Hawaiian Natural Water More Than Doubles Sales in 1Q

Hawaiian Natural Water More Than Doubles Sales in 1Q

HONOLULU--TheHawaiian Water Company (OTC BB:HNWCC) reported financial results for its first quarterended March 31, including a 111-percent rise is net sales. Revenues hit $1.03 million,more than double $.49 million sold in the same quarter last year. Gross margin swelled to22 percent of sales from 8 percent of sales achieved in the comparable 1999 quarter. Also,first quarter 2000 operating expenses fell about 20 points as a percentage of sales, withthe biggest improvement in selling and marketing expenses. Extraordinary expenses includeda $.1 million bonus paid to the company's chief executive officer Marcus Bender. Loss pershare decreased to $.09 from $.10 posted the previous year, but overall net loss widenedto $.52 million from $.42 million lost in the comparable 1999 period.

Results showed that 77 percent of net sales came from its PET bottled water products,while 15 percent of revenues were from its East Meets West XEN herb-enhanced juicecocktails. Geographically, sales to customers in Hawaii still led the way, climbing to$.96 million or 97 percent of total sales. Meanwhile, sales to the U.S. mainland more thantripled to $.06 million or 6 percent of net sales. Although international sales were at$.05 million or 13 percent of net sales in first quarter 1999, they completely fell offthe chart, as the company posted no international sales for first quarter 2000.