- 53% Increase in Net Sales as compared to last year
- 65% Increase in Gross Profit as compared to last year
DENVER, March 31 /PRNewswire-FirstCall/ -- XELR8 Holdings, Inc. (OTC Bulletin Board: XELR), a provider of functional foods, beverages and nutritional supplements, announced today its 2008 Financial results for the year ended December 31, 2008.
Financial and operational highlights for fourth quarter and year ended December 31, 2008:
-- Revenues increased 25% in the fourth quarter and 53% for the year ended December 31, 2008
-- Gross profit was $1.1 million in the fourth quarter and $5.7 million for the year ended December 31, 2008, improvements of 30% and 65% respectively compared to same periods one year ago
-- Cash and cash equivalents were $1.6 million as of December 31, 2008
Total revenue for the fourth quarter ended December 31, 2008 was $1.45 million, a 25% increase compared to total revenue of $1.17 million for the fourth quarter ended December 31, 2007. Gross profit grew to $1.1 million for the three months ended December 31, 2008, up 30% from $0.8 million in the prior year period. Gross margin in the quarter was 79%, an improvement from 69% in the same quarter one year ago, due to increased sales of Bazi, which carries a higher gross margin compared to the legacy products. Net loss for the three months ended December 31, 2008, decreased 47% to $0.34 million, or $(0.03) per share, compared to a loss of $0.64 million, or $(0.04) per share, in the prior year.
Total revenue for the year ended December 31, 2008 was approximately $7.4 million, an increase of 53% compared to total revenue of $4.9 million for the year ended December 31, 2007. Gross profit improved to $5.7 million for the year ended December 31, 2008, up 65% from $3.5 million in the prior year period. Gross margin for the year was 77%, an improvement from 72% in the same period one year ago, due to increased sales of Bazi, which carries a higher gross margin compared to the legacy products. Net loss for the year ended December 31, 2008, decreased 35% to $2.1 million, or $(0.14) per share, compared to a loss of $3.2 million, or $(0.23) per share, in the prior year period.
John Pougnet, XELR8 Holdings CEO said, "We are very pleased to report record sales numbers for the year, with both large increases in sales and gross profit margins from 2007. Our operating plan for 2009 is focused on the continued growth and market penetration of Bazi(TM), and increasing the number of independent distributors and customers, growing revenues, and generating gross profits."
"Our increase in sales reflect the continued growth of our Bazi product. Bazi represented 92% of sales for the year ended December 31, 2008. We feel that through our continued incentive and bonus programs offered to our distributors, Bazi sales will continue to grow strongly in 2009. The number of distributors continues to grow, and we continue to see no reason why that should not continue in the upcoming year. As we move forward into 2009, we believe we will move closer to achieving our goal of achieving positive cash flow, as well as increasing shareholder value," concluded Mr. Pougnet.
FINANCIAL TABLES TO FOLLOW
About XELR8 Holdings, Inc.
XELR8 Holdings, Inc. is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. XELR8's primary product is Bazi(TM), a powerful, concentrated, antioxidant (Vitamins A, C & E) nutritional drink packed with eight different super fruits and berries, including the Chinese jujube, the South American Acai Berry, Blueberries and Raspberries plus 12 vitamins and 68 minerals, providing all the daily vitamins and minerals you need in a single, convenient, great tasting one-ounce shot.
XELR8's commitment to quality, science and research has earned the Company a loyal following of over 350 world-class athletes and an elite list of endorsers, such as 3-time World Series Champion Curt Schilling, five-time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott, Lawyer Milloy and former Head Coach Mike Shanahan; professional football superstars Brian Griese and Marco Rivera; Olympians Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr. Additionally, XELR8 has collaboration agreements with both the renowned Steadman Hawkins Clinic and the Greenville Hospital System of South Carolina. XELR8 products are only available through independent distributors located throughout the nation. For more information about XELR8, please visit www.xelr8.com or www.drinkbazi.com.
Except for the historical information contained herein, the matters set forth in this press release, including the description of the company and its products offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.
Investor Relations David Elias 516-967-0205
XELR8 HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS As of December 31, 2008 and 2007 2008 2007 ASSETS Current assets: Cash and cash equivalents $1,576,510 $2,245,858 Accounts receivable, net of allowance for doubtful accounts of $3,071 and $12,231, respectively 6,825 7,460 Inventory, net of allowance for obsolescence of $116,095 and $189,403, respectively 176,236 370,843 Prepaid expenses and other current assets 509,377 329,015 Total current assets 2,268,948 2,953,176 Intangible assets, net 21,411 17,959 Property and equipment, net 35,832 81,405 Total assets $2,326,191 $3,052,540 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $643,426 $574,413 Return reserve 134,836 76,193 Accrued payroll and benefits 71,193 61,475 Other accrued expenses 104,662 120,616 Total Liabilities 954,117 832,697 Commitments and Contingencies (Note 7) SHAREHOLDERS' EQUITY (Note 2): Preferred stock, authorized 5,000,000 shares, $.001 par value, none issued or outstanding - - Common stock, authorized 50,000,000 shares, $.001 par value, 15,697,170 and 15,197,170 shares issued and outstanding respectively 15,697 15,197 Additional paid in capital 23,958,422 22,696,657 Accumulated (deficit) (22,602,045) (20,492,011) Total shareholders' equity 1,372,074 2,219,843 Total liabilities and shareholders' equity $2,326,191 $3,052,540 The notes are an integral part of these consolidated financial statements.
XELR8 HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31, 2008 and 2007 2008 2007 Net revenue $7,416,372 $4,853,046 Cost of goods sold 1,677,035 1,380,663 Gross profit 5,739,337 3,472,383 Operating expenses: Selling and marketing expenses 4,950,718 3,180,392 General and administrative expenses 2,878,156 3,107,469 Research and development expenses 12,962 17,828 Depreciation and amortization 45,696 58,033 Total operating expenses 7,887,532 6,363,722 Net (loss) from operations (2,148,195) (2,891,339) Other income (expense) Interest income 53,061 87,646 Other expenses (13,770) - Gain (Loss) on disposial of asset (1,130) 1,500 Interest (expense) - (439,537) Total other income (expense) 38,161 (350,391) Net (loss) $(2,110,034) $(3,241,730) Net (loss) per common share Basic and diluted net (loss) per share $(0.14) $(0.23) Weighted average common shares outstanding, basic and diluted 15,607,006 13,951,691 The notes are an integral part of these consolidated financial statements.
XELR8 HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) For the Years Ended December 31, 2008 and 2007 Total Additional shareholders' Common Stock paid in Accumulated equity Shares Amount Capital (deficit) (deficit) Balances, January 1, 2007 10,097,170 $10,097 $16,849,900 $(17,250,281) $(390,284) Issuance of Common Stock for Services 2,100,000 2,100 1,017,900 - 1,020,000 Issuance of Common Stock in Private Offerings, net of offering costs of $380,552 3,000,000 3,000 3,616,448 - 3,619,448 Stock Transferred by Shareholder for services - - 350,000 - 350,000 Stock-based compensation - - 862,409 - 862,409 Net (loss) - - - (3,241,730) (3,241,730) Balances, December 31, 2007 15,197,170 $15,197 $22,696,657 $(20,492,011) $2,219,843 Issuance of Common Stock in Private Offering, net of offering costs of $60,797 500,000 500 438,703 - 439,203 Anti-dilution of Series E & F Common Stock Warrants - - 13,770 - 13,770 Stock-based compensation - - 809,292 - 809,292 Net (loss) - - - (2,110,034) (2,110,034) Balances, December 31, 2008 15,697,170 $15,697 $23,958,422 $(22,602,045) $1,372,074 The notes are an integral part of these consolidated financial statements.
XELR8 HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2008 and 2007 2008 2007 Cash flows from operating activities: Net income (loss) $(2,110,034 ) $(3,241,730) Adjustments to reconcile Depreciation and amortization 45,696 58,033 Loss (Gain) on sale of equipment 1,130 (1,500) Stock and stock options issued for services 789,292 1,372,408 Expense related to anti-dilution of warrants 13,770 - Interest expense and amortization related to bridge loan financing - 428,889 Change in allowance for doubtful accounts (9,160) 1,525 Change in allowance for inventory obsolescence (73,308) 147,748 Change in allowance for product returns 58,643 30,866 Changes in assets and liabilities: Accounts receivable 9,795 (4,200) Inventory 267,915 (107,227) Other current assets (180,362) (69,723) Accounts payable and accrued expenses 82,777 205,915 Net cash (used) by operating activities (1,103,846) (1,178,996) Cash flows from investing activities: Proceeds from sale of equipment - 1,500 Capital expenditures and patent expenses (4,705) (22,242) Net cash (used) provided by investing activities (4,705) (20,742) Cash flow from financing activities: Proceeds from bridge loan financing - 250,000 Repayments of bridge financing - (500,000) Issuance of common stock, net of offering costs 439,203 3,619,449 Net cash provided by financing activities 439,203 3,369,449 NET INCREASE (DECREASE) IN CASH (669,348) 2,169,711 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 2,245,858 76,147 CASH AND CASH EQUIVALENTS, END OF THE PERIOD $1,576,510 $2,245,858 SUPPLEMENTAL CASH FLOW DISCLOSURE Cash paid for interest $- $13,425 Stock issued for satisfaction of accrued compensation expense $- $540,000 Deferred offering costs applied against proceeds from offering $- $25,000 Expiration of call feature liability on options reclassified to equity $20,000 $- The notes are an integral part of these consolidated financial statements.
|SOURCE XELR8 Holdings, Inc.|
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