Marley Coffee (OTCQB:JAMN) (www.marleycoffee.com), the sustainably
grown, ethically farmed and artisan-roasted reports fiscal first
quarter sales increased 153 percent compared with last year's
comparable sales.
Commenting on the results for fiscal first quarter 2015, Brent
Toevs, Chief Executive Officer of Marley Coffee, said, "First
quarter results were in line with our expectations, as we continued
to implement our objectives for the year. The key highlight of the
quarter was our strategic agreement and capital raise with Mother
Parkers, which we believe is an integral growth catalyst for us in
the upcoming year and beyond. Subsequent to the end of the quarter,
we have spent time integrating with the Mother Parkers team to help
leverage its resources to drive Marley Coffee sales. Our focus
during the quarter was on continuing to implement effective
marketing campaigns to help increase our velocity of turning
products off the shelf, expanding distribution to key retailers and
increasing the talent at Marley Coffee as we complete our
team."
Mr. Toevs added, "We believe we've successfully executed on our
objectives, and our quarterly numbers reflect our continued focus.
We remain confident in our ability to substantially increase our
sales this year and reach our goal of more than $10 million in
gross revenues and have identified a clear path to attain $25
million in the near future."
Financial Highlights for the Fiscal First Quarter Ended
April 30, 2014
Sales revenue for the fiscal quarter ended April 30, 2014
increased 153 percent to $2.1 million compared with $846 thousand
in the year-ago quarter.
Cost of sales for the quarter were $1.7 million compared with
$318 thousand last year, primarily attributable to increased
sales.
Gross profit was $453 thousand for the first quarter compared
with gross profit of $499 thousand in the year-ago quarter. Gross
profit margins were 21 percent compared with 59 percent in the
year-ago quarter. The expected decrease in gross profit and gross
profit margins was the result of our expansion into new markets and
lower initial margins on sales. We expect gross profits to increase
in upcoming quarters as we mature in our current grocery
operations.
Selling and marketing expenses for the three months ended April
30, 2014 and 2013 were $823 thousand and $168 thousand,
respectively, which represents an increase of $655 thousand or 389%
from the prior period. The increase was principally the result of
increased in-store demos and advertising to drive awareness and
trial.
Total operating expenses (including selling and marketing
expenses) for the first quarter increased to $2.7 million compared
with $813 thousand in the year-ago quarter. Increased expenses
reflected greater costs to support sales growth, as well as overall
business expansion and professional fees.
Net loss for the first quarter was $1.9 million or a loss of
$0.02 per share, compared with $419 thousand or $0.00 per share in
the year-ago quarter.
Its cash position was $2.4 million as of April 30, 2014,
compared with $857 thousand as of January 31, 2014.
Business Highlights for the First Quarter and Subsequent
Events
Mother Parkers
On April 30, 2014, we announced the financing agreement with
Mother Parkers. We are confident that this partnership with Mother
Parkers and our emphasis on the RealCup single-serve platform
reinforces our belief that this platform will be instrumental for
our long-term growth. Subsequent to the end of the quarter, both
organizations were expeditiously putting teams together to get
ready for our anticipated fast growth. Mother Parkers is a
world-class, multifaceted coffee organization with deep expertise
in OCS, food service and grocery retail, and it is heavily vested
in our success. With its knowledge and infrastructure, we can
effectively deploy our resources more efficiently as we gear up for
accelerated growth.
We are currently working with all of Mother Parkers' teams,
specifically concentrating on best practices in grocery retail
growth and cross-promotional marketing. We believe this unified
approach to going to market will help the company effectively
broaden its reach into new retailers.
Marketing
We have been executing on the marketing and promotional
calendars we put in place in Q4 2014. Though gross margins are
lower than previous year, this is part of the process to secure new
accounts. We project improvements to our gross margins after our
initial marketing spends. Promotions drive sales and repeat
business, and we have experienced improved velocity rates in the
first quarter compared with the fiscal fourth quarter 2014. Not
only is there a lift in sales during each promotional period, but
what's even more encouraging is the baseline lift after the
products go off promotion, according to syndicated data from IRI or
Nielsen.
Our largest account right now is Safeway and during promotion in
the quarter, we saw a total brand average lift of 433 percent.
Quarter-over quarter, between the fourth quarter and first quarter,
velocity increase was 41 percent from IRI for all accounts that are
tracked.
Expanding Distribution
We've expanded distribution into key national grocery stores
such as Albertsons, as well as regionals such as Hannaford and
Roche Brothers during the quarter. We continue to focus mainly on
turning our products in our existing distribution, but will also
continue pursuing chains we believe can complement the portfolios
of stores we are selling into right now.
Mr. Toevs concluded, "The focus of the company last year was
securing shelf space. Our success gaining authorization in more
than 10,000 stores demonstrates our ability to sell the product to
retailers. Fiscal 2015 will be focused on driving consumer trial
and acceptance of Marley Coffee as one of the premier coffee
brands. It is a transition point in the company's advancement from
retailer to consumer, from expanding distribution to organic growth
within our current retailers. We've shifted resources towards
consumer marketing programs. We've invested in the manpower to
service our growing business. Now, through our partnership with
Mother Parkers, we have the shoulders of giants we can stand on to
grow the company. Though grocery retail remains our focus, Mother
Parkers' expertise in other retail areas, such as convenience and
mass, may open up additional revenue opportunities in the quarters
ahead."
"With the capital resources in place to help us achieve our
initial revenue target of $15 - $20 million, we do not anticipate
the need to raise additional capital, unless we believe it would
dramatically accelerate our growth without shareholder dilution.
Management's compensation has primarily been in the form of stock
over the past 18 months, and in aggregate, the team is Marley
Coffee's largest shareholder. We believe our interests are aligned
with those of our other shareholders and have no intent to dilute
shareholder ownership.
"We look forward to the year ahead with great anticipation and
optimism."
About Jammin Java Corp., d/b/a Marley
Coffee
Marley Coffee (corporate name Jammin Java Corp.) is a US-based
company that provides premium, artisan roasted coffee to the
grocery, retail, online, service, hospitality, office coffee
service and big box store industry. Under its exclusive licensing
agreement with 56 Hope Road, the company continues to develop its
coffee lines under the Marley Coffee brand. The company is a fully
reporting company quoted on the OTCQB under the symbol "JAMN".
Learn more at www.MarleyCoffee.com or visit the Investor Relations
section at Investor.MarleyCoffee.com.
Join us on Facebook at http://www.facebook.com/MarleyCoffee, or
follow us on Twitter at http://twitter.com/marleycoffee, where we
post information that's material and non-material about the
company.
Forward-Looking Statement
This Press Release includes forward-looking statements 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 (the "Acts"). In particular, the words "believe," "may,"
"could," "should," "expect," "anticipate," "estimate," "project,"
"propose," "plan," "intend," and similar conditional words and
expressions are intended to identify forward-looking statements and
are subject to the safe harbor created by these Acts. Any
statements made in this news release about an action, event or
development, are forward-looking statements. Such statements are
based upon assumptions that in the future may prove not to have
been accurate and are subject to significant risks and
uncertainties. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the company. These risks and others are included from
time to time in documents we file with the Securities and Exchange
Commission ("SEC"), including but not limited to, our Form 10-Ks,
Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors
also could have material adverse effects on our future results.
Accordingly, you should not place undue reliance on these
forward-looking statements. Although the company believes that the
expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that its forward-looking
statements will prove to be correct. Investors are cautioned that
any forward-looking statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected. The forward-looking statements in
this press release are made as of the date hereof. The company
takes no obligation to update or correct its own forward-looking
statements, except as required by law or those prepared by third
parties that are not paid by the company. The company's SEC filings
are available at http://www.sec.gov.
-Financial Tables Follow-
|
JAMMIN JAVA
CORP. |
CONDENSED BALANCE
SHEETS |
|
|
April 30, |
January 31, |
|
2014 |
2014 |
|
(Unaudited) |
|
Assets |
|
|
Current Assets: |
|
|
Cash |
$ 2,418,177 |
$ 857,122 |
Accounts receivable |
1,476,563 |
1,085,947 |
Notes receivable - related
party |
2,724 |
2,724 |
Inventory |
114,988 |
354,932 |
Prepaid expenses |
132,885 |
1,163,914 |
Other current assets |
48,519 |
41,430 |
Total Current Assets |
4,193,856 |
3,506,069 |
|
|
|
Property and equipment,
net |
430,646 |
440,194 |
License agreement |
644,834 |
657,001 |
Intangible assets |
46,277 |
47,525 |
Other assets |
21,316 |
15,716 |
Goodwill |
88,162 |
88,162 |
Total Assets |
$ 5,425,091 |
$ 4,754,667 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 523,542 |
$ 1,181,510 |
Payable to Ironridge in common
shares |
-- |
369,589 |
Accrued expenses |
106,711 |
123,856 |
Accrued royalty and other
expenses - related party |
212,566 |
219,799 |
Notes payable |
-- |
4,965 |
Total Current Liabilities |
842,819 |
1,899,719 |
|
|
|
Total Liabilities |
842,819 |
1,899,719 |
|
|
|
Stockholders' Equity: |
|
|
Common stock, $.001 par value,
5,112,861,525 shares authorized; 114,548,177 and
104,085,210 shares issued and outstanding, as of April 30,
2014 and January 31, 2014, respectively |
114,390 |
103,166 |
Additional paid-in-capital |
20,143,919 |
16,514,630 |
Accumulated deficit |
(15,676,037) |
(13,762,848) |
Total Stockholders' Equity |
4,582,272 |
2,854,948 |
|
|
|
Total Liabilities and
Stockholders' Equity |
$ 5,425,091 |
$ 4,754,667 |
|
|
|
|
JAMMIN JAVA
CORP. |
CONDENSED STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
Three Months Ended
April 30, |
|
2014 |
2013 |
|
|
|
Revenue: |
$ 2,141,037 |
$ 846,181 |
Discounts and allowances |
(19,916) |
(29,132) |
Net revenue |
2,121,121 |
817,049 |
|
|
|
Cost of sales: |
|
|
Cost of sales products |
1,668,376 |
318,161 |
Total cost of sales |
1,668,376 |
318,161 |
|
|
|
Gross Profit |
$ 452,745 |
$ 498,888 |
|
|
|
Operating Expenses: |
|
|
Compensation and benefits |
1,132,148 |
275,157 |
Selling and marketing |
822,773 |
168,243 |
General and administrative |
780,600 |
369,772 |
Total operating expenses |
2,735,521 |
813,172 |
|
|
|
Other income (expense): |
|
|
Other income (expense) |
370,024 |
3,135 |
Interest income |
-- |
-- |
Interest expense |
(437) |
(107,498) |
Total other income
(expense) |
369,587 |
(104,363) |
|
|
|
Net Loss |
$ (1,913,189) |
$ (418,647) |
|
|
|
Net loss per share: |
|
|
Basic and diluted loss per share |
$ (0.02) |
$ (0.00) |
|
|
|
Weighted average common shares outstanding -
basic and diluted |
106,390,682 |
83,903,387 |
|
|
|
CONTACT: Marley Coffee
303-396-1756
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