- Net Sales Show Sequential Increase of 44% Compared to First
Quarter - DENVER, Aug. 5 /PRNewswire-FirstCall/ -- XELR8 Holdings,
Inc. (AMEX:BZI), a provider of functional foods, beverages and
nutritional supplements, announced today its financial results for
the three and six months ended June 30, 2008. Financial and
operational highlights for second quarter and six months: --
Revenues increased 64% in the quarter and 71% in the six months
period -- Gross profit was $1.8 million in the quarter and $3.0
million during the six months period, improvements of 72% and 88%
respectively compared to same periods one year ago -- Growth in
participants was 10,634 as of June 30, 2008, an 18% increase from
Q1 -- Cash and cash equivalents were $2.3 million as of June 30,
2008 Total revenue for the second quarter ended June 30, 2008 was
$2.3 million, a 64% increase compared to total revenue of $1.4
million for the second quarter ended June 30, 2007. Gross profit
grew to $1.8 million for the three months ended June 30, 2008, up
72% from $1.0 million in the prior year period. Gross margin in the
quarter was 77%, an improvement from 74% 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 June 30, 2008, decreased 30% to $0.61 million,
or $(0.04) per share, compared to a loss of $0.88 million, or
$(0.06) per share, in the prior year. Total revenue for the six
months ended June 30, 2008 was approximately $3.9 million, an
increase of 71% compared to total revenue of $2.3 million for the
six months period ended June 30, 2007. Gross profit improved to
$3.0 million for the six months ended June 30, 2008, up 88% from
$1.6 million in the prior year period. Gross margin in the six
months period was 77%, an improvement from 70% 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 six months ended June 30, 2008, decreased 39% to $1.36 million,
or $(0.09) per share, compared to a loss of $2.24 million, or
$(0.18) per share, in the prior year period. The Company continues
to remain well capitalized. As of June 30, 2008, cash and cash
equivalents were approximately $2.3 million and the Company
continues to be debt free. Net cash used by operating activities
was minimal with $0.21 million used during the second quarter and
$0.41 used during the six months period. "I am pleased to report
another record quarter," said Mr. John Pougnet, Chief Executive
Office of XELR8. "During the second quarter the company experienced
growth on multiple levels. Most importantly our participants
exceeded a key level of 10,000. The number of participants was
comprised of a growth in distributors to 6,264 and customers to
4,370, both showing sequential increases of 17% and 18%
respectively in comparison to the first quarter figures." Mr.
Pougnet continued, "Bazi represented 92% of sales in the second
quarter and continues to be a valued product for our distributors.
Bazi has proved to be well worth the Company's investment and we
are delighted to continually offer incentives and bonuses to our
distributors for their attainment of significant sales growth in
the product. We believe that recent sales promotions have assisted
in our sales growth, including the most recent one: 'XELR8 to a
Million'. " "We will continue to invest into the business by
offering incentive programs in order to strengthen our distribution
network as well as seek ways to expand it. We continue to remain
highly focused on attaining profitability and believe we are near
our goal of achieving positive cash flow," concluded Mr. Pougnet.
There will be a conference call today at 11:00 a.m. ET with the
investment community, featuring John Pougnet, Chief Executive
Officer of XELR8 Holdings, Inc. Interested parties may participate
in the call by dialing 877-407-8293; international callers dial
201-689-8349. In addition, a replay of the conference call will be
available approximately two hours after the call has ended. The
replay can be accessed at:
http://www.xelr8tools.com/Media/ConfCall080508.mp3 and will be
archived for 30 days. 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. These
include the Company's Eat/Drink/Snack System; Peak Performance
System; and its newest market entry, Bazi(TM), a powerful,
concentrated, antioxidant (Vitamins A, C & E) nutritional drink
packed with eight different super fruits and berries, including the
Chinese jujube plus 12 vitamins and 68 minerals, providing all the
daily vitamins and minerals you need in a single, convenient,
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
Head Coach Mike Shanahan; professional football superstar Cadillac
Williams; Olympians Briana Scurry and Caroline Lalive; Stanley Cup
Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr.
XELR8 products are only available through independent distributors
located throughout the nation. For more information about XELR8,
please visit http://www.xelr8.com/ or http://www.drinkbazi.com/ .
Forward-looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including prospects for
XELR8's distribution network. Actual results may differ from those
discussed in such forward-looking statements. These forward-looking
statements include risks and uncertainties that include the
Company's ability to attract and retain distributors; changes in
demand for the Company's products; changes in the level of
operating expenses; changes in general economic conditions that
impact consumer behavior and spending; product supply; the
availability, amount, and cost of capital for the Company; and the
Company's use of such capital. More information about factors that
potentially could affect the Company's financial results is
included in the Company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-KSB for the year
ended December 31, 2007 and all subsequent filings. Certain
statements in this release regarding the Company's agreements are
in accordance with the guidelines established by the Federal Trade
Commission for endorsements in advertising. - Financial Tables to
Follow - XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31, 2008 2007 ASSETS (unaudited) Current assets:
Cash and cash equivalents $2,263,673 $2,245,858 Accounts
receivable, net of allowance for doubtful accounts of $10,130 and
$12,231, respectively 2,390 7,460 Inventory, net of allowance for
obsolescence of $181,256 and $189,403, respectively 322,478 370,843
Prepaid expenses and other current assets 498,172 329,015 Total
current assets 3,086,713 2,953,176 Intangible assets, net 17,345
17,959 Property and equipment, net 57,201 81,405 Total assets
$3,161,259 $3,052,540 LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable and accrued expenses $1,283,923
$832,697 Short-term note payable - - Total Liabilities 1,283,923
832,697 Commitments and Contingencies SHAREHOLDERS' EQUITY:
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 23,715,986 22,696,657 Accumulated (deficit) (21,854,347)
(20,492,011) Total shareholders' equity 1,877,336 2,219,843 Total
liabilities and shareholders' equity $3,161,259 $3,052,540 XELR8
HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Three and Six Months Ended June 30, 2008 and 2007 For
the Three Months Ended For the Six Months Ended June 30, June 30,
June 30, June 30, 2008 2007 2008 2007 Net sales $2,276,415
$1,386,395 $3,854,199 $2,255,470 Cost of goods sold 523,482 366,939
883,060 672,531 Gross profit 1,752,933 1,019,456 2,971,139
1,582,939 Operating expenses: Selling and marketing expenses
1,614,161 967,853 2,704,953 1,597,119 General and administrative
expenses 752,173 937,289 1,621,058 1,786,810 Research and
development expenses 2,087 4,517 2,512 5,130 Depreciation and
amortization 11,844 22,497 23,687 34,276 Total operating expenses
2,380,265 1,932,156 4,352,210 3,423,335 Net (loss) from operations
(627,332) (912,700) (1,381,071) (1,840,396) Other income (expense)
Interest income 14,358 31,917 33,636 35,043 Other expenses - -
(13,770) - (Loss) on disposal of asset - - (1,130) - Interest
(expense) - - - (439,537) Total other income (expense) 14,358
31,917 18,736 (404,494) Net (loss) $(612,974) $(880,783)
$(1,362,335) $(2,244,890) Net (loss) per common share Basic and
diluted net (loss) per share $(0.04) $(0.06) $(0.09) $(0.18)
Weighted average common shares outstanding, basic and diluted
15,697,170 14,603,763 15,515,851 12,699,948 XELR8 HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six
Months Ended June 30, 2008 and 2007 June 30 June 30 2008 2007 Cash
flows from operating activities: Net income (loss) $(1,362,335)
$(2,244,890) Adjustments to reconcile Depreciation and amortization
23,687 34,276 Loss on disposal of asset 1,130 - Stock and stock
options issued for services 566,856 1,011,132 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 (2,101) 5,629 Change in allowance
for inventory obsolescence (8,147) 41,661 Change in allowance for
product returns 26,147 30,866 Changes in assets and liabilities:
Accounts receivable 7,171 (8,835) Inventory 56,512 16,634 Other
current assets (169,157) (17,601) Accounts payable and accrued
expenses 425,079 239,415 Net cash (used) by operating activities
(421,388) (462,824) Cash flows from investing activities: Proceeds
from maturity of investments - - Capital expenditures - (10,408)
Net cash (used) by investing activities - (10,408) Cash flows from
financing activities: Proceeds from bridge loan financing - 250,000
Repayments of bridge financing - (500,000) Issuance of common stock
439,203 3,632,834 Net cash provided from financing activities
439,203 3,382,834 NET INCREASE (DECREASE) IN CASH 17,815 2,909,602
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 2,245,858 76,147
CASH AND CASH EQUIVALENTS, END OF THE PERIOD $2,263,673 $2,985,749
SUPPLEMENTAL CASH FLOW DISCLOSURES 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 Contacts: John Pougnet, CEO
Stephen D. Axelrod, CFA XELR8 Holdings, Inc. Alisa Steinberg
(Media) (303) 316-8577 Wolfe Axelrod Weinberger Assoc. LLC (212)
370-4500 DATASOURCE: XELR8 Holdings, Inc. CONTACT: John Pougnet,
CEO, XELR8 Holdings, Inc., +1-303-316-8577, ; or Stephen D.
Axelrod, CFA, , or Alisa Steinberg (Media), , of Wolfe Axelrod
Weinberger Assoc. LLC, +1-212-370-4500 Web site:
http://www.xelr8.com/ http://www.drinkbazi.com/
Copyright
Xelr8 Holdings (AMEX:BZI)
Historical Stock Chart
Von Aug 2024 bis Sep 2024
Xelr8 Holdings (AMEX:BZI)
Historical Stock Chart
Von Sep 2023 bis Sep 2024