Clearly Canadian Announces First Quarter 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). :CCBEF CCBEF Clearly Canadian Beverage Corporation (Canada) ) today reported unaudited consolidated financial results for its first fiscal quarter ended March 31, 2005. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS.) Net loss from operations for the three months ended March 31, 2005 was $881,000 or $0.85 per share (per share figures have been adjusted to reflect the 10:1 consolidation which was completed subsequent to the quarter end) 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 $1,728,000, compared to a loss of $497,000 or $0.71 per share on a basic and diluted basis on sales revenues of $2,934,000 for the three months ended March 31, 2004. 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 three months ended March 31, 2005 was $738,000 or $0.71 per share compared to $430,000 or $0.61 per share for the three months ended March 31, 2004. The Company attributes the decline in sales to working capital constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. that prevented the Company from providing more funding for field marketing activities and sales drives sales drive n → promoción f de ventas sales drive n → campagne commerciale, animation f des ventes in the first quarter. In the first quarter, the Company completed certain additional debt and 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. that facilitated some of the Company's more immediate working capital needs. However, in order to successfully and effectively complete the implementation of the Company's 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). plan, significant additional funding was necessary. Subsequent to the first quarter ending, Clearly Canadian held its annual and special general meeting on April 29, 2005 and presented a corporate restructuring and financing plan to shareholders. The resolutions put forth at the meeting were favourably Adv. 1. favourably - showing approval; "he reviewed the play favorably" favorably favourably U.S. favorably adverb 1. passed by the shareholders and, in light of such shareholder approval, the Company is now proceeding with matters related to completing its transactions involving BG Capital Group Ltd. and Standard Securities Corporation as announced in previous news releases. "We believe that our current financial restructuring will place Clearly Canadian on a more solid foundation to move forward as a competitive player in the alternative beverage industry. Upon completion of the anticipated equity financings, Clearly Canadian will be in a position to implement strategic regional marketing and sales programs and to build our inventory base to support our more aggressive selling efforts," 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. L. Mason, President and C.E.O. of Clearly Canadian Beverage Corporation. "In the second quarter, we will concentrate on expanding availability of brand Clearly Canadian by working closely with our distributor network in a collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. effort to develop additional focus on the brand and open new accounts. These efforts will be complemented by the hiring of Area Market Specialists in key selling regions across 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. , whose role is to increase distribution of brand Clearly Canadian and to provide brand building support at the selling level within the Company's distribution network in an effort to promote increased sell through and sales volume," said Mason. Selling, general and administrative expenses from operations were $1,274,000 for the first quarter ended March 31, 2005 compared to $1,303,000 for the same period in 2004. The Company is continuing to closely control its spending in many areas of selling, general and administrative expenses. 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 31.0% for the three months ended March 31, 2005 compared with 29.8% for the corresponding period in 2004. This represents gross profit of $536,000 for the three months ended March 31, 2005 compared to $873,000 for the corresponding period in 2004. The increase in gross profit margin in 2005 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 (as compared to the first quarter of 2004, which included sales from its Reebok Ree´bok` n. 1. (Zool.) The peele. brands during its sell off period with lower gross profit margins). 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 and Clearly Canadian O+2(R) oxygen enhanced water beverage, which are distributed in the United States, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and various other countries. Additional information about Clearly Canadian 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", "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 and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. equity financing 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) and 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).
CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31, 2005 AND DECEMBER 31, 2004
(in thousands of United States dollars, except where indicated)
Unaudited
March 31 December 31
2005 2004
$ $
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Assets
Current assets
Cash and equivalents 75 78
Accounts receivable 1,043 600
Inventories 700 524
Prepaid expenses, deposits and other assets 179 167
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1,997 1,369
Long-term investments 29 29
Assets held for sale 413 415
Property, plant and equipment 2,209 2,252
Prepaid contracts 89 116
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4,737 4,181
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Liabilities
Current liabilities
Bank indebtedness 522 272
Accounts payable and accrued liabilities 3,956 4,150
Customer deposits 50 69
Short term debt 2,540 1,248
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7,068 5,739
Long-term debt 1,955 1,957
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9,023 7,696
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Shareholders' 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
10,803,682 (2004 - 10,338,682) common shares
without par value
Outstanding
10,430,682 (2004 - 9,965,682) common shares
without par value 58,687 58,590
Warrants
815,000 (2004 - 815,000) 165 165
Options
1,694,336 (2004 - 1,694,336) 36 36
Equity component of convertible debenture 26 26
Contributed surplus 810 810
Cumulative translation adjustment (1,240) (1,253)
Deficit (62,770) (61,889)
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(4,286) (3,515)
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4,737 4,181
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CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(in thousands of United States dollars, except where indicated)
Unaudited Unaudited
March 31 March 31
2005 2004
$ $
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Sales 1,728 2,934
Cost of sales 1,192 2,061
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Gross profit 536 873
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Expenses
General and administrative expenses 632 608
Selling expenses 642 695
Amortization of property, plant and equipment 32 31
Other expense 27 6
Financing costs 46 -
Interest on short-term debt 50 17
Interest on long-term debt 14 13
Royalty revenue (26) -
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1,417 1,370
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Loss before income taxes (881) (497)
Provision for income taxes - -
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Loss for the period (881) (497)
Deficit - Beginning of period (61,889) (56,280)
Prior period adjustments
Adoption of new accounting standards - (523)
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Deficit - End of period (62,770) (57,300)
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Basic and diluted (loss) earnings per share
(post consolidated) (0.85) (0.71)
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Weighted average shares outstanding
(post consolidated) 1,035,835 699,151
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Clearly Canadian Beverage Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CCBEF) |
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