Growth in Beverage Business Boosts CirTran to 39% Gain in Sales in 2012
SALT LAKE CITY--(BUSINESS WIRE)-- CirTran Corporation (OTC BB: CIRC) has filed its Form 10-K for the fiscal year ended December 31, 2012, reporting a significant upturn in sales and an even more dramatic improvement in bottom line results driven by its Playboy Energy Drink line of products.
Revenues from beverage distribution, which accounted for 98% of sales during the year, grew to $4,260,417, a 39% gain over the $3,064,438 reported for fiscal 2011. During 2012, CirTran established operations and gained new revenue in Asia including China, the Middle East, and Africa, among other areas, while operations continued in the U.S., South America, Europe and Canada. Entering 2013, CirTran had beverage distribution operations in over 20 countries.
For fiscal 2012, CirTran reported a loss from operations of $375,813, an improvement of more than 94% from a loss of $6,575,219 reported a year ago.
Overall, for fiscal 2012, CirTran reported a net loss of $1,787,643, a 75% improvement from a loss of $7,043,410 reported a year ago. A major contributor was a decrease in operating expenses from $6,378,374 in 2011 to $3,606,672 in 2012, an improvement of $2,732,622 or 43%.
Iehab J. Hawatmeh, CirTran's founder, chairman and president, said that in 2012 CirTran gained in its beverage business even as it dealt with costly and time consuming legalities.
"As we have reported in filings starting in December and continuing through the first four months of 2013," Mr. Hawatmeh said, "CirTran has been victorious in all settled-to-date court proceedings involving our Playboy Energy Drink-centric beverage business." He said that in a settlement reached earlier this month, CirTran beverage business was relieved of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages' partners, which will accrue to CirTran's bottom line in 2013 quarterly and annual filings.
"The courts have ruled for CirTran, and we have benefitted from out-of-court settlements," Mr. Hawatmeh. "Now we plan to work around the world for the rest of the year to further expand our beverage sales and be back to business full-time rather than to have to deal with law suits and litigation."
About CirTran Corporation
Marking its 20th year in business, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. CirTran's operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites; and CirTran Beverage, which has partnered with Play Beverages, LLC, to introduce and distribute the Playboy Energy Drink.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.CirTran disclaims any obligation or intention to update any forward-looking statement.
Iehab J. Hawatmeh
KEYWORDS: United States North America Utah
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