SKINNY NUTRITIONAL CORP., today announced financial results for the year ended December 31, 2008. Total sales for 2008 were $2,179,055, which represents an increase of 189% over 2007 revenues of $752,825.
The Company launched new formulations of its Skinny Water product line in June 2008. Since then, Skinny Water's zero calories, great taste proposition has been embraced by customers, retailers and distributors. Today the Company is distributing product to 32 distributors in 19 states and Skinny Water is available in over 2100 chain locations.
Net losses for the year 2008 totaled $6,232,123 compared to $5,698,643 for 2007. Of these losses, $2,824,252 in 2008 and $4,270,217 in 2007 were non-cash charges related to the issuance of common stock, warrants and options. The Company has made an investment in marketing the brand, establishing a distribution network and building it's sales and marketing team. These expenses represent the majority of the company's losses for 2008.
"Since I became CEO on December 1, 2008, my goal has been to create a long term, sustainable business model. In pursuit of this goal we have already made a dramatic reduction in our cost of goods. As a result of this and other initiatives, we expect our gross margin to improve in future periods. We anticipate that sales growth and improved margins growth that we anticipate will provide us with the funds to support the continued expansion of the Skinny Brand," stated Ron Wilson, the Company's President and CEO.
On April 1, 2009 the Company filed an amendment to its Annual Report on Form 10KSB for the year ended December 31, 2007 in order to restate the financial statements for such period due to the need to change it's accounting for the conversion of convertible debt to common stock which was initiated in 2006, and to amend it's accounting for it's employee stock options and other warrants. These modifications will not have any net effect on the Company's Shareholder's Equity or net Cash Flows for 2007.
ABOUT SKINNY NUTRITIONAL CORP.
Headquartered in Bala Cynwyd, Pa., Skinny Nutritional Corp. is the exclusive worldwide distributor of Skinny Water(R), a zero-calorie, zero-sugar, zero-sodium and zero-preservative enhanced water. Skinny Water comes in six great tasting flavors that include Acai Grape Blueberry, Goji Fruit Punch, Peach Mango Mandarin, Raspberry Pomegranate, Orange Cranberry Tangerine and Lemonade Passionfruit. Skinny Nutritional Corp. also expects to launch additional branded products, including Skinny Tea(R), Skinny Shakes(R), Skinny Java(TM), and other Skinny branded beverages. For more information, visit www.SkinnyWater.com.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the Company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.