Jones Soda Company (JSDA) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.07 million in the quarter, against a net loss of $0.18 million in the last year period. Revenue during the quarter grew 8.50 percent to $4.08 million from $3.76 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 26.97 percent. Total expenses were 97.87 percent of quarterly revenues, down from 99.92 percent for the same period last year. This has led to an improvement of 205 basis points in operating margin to 2.13 percent.
Commenting on the industry and company chief executive officer Jennifer Cue stated, "Achieving profitability for our shareholders has been the number one priority since I came on board as CEO and personally invested almost $700,000. Now our attention is focused on higher margin growth from Lemoncocco, our new non-carbonated beverage, as well as Jones Soda on Fountain and opportunities in the specialty and craft soda segment of the beverage industry."
Working capital declines
Jones Soda Co has witnessed a decline in the working capital over the last year. It stood at $2.10 million as at Sep. 30, 2016, down 5.37 percent or $0.12 million from $2.22 million on Sep. 30, 2015. Current ratio was at 1.56 as on Sep. 30, 2016, down from 1.58 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 76 days for the last year period. Days sales outstanding were almost stable at 59 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 37 days for the quarter compared with 110 days for the previous year period. At the same time, days payable outstanding went down to 69 days for the quarter from 93 for the same period last year.
Debt increases substantially
Jones Soda Co has witnessed an increase in total debt over the last one year. It stood at $1.30 million as on Sep. 30, 2016, up 296.35 percent or $0.98 million from $0.33 million on Sep. 30, 2015. Jones Soda Co has witnessed an increase in short-term debt over the last one year. Total debt was 22.11 percent of total assets as on Sep. 30, 2016, compared with 5.40 percent on Sep. 30, 2015. Debt to equity ratio was at 0.61 as on Sep. 30, 2016, up from 0.15 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
