Third Quarter 2008 Highlights:
-- AVP CROCS TOUR -- Successfully completed the 25th season of AVP Inc.'s flagship property, the AVP Crocs Tour. The summer-long tour season brings the world's best beach volleyball competition and entertainment to each of the 18 tour stops. The tour in Q3 featured both the men's and women's 2008 Olympic gold medal winning teams.
-- NATIONAL TELEVISION BROADCASTS -- Two AVP Crocs Tour finals were featured on national network television. Following the Olympics, NBC extended its coverage of Beach Volleyball airing the women's final of the AVP Crocs Cup Shootout presented by Bud Light Mason and the AVP's Flagship event, the AVP Crocs Cup Shootout presented by Bud Light Manhattan Beach Open women's final featured on FOX Sports.
For the three months ended
Net loss for the first nine months of 2008 was (
"Throughout these trying economic times, we continue to maintain our focus
on the growth and development of our sport and brand and sharpen our focus on
increasing value to our shareholders," said
"As we prepare to extend our elite competition into the winter months for a second year of the AVP Johnsonville Hot Winter Nights Indoor Beach Volleyball Tour, we are sure this one-of-a-kind tour will provide a slice of our summer tour at each stop, something we are confident everyone will enjoy."
About AVP, Inc
AVP, Inc. is a leading lifestyle sports entertainment company focused on
the production, marketing and distribution of professional beach volleyball
events worldwide. One of the fastest growing entities in the sports world,
the AVP operates two of the industry's most prominent national outdoor touring
series, the AVP Pro Beach Volleyball Tour (1983) and the AVP Hot Winter Nights
Indoor Tour (launched in 2008). The AVP is set to stage more than 35 events
throughout
Forward Looking Statements
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that these statements involve risks and uncertainties and actual results might differ materially from those in the forward-looking statements, if we receive less sponsorship and advertising revenue than anticipated, or if attendance is adversely affected by unfavorable weather. Event-related expenses, such as for the stadium, transportation and accommodations, or security might be greater than expected; or marketing or administrative costs might be increased by our hiring, not currently planned, of a particularly qualified prospect. Additional factors have been detailed in the Company's filings with the Securities and Exchange Commission, including our recent filings on Forms 10- KSB and 10-QSB.
AVP, INC CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2008 2007 ASSETS CURRENT ASSETS Cash and cash equivalents $3,225,432 $2,257,453 Accounts receivable, net of allowance for doubtful accounts of $251,756 and $149,748 5,108,785 2,008,253 Prepaid expenses 429,660 388,649 Other current assets 43,543 116,393 TOTAL CURRENT ASSETS 8,807,420 4,770,748 PROPERTY AND EQUIPMENT, net 384,232 392,447 OTHER ASSETS 42,562 115,496 TOTAL ASSETS $9,234,214 $5,278,691 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $3,421,529 $908,020 Accrued expenses 2,346,670 1,663,975 Deferred revenue 115,953 101,245 TOTAL CURRENT LIABILITIES 5,884,152 2,673,240 OTHER NON-CURRENT LIABILITIES 256,571 96,419 TOTAL LIABILITIES 6,140,723 2,769,659 NOTE/RESTRICTED SHARES 2,621,413 - COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, 2,000,000 shares authorized: Series B convertible preferred stock, $.001 par value, 250,000 shares authorized, 94,944 and 47,152 shares issued and outstanding 96 48 Common stock, $.001 par value, 80,000,000 shares authorized, 21,089,626 and 20,490,096 shares issued and outstanding 21,090 20,490 Additional paid-in capital 40,979,914 39,732,837 Accumulated deficit (40,529,022) (37,244,343) TOTAL STOCKHOLDERS' EQUITY 472,078 2,509,032 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,234,214 $5,278,691 - - AVP, INC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 REVENUE Sponsorships/ Advertising (1) $11,185,387 $10,228,458 $18,253,405 $19,219,248 Other 2,853,899 2,577,980 4,605,005 4,604,591 TOTAL REVENUE 14,039,286 12,806,438 22,858,410 23,823,839 EVENT COST 11,524,174 10,761,071 18,285,360 17,998,538 GROSS PROFIT 2,515,112 2,045,367 4,573,050 5,825,301 OPERATING EXPENSES Sales and marketing (2) 868,221 919,872 2,939,985 2,658,089 Administrative (3) 1,636,953 1,919,833 4,878,281 5,324,373 TOTAL OPERATING EXPENSES 2,505,174 2,839,705 7,818,266 7,982,462 OPERATING INCOME (LOSS) 9,938 (794,338) (3,245,216) (2,157,161) OTHER INCOME (EXPENSE) Interest expense - (745) - (745) Interest income 769 44,748 17,972 158,725 Gain on disposal of asset - - 3,500 9,774 Foreign exchange loss 14 - (5,567) - TOTAL OTHER INCOME 783 44,003 15,905 167,754 INCOME (LOSS) BEFORE INCOME TAXES 10,721 (750,335) (3,229,311) (1,989,407) INCOME TAXES (9,793) (8,610) (10,943) (9,410) NET INCOME (LOSS) 928 (758,945) (3,240,254) (1,998,817) Deemed Dividend to Series B Preferred Stock Shareholders 44,425 - 44,425 - Net Loss Available to Common Shareholders $(43,497) $(758,945) $(3,284,679) $(1,998,817) Loss per common share: Basic $- $(0.04) $(0.15) $(0.10) Diluted $- $(0.04) $(0.15) $(0.10) Shares used in computing loss per share: Basic 22,151,979 20,443,269 21,262,181 20,064,693 Diluted 22,151,979 20,443,269 21,262,181 20,064,693 (1) Sponsorship/Advertising includes $0 and $507,800 in stock based contra-revenue for the three months ended September 30, 2008 and 2007, respectively and $0 and $507,800 for the nine months ended September 30, 2008 and 2007, respectively. (2) Sales and marketing expenses includes stock-based expenses of $18,182 and $19,045 for the three months ended September 30, 2008 and 2007, respectively, and $54,545 and $101,266 for the nine moths ended September 30, 2008 and 2007, respectively. (3) Administrative expenses includes stock-based expenses of $156,216 and $21,236 for the three months ended September 30, 2008 and 2007, respectively, and $552,009 and $64,192 for the nine months ended September 30, 2008 and 2007, respectively.
SOURCE AVP, Inc.