Jammin Java Corp., the sustainably grown, ethically farmed and artisan-roasted gourmet coffee company, provides a summary of its first quarter results. Financial Highlights for the Fiscal First Quarter (three months ended April 30, 2015).
• Quarter ended April 30, 2015 sales increased 27.9% ($2,738,379) compared with last year’s comparable sales while gross profits rose by 76% making it the 16th consecutive quarter that the company has grown its top line year over quarter since Mr. Brent Toevs took over as CEO.
• Total operating expenses decreased by 27.4% showing continued efficient growth.
• Net losses were down 37.4% compared to the same period last year and of those losses, ~$368,000 was attributed to stock based compensation, resulting in net losses before non-cash expenses of $829,191. We anticipate the losses for the three months ended July 31, 2015 to be the lowest the company has had to date and for that trend to continue through the rest of the year. In addition, we anticipate that the company will become profitable by the fourth quarter of this fiscal year (i.e., that the company will show a profit for the fourth quarter of this fiscal year).
“We have been working hard as a team to not just prepare for the exciting launches in this upcoming year, but also the outlook of this company in the next 3 and 5 years,” stated Rohan Marley, Chairman and Founder of Marley Coffee, who continued, “When we plan, we look for ‘catalytic events’ or projects that can truly drive the needle and push the company into the next level. We believe that Marley Coffee will have three of these events this year alone.”
Rohan Marley stated further, “On July 29th, we will be shipping our first Recyclable RealCup capsules and based on the feedback we’ve received from our retailers and consumer studies, we expect this to be a huge driver for revenue, profitability and social good.
There is currently a serious garbage crisis and as the waste stream continues to grow, so will the pressures on our landfills, our resources, and our environment. We believe our recyclable cup is a significant step forward in solving the 11 billion coffee capsule crisis. A recyclable capsule – isn’t it about time?”
“This was another quarter of growth and operating efficiencies,” explained Brent Toevs, Chief Executive Officer of Marley Coffee, who continued, “From a corporate strategy perspective, there are two key driving forces for the company during the remainder of the fiscal year: 1) grow the business to profitability and 2) protect shareholder equity. I believe we have maintained those two strategies well this quarter. We’re continuing to work to grow the top line of our business while also trying to reduce our overhead. We’ve got some new initiatives this quarter that should help streamline our operating costs even further.”
Recyclable Cup Launch and Marketing Support
The Company, alongside its partner Mother Parkers Tea & Coffee (its distribution partner), is putting a lot of effort into the launch of the Recyclable RealCup both on shelf and out of store.
This will be done through a combination of multi-city tasting/demonstration tours that will focus on driving sales velocities, spending six weeks in each market and supported by PR, social media and alongside an aggressive online strategy to raise awareness and drive trial including some very innovative video and digital content.
Financing Growth and Shareholder Support
The company has looked to raising debt to finance its current growth, which is preferable to raising capital through equity.
The company’s largest supplier of products extended its required terms of payment from thirty days to one hundred and twenty days from the date product is received, which provides us approximately $1.5 million of short term capital in the near term.
Additionally, we have entered into an unsecured Revolving Line of Credit, which allows us the right to borrow up to $500,000 from the lender from time to time.
These financing options, as well as certain other financings the company is in discussions regarding, should give us the ability to continue our operations for the next 12 months while still investing in our growth.
