DENVER, CO--(Marketwired - Nov 15, 2016) - New Age Beverages Corporation (OTC PINK: NBEV) the Colorado-based owner of the XingTea®, XingEnergy®, Aspen Pure®, and the Búcha® Live Kombucha brands today announced earnings for its third quarter ended September 30, 2016, with gross revenues achieving $15,765,898, net revenues increasing $13,482,012 a 10% increase versus prior year, and EBITDA reaching $446,205 vs. $202,527, an increase of 120%. On October 24th, New Age completed an agreement to take over the sales, marketing and distribution of the Marley Beverage Company, adding penetration into the RTD Coffee category and Relaxation Beverage segments with brands representing close to $10 million in annual revenue.
NBEV reported consolidated profit and loss results for the first time this quarter since the acquisition and merger of XingTea/New Age Beverages and Búcha, Inc. on June 30, 2016. Reported in the Company's quarterly filing are fully consolidated results for the third quarter, but for the nine month period ending September 30, 2015, the results include 3 months of the combined company, and six months of the Búcha, Inc. standalone company demonstrating the significant transformation that the acquisition and subsequent merger represents.
For the three-month period ending September 30, 2016, gross revenues reached $15,765,898. Less discounts, returns, and billbacks, net revenues reached $13,482,012 vs. $611,014 in the prior year, reflective of the significant impact of the acquisition of XingTea/New Age. On an apples to apples basis, Q3 revenue compares to $12,312,370 in the prior year quarter ended September 30, 2015, an increase of 10%.
Gross profit reached $2,952,548 vs. $152,141 in the third quarter of the 2015. Positively impacting gross profit was improved cost of goods sold from increased scale production and lower freight costs that decreased from 11.2% of net sales in the third quarter last year, to 4.5% in the third quarter this year, an improvement of 6.7 basis points.
Operating expenses were also substantially reduced with personnel expenses down 2 basis points versus prior year apples to apples to 12.2% of net sales. Total expenses were held flat with prior year on an absolute basis and achieved a 1.7 basis point decrease versus prior year.
EBITDA was $446,205 for the quarter vs. $202,527 on proforma basis in the prior year, an increase of 120%. Adjusted EBITDA (non-GAAP), when removing the expenses associated with the acquisition of Xing/New Age and numerous other one-time/non-recurring expenses of an estimated $175,000 was $621,205.
The agreement to consolidate the sales, marketing, and distribution forces of the Marley Beverage Company into New Age Beverages was completed on October 24th. The respective organizations decided to combine their commercial arms to increase the scale, relevance, and effectiveness of the combined group. With the agreement, the sales footprint for both companies essentially doubles, the portfolio of brands in growth categories substantially increases, and the revenues of the two companies now reaches approximately $70 million. The agreement is not an acquisition and both companies will continue to operate as separate financial entities, but the companies are working closely to accelerate growth, utilize the infrastructure and capabilities of New Age, and leverage their combined customer and distributor relationships throughout the US.
Brent Willis, Chief Executive of New Age Beverage Corporation commented, "I am so proud of the new organization and the key leaders for the performance in Q3. Achieving 10% real revenue growth from simple good execution is an outstanding result, and is even more commendable of an accomplishment in the midst of an organizational integration and a number of changes and new ways of working. Momentum is a good thing in companies. We saw a start of it at the end of Q2, and now we see it increasing in Q3 both at the top and bottom lines. Now with the addition of the Marley Beverage Company brands in Q4 and an even stronger and more focused national sales force, we expect to accelerate our progress to becoming the world's largest healthy functional beverage company."
About New Age Beverages Corporation (OTC PINK: NBEV)
New Age Beverages Corporation is a Colorado-based, healthy functional beverage company originally founded in 2003 and re-created via the combination of XingTea®, Aspen Pure® Artesian Water, Búcha® Live Kombucha, and New Age Beverages in June 2016. In October 2016, the Company added the Marley One Drop® RTD Coffee, and Marley Mellow Mood™ Relaxation Drinks brands to the portfolio. The Company trades under the newly issued symbol NBEV on the OTC exchange. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks and Functional Waters with the Brands XingTea®, Búcha® Live Kombucha, XingEnergy®, Marley One Drop®, Marley Mellow Mood™, and Aspen Pure®. The brands are sold in 46 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.mybucha.com, www.xingtea.com, www.aspenpure.com, and www.drinkmarley.com.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission might affect the Company's operations. Unless required by applicable law, nBev undertakes no obligation to update or revise any forward-looking statements.