Press Release Source: Green Earth Technologies
Wednesday November 19, 2008, 4:30 pm EST
STAMFORD, Conn.--(BUSINESS WIRE)--Green Earth Technologies (Pink Sheets: GETG - News), which has embarked on a mission to develop, produce, market and distribute bio-based and bio-degradable performance and appearance products for the home, lawn care, automotive and marine markets, announced today that it has completed its financial statement audit for the fiscal year ended June 30, 2008.
Key accomplishments since the company was founded in 2007 include the following:
Jeff Marshall, CEO of Green Earth Technologies, stated: “We are creating a powerful consumer brand that we believe will become the choice of consumers seeking products that are both green and effective. We have initially focused on categories considered to be among the biggest contributors to environmental damage by launching a complete line of innovative, bio-degradable performance & appearance products. This will have an immediate positive impact by lowering carbon emissions and lessening the pollution of our land and waterways.
“We are making good progress with our marketing and product initiatives, which we believe will lead to significant revenue increases in an addressable global market that exceeds $200 billion. In August, The Home Depot started carrying our 2-cycle engine oils, as well as the bar & chain lubricants,” added Mr. Marshall. “In addition we are particularly pleased about G-OIL passing the engine tests criteria for API certification. Production of our products has been accelerating and we expect to produce predictable quarter-over-quarter revenue growth and steady progress toward profitability.”
For the year ended June 30, 2008, the Company reported net sales of approximately $290,000. As mentioned above, sales of the Company’s products commenced only in April 2008 and consisted primarily of appearance products. Net loss was $16.7 million, or ($0.42) per share which includes $12.6 million, or ($0.32) per share, in non cash stock-based compensation. The common shares were issued in exchange for royalty-free licenses and exclusivity rights, patents, certain intellectual property and for services and compensation to various parties, including employees and non-employees.
At June 30, 2008, cash and cash equivalents totaled $2.0 million, inventory totaled $1.2 million and total stockholders’ equity was $4.3 million. During the year the Company did not capitalize any costs for research and development or costs for testing its motor oils.
|KEY FINANCIAL METRICS|
|(in thousands, except per share amounts)|
June 30, 2008
|Net loss||$||(16,682 )|
|Interest expense, net||424|
|Amortization and depreciation||200|
|Adjusted EBITDA loss||$||(3,495)|
|Net loss per share||($0.42)|
|Adjusted EBITDA per share||($0.09)|
In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes the non-cash charge for stock compensation expense. The Company provides the above reconciliation to net loss, which is the most directly comparable GAAP measure. The Company presents adjusted EBITDA as it is a common alternative measure of performance that is used by management as well as investors when analyzing the financial position and operating performance of the Company by excluding certain non-cash expenses, such as stock compensation expense, as well as non-operating items that are not indicative of its core operating results. Furthermore, this non-GAAP financial measure is one of the primary indicators management uses for planning and forecasting future periods. As adjusted EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net loss or any other GAAP measure. Because not all companies calculate adjusted EBITDA in the same manner, the Company's definition of adjusted EBITDA might not be consistent with that of other companies.
ABOUT GREEN EARTH TECHNOLOGIES
Green Earth Technologies produces G-branded superior performing totally green products made with American-grown base oils that utilize the power of nanotechnology to deliver environmentally friendly products with no compromise... meaning, consumers can now "do their part" without having to give up performance or value: Save the Earth – Sacrifice Nothing. The G-brand family of products include G-OIL™, G-WASH™ , G-GLASS™, G-SCENT™ , G-WHEEL™ and G-TIRE™ and are offered in a wide range of automotive categories including performance and appearance chemicals. GET products are available at The Home Depot VIP, National Auto, Fred Meyer, participating ACE & True Value dealers, Redners, Trader Horns, The Andersons, Biggs, Bennett Auto, Frank’s Auto Supermarket and Amazon.com.
ICR Investor contact: Ina McGuinness, 310-954-1100 or Press contact: Brian Ruby, 203-682-8268 Brian.firstname.lastname@example.org