Pulse Provides Q2-2015 Report And Outlook

Pulse Beverage Reduces its Losses and Commences Distribution in China and Mexico and introduces PULSE® Heart & Body Health through United Natural Foods Inc.

Aug 14, 2015, 16:01 ET from Pulse Beverage Corporation

DENVER, Aug. 14, 2015 /PRNewswire/ -- The Pulse Beverage Corporation ("Pulse" or "the Company") (OTCQX: PLSB), makers of Natural Cabana® Lemonades/Limeades and Coconut Waters, and PULSE® Heart & Body Health functional beverages, today provided the following update on its second quarter progress and outlook through the first half of 2016.

Pulse introduced Natural Cabana® Lemonade in 2012 and since then has added limeades and coconut waters to the brand in 2014 and developed a multi-national comprehensive distribution system through more than 147 distributors in 47 States, Canada, China, Mexico, Panama, and Ireland. Pulse currently distributes its brands through Sysco, The Sygma Network, Core-Mark, Snyder's-Lance, United Natural Foods Inc. and distributors for Anheuser Busch, Miller Coors, Pepsi, RC/7-Up and Cadbury Schweppes amongst others. Some of the more notable regional and national grocery and convenience chain stores are: Albertsons/Safeway, Walmart, Kroger/Fred Meyer, Kmart, Circle K, Walgreens, Wegmans, Fresh & Easy, 7-Eleven, Whole Foods, H-E-B, Hy-Vee Supermarket, Save Mart Supermarkets, Hannaford, Food City, Raley's Supermarkets, Price Chopper Supermarkets and WinCo Foods.

Business Highlights - Second Quarter 2015 to Date:                                 

  • During Q2-2015 net sales were down $159,000 over Q2-2014. This was due to orders for 16,000 cases received in June but not shipped until July due to production delays at a co-packer which was beyond our control. The net revenue and gross profit from these delayed sales were $188,000 and $64,000, respectively. We were up 70% over Q1-2015 due to warmer weather months. Overall operating expenses were down 22% and net loss was down 28% over Q2-2014. This was due to continued efforts to reduce general and administrative expenses while increasing contribution margin to 22%.
  • Pulse's working capital has remained healthy at $1.4 million bolstered by an equity injection of $1 million earlier this year. Pulse plans, in the near term, to leverage its working capital to obtain an asset-backed secured line of credit to provide up to $3.5 million in additional working capital to meet its expected future growth.
  • Pulse announced this week that its flagship product, PULSE® Heart & Body Health functional beverage, is ready for mass distribution through United Natural Foods Inc. and is debuted at 97 Fresh & Easy Neighborhood Markets in California, Nevada and Arizona. Natural Cabana® Lemonades and Limeades will also be featured. Pulse will be staging in-store demonstrations for all products at the higher traffic stores. This is necessary to educate the consumer as to the health benefits of PULSE®. The fact that it also tastes great will attract repeat customers seeking a healthy lifestyle.
  • Pulse placed its first order for coconut water for the Mexico market. Pulse ordered 15,000 cases from its new Asian manufacturer; the order is scheduled to arrive in Mexico in September. Pulse negotiated a contract for a lower product cost and lower shipping cost.
  • Pulse continues its plans to produce Natural Cabana® Lemonade/Limeade ("Limonada") for the Mexico market in a 16oz glass bottle format. A number of major Mexican supermarkets have agreed to order this product in the first quarter of 2016.
  • Pulse has Walmart store manager approval status across the country to sell Natural Cabana® Lemonade/Limeade. The Pulse team has set more than 180 Walmart stores to date. Walmart corporate has approved Natural Cabana® Lemonade/Limeade to be placed into a 500 store set during the first quarter 2016.
  • Wegmans 50 mega-stores accepted their first shipments of Natural Cabana® Lemonade/Limeade this quarter. They stocked their stores and warehouses with 4,000 cases of variety packs. Wegmans is rated the best overall grocery store in the United States for 2014, and is a US North Eastern favorite with its customers.
  • Pulse's Canadian distributor has stocked the cooler sets at all 497 Canadian 7-Eleven stores with Natural Cabana® Lemonade/Limeade. All 7-Eleven stores in Canada are corporately owned with 81 in Ontario and 416 in Western Canada.
  • Pulse secured a listing for its Natural Cabana® Lemonade and Limeade with Alon Brands 7-Eleven, the largest domestic licensee of 7-Eleven in the U.S., operating 296 convenience stores/gas stations in Central and West Texas and New Mexico. The listing includes three lemonade flavors and one limeade flavor in the cold box section.
  • Natural Cabana® Coconut Water and Natural Cabana® Raspberry Limeade have joined Natural Cabana® Lemonades in the high volume cold box section at 132 Fred Meyer Supermarkets in Oregon, Washington, Idaho and Alaska. Fred Meyer, Inc., a division of Kroger, is a chain of superstores founded in 1922.
  • Pulse is in the process of setting an additional 2,000 retail stores through September.

Bob Yates, Chief Executive Officer, said, "We achieved significant operational progress during the first half of 2015 to date. We have spent 3.5 years in establishing our distribution system and have secured product listings at some of the top regional and national retail stores. We believe this and the highlights discussed above will lead to a breakout second half 2015 and profitability in the first half of 2016. With the progress we are making, we are confident in the delivery and execution of our product launches, continued sales and marketing strategies and look forward to communicating more progress on this with our shareholders during the remainder of 2015."

About The Pulse Beverage Corporation

Pulse Beverage Corporation is an emerging beverage company that offers beverage brands that are great tasting, good-for-you, refreshing, low-calorie natural drinks. Combining all-natural ingredients, essential vitamins and minerals, Pulse's line of beverages provides consumers with high-quality, healthy alternatives at a reasonable price.

For more information, please visit: www.pulsebeverage.com or email info@pulsebeverage.com.
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Contact: Broker Relations
Ryan Congo / Keith Pinder – V.P
Corporate Project Manager
Acorn Management Partners LLC.

Contact: Shareholder Relations
Chris Lowe – COO and Director of Shareholder Relations



SOURCE Pulse Beverage Corporation