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ESDI: First quarter revenue and earnings were in line with our projections

By Ian Gilson, PhD, CFA


On May 15, 2017 ESDI (OTC:ESDI) held a conference call to discuss its first quarter results and the progress made to improve its prospects for 2017 and 2018.
Revenue (Net sales of $0.6 million act. versus $0.7 million est.) and net income ($0.9 million loss for both actual and estimate) were in line with our projections. Cases sold made a significant jump to 5,937 as compared to 3,146 a year ago. Much of the gain was due to increased sales of Portland Potato Vodka and private label spirits, both of which are lower priced but have better gross margins than the other products.
The acquisitions of Motherlode and Big Bottom should have a positive impact on gross margins in the second half of this year and through 2018. In the first quarter the company had concentrated its efforts in the Oregon area, where sales grew 30% Y/Y, and has placed more emphasis on special event sales. Moves into Alaska should bolster second half revenue.


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