SOURCE: Bergio International

Bergio International

August 14, 2015 11:00 ET

Bergio International, Inc. Reports Second Quarter 2015 Financial Results

Operating Loss Declines 69%; Non-GAAP EBITDA of ($187,000) or ($0.02) per Share for the Six Months Ended June 30, 2015 as Compared to ($643,000) or ($0.15) per Share in the Prior Year

FAIRFIELD, NJ--(Marketwired - August 14, 2015) - Bergio International, Inc. ("Bergio", or the "Company") (OTC PINK: BRGO), a leading diversified jewelry designer and manufacturer of fine jewelry today reported its financial results for the second quarter of fiscal year 2015 ended June 30, 2015.

Highlights

During the six months ended June 30, 2015, the Company showed improvement in its operations, and continues to pursue new opportunities which we believe will provide a basis for future growth.

  • Loss from operations decreased from $839,706 to $257,835 for the six months ended June 30, 2015 as compared to the same period last year.
  • Non-GAAP EBITDA was a loss of $187,224 or $0.02 per share for the six months ended June 30, 2015 as compared to a loss of $642,658 or $0.15 per share for the same six month period last year (see reconciliation accompanying this release).
  • Overall, sales decreased 1% for the six months ended June 30, 2015 as compared to the same period in the prior year. The Company ceased operations in Russia as of October 2014 and realized no sales during the six months ended June 30, 2015. As compared to the six months period June 30, 2014, domestic sales increased $367,110 (146%) for the six months ended June 30, 2015.
  • Loss before taxes declined to $748,264 for the six months ended June 30, 2015, as compared to a loss before taxes of $901, 206 for the six months ended June 30, 2014. For the six months ended June 30, 2015, loss before taxes was negatively impacted by non-cash expenses associated with the accounting treatment of the convertible debt. These non-cash items, including derivative expense, amortization of debt discount and deferred financing costs, change in fair value of derivatives and gain on extinguishment of debt totaled $439,103.
  • In June 2015, the Company acquired 51% interest in R.S. Fisher in exchange for funding R.S. Fisher's operations. The minority holder contributed jewelry molds and inventory valued at $349,292.

Net sales for the three and six months ended June 30, 2015 decreased $7,139 (2.0%) and $6,555 (1.0%) to $353,976 and $618,112, respectively, as compared to $361,115 and $624,667, respectively, for the three and six months ended June 30, 2014. The decrease in sales from Russia was offset by the increase in our wholesale sales. For the three and six months ended June 30, 2015, the Company had no sales related to Russia as compared to $176,799 and $373,665 for the three and six months ended June 30, 2014. As of October 1, 2014, the Company ceased operations in Russia due to the economic, currency and political condition in Russia. The Company intends to concentrate on its domestic operations, including the retail market, and the duty free industry, which approximates $60 billion worldwide.

Gross profit for the three and six months ended June 30, 2015 increased $30,228 (144.7%) and $82,964 (67.1%) to $51,112 and $206,601, respectively, as compared to $20,884 and $123,637 for the three and six months ended June 30, 2014. This increase in gross profit is primarily due to the product mix wherein current wholesale sales and special orders have a higher gross profit than the sales that were made to Russia. Gross profit was also impacted during the quarter by sales of inventory at cost for items that have been slow-moving to provide additional cash for operations.

Total selling, general and administrative expenses decreased $292,500 (48.4%) and $499,357 (51.8%) to $311,744 and $463,986, respectively, for the three and six months ended June 30, 2015 as compared to $604,244 and $963,343 for the same periods in the prior year. Lower advertising, marketing, travel and commission expenses and lower professional fees were partially offset by increased operating expenses associated with the Company's retail store, and higher depreciation and salary expenses.

Commenting on the results, Mr. Berge Abajian, President and CEO of Bergio, stated, "The last few years have been difficult and while sales from our retail operations have not met expectations, we continue to pursue a number of opportunities and remain optimistic about the future. We are excited about the venture with R.S. Fisher Company, and hope that the retail market will gain momentum so that we can take advantage of our retail operations and brand. We ceased operations in Russia due to the economic, currency and political condition in Russia and intend to concentrate on our domestic operations, including the retail market, and the duty free industry, which approximates $60 billion worldwide. The Company also strives to continue to keep a tight rein on operating costs."

We encourage everyone to read our full results of operations contained in our Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission, which is scheduled to be file on August 14, 2015, which can be found at sec.gov.

About Bergio International, Inc.

Bergio is a leading diversified jewelry designer and manufacturer of fine jewelry. Established in 1995, Bergio's signature innovative design, coupled with extraordinary diamonds and precious stones, earns the Company recognition as a highly sought-after purveyor of rare and exquisite treasures from around the world. Under the Bergio umbrella exist three separate, but equally exciting collections -- Bergio Fine, Bridal and Bergio Couture. Manufactured in the United States and Italy, Bergio fine jewelry is recognized worldwide for the highest standards of craftsmanship.

For further information please visit our website at www.bergio.com.

This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company's previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the "Act") protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

 
BERGIO INTERNATIONA, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)
       
   Six Months  Six Months
   Ended  Ended
   June 30,  June 30,
   2015  2014
         
Net income (loss)  $(748,264)  $(901,206)
         
Depreciation and amortization   61,517   10,058
Amortization of debt discount   40.538   108,376
Amortization of deferred financing costs   5,330   3,684
Change on fair value of common stock warrants   (60,046)   520,185
Interest, net   53,102   7,322
Share-based compensation   -   187,000
Derivative expense   456,940   -
Gain on extinguishment of derivative   -   (578,067)
Gain on extinguishment of debt   (3,659)   -
         
Non-GAAP EBITDA  $(187,224)  $(642,658)
         
Non-GAAP EBITDA per common share  $(0.02)  $(0.15)
         
Basic weighted average shares outstanding   9,326,768   4,146,314
       
       

The term EBITDA consists of net income (loss) plus interest, taxes, depreciation and amortization, amortization of debt discount and deferred financing charges, change in fair value of warrants, non-cash interest, and non-cash stock-based compensation. EBITDA is not a measure of financial performance under generally accepted accounting principles, and should not be considered in isolation from, or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles, or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt, and to fund capital expenditures, and provides investors a helpful measure for analyzing its operating performance. The table above sets forth a reconciliation of EBITDA to net income (loss), which is the most directly comparable measure of financial performance, calculated under generally accepted accounting principles. Non-GAAP EBITDA per common share is calculated by dividing Non-GAAP EBITDA by basic weighted average shares outstanding.

Contact Information

  • Contact:
    Bergio International, Inc.
    Investor Relations
    973-227-3230 Ext 13