Packaging

Eldorado Artesian Springs Announces First Quarter 2008 Financial Results

Tuesday 12. August 2008 - Organic Vitamin Charged Spring Water Sales and Distribution Increasing

Eldorado Artesian Springs, Inc. (OTCBB: ELDO) today announced financial results for its first quarter ended June 30, 2008.
Revenue increased 2.4% in the first quarter to $2.2 million from $2.1 million in the first quarter last year. The increase is primarily attributable to two major factors: First, the Company’s new Organic Vitamin Charged Spring Water, introduced in September 2007, continues to gain market acceptance with sales increasing 84% in the first quarter versus the fourth quarter ended March 31, 2008. Second, a 27% year-over-year increase in sales of the Company’s private label PET products.
Total operating expense increased during the first quarter to $1.9 million from $1.7 million as the Company incurred higher delivery and fuel costs associated with gasoline price increases as well as higher professional fees and employee costs related to wages and insurance. In addition, the Company increased its investment in advertising and promotion in support of the rollout of its Organic Vitamin Charged Spring Water and incurred higher expenses related to strengthening its water rights portfolio. Net loss was $206,500, or $0.03 per basic and diluted share, versus a net loss of $49,000, or $0.01 per basic and diluted share, in the same quarter last year. The net loss included more than $116,000 in non-cash depreciation and amortization.
Doug Larson, president and CEO, said results were generally in line with management’s expectations, adding that new product and distribution activities in recent months bode well for continued year-over-year revenue gains well into the future.
“We have invested considerably over the past two years into projects that make us optimistic for significant revenue growth in the coming months,” Larson said. “Our new Organic Vitamin Charged Spring Water and a new one-gallon private label program initiated in June with one of the world’s largest retailers are expected to be the two principal drivers of our future. Our strategy is to continue to improve core operations and to use capital generated internally to expand distribution and promotion of the Organic Vitamin Charged Spring Water line. Major distribution channels for our Organic Vitamin Charged Spring Water include Albertson’s, Vitamin Cottage, K&G (Jenny’s Markets), and one of the nation’s premier health food supermarkets. Other distributors and food service organizations make the products available to more than 2,000 other retail outlets.”