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REEDS INC. DL-,01 (39R.BE)

Berlin - Berlin Delayed Price. Currency in EUR
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Previous Close0.8039
Open0.7903
Bid0.8097 x 0
Ask0.8949 x 0
Day's Range0.7892 - 0.8644
52 Week Range0.3495 - 1.3798
Volume1,000
Avg. Volume217
Market CapN/A
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
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  • Virgil's™ Brings Back Limited-Edition Bavarian Nutmeg Swing-lid Root Beer
    GlobeNewswire

    Virgil's™ Brings Back Limited-Edition Bavarian Nutmeg Swing-lid Root Beer

    Grab Your Stein! All-Time Fan Favorite Returns for Fall Festivities & Holiday Season Virgil's™ Brings Back Limited-Edition Bavarian Nutmeg Swing-lid Root Beer Grab Your Stein! All-Time Fan Favorite Returns for Fall Festivities & Holiday SeasonNORWALK, Conn., Sept. 15, 2020 (GLOBE NEWSWIRE) -- Virgil's™, America's best-selling line of natural, handcrafted and zero sugar sodas from Reed’s Inc. (NASDAQ: REED), announces the limited-edition return of the acclaimed Bavarian Nutmeg Swing-lid Root Beer. Just in time for the season of festive celebrations, from Oktoberfest to the holidays, the coveted fan favorite is now available online and in-store, bringing the authentic flavor of Bavarian tradition to consumers nationwide. With just a sip of Virgil's™ Bavarian Nutmeg Swing-lid Root Beer, drinkers are transported to Southeastern Germany thanks to an authentic recipe that dates back to 1963. Micro-brewed with artesian water from the Bohemian Forest region, it is a rich and creamy combination that brings to life the taste of true Bavarian heritage. Like all Virgil's™ products, the Bavarian Nutmeg Swing-lid Root Beer is handcrafted with natural ingredients, including honey, molasses, cinnamon, nutmeg, licorice, vanilla and wintergreen.“Over the last year, consumers have been begging us to bring back this fan favorite. As we may be celebrating more occasions at home this year, we could not think of a better time to give them what they’ve been asking for,” shared Norman E. Snyder, CEO of Reed’s Inc. “Whether it’s transforming backyards into bier gardens to celebrate Oktoberfest, or toasting the holiday season together as a family, the return of our Bavarian Nutmeg Swing-lid Root Beer delivers that festive spirit straight to our consumer’s doorsteps.”Along with its traditional, full-bodied flavor, the Bavarian Nutmeg Swing-lid Root Beer is uniquely bottled in a pint format inspired by its heritage. With a ceramic, swing-lid top, it's perfectly sized to be shared amongst friends and family of all ages.In honor of the seasonal return, Virgil's is giving one lucky winner everything they need to create their own Oktoberfest at home, including one case of the Bavarian Nutmeg Swing-lid Root Beer, eight Virgil's™ handcrafted soda glasses and individual variety packs of pretzels and sausages from Eastern Standard Provisions and Evergood Sausage. Through October 1, fans nationwide are invited to enter the Virgil's sweepstakes through Facebook and Instagram for their chance to win. More details on the sweepstakes are available here. The limited-edition Bavarian Nutmeg Swing-lid Root Beer retails online for $15.99/3 pints at https://www.virgils.com/bavarian-swinglid/, and will soon be available at all Cracker Barrel locations, Hannaford, Giant Eagle, Tops Market, Harmon’s, Baron’s and select independent retailers around the country for $3.99 - $4.99/1 pint (500mL), while supplies last.For more information about Virgil's™ please visit: https://www.virgils.com/. Follow along at @drinkvirgils on Instagram, Twitter and Facebook.About Reed's, Inc. Established in 1989, Reed's® is America's 1 name in Ginger and America’s best-selling Ginger Beer brand and innovator for decades. Under Reed's Inc., Virgil's is America's best-selling independent, full line of natural craft sodas. The Reed's Inc. portfolio is sold in over 35,000 retail doors nationwide. Reed's core product line of Original, Extra and Strongest Craft Ginger Beers, along with the Certified Ketogenic Zero Sugar Extra Ginger Beer are unique due to the proprietary process of using fresh ginger root combined with a Jamaican inspired recipe of natural spices and fruit juices. The Company uses this same handcrafted approach in its award-winning Virgil's line of great tasting, bold flavored craft sodas and Certified Ketogenic Zero Sugar Varieties.Media Contact: 5W Public Relations reeds@5wpr.com  212.999.5585A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/abf1b079-7f42-41c2-8f9c-ef89a9bea3b2

  • Reeds (REED) Reports Q2 Loss, Tops Revenue Estimates
    Zacks

    Reeds (REED) Reports Q2 Loss, Tops Revenue Estimates

    Reeds (REED) delivered earnings and revenue surprises of 0.00% and 8.53%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    Reed’s, Inc. Announces Second Quarter 2020 Financial Results

    Net sales increased 14% Gross Margin increased 350 basis pointsMaintains fiscal 2020 outlookNORWALK, Conn., Aug. 10, 2020 (GLOBE NEWSWIRE) -- Reed’s Inc. (Nasdaq:REED), owner of the nation’s leading portfolio of handcrafted, all-natural beverages, today announced financial results for the fiscal second quarter ended June 30, 2020.Highlights for the Second Quarter of 2020 * Net sales increased 14% to $10.9 million in the second quarter compared to $9.5 million in the prior year. The increase compared to the prior year reflects increased sales of both the Reed’s® and Virgil’s® brands, including impact from recent launches of new product innovation. * Core brand gross sales increased 14% versus prior year period primarily driven by strong 19% volume growth of the Reed’s® brand; * Gross profit increased 31% to $3.0 million compared to $2.3 million in the prior year period. Gross margin increased 350 basis points to 27.5%; * Operating loss narrowed to $1.4 million compared to $4.1 million in the second quarter of 2019; * Net loss improved to $1.8 million, or $0.03 per share, compared to $4.5 million, or $0.13 per share, in the prior year period; and * Non-GAAP Modified EBITDA loss improved to $1.4 million in the second quarter of 2020 compared to a Modified EBITDA loss of $3.4 million in the prior year.Management Commentary“We are pleased with our results in the second quarter driving 14% net sales growth, further building on momentum from the beginning of the year despite the inherent operating challenges we continue to face from the COVID-19 global pandemic. We saw strong demand and growth of our core brand products increasing 14% in the second quarter as a result of increased demand of all SKUs as well as positive impact from new product launches. We continue to see a positive response to our Reed’s® Real Ginger Ale™, Reed’s® Extra Zero Sugar, and Reed’s® Wellness Ginger Shots as well as an encouraging initial response to our new Ultimate Ready-to-Drink Mule With A Real Ginger Kick, which launched late in the quarter. COVID-19 has impacted the pace of new distribution for new products as retailers have delayed resets as they focus on keeping up with increased demand and we expect to be in a position to fulfill our new product distribution opportunities as the retail environment normalizes,” stated Norman E. Snyder, Chief Executive Officer of Reed’s, Inc. “Our efforts to build out our supply chain and co-packer network was a vital aspect of our success during the second quarter as the entire industry is facing increased demand for supplies with a reduced work force as a result of social distancing measures impacting capacity across the industry. Further, supply of cans and bottles, and some ingredients, has tightened given these industry dynamics impacting the pace of our gross margin expansion. However, we continued to thrive in the challenging environment. Additionally, we worked hard this quarter to moderate spending as we navigated these unchartered waters of the pandemic, improving our cash flow profile and improving financial flexibility. We remain confident with our brands and are so proud of the Reed’s team and our partners who are working diligently to make sure we can deliver on the significant opportunity ahead of us despite the challenges of operating during COVID-19.”Financial Overview for the Second Quarter of 2020 Compared to the Second Quarter of 2019 During the second quarter of 2020, net sales increased 14% to $10.9 million compared with $9.5 million in the prior year. Core brand gross sales increased 14% compared to the same period in 2019, driven by 19% volume growth of the Reed’s® brand, with growth across all products and building contribution from recent launches of new product innovation.Gross profit during the second quarter of 2020 increased 31% to $3.0 million compared to the same period in 2019. The increase in gross profit reflects increased revenue during the quarter driven by strong volume growth of the Reed’s® brand. Gross margin increased 350 basis points to 27.5% from 24.0% in the prior year period.Delivery and handling costs increased 3% to $1.5 million during the second quarter of 2020 compared to the same period in 2019. As a percentage of net sales, delivery and handling costs decreased 150 basis points compared to the prior year, reflecting improved logistical staging of inventory partially offset by elevated costs due to market forces impacted by COVID-19.Selling and marketing costs decreased 50% to $1.6 million during the second quarter of 2020. As a percentage of net sales, selling and marketing costs decreased to 14.6% from 33.7% in the prior year period. The decrease was primarily a result of programs offered in the second quarter of 2019 that were not implemented in the second quarter of 2020.General and administrative expenses (G&A) decreased 23% to $1.3 million during the second quarter of 2020 compared to $1.7 million in the prior year period. The decrease in general and administrative expenses compared to the prior year period was primarily related to reduced non-cash stock-based compensation including the impact of the exit of the Los Angeles facility and reduction of temporary staff.Operating loss during the second quarter of 2020 narrowed to $1.4 million from $4.1 million in the prior year period.Interest expense of $0.3 million during the second quarter of 2020 was consistent with the second quarter of 2019.Net loss during the second quarter of 2020 was $1.8 million, or $0.03 per share, compared to $4.5 million, or $0.13 per share in the second quarter of 2019.Modified EBITDA loss was $1.4 million in the second quarter of 2020 compared to a loss of $3.4 million in the second quarter of 2019.Liquidity and Cash FlowDuring the second three months of 2020, the Company used $5.0 million of cash in operating activities compared to $11.5 million of cash used in operating activities in the prior year period. The decrease in cash used in operating activities during the second quarter of 2020 relates primarily to a lower net loss and reduced spending in the quarter. As of June 30, 2020, the Company had $6.7 million of available borrowing capacity on its revolving line of credit.Full Year 2020 GuidanceThe Company is maintaining its fiscal 2020 outlook. The Company continues to expect to generate core brand growth of approximately 10% and continues to anticipate a gross margin of 32% or greater for the full year 2020. The primary risk to gross margin guidance is the level of ingredient, packaging and production costs, which are difficult to forecast given the impact to industry-wide costs as a result of COVID-19. Fiscal 2020 guidance reflects year-to-date business trends, including the ongoing operating environment related to COVID-19. The COVID-19 pandemic and its related impacts create many incremental potential business risks, including potential impacts to the Company’s ability to access raw materials, production, transportation and/or other logistics needs, as well as potential inflation related to all aspects of supply chain and logistics, which cannot be reasonably estimated and are not factored into current fiscal 2020 guidance.Second Quarter 2020 Earnings Call DetailsThe Company will conduct a conference call at 4:30 pm Eastern Time today, August 10, 2020 to discuss its second quarter 2020 results. This conference call can be accessed via a link on Reed's investor website at http://investor.reedsinc.com/ under the "Events & Presentations" section or directly at http://public.viavid.com/index.php?id=140757. To listen to the live call over the Internet, please go to Reed's website at least fifteen minutes early to register, download and install any necessary audio software. Additionally, the call may be accessed with the toll-free dial-in number, 1-(877) 425-9470 (U.S.); or 1-(201) 389-0878 (International). Please dial in at least fifteen minutes before the start of the conference call due to increased demand for conference calls.A replay of the webcast will be archived on the Company’s website at http://investor.reedsinc.com under the "Events & Presentations" section for approximately 90 days.About Reed’s, Inc.Established in 1989, Reed's® is America's best-selling Ginger Beer brand and has been the leader and innovator in the ginger beer category for decades. Virgil's® is America's best-selling independent, full line of natural craft sodas. The Reed's Inc. portfolio is sold in over 35,000 retail doors nationwide. Reed's® Ginger Beers are unique due to the proprietary process of using fresh ginger root combined with a Jamaican inspired recipe of natural spices and fruit juices. The Company uses this same handcrafted approach in its award-winning Virgil's® line of great tasting, bold flavored craft sodas.For more information about Reed’s®, please visit the Company’s website at: http://www.drinkreeds.com or call 800-99-REEDS. Follow Reed’s® on Twitter, Instagram, and Facebook @drinkreeds.For more information about Virgil’s® please visit Virgil’s® website at: http://www.virgils.com. Follow Virgil’s® on Twitter and Instagram @drinkvirgils and on Facebook @drinkvirgilssoda.Safe Harbor Statement Some portions of this press release, particularly those describing Reed’s goals and strategies, contain “forward-looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed’s is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed’s, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed’s that they will achieve such forward-looking statements. For further details, please see our most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed’s undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.CONTACTS: Investor Relations Scott Van Winkle, ICR (800) 997-3337 Ext 6 Or (617) 956-6736 Email: ir@reedsinc.com www.reedsinc.com REED’S, INC. CONDENSED STATEMENTS OF OPERATIONS For the Three and Six Months Ended June 30, 2020 and 2019 (Unaudited) (Amounts in thousands, except share and per share amounts)                              Three Months Ended June 30,  Six Months Ended June 30,    2020  2019  2020  2019  Net Sales $10,853  $9,480  $20,376  $17,929  Cost of goods sold  7,865   7,207   14,518   13,152  Gross profit  2,988   2,273   5,858   4,777                    Operating expenses:                 Delivery and handling expense  1,480   1,436   2,743   2,466  Selling and marketing expense  1,585   3,194   3,510   5,208  General and administrative expense  1,348   1,749   3,295   4,120  Gain on sale of assets  9   -   (6)  (30) Total operating expenses  4,422   6,379   9,542   11,764                    Loss from operations  (1,434)  (4,106)  (3,684)  (6,987)                   Interest expense  (303)  (294)  (639)  (629) Change in fair value of warrant liability  (13)  (60)  (7)  (108)                   Net loss  (1,750)  (4,460)  (4,330)  (7,724)                   Dividends on Series A Convertible Preferred Stock  (5)  (5)  (5)  (5)                   Net Loss Attributable to Common Stockholders $(1,755) $(4,465) $(4,335) $(7,729)                   Loss per share – basic and diluted $(0.03) $(0.13) $(0.08) $(0.25)                   Weighted average number of shares outstanding – basic and diluted  59,514,620   33,666,664   53,554,913   31,397,760  REED’S INC. CONDENSED BALANCE SHEETS (Amounts in thousands, except share amounts)  June 30, 2020  December 31, 2019    (Unaudited)     ASSETS         Current assets:         Cash $1,112  $913  Accounts receivable, net of allowance for doubtful accounts and returns and discounts of $259 and $375, respectively  5,295   2,099  Receivable from related party  230   356  Inventory, net of reserve for obsolescence of $437 and $646, respectively  8,411   10,508  Prepaid expenses and other current assets  939   420  Total current assets  15,987   14,296            Property and equipment, net of accumulated depreciation of $501 and $482, respectively  1,023   1,053  Equipment held for sale, net of impairment reserves of $96 and $96, respectively  67   67  Intangible assets  590   576  Total assets $17,667  $15,992            LIABILITIES AND STOCKHOLDERS’ EQUITY         Current liabilities:         Accounts payable $5,129  $5,539  Accrued expenses  555   646  Revolving line of credit  2,638   3,177  Current portion of note payable  342   -  Convertible note to a related party  4,977   -  Current portion of leases payable  89   49  Total current liabilities  13,730   9,411            Leases payable, less current portion  628   737  Convertible note to a related party  -   4,689  Note payable  428   -  Warrant liability  15   8  Total liabilities  14,801   14,845            Stockholders’ equity:         Series A Convertible Preferred stock, $10 par value, 500,000 shares authorized, 9,411 shares issued and outstanding  94   94  Common stock, $.0001 par value, 100,000,000 and 100,000,000 shares authorized, respectively; 62,928,540 and 47,595,206 shares issued and outstanding, respectively  6   5  Common stock issuable, 350,000 shares at June 30, 2020  285   -  Additional paid in capital  83,364   77,596  Accumulated deficit  (80,883)  (76,548) Total stockholders’ equity  2,866   1,147  Total liabilities and stockholders’ equity $17,667  $15,992  REED’S, INC. CONDENSED STATEMENTS OF CASH FLOWS For the Six months Ended June 30, 2020 and 2019 (Unaudited) (Amounts in thousands)  June 30, 2020  June 30, 2019  Cash flows from operating activities:         Net loss $(4,330) $(7,724) Adjustments to reconcile net loss to net cash used in operating activities:         Depreciation  24   25  (Gain)/loss on sale of property & equipment  -   (30) (Gain)/loss on termination of leases  (6)  7  Amortization of debt discount  193   150  Amortization of right of use assets  62   45  Fair value of vested options  459   854  Fair value of vested restricted shares granted to officers  285   -  Common stock issued for services  -   375  Decrease in allowance for doubtful accounts  (116)  (189) Decrease (increase) in inventory reserve  (209)  205  Change in fair value of warrant liability  7   108  Accrual of interest on convertible note to a related party  288   256  Lease liability  (13)  (10) Changes in operating assets and liabilities:         Accounts receivable  (3,080)  (668) Inventory  2,306   (2,106) Prepaid expenses and other assets  (393)  (267) Accounts payable  (410)  (1,816) Accrued expenses  (95)  (735) Net cash used in operating activities  (5,028)  (11,520) Cash flows from investing activities:         Trademark costs  (14)  -  Proceeds from sale of property and equipment  -   30  Purchase of property and equipment  (102)  (121) Net cash used in investing activities  (116)  (91) Cash flows from financing activities:         Borrowings on line of credit  21,780   31,228  Repayments of line of credit  (22,512)  (34,030) Proceeds from note payable  770   -  Repayment of amounts due to/from officers  -   195  Principal repayments on capital lease obligation  (5)  (33) Exercise of warrants  -   364  Proceeds from sale of common stock  5,310   14,867  Net cash provided by financing activities  5,343   12,591            Net increase in cash  199   980  Cash at beginning of period  913   624  Cash at end of period $1,112  $1,604            Supplemental disclosures of cash flow information:         Cash paid for interest $157  $222  Non Cash Investing and Financing Activities         Dividends on Series A Convertible Preferred Stock $5  $5  Modified EBITDAIn addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, changes in fair value of warrant expense, and one-time restructuring-related costs including employee severance and asset impairment.Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.Set forth below is a reconciliation of net loss to Modified EBITDA for the three months ended June 30, 2020 and 2019 (unaudited; in thousands):  Three Months Ended June 30,    2020  2019  Net loss $(1,750) $(4,460)           Modified EBITDA adjustments:         Depreciation and amortization  37   34  Interest expense  303   294  Stock option and other noncash compensation  (36)  623  Change in fair value of warrant liability  13   60  Severance  -   6  Total EBITDA adjustments $317  $1,017            Modified EBITDA $(1,433) $(3,443) We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following: ● Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;       ● Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs;       ● Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and       ● Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements. Set forth below is a reconciliation of net loss to Modified EBITDA for the six months ended June 30, 2020 and 2019 (unaudited; in thousands):  Six Months Ended June 30,    2020  2019  Net loss $(4,330) $(7,724)           Modified EBITDA adjustments:         Depreciation and amortization  86   70  Interest expense  639   629  Stock option and other noncash compensation  744   1,229  Change in fair value of warrant liability  7   108  Severance  -   39  Total EBITDA adjustments $1,476  $2,075            Modified EBITDA $(2,854) $(5,649)