BEVERLY HILLS, Calif., July 7, 2015 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (OTCQB:BRFH), a manufacturer of frozen, ready-to-blend beverages, is providing an update on its recent business developments. In addition, the Company filed its Form 10-K for the fiscal year ended March 31, 2015, with the SEC today.
Riccardo Delle Coste, the Company's CEO, stated, "We are extremely pleased with the significant progress that we have made since our last update call. Through our exclusive distribution agreement with the leading food service distributor in North America, combined with our success of selling large national accounts, we have dramatically increased the number of customer touch points throughout the United States. In addition, we continue to enhance our operating platform as we work with our partners to expand our reach with new and existing foodservice establishments throughout North America."
- In March 2015, the Company completed a capital raise of over $5 million. The financing provided Barfresh with additional working capital to enable the company to accelerate operations.
- Barfresh expanded its senior management team with the hiring of a new President, Chief Financial Officer, and Chief Brand and Strategy Officer. Each executive brings deep industry experience and expertise. In addition, the Company increased its sales force from 3 people in February to 23 people in July, throughout the United States.
- The Company expanded its distribution agreement with the nation's leading food distributor, and commenced its nationwide roll-out in April 2015. The agreement requires this distributor to carry Barfresh products in all of its 74 regional locations and makes Barfresh the exclusive single serve, pre-packaged beverage provider. As of today, Barfresh products have been rolled out to over 20 regional locations in 16 states throughout the country. It is anticipated that products will be in all 74 locations by spring 2016.
- Barfresh has increased its pipeline for national accounts. As of today, the Company has a number of national accounts in varying stages of negotiations, product development, and testing, representing over 20,000 locations. Two national accounts – Shari's Café and Pies and a national theme park operator, have completed testing and moved into its nationwide roll-out. The Company expects to begin "in store testing" phase with national accounts representing over 10,000 locations, by the end of this calendar year. The Company also expects that by the end of this year, to move from "in store test" to roll-out for a number of new national accounts.
- The Company is currently in discussions with a number of potential national contract manufacturing partners, each with multiple locations around the country, which would provide an additional 100 million annual units of capacity. The Company expects to finalize an agreement with one or more of these potential partners in the coming months. Utilizing multiple contract manufacturers will also allow the Company to produce products in a number of geographic locations throughout the U.S., creating an efficient and diversified supply source while avoiding significant capital expenditures as well as reducing overall freight costs.
Fiscal Year 2015 Financial Results
For the fiscal year ended March 31, 2015, revenue was $211,000, an increase of 92% compared to the prior year. Gross profit for fiscal 2015 was $84,000, compared to $61,000 in the prior year. Total operating expenses for fiscal 2015 were $3,211,909, as compared with $2,267,270 in fiscal 2014. The primary driver for the higher operating expense was the increase in personnel related expenses, including stock based compensation.
As of March 31, 2015, the Company had $5.4 million of cash, primarily resulting from the March 2015 private placement equity raise.
The Company's Form 10-K filed with the SEC contains more detailed financial information.
Mr. Delle Coste added, "Looking ahead, we are excited about the momentum of our business as we are well positioned to capitalize on consumers' growing demand for healthier beverages. Under our current manufacturing agreement, we have capacity of 14 million units per year, and we are actively engaged in discussions with additional US-based manufacturers that would further expand our capacity by an additional 100 million units, to ensure that we maximize our business potential. With our strong distribution network, expanded management team, and importantly, delicious and easy-to-serve product lineup, we look forward to accelerated growth in the coming quarters."
The Company will host a business update conference call today, Tuesday, July 7, 2015, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners may call (877) 407-9039 in North America, and international participants may call (201) 689-8470. Participants from the Company will be Riccardo Delle Coste, CEO, and Joseph Tesoriero, CFO.
A telephonic playback will be available from 4:30 pm Pacific Time, July 7, 2015, to 4:30 pm Pacific Time, July 21, 2015. Participants can dial (877) 870-5176 from North America, and international participants can dial (858) 384-5517. Passcode is 13612870.
About Barfresh Food Group
Barfresh Food Group, Inc. (OTCQB:BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company's proprietary, U.S. patent-pending system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste. Barfresh has an exclusive distribution partnership with the leading food distributor in North America. For more information, please visit www.barfresh.com/us.
Forward Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's commercial progress and future financial performance. These forward-looking statements are identified by the use of words such as "grow", "expand", "anticipate", "intend", "estimate", "believe", "expect", "plan", "should", "hypothetical", "potential", "forecast" and "project", among others. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the Company's recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10K and Quarterly Report on Form 10Q. Furthermore, the Company does not intend, and is not obligated, to update publicly any forward-looking statements, except as required by law.
CONTACT: Kristen Nungesser ICR 646-277-1261 Kristen.Nunngesser@icrinc.com OR John Mills ICR 646-277-1254 John.Mills@icrinc.com