Brownie's Marine Group Reports Third Quarter and YTD Results
Revenues Increase 50.2%, Gross Margin Significantly Improved
FORT LAUDERDALE, Fl., November 14th, 2012 (GLOBE NEWSWIRE) -- 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 third quarter and nine month year-to-date periods ended September 30, 2012 and September 30, 2011.
Third Quarter 2012 compared to Third Quarter 2011
- Revenue increased 50.2% to $990,388 in 2012 compared to $659,261 in 2011.
- The gross profit margin increased to 39.3% in 2012 compared to 25.6% in 2011
- Total operating expenses increased from $361,341 in 2011 to $483,735 in 2012.
- The loss from operations was 94,915 in 2012 compared to a loss of $192,331 in 2011
Nine months YTD 2012 compared to Nine Months YTD 2011
- Revenue increased 45.1% to $2,349,004 in 2012 compared to $1,619,355 in 2011.
- The gross profit margin increased to 33.4% in 2012 compared to 24.2% in 2011
- Total operating expenses increased from $999,260 in 2011 to $1,419,074 in 2012.
- The loss from operations was $633,481 in 2012 compared to a loss of $607,765 in 2011
Operating expenses for the nine month period ended September 30, 2012 include approximately $473,000 in non-cash expenses comprised of amortization of equity based compensation, officers compensation, and consulting, legal, and other professional expenses; compared to $27,000 in these same expense categories for the nine month period ended September 30, 2011.
Recent 2012 Highlights
- August: New high-production compressor housing tooling and first round of parts begin integration to production line after 2-years of development and begin yielding substantial margin and consumer benefits.
- September: West Marine, the largest specialty retailer of boating supplies and accessories in the world, features the Company’s new, patent-pending “VS” dive system in the Annapolis Sail and Powerboat Show’s
- October: announced it had entered into a strategic agreement with Triton Submarines, LLC ("Triton") whereby both parties have agreed to actively promote each other's product lines in addition to their own products, thereby earning referral fees on the value of the incremental revenues generated.
- November: negotiates favorable lease with new property owner of the Company’s main facility representing +$10,000/month in cash savings.
- November 14th will mark the opening of the dive industry’s annual “DEMA” show in which Bauer Compressors Inc will introduce the Company’s patented Nitrox Maker and strategic partnership to the global dive world.
Robert Carmichael, Brownie's Chairman and CEO stated, "We have made tremendous operating progress in 2012 and entered into a number of alliances and agreements that we believe will have a significantly positive impact on Brownie’s in future periods. I want to personally thank the dedicated employees of Brownie’s, our Board of Directors, and our outside professionals who have sacrificed, persevered and have supported us during a very difficult period in Brownie’s history, and in our in industry. Our focus in 2012 has been to increase our cash flow to sufficient levels where we can fund our operations and purchase materials in sufficient quantities to generate margin expansion. The debt proceeds from financings have been used prudently as evidenced by our operating improvement and nearly a 1000 basis point improvement in our gross margin. We believe further margin expansion opportunities exist for Brownie’s with sufficient capital.”
Mr. Carmichael further stated, “The additional non-cash expenses we have incurred this year in the form of stock compensation have enabled us to preserve cash to help achieve our gains so far in 2012. While challenges remain ahead of us, we are confident that we are now closer than at any time during the past three years to generating annual profitability and sufficient cash flow, not only to fund our business, but to begin reducing convertible debt levels. We look forward to continuing making excellent progress toward our objectives and significantly increasing Brownie’s enterprise value for our shareholders.”
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 .
Robert Manuel Carmichael
Brownie's Marine Group
954-462-5570 x 202