Replies to post #905 on Bravo Brands Inc (fka BRVO)

[mcmike]

Conf Call Notes: unedited

CCE: distrib. focus on education, vending, and convenience stores
BRVO maintains dist. channels for groceries, warehouse clubs, drugstores, etc.

"better for you" beverage category

Come April.... 7.5 mill units/mo. capacity see http://www.investorshub.com/boards/read_msg.asp?Message_id=7381572&txt2find=shibuya. I am confused again because I thought I heard that a 3rd & 4th LFA-20 system was ordered for April installation. But i distinctly heard the 7.5 mill unit/mo. mentioned today, so I just don't know.

Decision by end of year re. ordering the "Shibuya" (8mill. units/mo.) fill system. too premature to undertake the expense at this point in time

Guidance for 3rd Q= $4mill, 4thQ= $6mill
Guidance (reluctant) for 2006:
domestic: 50-60 million
internt'l: 15-20
new products 5-20

total sales $70-100 million

as John mentioned only 2% hit to margins next year

BRVO will be needing to tap capital markets in not too distant future.

Barring extraordinary capital expenditures for marketing in Q4, BRVO may be cash flow positive at that point.



A recording of the call will be available until September 7, 2005. To hear this recording, dial 877-660-6853 and enter account number 286; conference identification number 167865.

[starfire]

here is something that concerned me (but not surprised)...

for 2006 domestic sales forecast of $50M-$60M (million) with CCE!!! without CCE it was $50 million. So minimal incremental benefit for 2006. I am pleased 2008 revenues projected at $320Million.

for 2006 worldwide rev projection of $70M - $100M. We'll know end of 1Q 2006 if BRVO/CCE team are geling and if products are selling quick!!

Additional capital required for Marketing/Advertising and for expansion, thus leading to dilution. I doubt traditional financing i.e via bank is possible. lot of money required for product launches, marketing and advertising mext year.

this alternative of BRVO not getting cash infusion for expansion will I believe will inhibit BRVO's growth.