Eldorado Artesian Springs Second Quarter Report

November 28, 2011



Eldorado Artesian Springs (OTCQB: ELDO.OB) reported revenue for its second fiscal quarter ended September 30, 2011 increased 9.3% to $2.7 million. Net income for the period 254% to $85 thousand or $0.01 per share. Revenues for the six months ended September 30, 2011 increased 5.6% to $5 million. The company reversed a year ago loss for the period and reported net income of $75 thousand or $0.01 per share.

The company saw sales growth in nearly all of it products led by a 25% increase in it 1 gallon branded products and a more than 5% increase for its PET products. PET products are premium clear plastic container water bottles for the consumer market that range in size from .5 liter to 1.5 liters. Also, due to a warmer than average summer, the resort with the spring fed swimming pool saw a 21% increase in revenue.

The balance sheet for Eldorado Artesian Springs is tight and the company is in technical default on one of its outstanding notes. The bank has granted a waiver for its current ratio covenant violation, but has not waived expected future violations. The remaining balance of the $1.393 million note is due in February 2012 and the balance on the $2.81766 million not is due in October 2012. The company does not expect to be able to meet these obligation and is working on refinancing both notes. The company has total assets of $6.2 million and total liabilities of $5.56 million.

Source: Eldorado Artesian Springs, Inc.


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