Exhibit
99.1
NEW AGE BEVERAGES CORPORATION
ANNOUNCES Q3 2018 RESULTS
DENVER, COLORADO, November 14, 2018 – NEW AGE BEVERAGES
CORPORATION (NASDAQ: NBEV), the
Colorado-based healthy lifestyle company focused on becoming the
world’s leading healthy beverage company, today announced the
results for the third quarter ended September 30,
2018.
KEY HIGHLIGHTS:
-
Balance sheet significantly
strengthened with $12 million credit line, elimination of all debt,
cash balanced increased to ≈$28 million and total assets
increased to >$100 million
-
3rd
quarter revenue
and gross margin impacted by the working capital shortfall
throughout most of the third quarter
-
CBD and Health Sciences products in production for launch before
Christmas
Brent Willis, Chief Executive Officer of New Age mentioned,
“New Age continued to progress its strategy to become the
world’s leading healthy beverage company in Q3. We
significantly strengthened the Company’s balance sheet and
cash position. Now, with the distribution breadth of our core
brands and our ability to fulfill demand, the impending launch of
our CBD portfolio, and next steps with strategic growth
opportunities, we are confident in our ability to continue to drive
excellent return for shareowners.”
On August 24,
2018, New Age completed an $11.8
million underwritten offering with Roth Capital Partners and
Northland Capital Partners, that enabled the Company to 1)
eliminate all debt including a previously installed $4.8 million
term loan, 2) purchase inventory, and 3) trigger the implementation
of a new $12 million line of credit. The inventory purchases
replenished New Age’s supply chain in the last week of the
third and first few weeks of the fourth
quarter.
New Age also implemented an At-The-Market offering which during the
quarter increased the Company’s cash balance to $28.6 million
versus a prior year cash balance of $285 thousand. The proceeds of
the now closed offering are envisioned to be used to pursue
potential acquisitions and to further drive organic growth of the
current and new CBD portfolio.
Greg Gould, newly appointed Chief Financial Officer of New Age
Beverages commented, “For the first time in the
Company’s history, New Age has the scale to be profitable and
the balance sheet, and the cash to drive organic growth of an
excellent brand portfolio, as well as to pursue external growth
opportunities. I was attracted to New Age because of the strength
of its brand portfolio and the quality of the management team and
board. Now, fully funded, we are in a tremendous position to drive
real value for shareholders.”
Q3 2018 FINANCIAL RESULTS
For the three-month period ended September 30, 2018, gross revenues
reached $15.3 million versus $16.8 million in the prior year
quarter. Net revenues less discounts, returns and billbacks reached
$13.2 million versus $15.0 in the prior year quarter. The working
capital shortfall that prohibited the Company’s ability to
meet demand during the majority of the quarter, which negatively
impacted revenue between $5.8 and $6.2 million.
Gross profit was 16% of net sales versus 33% in the prior year,
also reflective of the significant impact of the working capital
limitations on production and shipping.
Total operating expenses for the quarter were $5.1 million compared
to $4.4 million in the third quarter of 2017, due primarily to
higher 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 five
acquisitions over the past two years. EBITDA on an adjusted basis
for the three-month period ended September 30, 2018 was ($2.5
million), 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 beverage
company focused on inspiring, educating, and hydrating consumers.
The Company is the only one-stop-shop of healthy beverages and
includes the brands f Búcha Live Kombucha®,
XingTea®, Coco-Libre®, and Marley®. New Age growth
segments of the >$1 trillion-dollar non-alcoholic beverage
industry, is one of the 60 largest non-alcoholic beverage
companies, one of the largest healthy beverage companies, and the
fastest growing in the world over the past two years. The
Company’s brands are sold across all 50 states within the US
and in more than 10 countries internationally across all channels
via a hybrid of distribution and route to market
systems.
The Company operates the websites www.newagebev.com,
www.newagehealth.com,
www.mybucha.com,
www.xingtea.com,
www.drinkmarley.com,
and www.cocolibre.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 both
organically as well as through acquisition. 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.
We also refer you to the risks described in ''Risk Factors'' in
Part I, Item 1A of the Company's Annual Report on Form 10-K/A and
in the other reports and documents we file with the Securities and
Exchange Commission from time to time. Unless required by applicable law, NBEV undertakes
no obligation to update or revise any forward-looking
statements.