CCBEF: Management Discusses Q2 Results and Sees EBITDA Profitability in 2009
Submitted By Knobias ClipReport
CCBEF: Management Discusses Q2 Results and Sees EBITDA Profitability in 2009
By Fain Hughes, fhughes@knobias.com
Clearly Canadian Beverage Corp. (CCBEF) reported Q2 results ended June 2008 after the bell on Wednesday. The Company reported revenues of $2.53 million versus $3.0 million for the same period last year. Net loss was $0.07 per share, compared to a loss of $0.25 per share in the same period last year.
In addition, the Company also has signed an agreement with Cott Corporation (COT), the largest private bottling group in the world, to bottle Clearly Canadian Beverages in 20 oz and 1 L PET. Under the terms of the agreement, Cott Corporation will bottle Clearly Canadian sparkling flavored waters at strategically located Cott facilities for distribution throughout North America.
Bobby Genovese, Chairman and CEO of Clearly Canadian, commented in a conference call, “We continue to grow our top line revenues through the first half of the year, particularly as we undergo a transformation of our sparking water beverage business. This has required a reduction in inventory and sales. We are set to launch a whole new phase for Clearly Canadian beverage, which we believe will bring in significantly greater revenue and margins.”
He added, “Despite ongoing cost challenges in this environment, we are extremely pleased with our progress in building a profitable company. Over the next several quarters, we are confident that we will be on target to meet our projections. As we continue to achieve efficiencies with our SG&A expenses, we believe the company will be profitable on an EBITDA basis in 2009.”
David Reingold, President of Clearly Canadian, added, “We have greatly reduced our expense structure in the U.S. during Q2, as we transition down our beverage operation to prepare for new product launches. While this has been a trying exercise, we are confident that we will begin to see substantial dividends from this in Q3. We now feel that our team is working effectively and efficiently to grow the business model that we have chosen. In addition, we are confident that the infrastructure is well positioned to absorb all of the demands that future acquisitions will put on it.”
He continued, “Like most companies in 2008, the margin side of the business has been challenging. We have experienced increases in transportation and commodities costs. We are thankful to have been helped by a weak U.S. dollar, as most of our products are bought outside of the U.S. and sold in Canada.”
Mr. Reingold concluded, “I am pleased with our performance and remain very optimistic about Q3 and Q4. These are normally very busy times for us, and we will also be launching most of our new business into the marketplace during this time.Our team is working very hard to bring Clearly Canadian back to EBITDA profitability in 2009.”
