Drinks Americas Reports Leap in Revenue to $1.3 Million, a 289% Increase in First Quarter Fiscal 2008
Market Wire, September, 2007
Drinks Americas Holdings, Ltd. (OTCBB: DKAM), an owner, developer and marketer of premium beverages associated with renowned icons, reported results for its first quarter ended July 31, 2007.
Revenue for the first quarter fiscal 2008 was $1.3 million, an increase of $1 million, or 289%, compared with $0.3 million for the first quarter of last year. The primary contributor to Drinks Americas continued revenue growth was the ongoing expansion of Trump Super Premium Vodka, sales increases of its overall spirits and wine portfolio, and the expansion of its distribution of Newman's Own Sparkling Fruit Juices nationally.
Trump Super Premium Vodka is now available nationally in 46 states, covering 15,000 on-premise accounts and over 50,000 off-premise retail accounts, including liquor stores and supermarkets. In the first nine months of shipments, the Company sold approximately 60,000 cases, substantially well ahead of most successful industry brand launches of record.
J. Patrick Kenny, President & Chief Executive Officer of Drinks Americas, stated, "We continue to build tremendous momentum in our markets. As a result, we continue to achieve year-over-year record revenue as we drive the value of our premium icon brands. The launch of Trump Super Premium Vodka has been a dramatic success, as has Newman's Own Sparkling Fruit Juices and Water as we expand nationally. Our results are beginning to reflect the opportunity we now have to put the capital we raised earlier in the year to work, fueling our growth.
"Equally important and growing are Drinks Americas' bourbon, tequila, rum and wine businesses. All of these products are in a position, with both inventory and promotional support, to contribute to our revenue growth over the coming quarters."
Gross margin in the first quarter fiscal 2008 was 35.9% compared with 36.3% in the first fiscal quarter of 2007. The slight decline is attributable to the success of Newman's Own Sparkling Fruit Juices and Waters, which seasonally increased in volume, and due to expansion represent greater mix of sales than last year.
SG&A expenses in the first fiscal quarter 2008 was $2.0 million compared with $0.9 million in the first quarter of 2007. The increase is mainly due to the final Trump Super Premium Vodka one-time launch costs
SG&A expenses declined 18% from the prior quarter further representing the conclusion of the launch phase of Trump Super Premium Vodka.
Net loss for the first fiscal quarter was $1.6 million, or $0.02 per basic and diluted share, compared with a net loss of $0.8 million, or $0.01 per basic and diluted share for the first quarter of fiscal 2007.
First Quarter 2008 Highlights:
-- Signed joint venture with Universal's Interscope Geffen A&M Records to
develop and market beverage products and provide Drinks Americas' current
portfolio with substantial marketing resources.
-- Announced the upcoming launch and commenced production of Trump Super
Premium Vodka flavors in fiscal second quarter.
-- Trump Super Premium Vodka awarded a four-star rating from pre-eminent
reviewer F. Paul Pacult's Spirits Journal, one of the most respected and
independent authorities in evaluating spirits products.
-- Commenced shipping Trump Super Premium Vodka 1.75 liter size to all
major markets.
-- Sold Trump Super Premium Vodka to over 50,000 outlets, including both
retail chains and on-premises accounts. All distributors in key markets
have reordered.
-- Expanded Newman's Own Sparkling Fruit Juices and Waters nationally.
Early Second Quarter 2008 Highlights:
-- Willie Nelson's Old Whiskey River Bourbon growing 50% ahead of last
year incremental shipments of $160,000 in September, driven by expanding
1.75 liter sales in targeted markets.
-- Newman's Own Sparkling Fruit Juices & Waters growing at 150% versus
last year.
-- Drinks Americas' premium wine business sales of $350,000 or 203%
increase from last year.
-- Pre-production orders for Drinks Americas' new Aguila Tequila Silver
and Anejo added to the Reposado selection of approximately 600 cases.
Mr. Kenny concluded, "Our entire portfolio of beverages, spirits, wine and non-alcoholic offerings are all growing, as we are managing our expenses and ensuring our margin requirements are met while benefiting from our Iconic marketing model."
Mr. Kenny further added, "In our short history we have established three national brands; Trump Super Premium Vodka, Old Whiskey River Bourbon, and Newman's Own Sparkling Fruit Juices & Waters. In this current quarter we are seeing an increase in orders for our Tequila and Rum as well. In the coming year we will continue to scale up by beginning to execute our joint venture plans with Universal Music Group's Interscope, Geffen A&M Records, and taking advantage of the other resources and avenues available to us with our Icon branding model to continue to grow and expand the Company."
More information on the Company's quarterly results can be found in its 10-Q filing with the SEC.
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