News for 'DKAM' - (Drinks Americas Reports $2.7 Million Revenue, an
875%
Increase in Fiscal 2007 Third Quarter Sales Reflect Growing Demand and
Success of Trump Super Premium Vodka; Strengthened Balance Sheet With
$6.6 Million in Cash and No Long-Term Debt; Net Worth Increased $9.1
Million Fiscal Year to Date)
WILTON, CT, Mar 14, 2007 (MARKET WIRE via COMTEX) -- Drinks Americas
Holdings,Ltd.(OTCBB: DKAM), a developer and marketer of premium
beverages associated
with renowned icons, reported results for the third quarter ended
January
31,2007.It is the Company's first full quarter that includes sales from
Trump
Super Premium Vodka, which was launched in the last two weeks of
October
2006.Theproduct will be available to consumers nationwide within the
next several
weeks.Revenue for the fiscal 2007 third quarter was $2.7 million, an
increase of
$2.4million,or 875%, compared with $0.3 million for the third quarter
of last year.
The primary contributor to the increase was sales of Trump Super
Premium
Vodka.Theproduct is now available to consumers in 28 states as well as
duty free
shops in Canada. On a sequential basis, revenue increased 20% or $0.5
millionfrom$2.2 million in the second fiscal quarter 2007.
J. Patrick Kenny, President & Chief Executive Officer of Drinks
Americas,stated,"We have accomplished a great deal over the past few months.
Trump Super
Premium Vodka has been available for roughly three and-a-half months,
and
duringthattime period we have already shipped 40,000 cases, totaling
$4.3 million in
sales. We continue to build momentum with thousands of cases of
additionalordersin the pipeline."
Mr. Kenny continued, "In addition to expanding our market coverage of
TrumpSuperPremium Vodka, we are also seeing exciting levels of reorders
from our
existing customers across all our markets. Additionally, as a result of
our $8millionraise and conversion of $3.4 million debt to equity, we
significantly
strengthened our balance sheet to provide us with a solid platform for
futuregrowth."Gross margin in the third quarter 2007 was 45.8% compared
with 20.4% in
thethirdquarter of 2006. The improvement is attributed to a change in
the sales
mix, as Trump Super Premium Vodka is sold at significantly higher
marginscomparedwith the Company's other brands. SG&A in the third quarter
2007 was
$4.8 million compared with $0.9 million in the third quarter of 2006.
Theincreaseis mainly due to one-time expenses of $1.4 million related to
promotional events and other expenses related to the launch of Trump
SuperPremiumVodka in major markets, as well as $1.25 million in one-time
non-cash
charges as the result of satisfying certain fees and expenses by
issuing
sharesofcommon stock which better utilized the Company's cash
resources.
Net loss for the third fiscal quarter was $5.6 million, or $0.08 per
basic
anddilutedshare, compared with a net loss of $1.5 million, or $0.06 per
basic and
diluted share for the third quarter of 2006. A significant amount, 30%
of
thisyear'sthird quarter recorded loss, was due to the extinguishment of
debt, a
non-cash charge of $1.65 million, or $0.02 per share. The charge is a
one-time,non-cashcharge related to the conversion of past due
liabilities, including
non-convertible debt into equity.Excluding all non-cash charges, which
include $1.65 million charge for the
extinguishment of debt and $1.45 million in selling and administrative
expenses,netloss for the third quarter was $2.5 million, or $0.04 per
share.
As of January 31, 2007, cash and cash equivalents were $6.5 million.
The
Companyhad$3.0 million of working capital and no long-term debt.
Shareholders'
equityincreased$9.1 million from the start of the fiscal year to $4.3
million.
Third quarter business highlights include:-- Completed $8 million
private placement to accelerate marketing of
product lines, corporate working capital needs, and the anticipated
re- launch of Rheingold Beer.
-- Trump Super Premium Vodka rolled out in 16 states, including
Colorado, Florida, Georgia, Illinois, Indiana, Maine, Missouri, Nebraska,
Nevada, New Hampshire, Pennsylvania, Rhode Island, South Carolina,
Tennessee,
Vermont and Wisconsin.
-- Kendall Jackson, a billion dollar winery known for its world class
wines, commenced distribution of Trump Super Premium Vodka in
California, Illinois, Colorado and Nevada.
-- Expanded Trump Super Premium Vodka internationally in duty free
shops in Ontario and Quebec, Canada, through its distributor
Haleybrooke
International, marketer of Drinks Americas' duty free sales
channels worldwide.
-- Expanded fine wine collection and launched Casa BoMargo line of
fine Italian wines with nationally known radio and television
personality,
Bo Dietl.
-- Launched operation of joint distribution venture with Beyer
Farms/Tuscan Dairy, New York's largest dairy distributor, for Drinks
Americas' non-alcoholic beverage products in the New York
metropolitan region.
Early fourth quarter highlights include:-- Reached agreement with
prominent Hollywood producers for cross-
marketing and product placement of Drinks Americas' beverages in
movie
and television productions.
-- Announced the start of the company media and promotional plan for
Trump Super Premium Vodka to drive sales with consumer pull-through
programs.-- Added Trump 24K Super Premium Vodka bottle with 24
karat gold label
and pre-sold 1,000 cases to distributors for premium clubs and key
luxury accounts.
-- Elected new board member, Hubert Millet, who brings extensive
global branding expertise from Seagram's to maximize the Drinks Americas'
international growth opportunities.-- Added and commenced shipping
of 50 ml 'mini' bottle of Trump Super
Premium Vodka.Mr. Kenny concluded, "Trump Super Premium Vodka will
be available in an
additional 14 control states over the next several weeks. The success
of
TrumpSuperPremium Vodka is driving sales in our other spirit products,
including
Willie Nelson's Old River Bourbon and Damiana Liqueur. We are also
rapidlyexpandingNewman's Own Lightly Sparkling Fruit Juice Drinks in major
retailer
chains across the country. With Newman's we are adding a cherry flavor
and
threesparklingwaters and changing the formulation to pure cane sugar
which opens up
additional accounts that we can sell in."Mr. Kenny added, "Looking
ahead, we are in the process of rebuilding some
of ourinventoriesand increasing our marketing across all our brands to
further drive
revenue growth. We partner with some of the most valuable and
recognized
iconsinthe world. With our seasoned management team and powerful
distribution
network, we are also exploring opportunities to expand
internationally."More information on the Company's quarterly results can be found in
its
10-Qfilingwith the SEC.
About Drinks AmericasDrinks Americas develops, owns, markets, and
nationally distributes
alcoholicandnon-alcoholic premium beverages that are often associated
with renowned
iconcelebrities.Drinks' portfolio of premium alcoholic beverages
includes Donald
Trump's Trump Super Premium Vodka, Willie Nelson's Old Whiskey River
Bourbon andBourbonCream. Drinks' non-alcoholic brands include the
distribution of Paul
Newman's Own Lightly Sparkling Fruit Juice and Flavored Water
Drinks.Other products owned and distributed by Drinks include Damiana, the
Mexicanliqueur,Aguila Tequila; Drinks' award-winning Cohete Rum Guarana
from Panama,
Swiss T and Rheingold Beer. Damiana, Old Whiskey River, Aguila Tequila
andCoheteRum are Gold and Silver Medal award-winners respectively from
the
International Beverage Tasting Institute and the San Francisco
InternationalWineand Spirits Competition.
For further information, please visit our website at
www.drinksamericas.com.Safe Harbor
Except for the historical information contained herein, the matters set
forth inthispress release, including the description of the company and
its product
offerings, are forward-looking statements within the meaning of the
"safeharbor"provision of the Private Securities Litigation Reform Act of
1995. These
forward-looking statements are subject to risks and uncertainties that
may
causeactualresults to differ materially, including the historical
volatility and low
trading volume of our stock, the risk and uncertainties inherent in the
earlystagesof growth companies, the company's need to raise substantial
additional
capital to proceed with its business, risks associated with
competitors,
andotherrisks detailed from time to time in the company's most recent
filings with
the Securities and Exchange Commission. These forward-looking
statements
speakonlyas of the date hereof. The company disclaims any intent or
obligation to
update these forward-looking statements. DRINKS AMERICAS
HOLDINGS, LTD., AND AFFILIATES
Consolidated Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
January, 31 January, 31
2007 2006 2007 2006
(Restated)
(Restated)
-----------------------------------------------------
Net sales $ 2,681,273 $ 274,880 $ 5,258,723 $
1,105,700Costs of sales 1,451,303 218,677 2,912,527
823,469
----------- ------------ -----------
-----------Gross margin 1,229,969 56,203 2,346,196
282,231
Operating Expenses: Selling, general
and administrative expenses 4,777,322 907,911
7,521,649 3,110,174
=========== ============ ===========
=========== -
-
Loss before other income (expense) (3,547,353) (851,708)
(5,175,453)
(2,827,943)Other income
(expense): Interest (333,046) (634,297)
(708,978)(773,144) Loss on extinguishment of debt (1,651,757)
- (1,651,757) - Other (20,377)
- (19,515) 190,000 ===========
============ =========== =========== (2,005,180)
(634,297) (2,380,250)(583,144) ===========
============ =========== ===========Net loss $(5,552,533) $
(1,486,005) $(7,555,703)$(3,411,087) ===========
============ =========== ===========Net loss per share, basic and
diluted $ (0.08) $ (0.03) $ (0.12) $(0.06)
=========== ============ =========== =========== DRINKS
AMERICAS HOLDINGS, LTD., AND AFFILIATES Consolidated
Balance Sheet
January 31,
2007
--------------ASSETS
(unaudited)Current assets: Cash and cash equivalents $
6,567,458 Accounts receivable, net
1,802,982 Inventory
1,912,349 Other current assets
528,193
-------------- Total current assets
10,810,982Property and Equipment
137,591Investment in Equity Investees
66,442Intangible Assets
943,075Deferred loan costs 30,123Other
130,688
============== $
12,118,901
==============LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts
payable $ 2,236,690 Notes and
loans payable 2,772,944 Accrued
Expenses 2,762,711 Advances on
shares to be issued 25,000
-------------- Total current liabilities
7,797,345
==============Stockholders' equity $
4,321,555
==============Contact for more information:Michael SmithRubenstein Public
Relations212-843-8304Investor Relations Contacts:Stanley AltschulerRyan
DanielsStrategic Growth International150 East 52nd Street, 22nd Fl.New York,
NY 10022(212) 838-1444http://www.sgi-ir.comSOURCE: Drinks Americas
Holdings, Ltd |
