NewAge Inc (fka NBEVQ) (NBEVQ)

[NewJerichoMan]

Q2 2017 FINANCIAL RESULTS

For the three-month period ending June 30, 2017, gross revenues reached $16,038,638 vs. $811,569 in the prior year, up 1,876%. Less discounts, returns, and billbacks, net revenues reached $15,104,795 vs. $686,740 in the prior year, up 2,099%, reflective of the significant impact of the Xing and Coco-Libre acquisitions.

Gross Margin (minus a one-time $175,000 impact for Marley expenses before completing the acquisition) reached $4,120,544 vs. $135,415 in the prior year. Gross Margin percentage (less the Marley one-time) reached 28.4% vs. 26.4% in the prior quarter and 21.4% in the prior year. Cost of goods sold decreased to 71.5% of net sales from 73.5% of net sales in the first quarter 2017 and 80.3% in the prior year. The significant improvement is due to the effects of value engineering in product and packaging, improved scale benefits and mix improvement. Shipping expense was 4.8% of net sales vs. 7.2% in the prior year. Shipping expense was higher than normal in April and May as the Company integrated the Coco-Libre acquisition.

Total operating expenses were $3,724,749, which included a 28% increase in Marketing to support the brands, overall was down to 24.7% of net sales vs. 26.7% in the prior quarter and down significantly vs. the prior year. The reduced operating expenses as a percent of net sales is reflective of the New Age business model gearing whereby the infrastructure is already established and new brands and companies drop a predominance of their contribution margin to the bottom line.

Net Income for the quarter reached $2.496 million in the quarter vs. a loss of ($1,997,619) in the prior year. EBITDA reached $2,953 million in the quarter when removing the one-time expenses associated with the Marley expenses before consolidation on June 13, 2017.

https://finance.yahoo.com/news/age-beverages-reports-q2-2017-130000868.html