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Queénch 2003 Third Quarter Net Income Rose 76.8%
JERICHO, NEW YORK -- NOVEMBER 13, 2003 -- Queénch, Inc. (OTC: QENC) announced net income for the quarter ended September 30, 2003 of $143,921 or $0.01 per share compared to net income of $13,349 or $0.00 for the three months ended September 30, 2002
. This is an increase of 76.8% from the prior quarter, and a 987% increase year-to-year. Net income for the nine months ended September 30, 2003 was $272,848, or $0.01 per share, compared to $19,863 or $0.00 per share for the comparable period last year, resulting in a 1274% year-to-year increase.
Sales for the third quarter decreased 7.6% to $1,333,534 year-to-year, from $1,443,622, resulting from a decrease in volume due to unseasonably cool and abnormally wet weather across the Company's territories in July and August.
Cost of goods sold in the third quarter decreased by 19.7%, resulting in a year-to-year third quarter gross margin increase of 4.72%.
Selling, general & administrative expenses decreased 27.0% year-to-year in the third quarter to $315,893 as a result of improved supply chain management practices.
Lyndell Parris, President and Chief Executive Officer of Queénch, Inc., said: While the unseasonably cool and wet weather in July and August were disappointing, I am encouraged by the companys expense control through the last three quarters. We remained focused on improving net sales by bringing new products to market with innovative packaging, and strong supply chain management practices".
About Queénch, Inc.
Queénch, Inc. is a publicly held beverage company holding 24-year leases on four natural springs located in Canada, Florida, New York, and Oregon. Its mission is to provide superior enhanced bottled water products to the world through innovative business and marketing strategies, industry alliances, and cutting edge technology.
QUEENCH, INC.
CONDENSED CONSOLIDATED STATES OF OPERATIONS
(UNAUDITED) 3QTR ACTUALS
Sept 30, 2001 Sept 30, 2002 Sept 30, 2003
Sales $ 790,125 1,443,622 1,333,534
Cost of Goods Sold 528,363 730,509 586,755
Gross Profit 261,762 713,113 746,779
Operating Expense
Selling, general & administrative 113,978 432,446 315,893
Advertising 64,095 242,209 202,533
Amortization 2,931 22,752 22,752
Total Operating Expense 181,004 697,407 541,178
Income from operations
Operating Income 80,755 15,704 205,601
Income before income taxes 80,755 15,704 205,601
Income tax expense 12,112 2,355 61,680
Net Income 68,643 13,349 143,921
Net income per share -Basic 0.0006 0.0067
Weighted average shares used in computation --basic 22,070,073 22,070,073
Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Any prediction of the future in inherently not assured. This press release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements containing the words "anticipates," "believes," "intends," "estimates," "expects," "projects" and similar words. The forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by such forward looking statements. Such factors include, without limitation, stability of procurement costs for raw and packaging materials, competitive activities by national, regional and retailer brand beverage manufacturers, the Company's ability to integrate acquired businesses into its operations. The foregoing list of factors is not exhaustive. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward looking statements. The forward looking statements contained herein speak only of the Company's expectation as of the date of this press release. The Company disclaims any obligations to update any such factors or publicly announce the result of any revisions to any of the forward looking statements contained herein to reflect future events or developments.
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