New Age Beverages Reports Record 2016 Earnings

DENVER, CO--(Marketwired - Apr 3, 2017) - New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based leading all-natural tea and healthy functional beverage company whose brands include XingTea^®, XingEnergy^®, Aspen Pure^®, Búcha^® Live Kombucha, Marley One Drop^®, Marley Mellow Mood^®, and CocoLibre^® today announced earnings for its fourth quarter and full year ended December 31, 2016. 

2016 HIGHLIGHTS 

Financial		Amount				vs. PY
Gross Revenues		$	27,278,606			915	%
Net Revenues		$	25,301,806			945	%
COGS		$	18,408,750			934	%
Gross Profit		$	6,893,056			974	%
Shipping		$	1,096,830			380	%
Contribution Margin		$	5,796,226			1,302	%
Sales/Marketing		$	1,584,104			508	%
Other Opex		$	7,845,201			597	%
Net Income		$	(3,633,079	)		273	%
One Time Expenses		$	3,023,046			n/a
Adjusted EBITDA		$	262,117			n/a
As New Age only acquired the Xing assets on June 30, 2016, only the half-year results for this business are included. No Marley or Coco-Libre results are included.

Operational
	Acquired New Age			Became #11 Healthy Beverage Co.
	Sold American Brewing			Developed New Hybrid RTM
	Secured 3.7% Line of Credit			Launched XingEnergy®
	Grew Búcha >5,000 Outlets			Integrated ERP Systems
	Cut Búcha Packing Costs 46%			Installed Sales Dashboard
	Expanded DSD Nationally			Expanded Búcha in Convenience
	Developed Nat'l Sales Force			Tripled Hispanic DSD Routes
	Mgt. Agreement w/Marley			Built new Web/Social Platforms
	Integrated Marley Beverage Co.			Expanded in Canada/Key Int'l Mkts.
	Professionalized IR			Installed New World-Class BOD
	Gained Major PL contract			Eliminated Pref A/B stock (w/uplist)

In recent developments in Q1 2017, the Company also uplisted onto the NASDAQ Capital Markets Exchange, completed a 4x oversubscribed raise for $17.5 million, eliminated 100% of debt, developed and launched shelf stable Búcha^® Live Kombucha, developed and launched Aspen Pure^® Probiotic, the world's first shelf-stable probiotic water, and completed the Marley Beverage Company and Coco-Libre^® acquisitions.

Brent Willis, Chief Executive Officer of New Age Beverages, commented, "2016 was a transformational year for New Age. Overall growth across all financial metrics was excellent, especially considering we integrated Marley in Q4, built our first national sales force, and only saw the beginning of the cost and revenue synergies taking hold. We could not have asked for more from the organization in the first six months of being together. We have started 2017 off at a torrid pace, and now have the business platform, financial platform, the brands, and the experienced team to build a powerful and focused company, solely competing in the growth segments of the beverage industry."

2016 FINANCIAL RESULTS

Fully consolidated profit and loss results for 2016 include twelve months of Búcha, Inc. and six months of XingTea, which was integrated with Búcha, Inc. on June 30, 2016. 

For the twelve-month period ending December 31, 2016, gross revenues reached $$27,278,606 vs. $2,686,658 in the prior year. Less discounts, returns, and billbacks, net revenues reached $25,301,806 vs. $2,421,752 in the prior year, reflective of the significant impact of the acquisition of XingTea.

Gross profit reached (not including shipping expense) $6,893,056 vs. $642,009 for the full year in 2016. Gross Profit reached 27.2% vs. 26.5% in the prior year and 26.6% in Q3 2016, the first quarter of fully integrated results. Positively impacting gross profit was improved cost of goods sold from increased scale production and the initial benefits of value engineering of the Búcha portfolio. Shipping costs were $1,096,830 or 4.3% of net sales vs. $228,633 in the prior year. Shipping costs in the prior quarter were 4.8% of sales reflecting the cost synergies of shipping full loads, cross docking, and improved scale and terms with freight carriers.

Total operating expenses were $9,422,983 reflective of numerous one-time expenses associated with the acquisition and uplisting. Total personnel expenses were down for the full year as a percent of net sales to 11.8% versus prior year apples to apples of 12.2% of net sales. 

Adjusted EBITDA (non-GAAP) was $262,117, when removing the expenses associated with the acquisition of Xing, contractual bonuses as part of the acquisition, and one-time expenses associated with uplist to the NASDAQ. In addition to the one-time expenses, the company absorbed more than $2.5 million of losses associated with the Búcha Inc. standalone company, yet still delivered profitability and cash from operations of $975,176.

2017 RECENT DEVELOPMENTS 

The additions and full consolidation of the Marley Beverage Company, including their brands Marley One Drop® Coffee and Marley Mellow Mood® Relaxation Drinks, and Maverick Brands including their brand Coco-Libre® will have a material impact on the Company's results. Both businesses will be fully consolidated and incorporated in Q2 2017 financial statements.

About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based, leading all-natural tea and healthy functional beverage company that was founded in 2003. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters and Functional Waters with the brands XingTea®, Marley One Drop®, Búcha® Live Kombucha, XingEnergy®, Marley Mellow Mood®, Coco-Libre®, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company's brands are sold across all 50 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.newagebev.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, and www.cocolibre.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.

Websites:
www.newagebev.us
www.mybucha.com
www.xingtea.com
www.drinkmarley.com
www.cocolibre.com