SEATTLE, Aug. 09, 2018 -- Jones Soda Co., a leader in the craft soda category and known for its innovative brand marketing, announced results for the second quarter ended June 30, 2018.
Second Quarter 2018 Financial Summary vs. Year-Ago Quarter
- Revenue was unchanged at $3.9 million.
- Gross profit as a percentage of sales was 23.2% compared to 27.0%.
- Net loss was $363,000 or ($0.01) per share, compared to a net loss of $55,000 or ($0.00) per share.
- Adjusted EBITDA was $(0.2) million compared to $0.0 million.
“During the second quarter, we continued to experience strong growth in revenues from our important fountain and Lemoncocco initiatives, which were up 359% and 18%, respectively, compared to the prior year period,” said Jennifer Cue, the Company’s president and CEO. “However, the quarter continued to compare against the strong performance we experienced due to our launch in late 2016 of glass bottles at 7-Eleven USA. Second quarter results for 2018 also reflect the final quarter of difficult year-over-year comparisons due to last year’s de-listing of our 12-ounce cans by a major retailer.
“Moving into the second half of 2018, we will continue to build upon the momentum of both of our new initiatives. In fountain, several large accounts have expressed interest in carrying our products and the convenience channel continues to perform well. In Lemoncocco, we introduced a 4-pack at the end of May that we believe should help further drive sales in the remainder of the year. Both initiatives are being supported by a bolstered sales team that are aggressively pursuing various opportunities to drive additional growth. Given the shift in our product portfolio and the building momentum within our growing initiatives, our goal remains to increase sales and improve profitability.”
Second Quarter 2018 Financial Results
Revenue in the second quarter was $3.9 million, unchanged compared to the same quarter a year ago. This was primarily attributable to the de-listing of Jones cans by a major retailer in mid-2017, which decreased revenue for subsequent periods, and the difficult comparisons created by the significant load-in of Jones 7 Select glass bottles at 7-Eleven USA after launching in late 2016 and early 2017, which increased revenue in the first quarter of 2017.
Gross profit as a percentage of sales was 23.2% compared to 27.0% in the second quarter of 2017. The decline was driven by the higher freight costs associated with general transportation cost inflation.
Net loss was $363,000 or ($0.01) per share, compared to a net loss of $55,000 or ($0.00) per share in the second quarter of 2017.
Adjusted EBITDA (a non-GAAP term defined below) in the second quarter was $(0.2) million compared to $0.0 million in the year-ago quarter. This decline was primarily driven by the aforementioned decline in revenue and gross margin.
At June 30, 2018, cash and cash equivalents totaled $1.0 million compared to $0.4 million at December 31, 2017. The Company’s line of credit balance at the end of the second quarter totaled $0.3 million compared to $0.9 million at December 31, 2017.