SOURCE: Celsius Holdings, Inc.

Celsius Holdings, Inc.

August 18, 2011 14:30 ET

Celsius Holdings Reports Second Quarter 2011 Results

BOCA RATON, FL--(Marketwire - Aug 18, 2011) - Celsius Holdings, Inc. (PINKSHEETS: CELH), the creator and marketer of Celsius®, Your Ultimate Fitness Partner®, today reported their results of operations for the second quarter ended June 30, 2011.

Revenue for the quarter totaled $2.0 million as compared to $4.1 million for the same quarter in 2010, a decrease of 50%. Revenue in the second quarter of 2010 included approximately $2.0 million of shipments to retailers where Celsius is no longer in distribution and thus didn't have sales in this current quarter.

The company recorded a net loss of $456,000 for the 2011 quarter as compared to $3.0 million for the same period last year, or ($0.02) and ($0.16) per share, respectively. For the six months ended June 30, 2011, the Company recorded a net loss of $916,000 or ($0.05) per share on net revenues of $ 4.2 million, as compared to a net loss of $8.9 million or ($0.54) on net revenues of $6.4 million, during the 2010 period.

Steve Haley, Chairman and Chief Executive Officer of Celsius, stated, "As we previously announced, in the 4th quarter of 2010 the company embarked on a program which focused on rationalizing customer accounts that were not profitable, correcting customer overstock situations, significantly reducing marketing expenses and quantifying the company's base of business and the brand's organic growth rate. In this regard, the company has made significant progress in the first half of the year."

Haley continued, "Comparing sales to customers in the first half of the year versus the sales to those same customers in last year's first half shows a 10 percent organic increase with reduced consumer marketing and advertising expense. I believe this is a testament of the strength of the brand and its vocal and loyal customer base. We continued to support the brand at the store level with trade promotions and in store sampling events. With the cash burn dramatically reduced and the company stabilized, we are now analyzing marketing programs that can lead to profitable growth. We believe the changes implemented have turned a negative position around. We can now focus on growing the brand and building upon the solid base of business that has been established."

About Celsius Holdings, Inc.
Celsius Holdings, Inc. (PINKSHEETS: CELH) markets Celsius®, Your Ultimate Fitness Partner ®, which is backed by science. Celsius is dedicated to providing healthier, everyday refreshment through science and innovation. Information about Celsius Holdings, Inc. and Celsius, Your Ultimate Fitness Partner ®, is available at

Forward-Looking Statements
This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.

Celsius Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
June 30 December 31
ASSETS 2011 2010
Current assets:
Cash and cash equivalents $ 533,361 $ 1,320,665
*Accounts receivable, net 1,219,908 498,708
Inventories, net 945,741 1,563,753
Other current assets 250,318 138,310
Total current assets 2,949,328 3,521,436
Property, fixtures and equipment, net 85,152 101,895
Total Assets $ 3,034,480 $ 3,623,331
Current liabilities:
*Accounts payable and accrued expenses $ 2,370,323 $ 2,077,735
Due to related parties, short-term portion 36,433 63,882
Total current liabilities 2,406,756 2,141,617
Convertible note payable, related party 2,000,000 2,000,000
Note due to related parties 2,000,000 2,000,000
Total Liabilities 6,406,756 6,141,617
Stockholders' Equity (Deficit):
Common stock 18,515 18,515
Additional paid-in capital 36,163,693 36,101,998
Accumulated deficit (39,554,484 ) (38,638,799 )
Total Stockholders' Equity (Deficit) (3,372,276 ) (2,518,286 )
Total Liabilities and Stockholders' Equity (Deficit) $ 3,034,480 $ 3,623,331
*Note: Customer discounts and promotion payables were previously classified as a liability in 2010. These amounts have been restated and netted against accounts receivable for all periods presented above.
Celsius Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2011 2010 2011 2010
Net revenue $ 2,032,201 $ 4,103,426 $ 4,238,098 $ 6,440,310
Cost of revenue 1,185,760 2,241,365 2,585,126 3,741,928
Gross profit 846,441 1,862,061 1,652,972 2,698,382
Selling and marketing expenses 825,941 3,920,811 1,643,337 8,676,263
General and administrative expenses 414,714 936,152 802,197 2,290,330
Loss from operations (394,214 ) (2,994,902 ) (792,562 ) (8,268,211 )
Interest expense, net 61,839 31,382 123,123 610,557
Net loss $ (456,053 ) $ (3,026,284 ) $ (915,685 ) $ (8,878,768 )
Basic and diluted:
Weighted average shares outstanding 18,515,575 18,406,432 18,515,575 16,561,223
Loss per share $ (0.02 ) $ (0.16 ) $ (0.05 ) $ (0.54 )

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