HICKSVILLE, NY -- (Marketwired) -- 08/11/17 -- Long Island Iced Tea Corp. (NASDAQ: LTEA) (the "Company"), a growth-oriented company focused on the non-alcoholic ready-to-drink ("NARTD") segment in the beverage industry, today reported unaudited net sales results for the three and six-month periods ended June 30, 2017.
Philip Thomas, Chief Executive Officer of the Company, commented, "We had a transformative quarter, announcing many significant new partnerships, including our most significant distribution agreement to date with Big Geyser, the largest independent non-alcoholic beverage distributor in the New York metro area. This partnership creates the potential to increase our metro New York footprint by over ten times to 25,000 doors. New chain account wins included Kinney Drugs in the Northeast, Sam's Club in Puerto Rico and Loblaws in Canada, the largest international chain account agreement in Company history. These initiatives align with an increased focus on our 'Long Island' branded business."
During the second quarter the Company:
- Transitioned from 20oz Long Island Iced Tea® brand packaging into new slimline 18oz packaging
- Launched Long Island Original Brand Lemonade™ in select test markets
- Entered into the distribution agreement with Big Geyser, consolidating out of a group of smaller distributors and independent owner drivers. The Company also brought in a significant number of new sales people to service the Big Geyser ramp up and added a 24-pack product offering for Big Geyser and other high volume distributors.
- Recruited Virginia Morris, who has over 20 years of experience managing and growing iconic brands, to the Company's leadership team as the new Chief Sales & Marketing Officer
Note: Net sales figures listed below are shown after being reduced by all promotional rebates issued to distributors and customers.
3 Months Ended 6 Months Ended June 30, June 30, ----------------- ----------------- (Dollars in Thousands) 2016 2017 2016 2017 Net Sales - Branded Business $1,171 $1,435 (1) $1,591 $2,116 YoY Growth 23% 33% Net Sales - ALO Juice® and Other $432 $55 $520 $487 YoY Growth (87)% (6)% Total Net Sales $1,604 $1,490 $2,112 $2,603 YoY Growth (7)% 23%
(1) Net Revenue stated above for branded business is before a non-cash sign on incentive of $257,022 in connection to warrants issued for the Big Geyser distribution agreement.
Net sales highlights for the three and six-months ended June 30, 2017:
- Net sales growth for the Company's branded business is due to a combination of an increase in sales distribution, including the recently announced distribution agreement with Big Geyser, and the launch of Long Island Brand Lemonade™
- Net sales for the Company's branded business increased approximately 23% to approximately $1,435,016 for the three months ended June 30, 2017, as compared to $1,171,246 for the comparable prior-year period
- Net sales decline for the Company's ALO Juice® product was primarily due to certain deliveries for which revenue recognition criteria was not met in the three months ended June 30, 2017, but are expected to be met in the future
- Net sales increased approximately 23% to approximately $2,603,000 for the six months ended June 30, 2017, as compared to $2,111,836 for the comparable prior-year period
About Long Island Iced Tea Corp.
Headquartered in Long Island, NY, Long Island Iced Tea Corp. operates in the non-alcohol ready-to-drink segment of the beverage industry. The Company's flagship brand 'The Original Long Island Brand Iced Tea®', together with 'The Original Long Island Brand Lemonade™' are marketed as premium beverages made with non-GMO ingredients. The company also imports and markets 'ALO Juice®' a functional Aloe Vera based beverage. The Company's portfolio of premium brands sits within the 'better-for-you' category of the beverage industry, and are offered to consumers at an affordable price, reflecting the Company's mission. Its beverages are sold primarily through a network of regional chains and distributors primarily on the East Coast and the Midwest of the United States, as well as Canada and Latin America. The Company's website is www.longislandicedtea.com.
Forward Looking Statements
This press release includes statements of the Company's expectations, intentions, plans and beliefs that constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of the Company's business strategies and its expectations concerning future operations, margins, sales, new products and brands, potential joint ventures, potential acquisitions, expenses, profitability, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements include any statement that does not directly relate to a historical or current fact. You can also identify these and other forward-looking statements by the use of such words as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, including references to assumptions. These forward looking statements are made based on expectations and beliefs concerning future events affecting the Company and are subject to uncertainties, risks and factors relating to its operations and business environments, all of which are difficult to predict and many of which are beyond its control, that could cause its actual results to differ materially from those matters expressed or implied by these forward looking statements. These risks include the Company's history of losses and expectation of further losses, its ability to expand its operations in both new and existing markets, its ability to develop or acquire new brands, its relationships with distributors, the success of its marketing activities, the effect of competition in its industry and economic and political conditions generally, including the current economic environment and markets. More information about these and other factors are described in the reports the Company files with the Securities and Exchange Commission, including but not limited to the discussions contained under the caption "Risk Factors." When considering these forward looking statements, you should keep in mind the cautionary statements in this press release and the reports the Company files with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and the Company cannot predict those events or how they may affect it. The Company assumes no obligation to update any forward looking statements after the date of this press release as a result of new information, future events or developments, except as required by the federal securities laws.
Long Island Iced Tea Corp.