Clearly Canadian Announces 2004 Year End Financial Results.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 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 -- 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) )(CNQ CNQ Cost of Non Quality CNQ Canadian Trading & Quotation System Inc. CNQ Club Neon Quebec (Quebec Neon Club) : CCBC) - today reported consolidated financial results for the year ended December December: see month. 31, 2004. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS.) Net loss from operations for the year ended December 31, 2004 was $5,086,000 or $0.66 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 on sales revenues of $11,586,000, compared to a loss of $3,713,000 or $0.55 per share on a basic and diluted basis on sales revenues of $13,270,000 for the year ended December 31, 2003. Included in the net loss for the year, was the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the Company's water source properties in the amount of $721,000 and the write-down of distribution rights in the amount of $1,536,000. This write-down is with respect to the purchase price previously paid by the Company when it bought back certain distribution rights from its former master distributors. The write-down does not reflect the overall Clearly Canadian(R) brand value and the value of the Company's current distribution rights, which are viewed by the Company as being valuable assets. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (Gross Profit less Selling, General and Administrative expenses) for the year ended December 31, 2004 was $2,049,000 or $0.26 per share compared to $2,244,000 or $0.33 per share for the year ended December 31, 2003. The year over year decrease in revenue was attributable to a decrease in sales of brand Clearly Canadian and the Company's licensed Reebok Ree´bok` n. 1. (Zool.) The peele. products, partially offset by an increase in private label business. In 2003, Reebok International Inc. elected not to renew its licensing agreement with the Company to manufacture, distribute and sell certain Reebok products. Sales in 2004 included a depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able period to sell off the remaining Reebok branded products. Accounting for the sell off period in 2004, Reebok branded sales were off by $1,117,790 or by 80%, as compared with 2003. The Company's private label business experienced significant growth in 2004, as compared with the same period in 2003. The Company has plans to cultivate cul·ti·vate tr.v. cul·ti·vat·ed, cul·ti·vat·ing, cul·ti·vates 1. a. To improve and prepare (land), as by plowing or fertilizing, for raising crops; till. b. further growth in its private label business in 2005. The Company attributes the decline in sales to a challenging year with respect to available working capital, which contributed to having to limit certain marketing and sales programs for brand Clearly Canadian. In 2004, the Company was successful in arranging secured bridge loans and private placement funding that facilitated ongoing general working capital needs in the year. However, going forward, it will be necessary for Clearly Canadian to secure additional financing in order to support the Company's operations and relations with existing suppliers and vendors and to allow for more aggressive marketing and sales activities for its beverage products. "In order to successfully and effectively continue with the implementation of the Company's corporate plan for 2005, it will be necessary to obtain funding that will enable us to employ more aggressive field marketing and sales activities designed to broaden distribution and availability of brand Clearly Canadian and allow us to explore alternatives to further utilize the valuable Clearly Canadian brand name. In response to these needs, the Company intends to present at its shareholders meeting on April 29, 2005, a corporate 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). and refinancing Refinancing An extension and/or increase in amount of existing debt. plan that we believe will assist in our efforts to achieve our goals and concurrently enhancing shareholder value," 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 and C.E.O. of Clearly Canadian Beverage Corporation. Selling, general and administrative expenses from operations were $5,587,000 for the year ended December 31, 2004 compared to $5,554,000 for the same period in 2003. In 2004, the Company closely controlled its spending in all areas of selling, general and administrative expenses. To assess the Company's 2004 and 2003 SG&A results on a comparable basis, in 2003 the Company recovered $387,000 in accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. . Without these accrued expenses, the Company's SG&A would have been $5,941,000 in 2003. After accounting for this adjustment in 2003, the Company has actually decreased its SG&A by $354,000 in 2004, representing a reduction of 6.0% as compared to the same period in 2003. 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 operations were 30.5% for the year ended December 31, 2004 compared with 24.9% for the corresponding period in 2003. This represents gross profit of $3,538,000 for the year ended December 31, 2004 compared to $3,310,000 for the corresponding period in 2003. In 2003, the Company wrote off Reebok product, which accounted for 3.2% of the decline in gross margin in that year. Excluding the write off, the Company's gross profit for 2003 would have been 28.1%. The increase in gross profit in 2004 is attributable for the most part to a change in the Company's sales mix sales mix See product mix. , with a higher percentage of total sales being from its private label and oxygenated water See Hydrogen dioxide segments and less sales from its Reebok brands as compared with the same period in 2003. "In 2004, the Company continued its efforts to establish stronger distributors in key regions for brand Clearly Canadian, including the Pacific Northwest and New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in an effort to increase the presence of the brand in these important markets. Strengthening Clearly Canadian's distribution network remains a key component in the Company's goal to rebuild distribution for brand Clearly Canadian in the "all-other-market" segment on a national level," said Douglas Mason, President and C.E.O. of Clearly Canadian Beverage Corporation. "In the first quarter of 2005, our marketing and selling efforts will be focused on achieving meaningful distribution and availability improvements in certain markets. Critical to executing this strategy is the strengthening of our field sales team and the addition of a "Market Specialist" role. The Market Specialist position is one with a singular SINGULAR, construction. In grammar the singular is used to express only one, not plural. Johnson. 2. In law, the singular frequently includes the plural. deliverable mandate...to increase availability in the all-other-market segment. This segment, is for the most part, comprised of non-chain affiliated accounts, and offers the strategic imperative of "cooler door" availability," said Mason. About Clearly Canadian Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavoured adj. 1. same as flavored; - of foods. water, Clearly Canadian O+2(R) oxygen enhanced water beverage 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", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's ability to raise additional debt and/or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to fund operations and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , the Company's analysis of its current and future sales and sales trends, its product distribution systems, as well as 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. , the Company's expectations regarding the effects of its restructuring efforts and its product distribution, promotional and marketing activities and the potential benefits of such changes, 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 general operating activities and capital expansion plans, 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 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) and TRE LIMONE(R).
CLEARLY CANADIAN BEVERAGE CORPORATION
Consolidated Balance Sheets
As at December 31, 2004 and 2003
(in thousands of United States dollars, except where indicated)
2004 2003
$ $
Assets
Current assets
Cash and cash equivalents 78 127
Accounts receivable 600 863
Inventories 524 630
Prepaid expenses, deposits and other assets 167 152
-------------------
1,369 1,772
Long-term investments 29 112
Assets held for sale 415 987
Property, plant and equipment 2,252 2,726
Distribution rights - 1,502
Prepaid contracts 116 257
-------------------
4,181 7,356
-------------------
-------------------
Liabilities
Current liabilities
Bank indebtedness 272 478
Accounts payable and accrued liabilities 4,150 3,453
Related party liability - 200
Customer deposits 69 167
Short-term debt 1,248 134
-------------------
5,739 4,432
Long-term debt 1,957 1,799
-------------------
7,696 6,231
-------------------
Shareholders' (Deficiency) Equity
Capital stock
Authorized
200,000,000 common shares
without par value
10,000,000 preferred shares
with a par value of CA$1 each
Issued - 10,338,682 (2003 - 7,168,682)
common shares without par value
Outstanding - 9,965,682 (2003 - 6,795,682)
common shares without par value 58,590 58,272
Warrants - 815,000 (2003 - 1,527,500) 165 190
Options - 1,694,336 (2003 - 1,619,336) 36 13
Equity component of convertible debenture 26 26
Contributed surplus 810 256
Cumulative translation account (1,253) (1,352)
Deficit (61,889) (56,280)
-------------------
(3,515) 1,125
-------------------
4,181 7,356
-------------------
-------------------
CLEARLY CANADIAN BEVERAGE CORPORATION
Consolidated Statements of Operations
As at December 31, 2004, 2003 and 2002
(in thousands of United States dollars, except where indicated)
2004 2003 2002
$ $ $
Sales 11,586 13,270 20,205
Cost of sales 8,048 9,960 14,535
--------------------------------
Gross profit 3,538 3,310 5,670
--------------------------------
Selling, general and
administration expenses 5,587 5,554 8,018
Amortization of property, plant
and equipment 130 294 422
Royalty revenue (133) (163) (242)
Other expense 270 161 73
Financing costs 208 - -
Interest on short-term debt 174 141 58
Interest on long-term debt 52 4 -
Loss on sale of assets held for sale 56 328 97
Stock-based compensation 23 13 -
Writedown of property, plant and
equipment 721 272 942
Writedown of distribution rights 1,536 500 -
Gain on settlement of
convertible debenture - (81) -
--------------------------------
8,624 7,023 9,368
--------------------------------
Loss before income taxes (5,086) (3,713) (3,698)
Recovery of income taxes - - 115
--------------------------------
Loss for the year (5,086) (3,713) (3,583)
--------------------------------
--------------------------------
Basic and diluted loss per share
(expressed in dollars) (0.66) (0.55) (0.54)
--------------------------------
--------------------------------
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion