subject: JAVO Beverage: (OTCBB:JAVO): -28% Coffee Prices to Rise Globally [print this page] Javo Beverage is down 28% today in early morning trading, and it looks like a larger shareholder is liquidating shares. Usually if smaller companies have institutional shareholders and they don't perform after a few quarters a fund will exit. I have not confirmed this, but as a fund managerI was often the one pulling the trigger exiting thinly traded microcaps that didn't pan out.
As Editor at WMM I included JAVO in out NanoCap Index awhile back, we have attempted to reach out to the company and the investor relations rep's, and we have written several articles about the company and the beverage industry in general including JAVO. In fact I have covered them since 2006 as beverage companies market caps continued to grow.
Here are some facts about JAVO from recent 10Q:
Gross sales increased 3.0% to $7.3 million in the second quarter 2009.
Dispensed products sales were $6.7 million compared to $6.5 million, or 3.4% above the second quarter 2009.
Net sales were $6.1 million, equal to the prior year period.
Gross profit margin as a percent of net sales was 39.6%, 6.1 percentage points below the same quarter last year.
Selling and marketing expenses for the quarter were lower by $531 thousand or 13.4% of net sales, an 872 basis point improvement from the second quarter 2009.
Net loss was $3.1 million for the quarter, a $1.6 million improvement over the second quarter of 2009. The second quarter loss included $2.2 million of non-cash expenses.
EBITDA (earnings before interest, taxes, depreciation and amortization) was a negative $61 thousand for the second quarter of 2010 compared to positive $171 thousand for the same quarter last year. Second quarter 2010 EBITDA included $343 thousand of one-time severance related expenses. Excluding these expenses, the Company would have achieved positive EBITDA for the quarter.
