Clearly Canadian Announces Third 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 third fiscal quarter ended September September: 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 September 30, 2005 (Q3-2005) compared with three months ended September 30, 2004 (Q3-2004) Sales were $2,897,000 for Q3-2005 compared with $3,273,000 for Q3-2004, a decrease of 11%. 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, in part, through the Company's recently completed financings with BG Capital Group Ltd. (see news release dated June June: see month. 2, 2005). There was no significant change in our cost of sales and gross margin percentages, being 69% and 31% respectively for Q3-2005, versus 67% and 33% respectively for Q3-2004. General and administrative expenses were $15,000 lower in Q3-2005 compared with Q3-2004, as a result of ongoing cost control measures. Selling expenses of $926,000 in Q3-2005 were approximately 32% of sales, compared with $822,000 or approximately 25% of sales in Q3-2004. 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. . In the third quarter, the Company increased its selling expenses in the South Central region of 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. , coinciding co·in·cide intr.v. co·in·cid·ed, co·in·cid·ing, co·in·cides 1. To occupy the same relative position or the same area in space. 2. To happen at the same time or during the same period. 3. with its increased distribution efforts with Dr Pepper pepper, name for the fruits of several unrelated Old and New World plants used as spices or vegetables or in medicine. Old World (True) Peppers Black pepper (Piper nigrum Seven Up Bottling Group in the region. These efforts resulted in sales growth in the region in the third quarter of 2005, as compared with the same period in 2004, however, the Company's sales declined in the third quarter in the Northeast and Pacific Northwest regions
The Northwest Region of the United States which offset the gains from the South Central region. The loss for the period for Q3-2005 was $1,462,000 (or $0.27 per share) compared with a Q3-2004 loss of $645,000 (or $0.86 per share). The loss for the current quarter includes one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses as follows: a) $231,000 stock compensation expense in Q3-2005 (Q3-2004: $9,000) which represents the non-cash value attributed to certain stock options granted during Q3-2005 in connection with the Company's recent financing with BG Capital; b) $567,000 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). cost in connection with the amendment of certain consulting contracts and lease obligations. "These one-time expenses are part of the Company's restructuring plan and will further our goal of obtaining profitability. In the third quarter, we saw a positive increase in sales in key selling regions, attributable to the appointment of new distributors and new account initiatives in the South Central, Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern and Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). regions of the United States. While these signs of growth are encouraging, we have experienced a drop in sales in the Northeast and Pacific Northwest regions of the United States. We are addressing these concerns in those areas through new distribution partnerships and direct to retail selling," said Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. Lokash, President of Clearly Canadian Beverage Corporation. "In the remainder of 2005, we will continue in our efforts to expand availability of the Clearly Canadian brand and to develop exciting new product and sales initiatives that will focus on growth, innovation and profitability in the future," said Lokash. Nine months ended September 30, 2005 (YTD-2005) compared with nine months ended September 30, 2004 (YTD-2004) Sales were $7,186,000 for YTD-2005 compared with $9,338,000 for YTD-2004, a decrease of 23%. In addition to the cumulative impact of 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 did not allow for planned sales initiatives to support the spring and summer selling period. In the third quarter, the Company increased its selling expenses in the South Central region of the United States, coinciding with its increased distribution efforts with the Dr Pepper Seven Up Bottling Group in that region. These efforts resulted in growth in the South Central region in the third quarter as compared with the same period in 2004, however, the Company's sales declined in the third quarter in the Northeast and Pacific Northwest regions of the United States which offset those gains. 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 $2,392,000 in YTD-2005 were approximately 33% of sales, compared with $2,409,000 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, the Company will continue to monitor its selling expenses, and plan for its new brand initiatives in 2006. The loss for the nine months ended September 30, 2005 was $4,021,000 (or $1.26 per share), as compared with $1,935,000 (or $2.60 per share) for the nine months ended September 30, 2004. The loss in the period was higher by $1,675,000 due the impact of one-time charges as follows: a) $220,000 gain on settlement of debt in YTD-2005 (YTD-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 restructuring; b) $1,328,000 stock compensation expense in YTD-2005 (YTD-2004: $9,000) which represents the non-cash value attributed to certain stock options granted in connection with the Company's recent financing with BG Capital; and c) $567,000 one-time restructuring cost in YTD-2005 (YTD-2004: Nil) in connection with the amendment of certain consulting contracts and lease obligations. 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. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating e·quate v. e·quat·ed, e·quat·ing, e·quates v.tr. 1. To make equal or equivalent. 2. To reduce to a standard or an average; equalize. 3. to over 2 billion bottles worldwide. 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", "plans", "intends", "may", "will", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" 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 Brent Lokash, President 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 SEPTEMBER 30, 2005 AND DECEMBER 31, 2004
(in thousands of United States dollars, except where indicated)
Unaudited
September 30 December 31
2005 2004
$ $
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Assets
Current assets
Cash and equivalents 408 78
Accounts receivable 1,039 600
Inventories 1,119 524
Prepaid expenses, deposits and other assets 146 167
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2,712 1,369
Long-term investments 30 29
Assets held for sale 431 415
Property, plant and equipment 2,243 2,252
Prepaid contracts 42 116
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5,458 4,181
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Liabilities
Current liabilities
Bank indebtedness 423 272
Accounts payable and accrued liabilities 2,717 4,150
Customer deposits 10 69
Short term debt 997 1,248
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4,147 5,739
Long-term debt 1,507 1,957
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5,654 7,696
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Shareholders' Equity (Deficiency)
Capital stock
Authorized
Unlimited common shares without par value
2,000,000 Class A preferred shares
2,000,000 Class B preferred shares
Issued
5,673,827 (2004 - 1,033,868) common shares
without par value
Outstanding
2,000,000 (2004 - nil) Class B
preferred shares 2,000 -
5,636,527 (2004 - 996,568) common shares 62,505 58,590
Warrants
81,500 (2004 - 81,500) 165 165
Options
1,358,678 (2004 - 169,434) 1,364 36
Equity component of convertible debenture - 26
Contributed surplus 836 810
Cumulative translation adjustment (948) (1,253)
Deficit (66,118) (61,889)
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(196) (3,515)
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5,458 4,181
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CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(in thousands of United States dollars, except where indicated)
Unaudited Unaudited
For the 3 months ended For the 9 months ended
September 30 September 30 September 30 September 30
2005 2004 2005 2004
$ $ $ $
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Sales 2,897 3,273 7,186 9,338
Cost of sales 2,008 2,183 4,976 6,445
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Gross profit 889 1,090 2,210 2,893
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Expenses
General and
administrative
expenses 535 550 1,743 1,780
Selling expenses 926 822 2,392 2,409
Amortization of
property, plant
and equipment 30 33 90 96
Loss on disposal
of property, plant
and equipment - 56 - 56
Other expense 11 98 94 152
Financing costs 13 125 104 200
Interest on
short-term debt 28 46 124 109
Interest on
long-term debt 14 13 39 38
Royalty revenue (4) (17) (30) (21)
Gain on settlement
of debt - - (220) -
Stock option benefit 231 9 1,328 9
Restructuring 567 - 567 -
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2,351 1,735 6,231 4,828
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Loss before income
taxes (1,462) (645) (4,021) (1,935)
Provision for
income taxes - - - -
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Loss for the
period (1,462) (645) (4,021) (1,935)
Deficit - Beginning
of period (64,656) (58,093) (61,889) (56,280)
Stock Dividend - - (208) -
Prior period
adjustments
Adoption of new
accounting standards - - - (523)
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Deficit - End of
period (66,118) (58,738) (66,118) (58,738)
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Basic and diluted
loss per share (0.27) (0.86) (1.26) (2.60)
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Weighted average
shares
outstanding 5,413,973 749,590 3,180,965 746,919
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