Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - cbdMD, Inc. | levb_8k.htm |
Exhibit 99.1
Level Brands Reports 79% Year-over-Year Sales Growth and $0.03 EPS
for Q3
●
Total
Net Sales up 105% for the nine-months ended June 30 compared to
same period 2017
●
Gross
Profit as a Percentage of Net Sales was 65.4% in Q3 and 73.3% for
the nine months ended June 30
●
Net
Income of $206,074 in Q3 and $477,542 for the nine-months ended
June 30 vs. losses in year ago periods
CHARLOTTE,
N.C.—August 14, 2018—(BUSINESS WIRE)--Level Brands,
Inc. (NYSE American: LEVB), an innovative brand management and
licensing company that provides bold, unconventional, and socially
responsible branding for leading businesses, today announced
financial and operating results for its third quarter and nine
months ended June 30, 2018.
FINANCIAL HIGHLIGHTS:
●
Total net sales
increased 79% and 105% to $3.2 million and $7.0 million,
respectively, for the three and nine-month periods ended June 30,
2018 from the comparable periods in fiscal 2017.
●
Gross profit as a
percentage of net sales was 65.4% for the three months ended June
30, 2018. For the nine-month period, gross profit as a percentage
of net sales was 73.3%.
●
Net income
attributable to common shareholders improved 197.8% to $206,074 in
the three months ended June 30, 2018 from the comparable period in
fiscal 2017. For the nine-month period, net income improved 134.1%
to $477,542, up from a loss of $1.4 million in the prior-year
comparable period.
“We’re
pleased to report another quarter of profitability,” stated
Martin A. Sumichrast, Chairman and CEO of Level Brand. “While
we continue to generate strong year-over-year revenue growth,
it’s important to note the royalty components of many of the
licensing deals signed this year have yet to be generated and
therefore are not reflected in our reported numbers. As we execute
on these agreements and continue to sign more clients, our pipeline
of potential future royalties grows exponentially, and with no
inventory and tight cost controls, we believe our high margin
operation should see much of this reach our bottom line, which
should lead to significant shareholder value
creation.”
“We
believe leveraging the kathy ireland® Worldwide
“blueprint” for IP development allows us economies of
scale, which underpins our ability to bring virtually unlimited
products and services of quality through the appropriate
distribution channels to meet the demands of our targeted
customers. With current executed contracts encompassing products in
fashion, accessories, beverages, personal care, health care, and
spirits, which are already in development or available at brick and
mortar stores and online retailers, we believe we have the right
foundation for sustained success and growth,” continued Mr.
Sumichrast.
1
NINE-MONTH 2018 AND RECENT OPERATIONAL HIGHLIGHTS:
●
Signed a 10-year,
multimillion-dollar cannabidiol (CBD) products license deal with
Isodiol International Inc. (CSE: ISOL)
(OTCQB:ISOLF)
(FSE: LB6A.F)
●
Isodiol launched
first five new CBD kathy ireland® Health & Wellness
branded products as part of Isodiol license agreement
●
Brought together
Isodiol and SG Blocks, another Level Brands’ client, to
roll-out KURE Corp.’s specialty Vape Pod™
stores
●
Signed five-year
licensing agreement with Gravocore fitness system, launched in 2017
in an exclusive partnership with Amazon
●
Partnered with BMG,
a multinational record label and the world’s fourth-largest
music-publishing company, to launch new record label with three
project agreement
●
Signed seven-year
licensing agreement with Boston Therapeutics to market its diabetes
supplement, Sugardown®; deal generates $850,000 in upfront
fees plus royalties on gross sales
●
Party to a
three-year licensing agreement with Lamps Plus to showcase artwork
of world-renowned neo-pop artist Romero Britto
●
Damiva launched
100% natural women’s personal care products into health food
stores with kathy ireland® Worldwide
●
Signed a five-year
licensing deal with Dynasty Group USA, one of the largest
American-owned manufacturers of high-quality, cruelty-free cosmetic
brushes
●
Signed a licensing
agreement with Society Hill Spirits for new Beauty & Pin Ups
vodka line
●
Opened corporate
office and design studio in Los Angeles
“I’ve
very proud of what Level Brands has accomplished in 2018,”
continued Mr. Sumichrast. “Our performance reflects the
strong foundation that Level has laid with the strength of our
team. By leveraging the expertise and talent of the kathy
ireland® Worldwide executive team, we believe Level Brands has
a distinct competitive advantage in securing strategic licenses and
joint venture partnerships for our clients, positively impacting
our ability to continue to grow the portfolio of brands we manage
and represent. We’re excited for what the future holds and
believe we are ideally positioned to capitalize on
multi-billion-dollar opportunities in millennial men’s
lifestyle markets and the health and wellness arena for women and
their families at every age.”
CONFERENCE
CALL DETAILS
Tuesday, August 14,
2018, 9:00 a.m. Eastern Time
Domestic:
1-877-451-6152
International:
1-201-389-0879
Conference
ID: Level
Brands
Replay – Available through August 28, 2018
Domestic:
1-844-512-2921
International:
1-412-317-6671
Conference
ID: 13682173
2
About Level Brands, Inc. (www.LevelBrands.com)
Level
Brands is an innovative brand management and licensing company that
provides bold, unconventional, and socially responsible branding
for leading businesses. The focus of LEVB is licensing and
corporate brand management for consumer products, including art,
beauty, fashion, the beverage space, health and wellness, and
entertainment. License brand marketing is at the core of the Level
Brands businesses: kathy
ireland® Health & Wellness; Ireland Men One
(I’M1), a men’s lifestyle brand established to
capitalize on potentially lucrative licensing and co-branding
opportunities with brands focused on millennials; Encore Endeavor
One (EE1), a provider of corporate brand-management services and
producer of experiential entertainment events and products across
multiple platforms.
Forward-Looking Statements
This
press release contains certain forward-looking statements that are
based upon current expectations and involve certain risks and
uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can
be identified by the use of words such as ''should,'' ''may,''
''intends,'' ''anticipates,'' ''believes,'' ''estimates,''
''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and
''proposes.'' These forward-looking statements are not guarantees
of future performance and are subject to risks, uncertainties, and
other factors, some of which are beyond our control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements,
including, without limitation, statements made with respect to our
material dependence on our relationship with kathy ireland®
Worldwide, our limited operating history, our ability to expand our
business and significantly increase our revenues and our ability to
report profitable operations in future periods, among others. You
are urged to carefully review and consider any cautionary
statements and other disclosures, including the statements made
under the heading "Risk Factors" in Level Brands, Inc.'s Annual
Report on Form 10-K for the fiscal year ended September 30, 2017 as
filed with the Securities and Exchange Commission (the "SEC") on
December 26, 2017 and our other filings with the SEC. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements, many of which are generally outside the
control of Level Brands, Inc. and are difficult to
predict. Level Brands, Inc. does not undertake any
duty to update any forward-looking statements except as may be
required by law.
Contact:
Investors:
RedChip
Companies
Craig
Brelsford, 407-644-4256
craig@redchip.com
3