Sunday, August 12, 2012

Summary of Jones Soda (JSDA) Q2 2012 Earnings Conference Call August 9, 2012

The most important goal for Jones Soda right now is to control costs, and in Q1, the Board of Directors implemented a new cost control strategy, which has improved the company's year-over-year earnings.  The company continues to focus on reducing expenses that are not related to sales and distribution activities. 

Jones Soda is reducing its corporate sponsorship and corporate marketing activities.  It believes the brand can better be developed by working with the company's distributors to get more and more accounts opened for Jones Soda.

The company is evaluating its line up of flavors and considering the preferences of its fans, including some discontinued items, such as Grape and Crushed Melon.  However, it also has to maintain a manageable number of flavors.  It will continue to focus on WhoopAss, especially in the gas station and convenience store channels.  It will also have a natural soda in its line up in 2013. 

Revenue increased 7 percent due to increased case volumes.  Net loss was reduced by $1.4 million.   Expense line items had double digit declines.

The company acknowledged that September 10 is the deadline for the stock to be delisted and it will not try to manage the stock price. 

The entire conference call transcript can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/801541-jones-soda-s-ceo-discusses-q2-2012-results-earnings-call-transcript

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