Clearly Canadian Announces 2001 Year End Financial 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)--March 26, 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) ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :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 consolidated financial results for the year ended December December: see month. 31, 2001. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS.) During the year ended December 31, 2001, the Company's wholly owned U.S. subsidiary, CC Beverage (U.S.) Corporation, sold certain of its business assets. The divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). relates to two business segments: its home and office five-gallon water business and its private label co-pack bottling business and related assets. For reporting purposes, as summarized below, the results and financial position of the Company 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 " only, whereas the results and financial position of the "Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. " are shown separately. Accordingly, prior year figures have been restated to reflect this change. In determining its results for the year ended December 31, 2001, Clearly Canadian adopted a new Canadian New Canadian Noun Canad a recent immigrant to Canada Institute of Chartered Accountants char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. (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 dealing with discontinued operations. Continuing Operations Sales revenues from continuing operations were $23,257,000 for the year ended December 31, 2001 compared to $23,247,000 for the year ended December 31, 2000. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. from continuing operations were 36.9% for the year ended December 31, 2001 compared with 35.4% for the corresponding period in 2000. This represents gross profit of $8,586,000 for the year ended December 31, 2001 compared to $8,225,000 for the corresponding period in 2000. Selling, general and administrative expenses from continuing operations were $10,387,000 for the year ended December 31, 2001 compared $10,992,000 for the same period in 2000. The reduction of SG&A expenses reflects the Company's continuing efforts to reduce all categories of expense. The Company's reported earnings (loss) before interest, taxes, depreciation, amortization and before non-recurring expenses ("adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") of $(1,801,000) for the year ended December 31, 2001 compared to $(2,767,000) for the corresponding period in 2000. Net income (loss) from continuing operations for the year ended December 31, 2001 was $(7,174,000) or $(1.08) per share on a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis compared to $(4,228,000) or $(0.69) per share on a basic and diluted basis for the corresponding period in 2000. Net income (loss) for the year 2001 includes non-recurring expenses of $4,243,000 representing the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of property, plant, equipment, goodwill and the recovery of 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). costs. Discontinued Operations Sales revenues from discontinued operations were $5,245,000 for the year ended December 31, 2001 compared to $5,683,000 for the year ended December 31, 2000. Net income (loss) from discontinued operations for the year ended December 31, 2001 was $(1,459,000) or $(0.22) per share on a basic and diluted basis compared to $(2,221,000) or $(0.37) per share on a basic and diluted basis for the corresponding period in 2000. "In 2001, Clearly Canadian took the necessary steps to return to its roots as a innovative marketer of premium alternative beverages. We launched Reebok Ree´bok` n. 1. (Zool.) The peele. Fitness Water Beverage, an innovative new beverage for health conscious consumers. Beginning in six regions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Reebok Fitness Water Beverage was rolled-out to the enthusiastic response of our distributors and customers. We continued our distribution efforts throughout the year, gaining numerous new listings for the brand. "We also demonstrated our commitment to our shareholders to reduce costs while improving our financial and operational position. In the second quarter of 2001, the Company's U.S. subsidiary sold its home and office water business, which resulted in a reduction of debt. In the fourth quarter, Clearly Canadian's U.S. subsidiary entered into an agreement to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. of its U.S.-based production facility assets and bottling plant Noun 1. bottling plant - a plant where beverages are put into bottles with caps industrial plant, plant, works - buildings for carrying on industrial labor; "they built a large plant to manufacture automobiles" that included a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. bottling contract with the purchaser that will provide a long-term supply arrangement and allow Clearly Canadian to maintain competitive margins on its core product lines produced at the bottling plant. As part of this agreement, the Company's U.S. subsidiary also sold its branded water and private label bottled water business. "The net result of these significant management decisions is that Clearly Canadian is now focused on the selling and marketing of the Company's beverage brands in an effort to maximize shareholder value and to provide additional working capital allowing Clearly Canadian to pursue growth opportunities," said Douglas Mason, President of Clearly Canadian. Based in Vancouver, B.C., Clearly Canadian is a leading producer of premium alternative beverages, including Clearly Canadian(R) sparkling flavored water, Clearly Canadian O+2(R) and Tre Limone(TM), which are distributed in the United States, Canada and numerous countries worldwide. Clearly Canadian also holds the exclusive license to manufacture, distribute and sell certain Reebok beverage products in the United States, Canada and the Caribbean. Additional information on Clearly Canadian and CC Beverage may be obtained on the world wide web at www.clearly.ca. 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 expectations regarding the amount and timing of payments and the reduction of expenses and resulting cost savings by the sale of the business segments and related assets referred to in this news release and also include the Company's expectations regarding the revenues to be generated through the sale of its beverage products, including Reebok beverages, and the benefits of these transactions and revenues on the Company's 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 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 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. 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 Stuart R. Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. , Chief Financial Officer CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of the trademark 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. , manufacture, distribute and market CLEARLY CANADIAN(R), REEBOK FITNESS WATER (in the United States), REEBOK ENHANCED WATER (in Canada), CLEARLY CANADIAN O+2(R), TRE LIMONE(TM) and other flavoured adj. 1. same as flavored; - of foods. and unflavoured beverages. 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 year ended December 31, 2001 and 2000
(Stated in Thousands of United States Dollars)
(Unaudited)
----------------------------------------------------------------------
2001 2000
----------------------------------------------------------------------
Sales $ 23,257 23,247
Cost of Sales 14,671 15,022
----------------------------------------
Gross Profit 8,586 8,225
Selling, general
and administrative
expenses 10,387 10,992
Amortization 1,105 1,199
----------------------------------------
Loss before the
following: (2,906) (3,966)
Interest on long-term
debt - 53
Other (expense) income (25) (380)
Gain on sale of
assets - 65
Writedown of property,
plant and equipment (2,235) -
Writedown of goodwill (2,111) -
Restructuring (charges)
recovery 103 -
----------------------------------------------------------------------
Loss from continuing
operations before income
taxes (7,174) (4,228)
Provision for income
taxes - -
----------------------------------------------------------------------
Loss for the year from
continuing operations (7,174) (4,228)
Loss for the year from
discontinued operations
(schedule 1) (1,459) (2,221)
----------------------------------------------------------------------
Loss for the year (8,633) (6,449)
Deficit - beginning
of period (40,231) (33,782)
Share cancellation - -
----------------------------------------------------------------------
Deficit - end of
period $ (48,864) (40,231)
----------------------------------------------------------------------
Basic and diluted
loss per share $ (1.30) (1.06)
----------------------------------------
Weighted average shares
outstanding 6,640,682 6,101,170
----------------------------------------
Schedule 1
Loss from discontinued
operations:
Sales $ 5,245 5,683
----------------------------------------
Loss from discontinued
operations before
writedowns and income
taxes (1,673) (2,221)
Writedown of assets from
discontinued operations (1,999) -
Gain on sale of Home and
office five gallon
water business 2,213
----------------------------------------------------------------------
Loss from discontinued
operations $ (1,459) (2,221)
----------------------------------------------------------------------
Clearly Canadian Beverage Corporation
Consolidated Balance Sheet
As At December 31, 2001 and 2000
(Stated in Thousands of United States Dollars)
(Unaudited)
----------------------------------------------------------------------
2001 2000
----------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 226 296
Accounts receivable 2,334 2,825
Inventories 2,304 2,115
Prepaid expenses, deposits
and other assets 111 146
----------------------------------------
4,975 5,382
Long-term investments 152 87
Distribution rights 1,913 2,179
Long-term receivables - 502
Property, plant
and equipment 9,978 16,516
Goodwill - 3,277
----------------------------------------------------------------------
$ 17,018 27,943
----------------------------------------------------------------------
LIABILITIES
Current
Accounts payable and
accrued liabilities $ 5,010 4,704
Current portion of long
term-debt 347 693
----------------------------------------
5,357 5,397
Long-term debt 3,252 5,427
Other liabilities - 39
---------------------------------------
8,609 10,863
---------------------------------------
SHAREHOLDERS' EQUITY
Share Capital
Issued 7,013,682
(2000 - 7,013,682)
Outstanding 6,640,682
(2000 - 6,640,682) 58,208 58,208
Warrants 692,740
(2000 - 692,740) 423 423
Cumulative translation
adjustment (1,358) (1,320)
Deficit (48,864) (40,231)
----------------------------------------
8,409 17,080
----------------------------------------------------------------------
$ 17,018 27,943
----------------------------------------------------------------------
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