FAIRFIELD, NJ / ACCESSWIRE / June 26, 2020 / Bergio International, Inc. ('Bergio', or the 'Company') (OTC PINK:BRGO), a leading designer, manufacturer and retail outlet for the Bergio Brand of designer jewelry, including exquisite collections of rings, necklaces, earrings, and other fine accessories, today reported its financial results for the quarter ended March 31, 2020.
Highlights for Quarter Ended March 31, 2020
- Revenues declined 45% for the quarter ended March 31, 2020 as compared to same period last year. The Company's retail operations were shut down as a result of COVID-19 for one-third of the quarter, but business was already declining because of the pandemic.
- Gross profit as a percentage of sales remains strong at 65.1%.
- Operating expenses increased 42% to $228k as a result of non-cash consulting expenses to provide brand awareness for the Company's new line of fashion accessories and to develop strategies for global expansion.
- Operating loss was $179k for the quarter ended March 31, 2020, excluding the non-cash consulting expenses our operating loss would have been $48K as compared to $62k for the quarter ended March 31, 2019.
- Net loss was $1,470,901 for the quarter ended March 31, 2020 as compared to a net loss of $90,848 for the quarter ended March 31, 2019. The year 2020 was impacted by a number of non-cash items, mostly the change in the fair value of derivative due to the higher stock price at March 31, 2020.
- Non-GAAP Adjusted EBITDA showed a loss of only $39,411 for the quarter ended March 31, 2020 as compared to a loss of $35,448 for the same period last year.
Mr. Berge Abajian, President & CEO stated 'this was a difficult quarter and our business has been impacted by the pandemic. However, we are expanding our online presence and have been experiencing some positive results, which we believe will be reflected in the second quarter results, but it is too early to assess the real impact. The Company continues to position itself for the future to take advantage of the Bergio brand and establish a chain of retail stores worldwide. Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores. We also intend to complement our own quality-designed jewelry with other products and our own specially-designed handbags. This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products with higher profit margins.'
'While the impact of the pandemic still provides some uncertainty, we continue to be excited about our future. The Company has leveraged itself such that as sales increase a larger portion of dollars will flow to the bottom line.'
'The Company continues to pursue additional financing opportunities. Financing discussions have been taking place with various parties, but the Company has no firm commitment from any party to provide additional funding at this time.'
He added, 'I appreciate all the support from our shareholders and wishing all to stay safe through these unprecedented times, with a bright future is ahead'.
The Company encourages investors to read its full results of operations as contained in our Quarterly Report on Form 10-Q filed on June 25, 2020, at www.sec.gov.
About Bergio International, Inc.
The Bergio brand is our most important asset. The Bergio brand is associated with high-quality, handcrafted and individually designed pieces with European sensibility, Italian craftsmanship and a bold flair for the unexpected. Bergio, is one of the most coveted brands of fine jewelry. Established in 1995, Bergio's signature innovative design, coupled with extraordinary diamonds and precious stones, earned the company recognition as a highly sought-after purveyor of rare and exquisite treasures from around the globe. As President, CEO and Head Designer of Bergio, Berge Abajian performs a highly successful balancing act, accomplished with equal parts precision and passion. An informed and inspirational leader, Berge directs the company with the eye and soul of a designer and the mind of a businessman. The role that is perhaps closest to his heart, however, is that of designer. With family jewelry roots reaching back the 1930s, Berge is a third generation jeweler and a purist when it comes to design. Berge's understanding of every aspect, in both design and manufacturing, creates collections that are nothing short of peerless in craftsmanship and style. Berge creates a collection, he looks well beyond the drawing board. Berge focuses on the woman who will ultimately wear his pieces, bringing to creation a magnificent piece of jewelry that reflects the beauty and vitality a woman possesses. Bergio creations are a seamless blend of classic elegance and subtle flair, adding to a woman's charm while never overpowering her.
It is our intention to establish Bergio as a holding company for the purpose of establishing retails stores worldwide. Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores. We also intend to complement our own quality-designed jewelry with other products and our own specially-designed handbags. This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.
For further information please visit our website at www.bergio.com.
This press release includes statements that are not historical in nature and may be characterized as 'forward-looking statements,' including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company's previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the 'Act') protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
Bergio International, Inc.
BERGIO INTERNATIONAL INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
The term EBITDA consists of net income plus interest, taxes, depreciation and amortization, deferred financing charges, change in fair value of warrants, and non-cash stock-based compensation. EBITDA is not a measure of financial performance under generally accepted accounting principles, and should not be considered in isolation from, or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles, or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt, and to fund capital expenditures, and provides investors a helpful measure for analyzing its operating performance. The table above sets forth a reconciliation of EBITDA to net income, which is the most directly comparable measure of financial performance, calculated under generally accepted accounting principles.
SOURCE: Bergio International, Inc.
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