Jones Soda Co., a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the fourth quarter and year ended Dec. 31, 2011. Revenue for the fourth quarter 2011 increased 9 percent to $3.4 million compared to revenue of $3.1 million for the fourth quarter 2010. For the year, revenue decreased 1 percent to $17.4 million, compared to revenue of $17.5 million in 2010. The company reported a net loss of $2.0 million, or $(0.06) per share, for the fourth quarter of 2011, compared to a net loss of $1.8 million, or $(0.06) per share, for the fourth quarter of 2010. The company reported a net loss of $7.2 million, or $(0.22) per share, for 2011, compared to a net loss of $6.1 million, or $(0.22) per share for 2010.
The past year was a very busy and productive period for Jones Soda,” commented William Meissner, Jones Soda chief executive officer in a prepared statement. “Our strategy of shedding underperforming product lines and brand extensions, and exiting expensive, unproductive sponsorship agreements, has allowed us to reposition our resources behind growing our core business. The initial results from our efforts can be witnessed in the performance of our Jones Soda and WhoopAss Energy Drink, which combined, generated sales gains of 13 percent and 10 percent in the fourth quarter and full year, respectively. This was driven by improved retail availability for our products throughout North America following meaningful investments in expanding our sales and distribution platforms. Current sales trends indicate that we are on the right strategic course toward creating a sustainable business. Moving forward we are committed to building on our momentum in order to generate better expense leverage and improved bottom line results.”
Revenue in the fourth quarter increased 9 percent to $3.4 million, compared to $3.1 million last year, and included an increase in core product revenue in North America of $406,000 compared to the fourth quarter a year ago. This overall revenue increase was net of a decline of approximately $129,000 of total revenue compared to the prior year period, resulting from the discontinuation of underperforming product lines and certain Jones Soda SKU offerings (stock keeping units), initiated in the second half of 2010. Core products include continuing Jones Soda SKU offerings and WhoopAss Energy Drink.
Gross profit increased 24 percent to $693,000, or 20 percent of revenue, compared to $557,000, or 18 percent of revenue, last year. Gross profit for the 2010 period was negatively impacted by the write-down of excess GABA inventory.
Operating expenses increased 7 percent to $2.7 million compared to $2.6 million last year, mostly driven by increased selling expenses due to investments in added sales personnel to support our growth strategy, offsetting decreases in general and administrative expenses.
Net loss was $2.0 million, or $(0.06) per share, compared to a net loss of $1.8 million, or $(0.06) per share, last year. The prior year period was benefited by non-recurring licensing proceeds of $125,000 relating to the sale of our patents, which reduced the net loss for the prior year.
For the full year, revenue decreased 1 percent to $17.4 million, compared to $17.5 million in the prior year. Total revenues reflect both an increase in core product revenue in North America of approximately $1.8 million compared to the prior year and a related decrease of $1.3 million resulting from the discontinuation, in the second half of 2010, of underperforming product lines and certain Jones Soda SKU offerings.
Gross profit increased 6 percent to $4.3 million, or 25 percent of revenue, compared to $4.0 million, or 23 percent of revenue, last year. Gross profit for 2010 was negatively impacted by the write-down of excess GABA inventory.
Operating expenses increased 8 percent to $11.5 million compared to $10.7 million in the prior year and included a $350,000 charge accrued to the second quarter of 2011 in connection with the termination of the New Jersey Nets sponsorship agreement in August 2011. Operating expenses for 2011 also included increased selling expenses due to investments in added sales personnel to support our growth strategy, offsetting decreases in general and administrative expenses.
Net loss was $7.2 million, or $(0.22) per share, compared to a net loss of $6.1 million, or $(0.22) per share, in the prior year. The company benefited in 2010 by a tax refund of $392,000 resulting from Canadian operations and by non-recurring licensing proceeds of $125,000 relating to the sale of our patents, which reduced the net loss for that year.
