Exhibit 99.1
NEW AGE
BEVERAGES CORPORATION ACHIEVES HIGHEST
FIRST
QUARTER SALES ON RECORD IN Q1 2018, DESPITE SIGNIFICANT INVENTORY
SHORTAGES DUE TO WORKING CAPITAL CONSTRAINTS
DENVER, COLORADO, MAY 15, 2018 – NEW AGE BEVERAGES
CORPORATION (NASDAQ: NBEV), the Colorado-based organic and
natural healthy functional beverage company dedicated to making a
difference for consumers with better-for-you alternatives, today
announced the achievement of its highest first quarter sales ever
of $12.8 million, despite a negative impact of approximately $3.5
on revenue from inventory shortfalls.
KEY HIGHLIGHTS:
●
Gross
revenues up 11.6% to $12.8 million for the quarter, on excellent
growth in January and February, offset by an inventory shortfall
impact in March
●
Gross margin
maintained at 26.4%, negatively impacted by higher costs of goods
sold and shipping expense associated with production and transfers
to meet customer needs
●
Retail
distribution in US Divisions has increased by around 85,000 new
points, most of which occurs in Q2, on existing and new higher
margin products
●
International
was up more than 300% in the quarter on targeted expansion of core
brands in core growth markets
Brent
Willis, Chief Executive Officer of New Age Beverages, commented,
“We started off so strong in the beginning of the year, but
the delay in the closing of our credit facility which impacted our
ability to purchase inventory to meet demand, significantly hurt us
in March and to a degree in April. Independent of the impact, the
International Division, E-Commerce Division, and Foodservice
Division all posted triple digit increases off of smaller bases,
but are expected to materially contribute in ’18. We are now
caught up (for the moment) on inventory, and are looking to place
the new credit facility as soon as possible to meet increasing
demand for our brands in significantly broader
distribution.”
Q1
2018 FINANCIAL RESULTS
For
the three-month period ending March 31, 2018, gross revenues
reached $12,767,789 versus $11,437,638 in the prior year, an
increase of 11.6%. Net revenues less discounts, returns and
billbacks reached $11,558,203 versus $10,787,801 in the prior
year.
Gross
profit (not including shipping expense) reached 26.4% of net sales,
in line with the first quarter in 2017. Gross profit exceeded 33%
in January, offset by increased production and shipping costs as a
result of the working capital limitations throughout the rest of
the quarter.
Total
operating expenses for the quarter were $5,104,056 as compared to
$2,242,607 in the first quarter of 2017, reflective of primarily
non-cash expenses including increased amortization on the $20
million of intangible assets added to the balance sheet, and the
stock option and stock expense associated with the 5 acquisitions
and company integrations over the past two years. EBITDA on an
adjusted basis for the three month period ending March 31, 2018 was
($1,286,552) primarily as a result of the impact on revenue from
the inventory shortfall.
About New Age Beverages
Corporation (NASDAQ: NBEV)
New Age
Beverages Corporation is a Colorado-based healthy functional
beverage company that was created in 2016 and 2017 with the
combination of Búcha Live Kombucha®, XingTea®,
Coco-Libre®, and Marley®, to create a one-stop-shop
solution for retailers and distributors providing healthier
beverages in the disruptive growth segments of the $870
Billion-dollar non-alcoholic beverage industry. In that period, New
Age has become the 54th largest beverage
company, the 8th largest healthy
beverage company, and the fastest growing in the world. New Age
competes Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy
Drinks, Relaxation Drinks, Coconut Waters, Functional Waters, and
Rehydration Beverages with the brands Búcha® Live
Kombucha, XingTea®, XingEnergy®, Marley One Drop®,
Marley Mellow Mood®, Marley Mate™,
Marley Cold Brew™,
Coco-Libre®, PediaAde™, and Aspen Pure® PH and
Aspen Pure® Probiotic Water. The Company’s brands are
sold across all 50 states within the US and in more than 10
countries internationally across all channels via direct and store
door distribution systems. The company operates the websites
www.newagebev.com,
www.newagehealth.us,
www.mybucha.com,
www.xingtea.com,
www.aspenpure.com,
www.drinkmarley.com,
www.cocolibre.com, and
https://shop.newagebev.com.
New
Age has exclusively partnered with the world's 5th largest water
charity, WATERisLIFE, to end the world water crisis with the most
innovative technologies available. Donate at WATERisLIFE.com to
help us #EnditToday.
Safe Harbor Disclosure
This
press release contains forward-looking statements that are made
pursuant to the safe harbor provisions within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are any statement reflecting
management's current expectations regarding future results of
operations, economic performance, financial condition and
achievements of the Company including statements regarding New Age
Beverage’s expectation to see continued growth. The
forward-looking statements are based on the assumption that
operating performance and results will continue in line with
historical results. Management believes these assumptions to be
reasonable but there is no assurance that they will prove to be
accurate. Forward-looking statements, specifically those concerning
future performance are subject to certain risks and uncertainties,
and actual results may differ materially. New Age Beverages
competes in a rapidly growing and transforming industry, and other
factors disclosed in the Company's filings with the Securities and
Exchange Commission might affect the Company’s operations.
Unless required by applicable law, NBEV undertakes no obligation to
update or revise any forward-looking statements.
For
investor inquiries about New Age
Beverages Corporation please contact:
Cody
Slach, Liolios Group,
Inc.
Investor
Relations Counsel
Tel
949-574-3860
NBEV@Liolios.com
New Age Beverages Corporation
Chuck
Ence, CFO
303-289-8655
Cence@newagebev.com