Foreign Markets and the Addition of Five Distributors Drive Strong Revenue Growth
NEW YORK, Aug. 22, 2012 (GLOBE NEWSWIRE) -- Panache Beverage, Inc. (OTCQB:WDKA.PK), an alcoholic beverage company specializing in the development, global sales and marketing of spirits brands, today announced revenues of $671,041 for the three months ended June 30, 2012, representing an increase of 68% over revenues of $398,512 reported for the three months ended June 30, 2011. On a sequential quarter-to-quarter basis, the Company reported revenue growth of 82% over revenues of $368,483 reported during the first quarter 2012. The increase in revenue was primarily due to the implementation of Panache's marketing strategies in new markets and growth in existing markets. Specifically, sales in international markets have increased substantially.
Highlights from the Second Quarter 2012
Panache continued its expansion into foreign markets by securing O.B.H. Wine and Spirits Inc. as an exclusive partner to represent Wodka and Alchemia brands in Canada. Panache and O.B.H are in the process of securing approval from the LCBO to sell and market the brands throughout all provinces and territories of Canada.
Wodka Vodka has been accepted as a core range product for LMG Bottlemart Group, which represents 12% of the total Australian packaged liquor market and comprises over 2,000 members throughout the country. The acceptance of Wodka by LMG Bottlemart is an endorsement of the brand's strategy, marketing, and pricing.
Alibi American Whiskey has received its Certificate of Label Approval from TTB. The approval paves the way for Panache to roll out this highly anticipated brand in the third quarter of this year.
- Panache added five distributors and expanded into three states in the second quarter of 2012. Its brands are now available in 30 states across the United States.
Cost of goods sold was $438,211, or 65% of revenue during the three months ended June 30, 2012, compared with 97% of revenue during the three months ended June 30, 2011. For the six months ended June 30, 2012, cost of goods sold was approximately 67% of revenue compared to approximately 78% of revenue during the six months ended June 30, 2011. The decrease in costs of goods sold as a percentage of revenue during the three and six month periods ended June 30, 2012 in comparison to the same periods in 2011 is mostly due increased efficiencies in operations and higher gross profit on international sales, which accounted for a higher percentage of sales in 2012.
James Dale, the Chief Executive Officer of Panache Beverages, stated, "We are very pleased with the financial performance achieved during the second quarter of 2012 as well as our accomplishments with respect to rolling out our products. We expect to report strong growth in the second half of 2012 and into the foreseeable future as we continue to execute on our business plan."
About Panache Beverages, Inc.
Panache Beverage, Inc. (WDKA) based in New York, NY is an alcoholic beverage company specializing in the development, global sales and marketing of spirits brands. The Company's expertise lies in the strategic development and aggressive early growth of its brands establishing its assets as viable and attractive acquisition candidates for the major global spirits companies. Panache intends to build its brands as individual acquisition candidates while continuing to develop its pipeline of new brands in to the Panache portfolio. Panache's existing portfolio contains three brands: Wodka Vodka (www.welovewodka.com), Alchemia Infused Vodka (www.alchemiainfusions.com) and Alibi American Whiskey (www.alibiamerica.com).
For more information visit: http://www.panachespirits.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate," "project" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Further information on Panache Beverages' risk factors is contained in its filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended December 31, 2011 and the Form 10-QSB filed March 31, 2012. Panache Beverages does not undertake any duty nor does it intend to update the results of these forward-looking statements.
|PANACHE BEVERAGE, INC.|
|CONSOLIDATED BALANCE SHEETS - (Unaudited)|
|Cash and cash equivalents||$21,242||$152,464|
|Accounts receivable – net||640,207||430,087|
|Prepaid expenses and other current assets||109,774||106,661|
|Total Current Assets||842,253||730,935|
|Property and Equipment - net||12,358||6,565|
|LIABILITIES AND EQUITY (DEFICIT)|
|Due to factor||385,333||317,293|
|Loans payable – related parties||421,437||358,629|
|Consulting fees payable – related party||--||2,705|
|Other current liabilities||423,494||335,464|
|Total Current Liabilities||2,189,301||1,702,348|
|Long term debt||183,500||183,500|
|Common stock, par value $0.001; 200,000,000 and 200,000,000 shares authorized as of June 30, 2012 and December 31, 2011, respectively; 26,332,891 and 25,107,891 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively||26,333||25,108|
|Additional paid in capital||2,603,815||1,303,412|
|Additional paid in capital - warrants||285,869||163,097|
|Treasury stock, at cost, 50,000 and 0 shares as of June 30, 2012 and December 31, 2011, respectively||-50,000||--|
|Total stockholders' deficit||-1,246,129||-1,024,652|
|Total Equity (Deficit)||-1,518,190||-1,148,348|
|TOTAL LIABILITIES AND EQUITY (DEFICIT)||$854,611||$737,500|
|PANACHE BEVERAGE, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS - (Unaudited)|
For the three months ended
For the six months ended
|REVENUES - NET||$671,041||$398,512||$1,039,524||$831,692|
|COST OF GOODS SOLD||438,211||387,771||696,340||647,452|
|Advertising and promotion||240,326||505,331||527,101||1,002,246|
|General and administrative||454,208||98,399||888,706||256,199|
|TOTAL OPERATING EXPENSES||1,092,607||700,997||2,322,219||1,387,487|
|LOSS FROM OPERATIONS||-859,777||-690,256||-1,979,035||-1,203,247|
|LOSS FROM OPERATIONS AND BEFORE NON-CONTROLLING INTERESTS||-871,868||-724,370||-2,002,186||-1,237,361|
|LESS: LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS||111,830||621,794||406,309||1,221,025|
|LOSS BEFORE PROVISION FOR INCOME TAXES||-760,038||-102,576||-1,595,877||-16,336|
|PROVISION FOR INCOME TAXES||--||--||--||--|
|NET LOSS ATTRIBUTABLE TO PANACHE BEVERAGE, INC.||($760,038)||($102,576)||($1,595,877)||($16,336)|
|BASIC AND DILUTED RESULTS PER SHARE OF COMMON STOCK:|
|LOSS PER SHARE ATTRIBUTABLE TO PANACHE BEVERAGE, INC.: BASIC AND DILUTED||($0.03)||N/A||($0.06)||N/A|
|WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED||26,332,891||N/A||25,839,924||N/A|
|PANACHE BEVERAGE, INC.|
|CONSOLIDATED STATEMENTS OF CASH FLOWS - (Unaudited)|
|For the six months ended|
|CASH FLOWS FROM OPERATING ACTIVITIES|
|Net (loss) income for the period||($1,595,877)||($16,336)|
|Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operating Activities:|
|Bad debt expense||--||2,026|
|Stock issued for services rendered||395,000||--|
|Advertising expense from capital contribution||257,944||905,655|
|Changes in assets and liabilities:|
|Consulting fees payable – related party||-2,705||-31,390|
|Other current liabilities||88,030||16,308|
|CASH FLOWS USED IN OPERATING ACTIVITIES||-1,198,630||-326,231|
|CASH FLOWS FROM INVESTING ACTIVITIES|
|Purchase of property and equipment||-8,440||-1,658|
|CASH FLOWS USED IN INVESTING ACTIVITIES||-8,440||-1,658|
|CASH FLOWS FROM FINANCING ACTIVITIES|
|Proceeds from notes payable||22,500||328,521|
|Repayments of notes payable||--||-355,104|
|Proceeds from loans payable – related parties||62,808||283,511|
|Repayments of loans payable – related parties||--||-166,106|
|Net increase in due to factor||68,040||161,588|
|Contributions from non-controlling interests||--||54,505|
|Proceeds from issuance of stock and warrants||972,500||--|
|Repurchase of treasury stock||-50,000||--|
|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES||1,075,848||306,915|
|NET INCREASE (DECREASE) IN CASH||-131,222||-20,974|
|Cash, beginning of period||152,464||29,776|
|Cash, end of period||$21,242||$8,802|
|SUPPLEMENTAL CASH FLOW INFORMATION:|
|Cash paid for interest||$23,151||$28,409|
|NONCASH INVESTING AND FINANCING ACTIVITIES|
|Stock issued for services rendered||$395,000||$--|
|Capital contribution – Advertising services||$257,944||$--|
CONTACT: Investor Contact: Gerald Kieft WSR Communications 772-219-7525 (tel) IR@theWSRcommunications.com http://wsrcommunications.ir.stockpr.com/panacheimports/ overviewSource: Panache Beverage, Inc.