Q1 2020 net revenue was nearly $64 million, an increase of 9% versus prior year, 6% of which was organic growth
Gross margin reached 65%, a significant increase versus prior quarters in the second half of 2019 as product, channel mix, and product profitability improvedKey markets of China, Japan, and North America saw growth versus the first quarter of 2019.  Online ordering and direct-to-home fulfillment model resonating worldwide DENVER, May 11, 2020 (GLOBE NEWSWIRE) — New Age Beverages Corporation (Nasdaq: NBEV), the Colorado-based healthy products company dedicated to inspiring and educating the planet to “live healthy”, today announced financial results for the first quarter ended March 31, 2020,  reaching its highest level of first quarter net revenue in its history at $63.7 million.Key HighlightsNet revenue was $63.7 million versus $58.3 million in the prior year quarter, an increase of $5.4 million or 9.2%Gross margin reached 65.2%, up 1,085 basis points sequentially versus the fourth quarter of 2019Net loss was $11.6 million, or $0.14 per common share“We saw growth in our core large markets and core large category platforms during the quarter,” said Brent Willis, Chief Executive Officer of NewAge.  “Our Noni by NewAge segment saw excellent growth led by China and the European market.  We also experienced renewed growth in Japan compared to the first quarter of 2019 and our Direct Store Distribution division had its best first quarter in history with double digit growth.” “We have had a number of business disruptions and negative impacts from COVID-19 in markets worldwide, which has continued into the second quarter of 2020.  Sales and distribution to on-premise and foodservice outlets are down over 70% between January and April.  Many retailers have significantly curtailed any new product initiatives, and in-store merchandising has been virtually impossible.  In our Noni by NewAge segment, our ability to hold group meetings and engage in peer-to-peer selling has dramatically changed, but despite all the challenges, the organization has responded decisively to offset the negative impacts. The incremental sales of our immunity strengthening products, the rapid expansion of our e-commerce and social selling tools, and other initiatives have not just offset the negative revenue impacts, but also resulted in overall growth worldwide of more than 9%.  I am so proud of all of our associates and business partners with how quickly they have responded to the new operating environment.”First Quarter 2020 Financial Results                                                                                                                During the first quarter of 2020, net revenue increased 9.2% to $63.7 million compared to $58.3 million in the first quarter of 2019.  Gross profit in the first quarter of 2020 increased 7.6% to $41.5 million compared to $38.6 million in the first quarter of 2019.   Gross margin reached 65% for the first quarter of 2020, compared to a gross margin of 66%, 63%, 58% and 54% respectively for each of the quarters in 2019.   The improvement in gross margin compared to the second half of 2019 was due primarily to an improvement in product and channel mix, with more business coming from higher margin Direct to Consumer and E-commerce channels.Net loss was $11.6 million, or $0.14 per share, during the first quarter of 2020 compared to a net loss of $1.6 million, or $0.02 per share, in the first quarter of 2019. The increase in net loss was significantly impacted by a gain of sale of property of $6.4 million accounted for in the first quarter of 2019, as well as increased selling, general and administrative (SG&A) expenses as a result of increased staffing, marketing and professional fees.
Adjusted EBITDA⁽¹⁾ was a loss of $7.1 million for the quarter, a significant sequential improvement  of $10.3 million compared to Q4 2019.   The adjusted EBITDA in the first quarter of 2019 was $3.9 which included the gain on the sale of property of $6.4 million.      (1)   Denotes a non-GAAP financial measure. See “Non-GAAP Financial Measures” table below.
             
Conference CallThe Company will host a live conference call and webcast today at 8:00 a.m. ET. Conference call details are provided below. Interested investors can dial into the conference call to hear the details of management’s update and participate in a question and answer session.Date: Monday, May 11, 2020
Time: 8:00 a.m. Eastern time
Toll-free dial-in number: 1-866-221-1749
International dial-in number: 1-270-215-9924
Conference ID: 7767947The conference call will also be broadcast live and available for replay here and via the investors section of the Company’s website at https://newagebev.com/en-us/our-story/investors. The webcast replay will be available for approximately 45 days following the call.Please dial into the conference call 15 minutes prior to the start time due to increased demand for conference calls. You will be asked to register your name and organization.A replay of the conference call will be available after 11:00 a.m. Eastern Time on the same day through Monday, May 18, 2020.Toll-free replay number: 1-855-859-2056
International replay number: 1-404-537-3406
Replay ID: 7767947About New Age Beverages Corporation (NASDAQ: NBEV) 
NewAge is a Colorado based healthy products company dedicated to inspiring and educating consumers to “Live Healthy.”  The Company is the only omni-channel distribution company with access to traditional retail, e-commerce, direct-to-consumer, and medical channels across 60 countries worldwide.  NewAge markets a portfolio of better-for-you products including the brands Tahitian Noni, TeMana, Nestea, Volvic, Illy Coffee, Evian, Búcha Live Kombucha, ‘Nhanced and others.  The Company operates the websites www.newage.com, www.noninewage.com, www.nestea.com, www.volvic-na.com, www.illy.com, www.evian.com, and a number of other individual brand websites.Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s current expectations regarding future results of operations, economic performance, financial condition, the extent and duration of COVID-19 on its business, and achievements of the Company including statements regarding NewAge’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. NewAge competes in a rapidly growing and transforming industry, and risk factors, including those disclosed in the Company’s filings with the Securities and Exchange Commission, might affect the Company’s operations. Unless required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.For investor inquiries about New Age Beverages Corporation please contact:Investor Relations Counsel:
John Mills/Scott Van Winkle
ICR – Strategic Communications and Advisory
Tel: 1-646-277-1254/1-617-956-6736
[email protected] New Age Beverages Corporation:
Gregory A. Gould
Chief Financial Officer
Tel: 1-303-566-3030
[email protected]

Non-GAAP Financial MeasuresThe primary purpose of using non-GAAP financial measures is to provide supplemental information that we believe may be useful to investors and to enable investors to evaluate our results in the same way we do. We also present the non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis, as well as comparing our results against the results of other companies, by excluding items that we do not believe are indicative of our core operating performance. Specifically, we use these non-GAAP measures as measures of operating performance; to prepare our annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communications with our board of directors concerning our financial performance. Investors should be aware, however, that not all companies define these non-GAAP measures consistently.We provide in the table below a reconciliation from the most directly comparable GAAP financial measure to the non-GAAP financial measures presented.EBITDA and Adjusted EBITDA. The calculation of our EBITDA and Adjusted EBITDA is presented below (in thousands):EBITDA is defined as net income (loss) adjusted to exclude GAAP amounts for interest expense, income tax expense (benefit), and depreciation and amortization expense. For the calculation of Adjusted EBITDA, we also exclude the following item for the periods presented:Stock-Based Compensation Expense: Our compensation strategy includes the use of stock-based compensation to attract and retain employees, directors and consultants. This strategy is principally aimed at aligning the employee interests with those of our stockholders and to achieve long-term employee retention, rather than to motivate or reward operational performance for any particular period. As a result, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
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