Jones Soda Co. announced results for the first quarter ended March 31, 2011. The company reported revenue of $4.1 million for first quarter, an increase of $194,000, or 5 percent, over the same quarter of the prior year, which contributed to an increase in gross profit of 24 percent, to $1.0 million. Net loss for the quarter was $1.7 million, or ($0.05) per share, a 22 percent improvement from the first quarter 2010 net loss of $2.1 million, or ($0.08) per share. William Meissner, president and chief executive officer, said in a prepared statement, "We continued to deliver solid year-over-year improvement, highlighted by our first quarter of revenue growth in more than two years. We believe that we are successfully executing our strategy of expanding our core product lines, as evidenced by a 13 percent increase in case sales through our DSD channel of Jones Soda lass and WhoopAss Energy Drink compared to a year ago."
First quarter revenue increased 5 percent to $4.1 million, compared to $3.9 million in the first quarter of 2010.
Gross profit increased 24 percent to $1.0 million, compared to $808,000 in the corresponding period a year ago. Gross profit margin increased 3.7 percent to 24.5 percent.
Operating expenses decreased 5 percent to $2.8 million compared to $2.9 million in the prior year.
Net loss improved 22 percent to $1.7 million, or ($0.05) per share, from the first quarter of 2010 net loss of $2.1 million, or ($0.08) per share.
Cash used in operations was $2.1 million versus cash used in operations of $2.5 million during the first quarter of 2010. Cash as of March 31, 2011 increased $136,000 as a result of completing the final draw down under the now-terminated equity line credit arrangement for net proceeds of approximately $2.2 million.
Inventories were $2.5 million as of March 31, 2011, down $1.3 million compared to inventories of $3.8 million as of March 31, 2010, due to our transition out of underperforming product lines.
"Our decision to exit underperforming categories contributed to the improvement in our gross profitability and bottom line," continued Meissner. "We are pleased with our start to the year and believe we have the right plan in place and the financial flexibility to continue our positive momentum."
