Jammin Java Corp (JAMN)

[Ronin]

Financial Highlights

http://finance.yahoo.com/news/marley-coffee-issues-shareholder-letter-020040058.html

-- 19 Consecutive Quarters of Revenue Growth - We anticipate gross revenues of approximately $12.3 million (M) for the fiscal year ended January 31, 2016, an increase of 29% compared to the prior year. Fourth quarter (Q4) gross revenues are anticipated to come in at ~$3.2M or a 25% increase from the prior year's period. We anticipate net revenues to come in at ~$11.2M or a 26% increase from the prior year.

We anticipate net revenues to come in at $2.9M for Q4, which represents a 32% increase from Q4 of the last fiscal year. As we improve the quality of our promotions and the management of our in-store inventory, we expect significant organic gains to revenue on existing stores as well as declining losses.

-- Improved Gross Profits and Margins - The Company has focused its efforts here more so than growing its top line. Anticipated gross profits for the year are expected to come in at $3.1M, which is a 60% increase from the year prior. Anticipated gross profits for the fourth quarter are expected to come in at $929,000, which is an increase of 275% from the prior year's period.

We stay committed to improving our margins through scale, getting into more direct distribution accounts and improvements in our supply chain. Gross profits as a percentage of sales are expected to be 32% for the fourth quarter, however we believe we can improve that number to 38%-40% in the second quarter of this fiscal year and sustain that for the rest of the year.

-- Operational Efficiency - As revenues have increased, we continue to make our operations leaner and more efficient. Total operating expenses are expected to come in 29% lower compared to the previous year. Compensation and benefits are expected to come in 27% lower for this fiscal 2016 than the previous year. Cash compensation, which is compensation stripped of stock options, stock payments and stock bonuses is expected to be 33% lower in quarter four, year over year.

Senior management has committed to continuing to taking a significant portion of their compensation in stock and not cash for the following quarter thus showing their support for the Company and preserving as much cash as possible to grow the business.