OLD TAPPAN, NJ--(Marketwired - Apr 2, 2013) - New Leaf Brands, Inc. (
- A decrease in stockholder deficit of $1,456,137 representing an improvement of 37% in that key metric during the six months ending June 30, 2012.
- A reduction in net cash used in operating activities of $2,069,602 a decrease from a use of $2.60 million of net cash to $.533 million of net cash used in operating activities.
- A shift to net income of $.219 million, compared to a net loss of $2.633 million during 2Q2011.
Second Quarter 2012 Financial Highlights:
Revenue: During the three months ended June 30, 2012, net sales were $174,104, as compared to $658,527 for the same period in 2011. The decrease in sales was primarily due to capital constraints that delayed production, shipment of open customer orders and inventory.
Gross Profit: Gross profits for 2Q2012 were $25,704 or 14.8% of net sales, as compared to $162,383 or 24.7% of net sales for 2Q2011. Gross profits were down in the quarter due to non-recurring production and distribution expenses.
Operating Expenses: Operating expenses for 2Q2012 totaled $.76 million as compared to $1.2 million for 2Q2011, a decrease of 37%. A significant portion of this decrease was attributable to restrained overhead and marketing expenses, as well as reduced shipping expenses.
Net Income: The Company recorded net income of $218,562 for 2Q2012, as compared to a net loss of $2,632,762 for 2Q2011, or $0.001 and ($0.027) per diluted share, respectively. The increased net income and reduced net loss is attributable to the Company's improved operating results and gains achieved in its debt restructuring.
During 2Q2012 New Leaf began to implement initiatives to create the basis for growth:
- Focus and deliver growth in its core product markets
- Focus on the Northeast Corridor from Maine to Maryland
- Reduce supply chain costs
- Focus on key distributors and value-added partnerships
- Identify acquisition targets
- Restructure corporate operations and product mix to improve operating margins.
- Achieve significant debt restructurings and interim financings to both strengthen the balance sheet and support sustainable growth
"During the first half of 2012, New Leaf took the critical steps to launch its restructuring and turnaround program. The improved results were evident in the second quarter of 2012," said Mr. Fuselier. "We are pleased with our financial results for the period and we expect to file our reports for the third quarter of 2013 during the next several weeks."
Mr. Fuselier said, "We continue to move forward in exploring various strategic alternatives, including business combinations and private placements of debt and or equity securities to raise capital to grow our Company. We also intend to expand our business through the acquisition of brands, distributors and co-packers in our industry. Our lenders, shareholders and vendors have shown extraordinary support for our brand and our company's change in strategic direction. Our financial results for the second quarter of 2012 exhibit that support."
About New Leaf Brands, Inc.
New Leaf Brands, Inc. (
This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of more capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's 10-Ks and 10-Qs on file with the Securities and Exchange Commission.