Clearly Canadian Announces Third Quarter Fiscal 2007 Financial Results



    VANCOUVER, BRITISH COLUMBIA, November 14 /CNW/ - Clearly Canadian
(OTCBB:CCBEF) (the "Company") today announced results for the third quarter of
fiscal 2007.

    Total revenues for the three months ended September 30, 2007 were $3.3
million compared to $2.0 million for the same period in 2006, up 64%
year-over-year. The Company's recently acquired healthy snack and organic baby
food divisions, which were acquired in February and May of 2007 respectively,
account for this revenue growth. Total revenues for the nine months ended
September 30, 2007 were $7.8 million compared to $6.4 million, up 22% compared
to the same period last year. Revenue for the two acquisitions, on a
standalone basis, for the nine months ended September 30, 2007 are up 48% for
the Company's healthy snack products and 338% for the Company's organic baby
food products, compared to the same period in 2006. Revenues for the Company's
beverage division decreased 38% for the nine months ended September 30, 2007
compared to the same period in 2006.

    Brent Lokash, CEO, stated, "We are very pleased that the Company now has
positive revenue growth for the first time in many years. While this growth is
derived from our acquisitions, both of these divisions are demonstrating
strong internal growth rates. We are addressing the decline in our beverage
sales through the introduction of new products, such as our new Natural
Enhanced Waters and our new 1 Litre format of our core sparkling flavoured
waters. Most importantly, we have also hired INOV8 Beverage Company, led by
Mike Weinstein, former CEO of Snapple, and Brian O'Byrne, former CEO of
Yoo-Hoo/Orangina, to create, execute and manage a strong growth and
economically feasible format for our core sparkling flavoured waters."

    Gross margin for the third quarter of 2007, on a normalized basis
(excluding non-recurring inventory items) decreased to 21% versus 30% in the
third quarter of the prior year. Total selling, general and administrative
expenses (not including non-cash items) as a percentage of sales for the third
quarter decreased to 56% from 59% in the corresponding period in the prior
year. The loss, on a cash basis, for the three months ended September 30, 2007
was approximately $1.4 million, compared to $600,000 for the three months
ended September 30, 2006.

    Use of Non-GAAP and Non-Audited Financial Measures

    All figures referred to herein are stated in US dollars unless otherwise
indicated. Included above are non-GAAP financial measures such as revenues for
each division, selling, general and administrative expenses, loss and gross
margin and non-audited financial measures for prior year revenues from the
Company's recent acquisitions. Management believes that the presentation of
these non-GAAP financial and non-audited measures provide useful information
to investors and a consistent basis for comparison between quarters and of
growth rates on a year-over-year basis that are not influenced by certain
non-cash charges. These measures are some of the primary measures the
Company's management uses for planning and forecasting. These measures are not
in accordance with, or an alternative to, Canadian GAAP and these measures may
not be comparable to information provided by other companies. Canadian GAAP
results are presented at the end of this press release. 2007 Q3 financials
statements including notes to the financial statements and MD&A will be filed
at the end of November.

    Conference Call

    The Company will hold a conference call to discuss its financial results
for the third quarter of 2007 on November 14, 2007. The call will begin at
4:30 p.m. EST. The live phone call-in number is 800-949-8476. The conference
will also be webcast live and can be accessed on the Company's website at
www.clearly.ca. A replay of the webcast will be available on the site after
the end of the live call.

    About Clearly Canadian

    Based in Vancouver, B.C., Clearly Canadian Brands markets premium
alternative beverages, including Clearly Canadian(R) sparkling flavoured
waters and Clearly Canadian dailyEnergy, dailyVitamin and dailyHydration
Natural Enhanced Waters which are distributed in the United States, Canada and
various other countries. Clearly Canadian's recent acquisition of DMR Food
Corporation and My Organic Baby Inc. marks the Company's debut into organic
and natural products with a full line of organic baby and toddler foods under
the brand names My Organic Baby and My Organic Toddler and a wide range of
dried fruit and nut snacks offerings from SunRidge Farms, Naturalife, Sweet
Selections, Simply by Nature and Glengrove Organics brands. Additional
information about Clearly Canadian may be obtained at www.clearly.ca.

    Forward Looking Statements

    Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties. Words
such as "expects", "intends", "plans", "may", "could", "should",
"anticipates", "likely", "believes", "estimates", "potential", "predicts",
"continue" and words of similar import also identify forward-looking
statements. Forward-looking statements are based on current facts and analysis
and other information that are based on forecasts of future results, estimates
of amounts not yet determined and assumptions of management, including but not
limited to, the belief in the opportunities which can exist for our products
and the revenue growth for the Company. These assumptions are subject to many
risks, and actual results may differ materially from those currently
anticipated. These risks include, by way of example and not in limitation,
general economic conditions, changing beverage consumption trends of
consumers, the Company's ability to generate sufficient cash flows to support
general operating activities and capital expansion plans, competition, pricing
and availability of raw materials, the Company's ability to maintain the
current and future retail listings for its beverage products and to maintain
favorable supply, production and distribution arrangements, laws and
regulations and changes thereto that may affect the way the Company's products
are manufactured, distributed and sold and other factors beyond the reasonable
control of the Company. Additional information on factors that may affect the
business and financial results of the Company can be found in filings of the
Company with the U.S. Securities and Exchange Commission and with the British
Columbia and Ontario Securities Commissions.

    
    CLEARLY CANADIAN BEVERAGE CORPORATION
    Consolidated Balance Sheets
    (Expressed in thousands of United States dollars, except for share and
     per share amounts)

    ----------------------------------------------------------------------
                                      September 30, 2007 December 31, 2006
                                             (Unaudited)         (Audited)
    ----------------------------------------------------------------------

    Assets

    Current assets:
     Cash and cash equivalents            $       5,061  $          5,267
     Cash held in trust - debenture
      financing                                   5,019                 -
     Accounts receivable                          1,047               634
     Inventories                                  1,897               427
     Prepaid expenses and other
      current assets                              1,329               533
     ---------------------------------------------------------------------
                                                 14,353             6,861

    Property, plant and equipment                 1,669             1,153
    Prepaid contracts                                 -             1,079
    Goodwill                                      7,493                 -

    ----------------------------------------------------------------------
                                          $      23,515  $          9,093
    ----------------------------------------------------------------------

    Liabilities and Shareholders'
     Equity


     Bank indebtedness                    $         266  $              -
     Accounts payable and accrued
      liabilities                                 2,633             1,608
     Capital lease obligation, current
      portion                                        58                 8
     ---------------------------------------------------------------------
                                                  2,957             1,616

    Convertible note payable                     11,637                 -
    Discount on convertible note
     payable                                     (6,035)                -
    Derivative convertible note
     payable                                         (2)                -
    Capital lease obligation, net of
     current portion                                164                13
    Long-term debt                                   17                 -
    ----------------------------------------------------------------------
                                                  8,738             1,629
    Shareholders' equity:
     Capital stock:
       Authorized:
       Unlimited common share without
        par value
       Unlimited variable multiple
        voting shares without par
        value
       2,000,000 class A preferred
        shares
       2,000,000 class B preferred
        shares
       Outstanding -600,000 (2006 -
        1,600,000) class B preferred
        shares                                      600             1,600
       Issued - 21,172,068 (2006 -
        13,917,153) common shares
        without par value
       Outstanding - 21,134,768 (2005
        - 13,879,853) common shares
        without par value                        83,438            75,730
       Variable multiple voting shares
        - 1,120,000 (2006 - 320,000)
     Contributed surplus                         17,871             8,290
     Accumulated other comprehensive
      loss                                          288            (1,101)
     Deficit                                    (87,420)          (77,055)
     ---------------------------------------------------------------------
                                                 14,777             7,464

    ----------------------------------------------------------------------
                                          $      23,515  $          9,093
    ----------------------------------------------------------------------
    

    
    CLEARLY CANADIAN BEVERAGE CORPORATION
    Consolidated Statement of Operation and Comprehensive loss
    (Unaudited)
    (Expressed in thousands of United States dollars, except for share and
     per share amounts)

                                  Unaudited               Unaudited
                            For the 3 months ended  For the 9 months ended

                               Sept. 30   Sept. 30      Sept. 30  Sept. 30
                                   2007       2006          2007      2006
                                      $          $             $         $
    ----------------------------------------------------------------------
    Sales                         3,312      2,022         7,775     6,397

    Cost of sales                 2,778      1,402         6,311     4,654
    ----------------------------------------------------------------------

    Gross profit                    534        620         1,464     1,743
    ----------------------------------------------------------------------

    Selling, general and
     administration
     expenses                     2,444      2,072        10,629     7,755
    Amortization of
     property, plant and
     equipment                       38         18            50        78
    Royalty revenue                   -          -             -      -125
    Interest income                 -64        -64          -211       -70
    Other income expense             -3          3           -16       -10
    Financing cost                    -          -             -       132
    Interest on short-term
     debt                            -5          -             5       125
    Interest on long-term
     debt                            20          1            23        25
    Interest on acquisition
     debt                            95          -           220         -
    Interest on convertible
     note                             5          -             5         -
    Gain on sale of
     investments                      -          -             -      -201
    Foreign exchange loss           412          -         1,061         -
    Loss on settlement of
     debt                             -        798             -       798
    Restructuring expense             -          -             -       112
    ----------------------------------------------------------------------

                                  2,942      2,828        11,766     8,619
    ----------------------------------------------------------------------

    Net loss earnings and
     comprehensive               -2,408     -2,208       -10,302    -6,876
    loss for the period
    ----------------------------------------------------------------------

    Loss per share, basic
     and diluted                  -0.12      -0.19         -0.53     -0.74
    ----------------------------------------------------------------------

    Weighted average number
     of shares outstanding   20,809,731 11,754,491    19,485,482 9,331,203
    

    
    CLEARLY CANADIAN BEVERAGE CORPORATION
    Consolidated Statement of Cash Flows
    (Unaudited)
    (Expressed in thousands of United States dollars, except where
     indicated)
    For the nine months ended September 30, 2007 and 2006

    ----------------------------------------------------------------------
                                   Unaudited              Unaudited
                             For the 3 months ended For the 9 months ended
                                Sept. 30   Sept. 30    Sept. 30   Sept. 30
                                    2007       2006        2007       2006
                                       $          $           $          $
    ----------------------------------------------------------------------
    Cash flows from
     operating activities
    Loss for the period           -2,408     -2,208     -10,303     -6,876
    Items not involving cash         581      1,676       4,224      4,412
    Changes in non-cash
     working capital
     balances related to
     operations                   -5,058         78      -4,262         61
    ----------------------------------------------------------------------
                                  -6,885       -454     -10,341     -2,403

    Cash flows from
     financing activities
    Subscription payable
     (receivable)                      -          -           -          -
    Proceeds from issuance
     of capital stock and
     warrants                        261      3,179       4,690      7,728
    Proceed from convertible
     notes payable                 9,000          -       9,000          -
    Increase (decrease) in
     bank indebtedness                30        -50          96       -361
    Dividend paid on class B
     preferred shares                  -          -         -61          -
    Repayment of long-term
     debt                            -12          -         -32          -
    ----------------------------------------------------------------------
                                   9,279      3,129      13,693      7,367

    Cash flows from
     investing activities
    Proceeds from sale of
     property, plant and
     equipment                         -          -           -        358
    Proceeds from sale of
     long-term investment              -          -           -        230
    Cash used in acquisition
     of DMR Food Corporation      -1,356          -      -1,698          -
    Cash used in acquisition
     of My Organic Baby Inc.      -2,659          -      -3,007
    Purchase of property,
     plant and equipment              -7          -         -34        -24
    ----------------------------------------------------------------------
                                  -4,022          -      -4,739        564

    Effect of exchange rates
     on cash and cash
     equivalents                     539       -102       1,181         92
    ----------------------------------------------------------------------

    Increase (decrease) in
     cash and cash
     equivalents                  -1,089      2,573        -206      5,620

    Cash and cash
     equivalents - Beginning
     of period                     6,150      3,567       5,267        520
    ----------------------------------------------------------------------

    Cash and cash
     equivalents - End of
     period                        5,061      6,140       5,061      6,140
    ----------------------------------------------------------------------

    Interest paid                     15          1          13        150
    ----------------------------------------------------------------------

    Income taxes paid                  -          -           -         36
    ----------------------------------------------------------------------
    




For further information:

For further information: Clearly Canadian, Vancouver Shareholder
Relations: Steve Cook, 800-983-0993 E-mail: investor@clearly.ca or Marketing:
Carolyn Corcoran, 604-742-5318 Email: ccorcoran@clearly.ca

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CLEARLY CANADIAN

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