Brownie’s Marine Group Reports First Quarter Results
Revenues Increase 67.6%, Gross Margin Significantly Improved
FORT LAUDERDALE, Fla., May 22, 2012 -- Brownie's Marine Group, Inc. (OTCBB:BWMG), a leading developer, manufacturer and distributor of highly specialized dive and safety products, today announced its operating results for the first quarter ended March 31, 2012;
- Revenue increased 67.6% to $ 608,126 for the quarter ended March 31, 2012 compared to $362,900 for same period ended March 31, 2011.
- The gross profit margin increased to 22.3% for the quarter ended March 31, 2012 compared to 6.4% for the same period ended March 31, 2011
- Total operating expenses in 2012 increased from to $439,948 from $229,630 in 2011. 2012 expenses operating expenses results included approximately $205,000 of non-cash expenses comprised of $125,000 of amortization of equity based compensation and approximately $80,000 in consulting fees and legal expenses.
- Loss per share was ($0.01) for period ended March 31, 2012 compared to $(0.06) for the same period ended March 31, 2011.
- On March 8, 2012 Brownie’s acquired the assets of a Boca dive store in Boca Raton, Florida for a combination of cash and restricted stock. The new store has been refurbished to include a broad range of water sports products, training and services at a level not customarily found at traditional “big box” outlets or online. The Store will operate under the name Brownie’s Boca Dive and Paddle (“Brownie’s Boca Dive”) and serve as a smaller version prototype of a prototype larger new concept store, the Brownie’s Adventure Center (“BAC”). The full scale BAC includes significant activity and training facilities that will assist Brownie’s at outpacing all competitors in this market space. The Company is currently working on obtaining financing and seeking strategic partners to open its first BAC store.
- In April 2012 Brownie’s launched a new resort operator dive experience licensing program and product named TOOKA™TM (Tank Supplied Hookah), with its first location on Singer Island near West Palm Beach, Florida
- On April 13, 2012, the Company announced its entry into the "SUP" (Stand Up Paddle Board) marketwithbasedits new ventureout of its newBrownie’sBoca Diveand Paddlelocation andas part of itsstrategic alliance with Precision Paddleboards in Fort Lauderdale, Florida.
- On May 7, 2012 Brownie’s began accelerating the testing of an application of Molecular Impact Energy (MIE) for the marine industry for which it has exclusive rights. Brownie's will be seeking venture partners to pursue the potential commercialization of the invention. The Molecular Impact Energy (MIE) invention, if successful, could significantly change the current limitations of steam engines and steam propulsion and usher in innovation incorporating new material technology and state-of-the-art computerized intelligent control systems that will leverage and amplify this technology.
- On May 11, 2012 Brownie’s entered into a strategic agreement with SunStar Aquatic Services to provide professional dive trips, and training solutions for Boca Dive.
Robert Carmichael, Brownie’s Chairman and CEO stated, “We are very pleased with our first quarter results. We believe that the increase in sales is indicative of an improving economy for the marine industry in which we operate. Since the beginning of the year we have focused on improving our sales and marketing efforts while trying to improve our liquidity. The additional non-cash expenses we incurred this quarter in the form of stock compensation enables us to preserve cash while attracting high caliber professionals and consultants to help us execute our aggressive growth plans and our goal of reaching profitability.”
About Brownie's Marine Group, Inc.
Brownie's Marine Group, Inc. and its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung, based in Fort Lauderdale, Florida designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and Nitrox Generation Systems, and scuba and water safety products. The Company sells its products both on a wholesale and retail basis and is comprised of three highly specialized dive product groups. The Company is an industry leading manufacturing and distribution company that serves middle income boat owners, higher income yacht owners, recreational divers, military operators and public safety personnel. The Company holds more than ten patents and enjoys a robust product development and intellectual property program that has yielded several proprietary products. Many of these products and innovations have become the "standard" for the marine industry. The Company is known for its meticulous devotion to detail, high quality production and design ingenuity. In the boating and diving community, Brownie's is known as the market leader when it comes to surface supplied "Third Lung" dive systems and Scuba Tankfill Systems for yacht-based diving. Brownie's products and support service divers at all levels of the underwater world, from shallow-water dive systems to deep-water mixed gas support systems for exploration divers and submariners.
In 2011, Brownie's introduced the first in a series of patent-pending Variable Speed Battery Powered Third Lung (hookah diving) devices engineered to conserve energy while delivering performance to the diver.
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, limited financial resources, general economic conditions in the marine industry, commercializing new technology, obtaining financing to open a BAC store, difficulty in identifying and marketing products, intense competition and additional risks factors as discussed in reports filed by the company with the Securities and Exchange Commission, which are available at http://www.sec.gov.
For more about Brownie's, www.browniesmarinegroup.com.