Clearly Canadian Announces Second 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 con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for its second fiscal quarter ended June June: see month. 30, 2005. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS.) Per share figures have been adjusted in the following financial results to reflect a 10:1 consolidation which was completed May 2, 2005. Three months ended June 30, 2005 (Q2-2005) compared with three months ended June 30, 2004 (Q2-2004) Sales were $2,561,000 for Q2-2005 compared with $3,131,000 for Q2-2004, a decrease of 18%. This decline in sales is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the cumulative impact of significantly reduced sales and marketing activities in recent years. This has been a direct result of 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)]. which the Company has attempted to address, for the most part, through the Company's recently completed financings with BG Capital Group Ltd. (see news release dated June 2, 2005). There was no significant change in our cost of sales and gross margin percentages, being 69% and 31% respectively, for Q2-2005 versus 70% and 30% respectively for Q2-2004. General and administrative expenses were $46,000 lower in Q2-2005 compared with Q2-2004, as a result of ongoing cost cutting measures. Selling expenses of $824,000 in Q2-2005 were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 32% of sales, compared with $892,000 or approximately 28% of sales in Q2-2004. The increase in the percentage of sales expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. on selling expenses is a reflection of the increased cost associated with attempting to maintain market share in a competitive business throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . During the balance of 2005, and in connection with the recent completion of its financing with BG Capital Group Ltd. ("BG Capital"), the Company has budgeted to increase its sales and marketing activities in an effort to increase market share. Loss for the period for Q2-2005 was $1,678,000 (or $0.55 per share) compared with a Q2-2004 loss of $793,000 (or $1.06 per share). The loss for the current quarter includes: a) a gain on settlement of debt ($220,000) in Q2-2005 (Q2-2004: $Nil) which was realized on obtaining reductions in certain accounts owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de creditors concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with the Company's recent refinancing Refinancing An extension and/or increase in amount of existing debt. ; and b) a stock compensation expense of $1,097,000 in Q2-2005 (Q2-2004: $Nil) which represents the non-cash value attributed to stock certain stock options granted during Q2-2005 in connection with the Company's recent financing with BG Capital. "We completed the funding relative to our 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). with BG Capital late in the second quarter. Our objectives in the second half of 2005 include increasing the availability of brand Clearly Canadian throughout North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. markets through a strong network of direct store delivery partners. We are continuing to complement our field sales force by adding skilled resources to work closely with our distribution network and create new selling opportunities across all classes of trade. We are also actively working to fill regional distribution gaps and to provide brand Clearly Canadian greater marketing and promotional focus. In the third quarter, we expect to announce new distribution relationships in several important U.S. markets. In addition, the Company is currently working closely with current and potential new associates in the development of new business opportunities both domestically and internationally," 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 A mason is a worker who builds in brick or stone, otherwise known as masonry. Mason may also refer to:
Six months ended June 30, 2005 (YTD-2005) compared with six months ended June 30, 2004 (YTD-2004) Sales were $4,289,000 for YTD-2005 compared with $6,065,000 for YTD-2004, a decrease of 29%. In addition to the cumulative impact of significantly reduced sales and marketing activities in recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company's financial condition in the first six months of 2005 also did not allow for planned sales initiatives to support the key Spring selling period. With the completion (May 28, 2005) of its financing with BG Capital, the Company now has a satisfactory level of inventory to meet current customer demands. The Company is continuing to complement its field sales force by adding skilled resources to work closely with its distribution network and create new selling opportunities across all classes of trade. There was no significant change in the Company's cost of sales and gross margin percentages in YTD-2005 compared with YTD-2004. Selling expenses of $1,466,000 in YTD-2005 were approximately 34% of sales, compared with $1,587,000 or approximately 26% of sales in YTD-2004. The increase in the percentage of sales expended on selling expenses is a reflection of the increased cost associated with attempting to maintain market share in a competitive business throughout North America. During the balance of 2005, and in connection with the recent completion of its financing with BG Capital (see news release dated June 2, 2005), the Company has budgeted to increase its sales and marketing activities in an effort to increase market share. Loss for the period for the six months ended June 30, 2005 was $2,559,000 (or $1.25 per share) compared with $1,290,000 (or $1.79 per share) for the six months ended June 30, 2004. The loss for the current period includes: a) a gain on settlement of debt ($220,000) in YTD-2005 (YTD-2004: $Nil) which was realized on obtaining reductions in certain accounts owing to creditors concurrent with the Company's recent financing; and b) a stock compensation expense of $1,097,000 in YTD-2005 (YTD-2004: $Nil) which represents the non-cash value attributed to certain stock options granted in connection with the Company's recent financing with BG Capital. 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 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. , 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 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) 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 JUNE 30, 2005 AND DECEMBER 31, 2004
(in thousands of United States dollars, except where indicated)
Unaudited
June 30 December 31
2005 2004
$ $
--------------------------------------------------------------------
Assets
Current assets
Cash and equivalents 947 78
Accounts receivable 1,065 600
Inventories 1,345 524
Prepaid expenses, deposits and
other assets 135 167
--------------------------------------------------------------------
3,492 1,369
Long-term investments 28 29
Assets held for sale 408 415
Property, plant and equipment 2,150 2,252
Prepaid contracts 63 116
--------------------------------------------------------------------
6,141 4,181
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilities
Current liabilities
Bank indebtedness - 272
Accounts payable and accrued
liabilities 3,099 4,150
Customer deposits 10 69
Short term debt 932 1,248
--------------------------------------------------------------------
4,041 5,739
Long-term debt 1,428 1,957
--------------------------------------------------------------------
5,469 7,696
--------------------------------------------------------------------
Shareholders' Equity (Deficiency)
Capital stock (note 5)
Authorized
Unlimited common shares without
par value
2,000,000 Class A preferred shares
2,000,000 Class B preferred shares
Issued
5,448,827 (2004 - 1,033,868) common
shares without par value
Outstanding
2,000,000 (2004 - nil) Class B
preferred shares 2,000 -
5,411,527 (2004 - 996,568) common
shares 62,242 58,590
Warrants
81,500 (2004 - 81,500) 165 165
Options
1,226,344 (2004 - 169,434) 1,133 36
Equity component of convertible
debenture - 26
Contributed surplus 836 810
Cumulative translation adjustment (1,048) (1,253)
Deficit (64,656) (61,889)
--------------------------------------------------------------------
672 (3,515)
--------------------------------------------------------------------
6,141 4,181
--------------------------------------------------------------------
--------------------------------------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(in thousands of United States dollars, except where indicated)
Unaudited Unaudited
For the For the
3 months ended 6 months ended
June 30 June 30 June 30 June 30
2005 2004 2005 2004
$ $ $ $
--------------------------------------------------------------------
Sales 2,561 3,131 4,289 6,065
Cost of sales 1,776 2,201 2,968 4,262
--------------------------------------------------------------------
Gross profit 785 930 1,321 1,803
--------------------------------------------------------------------
Expenses
General and administrative
expenses 576 622 1,208 1,230
Selling expenses 824 892 1,466 1,587
Amortization of property,
plant and equipment 28 32 60 63
Other expense 56 48 83 54
Financing costs 45 75 91 75
Interest on short-term debt 46 46 96 63
Interest on long-term debt 11 12 25 25
Royalty revenue - (4) (26) (4)
Gain on settlement of debt (220) - (220) -
Stock option benefit 1,097 - 1,097 -
--------------------------------------------------------------------
2,463 1,723 3,880 3,093
--------------------------------------------------------------------
Loss before income taxes (1,678) (793) (2,559) (1,290)
Provision for income taxes - - - -
--------------------------------------------------------------------
Loss for the period (1,678) (793) (2,559) (1,290)
Deficit - Beginning of
period (62,770) (57,300) (61,889) (56,280)
Stock Dividend (208) - (208) -
Prior period adjustments
Adoption of new accounting
standards - - - (523)
--------------------------------------------------------------------
Deficit - End of period (64,656) (58,093) (64,656) (58,093)
--------------------------------------------------------------------
--------------------------------------------------------------------
Basic and diluted loss
per share (0.55) (1.06) (1.25) (1.79)
--------------------------------------------------------------------
--------------------------------------------------------------------
Weighted average shares
outstanding 3,044,976 745,568 2,045,955 722,359
--------------------------------------------------------------------
--------------------------------------------------------------------
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion