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First Quarter 2019 Revenue Increased 34% to Over $834,000
Over 400 School Locations and 100 Armed Forces Dining Facilities
Second Quarter-to-Date Revenue Already Exceeds $750,000
LOS ANGELES, May 15, 2019 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (OTCQB: BRFH), a manufacturer of frozen, ready-to-blend beverages, is providing an update on recent business developments in conjunction with the filing of its form 10-Q for the first quarter ended March 31, 2019.
Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “During the seasonally softer first quarter we remained focused on building upon the momentum gained in 2018 by continuing to expand within the education and military channels, lowering our overhead costs and making headway with our robust sales pipeline. The platform we have built is well positioned to increase leverage through our improving revenue. We are halfway through the second quarter and have already exceeded $750,000 in revenue and expect our third quarter to be stronger than our second quarter.”
Mr. Delle Coste continued, “In the span of a year, we have dramatically expanded our business not just with the number of schools and military bases we are serving, but also with many amusement parks as well as two large national accounts, and the strengthening of our balance sheet with a strategic capital raise. We are well positioned for additional growth this year and we expect further progress across all accounts with additional wins to be announced in the coming quarters.”
Revenue for the first quarter of 2019 was $834,534, an increase of 34%, as compared to $623,071 in the first quarter of 2018. The improvement in revenue was primarily the result of channel expansion in the school and military channels, and the growth of the bulk Easy Pour product platform. Gross margin for the first quarter was 52%, as compared with last year’s first quarter gross margin of 53%. Operating loss for the first quarter of 2019 was $1.8 million, as compared with $1.9 million in the first quarter of 2018. Net cash used for Operating Activities for Q1 2019, of $1,873,982, includes about $600,000 of non-recurring items, including settlement of deferred executive compensation, settlement of certain vendor payables, and recording of a receivable from the Q1, 2019 equity raise.
As of March 31, 2019, the Company had $2.9 million of cash and $1.1 million of inventory on its balance sheet.
The conference call to discuss these results is scheduled for today, Wednesday, May 15, 2019, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners can dial (877) 407-4018 in North America, and international listeners can dial (201) 689-8471. Participants from the Company will be Riccardo Delle Coste, Founder and CEO, Joseph Cugine, President, and Joseph Tesoriero, Chief Financial Officer.
A telephonic playback will be available approximately two hours after the call concludes and will be available through Wednesday, May 29, 2019. Listeners in North America can dial (844) 512-2921, and international listeners can dial (412) 317-6671. Passcode is 13690436.
Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.barfresh.com in the Investors-Presentations section.
About Barfresh Food Group
Barfresh Food Group, Inc. (OTCQB: BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company's proprietary, patented system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste. Barfresh has an exclusive distribution partnership with the leading food distributor in North America. For more information, please visit www.barfresh.com.
Forward Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's commercial progress and future financial performance. These forward-looking statements are identified by the use of words such as "grow", "expand", "anticipate", "intend", "estimate", "believe", "expect", "plan", "should", "hypothetical", "potential", "forecast" and "project", among others. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the Company's recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Furthermore, the Company does not intend, and is not obligated, to update publicly any forward-looking statements, except as required by law.