Blue Island, Ill., Sept. 29 - Apple Rush today announced financial results for its second quarter 2008.
Revenues more than doubled in the second quarter of 2008 to $1.66 million, up from $599,000 in the first quarter of this year. Revenues totaled $2.26 million for the first six months of 2008. The growth is exponential compared to the first six months of 2007, in which revenues totaled $42,952. The increases were largely due to the first full three months of operations from Garden Distributing, Apple Rush's distribution company.
Total operating expenses increased from $223,127 in the first quarter to $435,095 in the second quarter as the Company logged its first full three months of managing Garden Distributing. Much of these increased expenses were incurred because of the full employee burden of the Garden Distributing operation as well as increased costs related to fuel, raw materials and added insurance costs. The Company posted a loss in both quarters in 2008.
Apple Rush continues to make improvements in managing and controlling its operating costs and expects that the net loss will decrease in the 3rd quarter and turn to profitability in mid to late 2009.
In comparing the first six months of 2007 to 2008, the Company has dramatically improved its gross profit from $3,651 to $329,987 respectively. Most of these improvements are related to increases in the sales of more highly profitably products and the controlling the costs of raw materials.
Robert Corr, President and CEO of Apple Rush, said the results were within management expectations. "The addition of Garden Distributing has greatly changed the complexity and profitability of our operation. The addition of new and more profitable items at Garden Distributing and the increased outreach of Apple Rush will continue to show a steady increase in sales and profitability into the future."
Mr. Corr concluded: "Our investment in Garden Distributing is continuing to pay off as can be viewed by the contribution it makes to our bottom line. This investment has given us the immediate growth that we expected. With the expansion of new products and the increased sales of Cintron Beverages, Garden Distributing is expanding its distribution reach. We are also adding new food items to our distribution system to bolster our fall and winter sales. Apple Rush Organic Sparkling Beverages continues to provide us new opportunities and the potential to develop it into a nationally recognized brand. We have plans to complete many of the line extensions slated for Apple Rush to expand its distribution reach. With this continued growth we will seek to raise additional capital to keep up with this demand. Our strategy is to continue to improve our operations and utilize our capital to expand the distribution and promotion of Apple Rush."