Marley Coffee Quarterly Revenue Increases 309 Percent for Quarter Ended October 31, 2013 Compared to Quarter Ended October 31, 2012
December 17, 2013 --
DENVER, Dec. 17, 2013 (GLOBE NEWSWIRE) -- Marley Coffee (OTC:JAMN) (www.marleycoffee.com), the sustainably grown, ethically farmed and artisan-roasted gourmet coffee company, reports financial results for the three and nine months ended October 31, 2013 and 2012, including increases in revenue, gross profit and gross profit margins, for the year-over-year periods.
Highlights of the third fiscal quarter and nine months include:
Revenue for the 2014 third fiscal quarter (i.e., the three months ended October 31, 2013) increased 309 percent to $2.2 million vs. $536 thousand compared with fiscal 3Q 2013. For the nine-month period ended October 31, 2013, revenue increased 228 percent to $4.6 million compared with $1.4 million in the year-ago nine-month period.
Increased grocery retailer penetration to 8,000 authorized locations as of October 31, 2013, compared with 500 locations at the end of the third quarter last year helped contribute to the growth in revenue.
Gross profit increased to $811 thousand in the 2014 third fiscal quarter compared with $153 thousand in the year-ago third fiscal quarter. For the nine months ended October 31, 2013, gross profit was $1.8 million compared with $295 thousand in the year-ago nine-month period.
Gross profit margins increased to 37 percent in the third quarter of fiscal 2014 from 29 percent in the year-ago third fiscal quarter.
Operating expenses for the third fiscal quarter 2014 were $1.5 million compared with $1.0 million in the year-ago third fiscal quarter, and $3.1 million for the nine months ended October 31, 2013 compared with $3.0 million in the year-ago nine-month period. While operating expenses increased by 50%, revenues increased by 309% highlighting the companies ability to scale well.
Net loss was $1.4 million or $0.01 per share for the third fiscal quarter of 2014, compared with a net loss of $945 thousand, or $0.01 per share, in the year-ago third fiscal quarter. October 31, 2013 was a non-cash loss on extinguishment of debt of $684 thousand and $1.1 million, respectively and non-cash equity compensation of $601 thousand and $1.6 million, respectively. That loss on extinguishment of debt was specifically due to the financing transaction by Ironridge. The losses relate to a non-cash true up of certain amounts due to Ironridge under the July 2013 transaction and represent the value of shares of common stock issuable to satisfy certain liabilities previously purchased by Ironridge. Moreover, excluding these non-cash transactions, net loss for the three months ending October 31, 2013 would have been $93 thousand or $0.00 per share and net income for the nine-month period would have been $200 thousand or $0.00 per share.
Cash flows from operations improved from a net cash burn of $998 thousand for the nine months ending October 31, 2012 to a positive net cash flow of $990 thousand for the nine months ending October 31, 2013. The positive cash flow was due to the significant increase in revenues during the period, in addition to the use of equity financing to pay down and manage debt. The Company believes that this decrease in debt will help minimize the risk for any current and potential investors, and plans to transition from equity-based compensation to cash compensation for the management team during the fiscal year ending January 31, 2015.
Generated distribution with several leading supermarket chains and retail outlets including Giant Food Stores, Stop & Shop, Natural Grocers by Vitamin Cottage®, AKiN's Natural Food Markets, Chamberlin's Market & Cafe, Richard's Foodporium, Market District, Vitamin Discount Center, Hen House Market, Ball's Price Chopper, and Brookshire Brothers, were added during the fiscal third quarter.
Garden of Life®, named the #1 selling brand in the natural products industry by SPINScan, launched fair trade Marley Coffee flavors of its best-selling Raw Protein and Raw Meal.
AVT, Inc., a leader in automated retailing systems, self-service stores and kiosks, placed 360 Marley Coffee automated kiosk in Los Angeles' Westwood Pavilion.
Introduced three varieties of Marley Coffee espresso capsules for the Coscolina and Verona espresso machines, manufactured by the Martello Cafe line.
Marley Coffee named as primary refreshment option at the New York City headquarters of Spotify, the innovative online music streaming service.
Launched "Smile Jamaica," a blend of 20 percent Jamaican Blue Mountain (JBM) coffee and 80 percent Rainforest Alliance Certified coffee, the first authorized JBM blend in North America.
Company management featured in a series of media outlets including Bloomberg TV and Fox Business News.
Subsequent to the end of the quarter, the Company generated distribution with Kroger-owned Quality Food Centers, Fred Meyer, Ralphs and all 14 New York City metropolitan area locations of Fairway Market.
Subsequent to the end of the quarter, the Company purchased the majority of assets of BikeCaffé Franchising Inc., a Denver-based company that owns and sells mobile coffee carts worldwide.
Rohan Marley, Founder and Chairman of Marley Coffee, said, "The progress during this quarter was a result of our company's dedication and vision for Marley Coffee. As we continue to grow our business and introduce more and more customers to our unique blends, we also intend to remain true to our ideals—including sustainability, environmental awareness and community-based responsibility—that truly sets Marley Coffee apart as a coffee company."
Brent Toevs, Chief Executive Officer of Marley Coffee, added, "As we increase our presence in traditional retail markets, we also continue to concentrate on expanding our domestic and international distribution channels. We believe there are many exciting opportunities for us to increase sales of our products, and the recognition of the Marley Coffee brand."
About Jammin Java Corp., d/b/a Marley Coffee
Marley Coffee (corporate name Jammin Java Corp.) is a US-based company that provides premium, artisan roasted coffee to the grocery, retail, online, service, hospitality, office coffee service and big box store industry. Under its exclusive licensing agreement with 56 Hope Road, the company continues to develop its coffee lines under the Marley Coffee brand. The company is a fully reporting company quoted on the OTCQB under the symbol "JAMN". Learn more at www.MarleyCoffee.com or visit the corporate website at www.JamminJavaCorp.com.
This Press Release includes forward-looking statements 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 (the "Acts"). In particular, the words "believe," "may," "could," "should," "expect," "anticipate," "estimate," "project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements and are subject to the safe harbor created by these Acts. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. These risks and others are included from time to time in documents we file with the Securities and Exchange Commission ("SEC"), including but not limited to, our Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our future results. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. The company's SEC filings are available at http://www.sec.gov.
JAMMIN JAVA CORP.
STATEMENTS OF OPERATIONS
Three Months Ended October 31,
Nine Months Ended October 31,
Cost of sales:
Cost of sales products
Total cost of sales
Compensation and benefits
Selling and marketing
General and administrative
Impairment of license
Total operating expenses
Other income (expense):
Other expense (Including loss on extinguishment of liabilities of $1,120,593)
Total other income (expense)
Net loss per share:
Basic and diluted loss per share
Weighted average common shares outstanding - basic and diluted
See accompanying notes to financial statements
JAMMIN JAVA CORP.
Notes receivable - related party
Other current assets
Total Current Assets
Property and equipment, net
Deferred financing costs
Liabilities and Stockholders' Equity
Common shares due to Ironridge
Accounts payable - related party
Accrued royalty - related party
Accrued expenses - related party
Notes payable - Related party
Secured promissory note - net of discount of $-0- and $29,925, respectively
Total Current Liabilities
Common stock, $.001 par value, 5,112,861,525 shares authorized; 95,388,136 and 79,373,546 shares issued and outstanding, as of October 31, 2013 and January 31, 2013, respectively
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
See accompanying notes to financial statements
CONTACT: Dian Griesel Int'l.