Nevada
(State or other jurisdiction of incorporation)
|
000-52161
(Commission File
Number)
|
264204714
(IRS Employer Identification No.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
ITEM 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS.
|
Exhibit No.
|
Description
|
99.1**
|
Press Release, dated November 10, 2015
|
Jammin Java Corp.
|
|||
Date: November 10, 2015
|
By:
|
/s/ Anh Tran
|
|
Anh Tran
|
|||
President
|
Exhibit No.
|
Description
|
99.1**
|
Press Release, dated November 10, 2015
|
|
·
|
Continued Revenue Growth - Revenue is anticipated to be ~$3.25 million for the quarter ended October 31, 2015, which is approximately a 14% increase year-over-year from the quarter ended October 31, 2014. This is the 18th quarter in a row of year-over-year revenue growth and our largest quarter to date in sales revenue. This increase was driven by the expansion of the company’s retail base and the launch of EcoCup.
|
|
·
|
Net Revenue – Net revenue is anticipated to be ~$2.9 million for the quarter ended October 31, 2015, which is an increase of 15% from the same period last year.
|
|
·
|
Increased Gross Profit and Future Margin Upside - Gross profit is anticipated to be ~$655,000 for the quarter ended October 31, 2015 or a 13% decrease year over-year. Our gross profit as a percentage of net revenue for the quarter is anticipated to be ~20%. Gross profit was not as strong as in our previous quarter as we were promoting our products more heavily through retailers to move out old RealCup packaging into our new Recyclable EcoCup packaging. We have taken many steps to make meaningful improvements to our gross margins across the board. Specifically, we anticipate a 6% reduction in cost of goods sold (COGs) from coffee futures purchases as well as price reductions in some of our other COGs and that our reductions in COGs should hold for the upcoming quarters. We also anticipate that some of our larger accounts will be moving from a distributor distribution model to a direct distribution model in the following quarters, which we estimate will increase our gross profits by 15% on those accounts. We also expect Q4 gross profits to rise substantially.
|
|
·
|
Improved Operational Efficiency – Total operating expenses are expected to be ~$1.8 million for the quarter ended October 31, 2015, which is down 20% from the same period last year even while revenues are increasing. Additionally, we’ve made additional significant improvements that should reduce our operational expenses even further in the following quarter.
|
|
·
|
Narrowing losses - Net losses are anticipated to come in at about ($1.2M) or a 59% improvement from the same period a year prior. Net losses before interest, depreciation and stock compensation (non-cash expenses) are expected to be ~$666,200. Though this was higher than Q2, we had several items that were one time hits against our profit and loss in this quarter. Those include an uptick in slotting fees for new accounts as well as some items that were discontinued from 2014. The goal is still to get the company to cash flow positive based on cash based expenses during Q4. We believe the key to getting there is to going to be by increasing revenues and being more efficient with our promotional activity. Additionally, we are still trying to reduce our operating cost through efficiency. We still anticipate being cash flow positive for fiscal Q4.
|
|
·
|
Revenue projections - Revenue projections for Q4 will be between approximately $3.5-$4M, which would put our annual revenues between $12.5-$13M or approximately 32%-37% total year over year growth. Total revenue projections came in lower than the $15M previously anticipated at the beginning of the fiscal year. This was primarily due to the late start of EcoCup shipments as well as a key new account not coming on board this fiscal year.
|
|
·
|
Directional ACV Growth - According to the latest syndicated data, we had an ACV of 31% a year ago, which represents ~10,000 grocery retail locations a year ago. At the end of the third fiscal quarter, we grew our ACV to 35% of US grocery which represents ~11,000 stores. Our largest distribution growth occurred between calendar 2013-2014, where we went from ~2,000 stores to ~7,500 stores and then to ~10,000 stores by the end of 2014. This is reflective of our budget as we spent ~$1.04M on new account slotting in calendar 2014 and ~$443,000 in calendar 2015 to date.
|
|
·
|
In the last four years, we were the 21st ranked company for revenue in the entire Single Cup category in grocery retail stores based on syndicated data.
|
|
·
|
Of the top 21 brands in the Single Cup category, year to date we are the 6th fastest growing company with a 73% year-over-year growth. Competition is fierce in the category. All of the top 20 companies that are larger than us are either part of a multibillion-dollar corporation or have been in the industry for greater than 50 years. With our limited resources, we’re exceptionally proud of the gains we’ve made in the space to date.
|
|
·
|
New Account Additions - In fiscal Q3 we added new accounts or increased distribution at: Safeway/ Randalls, Acme, Rouses Markets, Price Chopper and Meijer. Between fiscal Q4 (this quarter) and fiscal Q1 2016, we believe we will see the largest growth in new stores and SKUs added to stores to date. We anticipate adding ~1,200 new stores with an average of 4 SKUs per store during this period. Specifically, we anticipate a further expansion at Safeway and gaining new distribution at Sprouts.
|
|
·
|
Expansion in 2016 - Over the last 12 months, we’ve focused primarily on opening opportunities in the existing accounts that we’re in while growing the base in key accounts. This includes improving the quality of our promotions and creating marketing programs with the goal of embedding our company deeper into the minds of our consumers. With EcoCups getting into full distribution during this quarter, we’re working to get back into high growth mode in the upcoming year, with a focus on adding more SKUs to the stores that we’re in already and aggressively getting into other channels such as Mass, Pharmacy and Specialty.
|
·
|
Broncos/ King Soopers Partnership - One of the biggest successes we saw was our local partnership with the Denver Broncos and King Soopers, a division of Kroger, in the first four weeks in the market over 7,000 units have of Mile High Blend 8oz bags scanned at retail
|
|
·
|
Canada – has been growing at an exceptionally rapid pace. The velocity of products in Canada is at about 3 units per store per week per SKU, which is more than double what it is here in the U.S. nationwide.
|
·
|
Korea – is growing at a steady pace with their 7 cafes and distribution business. In 2016, our partners are looking at distribution expansion into other parts of Asia, specifically China.
|
·
|
Europe – We announced during the quarter an extended agreement with our partners in Europe. The business is still growing across multiple channels, including retail, foodservice, hospitality, and online sales. Current distribution in Europe includes the U.K., Ireland, France, Norway, Sweden, Finland, Iceland, the Czech Republic, Hungary and Russia, with more European distribution deals planned to be announced shortly. We are anticipating with the advent of the Nespresso compatible capsules launch, we will be able to get much wider distribution in Europe in future periods.
|
·
|
Chile - continues to market the brand right and shows no sign of slowing down. Our distributor anticipates launching within 106 Walmart stores in Q4 with our 8oz bags.
|