Jones Soda Co. (PNK:JSDA) Q4 2023 Earnings Call Transcript

Jones Soda Co. (PNK:JSDA) Q4 2023 Earnings Call Transcript March 14, 2024

Jones Soda Co. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good afternoon, everyone. Thank you for participating in today's conference call to discuss Jones Soda's Financial Results for the Fourth Quarter and Full Year ended December 31, 2023. Before we begin, let me remind everyone of the Company's Safe Harbor disclaimer. Certain portions of our comments today will concern future expectations, plans and prospects of the Company that constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements containing verbs, such as aims, anticipates, estimates, expects, believes, intends, plans, predicts, will, may, continue, projects or targets and negatives of these words and similar words or expressions.

Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could affect our actual results include among others, those that are discussed under the heading Risk Factors in our most recently filed reports with the SEC, including our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K. In addition, this call includes discussions of certain non-GAAP financial measures, including adjusted EBITDA. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on the Company's website under Investor Relations.

This call will be available for telco replay through March, starting at 7.30 p.m. Eastern Time tonight. A webcast replay will also be available via the link provided in today's press release, as well as on the company's website. And now, I would like to turn the call over to the President and CEO of Jones Soda, Mr. David Knight.

A shelf filled with a variety of bottles of energy drinks, juices, and sodas in a convenience store.

David Knight: Hey thanks, John and thank you, everyone for joining. As I continue to become further ingrained in the operations of Jones Soda and see the opportunities at hand, I have become more and more confident in our ability to take this company to new heights. My main focus areas from day one have been delivering great taste and growth through both innovation and marketing. I strongly believe that we are setting the stage to do that on a larger scale than Jones Soda has ever achieved before with unique and compelling product offerings across a multitude of channels and categories. As you have most likely read recently, there was a new buzz around the craft soda category with continued innovation and product news. Jones was well primed to capture these opportunities and will be a leader in sodas and beyond.

When looking at our fourth quarter results, we obviously didn't close out the year where we would have liked to. We were still dealing with headwinds in our grocery channel, as a result of decreasing sales velocities, in addition to our foodservice channel, still struggling during the quarter. We did however see some bright spots as our Mary Jones business continued its expansion and delivered strong results. In fact, looking at the entire year, our Mary Jones business delivered over $1 million in revenue for 2023. And we are really only just getting started. We also maintained a strict cost discipline to make progress towards achieving bottom line profitability. And despite a onetime impact on our gross margins in the fourth quarter, we remain on track to achieve our goal of consistently reporting, gross margins in the mid 30s.

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