National Beverage Corp. reported results for the first quarter of fiscal year 2014. The company reports revenues decreased 6 percent to $172 million and its net income decreased 16 percent to $12 million. The earnings per share (EPS) decreased 16 percent to $.26.
In response to a less than typical first quarter, Nick A. Caporella, chairman and chief executive officer on a recent management call, asked, “Should we have the most credible reason for these results (and we could have), would it make a difference? Does it make us feel less contrite relative to the credibility of the justification?” he queried. “There can be no allowable regrets in business or fumbles on the field (deck) of Endeavor – none . . . (no one even knows how to practice them),” quipped Caporella.
“From mega retailers to soft drink giants, the summer of ’13 will symbolically claim its victims! Consequently, the culmination of nervousness of a ‘whiplashed’ consumer to the ‘knee jerk’ reaction of Big Cola . . . all segments of soft drink sales were affected – as retailers and soft drink companies subsequently disclosed. The lowering of prices being Big Cola’s response – further complicated the situation! Cooler weather compounded already weakened consumer spirits,” indicated Caporella.
“The consumer revolted in anger to yo-yo pricing; Big Cola’s pricing tactics didn’t stop the sales and market share declines. Yesteryear’s shopper had higher disposable income and a more comfortable, content state of mind; discount pricing resulted in greater single purchases – NOT this tense summer of ’13!” Caporella continued.
Good soft drinks are to the human race what sunshine is to a picnic! Thankfully, after the Fourth of July – normalcy returned to most markets and . . . hopefully attitudes,” Caporella stated.
“As I repeat from our annual report, look at our track record over the past twenty years – no mental degradation has occurred! Judge us by all four quarters next July 2014. Certainly, we have come to know – precious rainbows usually require both rain and sunshine! Team National’s results were obtained by diligence and untiring determination. We are disappointed – yes; contrite – certainly; resilient – absolutely . . .” a heartfelt Caporella concluded.