Boca Raton, FL – February 27, 2012 – Celsius Holdings, Inc., (Other OTC: CELH.PK) the creator and marketer of Celsius®, Your Ultimate Fitness Partner®, …….today reported their results of operations for the fourth quarter and year ended December 31, 2011.
Revenue for the three months ended December 31, 2011 totaled $1.8 million versus $103,000 in the same period last year. A significant portion of this increase related to a reduction of discounts, promotions, and returns this year compared to last year’s fourth quarter.
Revenue increased 3% for the year 2011 to $8.5 million as compared to $8.3 million in 2010. The increase was mainly due to increased sales to existing customers, offset by reduction in revenues associated with eliminating unprofitable accounts.
Operating expenses decreased to $1.4 million for the fourth quarter (or 65%) from$3.9 million in the prior year. For the year ended December 31, 2011, operating expenses decreased to $5.0 million (or 75%) from $19.9 million a year ago. In addition, sales, marketing, and G&A expenses were reduced significantly during 2011,while organic revenue growth continued.
The Company recorded a net loss of $716,000 for the fourth quarter compared to a net loss of $5.6 million in the same quarter a year ago (a decrease of 87%); or $(0.04) and $(0.30) per share respectively. For the year ended December 31, 2011, the Company recorded a net loss of $1.9 million compared to a net loss of $19.5 million a year ago (a decrease of 90%); or $(0.10) and $(1.11) per share respectively.
The Company announced today a strategy to expand the Celsius brand through Direct to Consumer initiatives and to restructure and support its retail sales efforts. The campaigns will include DRTV, Affiliate Networks, Banner Advertising, Social and Digital Media, Direct Mail, Viral Marketing and Health Club Sampling. The Company has produced a new package with 30 servings of an Outrageous Orange flavored powder, incorporating its MetaPlus ™ technology. This new powder package will allow for improved margins and cost effective shipping in support of the Direct to Consumer programs. “We believe that by employing these cost effective initiatives, the Celsius brand will achieve a greater market awareness, driving pull through in the retail stores while producing direct sales revenue to the company,” said Gerry David, our CEO.
The Company also announced the addition of several senior managers to its executive team: