reflect the results of the "continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the " for the three months ended September 30th, 2002 and the nine months ended September 30th, 2002. Accordingly, prior period comparative figures have been restated to reflect this change. In determining its results for the third quarter of 2002, Clearly Canadian has adopted the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. (CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) ) accounting standard for dealing with discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Results of Continuing Operations for the third quarter of 2002: Net loss from continuing operations for the three months ended September 30, 2002 was $(520,000) or $(0.08) per share on sales revenues of $5,889,000, compared to $(753,000) or $(0.11) per share on sales revenues of $7,041,000, for the same period in 2001. These results represent a 31% reduction of loss in the third quarter compared with the same period last year. Net loss from continuing operations for the nine months ended September 30, 2002 was $(815,000) or $(0.12) per share on sales revenues of $17,672,000, compared to $(1,240,000) or $(0.19) per share on sales revenues of $19,820,000 for the nine months ended September 30, 2001. These results represent a 34% reduction of loss for the nine months ended September 30, 2002 compared with the same period in 2001. Management believes that the decline in sales for the nine months ended September 30, 2002 is primarily attributable to a significant consolidation within the direct store distribution system currently servicing alternative beverages in the industry. Also, with the recent distributor consolidation, some distributors have made corporate decisions to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: distribution of any brands that they do not own. The Company is focused on improving its distribution system in those regions affected by consolidation in an effort to increase the availability of the Clearly Canadian brand. "We are encouraged that our decisions to change the Company's operating structure and our efforts to further control SG&A expenses have contributed significantly to the improvement in the Company's results. While decreasing overall SG&A expense in 2002, the Company nonetheless increased slotting fees A slotting fee is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves.[1] The fee varies greatly depending on the product, manufacturer, and market conditions. paid for the continued launch of Reebok Ree´bok` n. 1. (Zool.) The peele. products, which we believe will benefit the Company in future periods," said Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. Mason, President of Clearly Canadian Beverage Corporation. Mason added: "Looking forward to the fourth quarter and into 2003, the Company is focused on improving the effectiveness of its distribution system for our flagship brand, Clearly Canadian, and continuing the national roll-out of Reebok products by building on our direct sales customer base". Selling, general and administrative expenses were $2,206,000 for the three months ended September 30, 2002 compared $2,964,000 for the same period in 2001, representing a reduction in such expenses of 26%. Selling, general and administrative expenses were $6,195,000 for the nine months ending September 30, 2002 compared to $7,795,000 for the same period in 2001, representing a reduction in such expenses of 21%. The significant decline in selling, general and administrative expenses is attributable to the continuing changes in the operating structure implemented by the Company during the year. Gross profit for the three months ended September 30, 2002 was $1,722,000 (29%) compared to $2,485,000 (35%) for the same period in 2001. Gross profit for the nine months ended September 30, 2002 was $5,602,000 (32%) compared to $7,416,000 (37%) for the nine months ended September 30, 2001. The decrease of the Company's gross profit is primarily attributed to the change in the overall sales mix sales mix See product mix. of the Company's brands in the first nine months of 2002. This change in sales mix reflects the greater proportion of sales of Reebok beverages relative to sales of Clearly Canadian brand beverages. Based in Vancouver, B.C., Clearly Canadian markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavored water, Clearly Canadian O+2(R) and Tre Limone There are communes that have the name Limone (Italian for lemon) in Italy:
Statements in this news release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties. Words such as "expects", "intends", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and include the Company's analysis of its product distribution systems, and anticipated changes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , and the Company's expectations regarding the effects of its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts, and anticipated reductions in expenses associated therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. , and the Company's anticipated product distribution changes and promotional and marketing activities and the potential benefits of such efforts and activities on its results of operations in future periods. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support capital expansion plans and general operating activities, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography and Ontario Securities Commissions The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. . Clearly Canadian Beverage Corporation Douglas L. Mason, President and C.E.O. CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of various trademarks, including CLEARLY CANADIAN(R). CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , produce, distribute and market CLEARLY CANADIAN(R), CANADIAN Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. O+2(R), TRE LIMONE(TM) and certain Reebok beverage products. Reebok is the registered trademark of Reebok International Ltd. and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. .
Clearly Canadian Beverage Corporation
Consolidated Statement of Operations and Deficit
For the Nine months ended September 30, 2002 and 2001
(Stated in Thousands of United States Dollars)
Unaudited Unaudited
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for the 3 months for the 9 months
ended September 30 ended September 30
2002 2001 2002 2001
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Sales $ 5,889 7,041 $ 17,672 19,820
Cost of Sales 4,167 4,556 12,070 12,404
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Gross Profit 1,722 2,485 5,602 7,416
Selling, General and
Administrative Expenses 2,206 2,964 6,195 7,795
Amortization 103 290 320 879
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Loss before the following: (587) (769) (913) (1,258)
Loss on sale of assets (33) - (15) (34)
Other income (expense) - net (15) 16 (2) 52
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Loss from continuing
operations before income -
taxes (635) (753) (930) (1,240)
Recovery of income taxes 115 - 115 -
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Loss from continuing -
operations (520) (753) (815) (1,240)
Earnings (loss) from -
discontinued operations - (331) - 846
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Net loss for the period (520) (1,084) (815) (394)
Deficit -
beginning of period (49,279) (39,541) (48,984) (40,231)
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Deficit -
end of period $ (49,799) (40,625) $ (49,799) (40,625)
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----------------------------------------------------------------------
Earnings (loss) per -
share from continuing -
operations $ (0.08) (0.11) $ (0.12) (0.19)
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Net earnings (loss) -
per share $ (0.08) (0.16) $ (0.12) (0.06)
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Weighted average -
shares outstanding 6,670,682 6,640,682 6,659,986 6,640,682
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Clearly Canadian Beverage Corporation
Consolidated Balance Sheet
As At September 30, 2002 and December 31, 2001
(Stated in Thousands of United States Dollars)
Unaudited
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----------------------------------------------------------------------
September 30 December 31
2002 2001
----------------------------------------------------------------------
----------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ - 226
Accounts receivable 2,385 2,334
Inventories 3,017 2,304
Prepaid expenses, deposits -
and other assets 351 111
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5,753 4,975
Long term investments 91 152
Distribution rights 1,913 1,913
Property, plant and equipment 5,522 9,978
Other Assets 330 -
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$ 13,609 17,018
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----------------------------------------------------------------------
LIABILITIES
Current
Bank indebtedness $ 1,227 -
Accounts payable and accrued-
liabilities 3,666 5,130
Current portion of long -
term debt 3 347
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4,896 5,477
Long-term debt 1,217 3,252
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6,113 8,729
SHAREHOLDERS' EQUITY
Share Capital
Issued 7,043,682 (2001 - 7,013,682)
without par value
Outstanding -
6,670,682 (2001 - 6,640,682) 58,237 58,208
Warrants -
662,740 (2001 - 692,740) 415 423
Cumulative translation adjustment (1,357) (1,358)
Deficit (49,799) (48,984)
-------------------------------------
7,496 8,289
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$ 13,609 17,018
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