LOS ANGELES, Aug. 14 /PRNewswire-FirstCall/ -- AVP, Inc. (OTC:AVPI)
(BULLETIN BOARD: AVPI) , a lifestyle sports entertainment company
focused on professional beach volleyball, today announced financial
results for its 2008 second quarter ended June 30, 2008. Second
Quarter 2008 Highlights: * AVP CROCS TOUR -- AVP, Inc. kicked off
the 25th season of the AVP Crocs Tour, the flagship property of
AVP, Inc. The summer-long 18-stop tour brings the world's greatest
beach volleyball athletes and competition to cities across the
country. * Finalized five-year partnership extension with Wilson
Sporting Goods Co. to continue as the exclusive official game ball
of the AVP Pro Beach Volleyball Tour. For the six months ended June
30, 2008, the Company reported revenue of $8.8 million, compared to
the $11.0 million reported for the same period in 2007. Net loss
for the six months of 2008 was ($3.2 million), or a loss of ($0.16)
per share, as compared to a net loss of ($1.2 million), or ($0.06)
per share, for the same period last year. Included in the six month
net loss of 2008 were a one time charge of $0.3 million related to
a third-party service provider and $0.4 million of non-cash
transactions related to share based payments for employee option
grants. "The AVP is focused on continuing to build our brand, the
fan experience and increasing value to our shareholders," said
Leonard Armato, Chief Executive Officer of AVP, Inc. "We were very
pleased with the outcome of the NBC Sports broadcasts of our
finals. We have such a strong fan base across the country, we would
like to thank our supporters for their attendance and look forward
to sharing our sport and bring the world's best beach volleyball to
our fans and spectators." "We are confident the performance of our
athletes in the Olympic Games will serve as a catalyst for our
sport as we continue the summer-long AVP Crocs Tour. We look
forward with great anticipation to our flagship event, the historic
Manhattan Beach Open in September and also, to the second year of
the Hot Winter Nights Tour." About AVP, Inc AVP, Inc. is a leading
lifestyle sports entertainment company focused on the production,
marketing and distribution of professional beach volleyball events
worldwide. One of the fastest growing entities in the sports world,
the AVP operates two of the industry's most prominent national
outdoor touring series, the AVP Pro Beach Volleyball Tour (1983)
and the AVP Hot Winter Nights Indoor Tour (launched in 2008). The
AVP is set to stage more than 35 events throughout the United
States in 2008 and features more than 150 of the top men and women
competitors in the sport. At the 2004 Athens Olympics, AVP athletes
representing the United States won gold and bronze. The medals were
the first won by the U.S. women in professional beach volleyball,
and the 2007 World Champions in each gender are AVP athletes. AVP
is headquartered in Los Angeles, Calif., and the company's stock
trades under the symbol AVPI on the OTC Bulletin Board. For more
information, please visit http://www.avp.com/. Forward Looking
Statements Some of the information in this press release may
contain projections or other forward-looking statements regarding
future events or the future financial performance of the Company.
We wish to caution you that these statements involve risks and
uncertainties and actual results might differ materially from those
in the forward-looking statements, if we receive less sponsorship
and advertising revenue than anticipated, or if attendance is
adversely affected by unfavorable weather. Event-related expenses,
such as for the stadium, transportation and accommodations, or
security might be greater than expected; or marketing or
administrative costs might be increased by our hiring, not
currently planned, of a particularly qualified prospect. Additional
factors have been detailed in the Company's filings with the
Securities and Exchange Commission, including our recent filings on
Forms 10- KSB and 10-QSB. AVP, INC CONSOLIDATED BALANCE SHEETS
(Unaudited) June 30, December 31, 2008 2007 ASSETS CURRENT ASSETS
Cash and cash equivalents $1,468,212 $2,257,453 Accounts
receivable, net of allowance for doubtful accounts of $252,347 and
$149,748 3,283,899 2,008,253 Prepaid expenses 823,631 388,649 Other
current assets 38,882 116,393 TOTAL CURRENT ASSETS 5,614,624
4,770,748 PROPERTY AND EQUIPMENT, net 438,501 392,447 OTHER ASSETS
42,562 115,496 TOTAL ASSETS $6,095,687 $5,278,691 LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable
$1,439,047 $908,020 Accrued expenses 2,495,424 1,663,975 Deferred
revenue 2,470,435 101,245 TOTAL CURRENT LIABILITIES 6,404,906
2,673,240 NON-CURRENT LIABILITIES 69,857 96,419 TOTAL LIABILITIES
6,474,763 2,769,659 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS'
EQUITY (DEFICIT) Preferred stock, 2,000,000 shares authorized:
Series B convertible preferred stock, $.001 par value, 250,000
shares authorized, 44,944 and 47,152 shares issued and outstanding
46 48 Common stock, $.001 par value, 80,000,000 shares authorized,
21,089,626 and 20,490,096 shares issued and outstanding 21,090
20,490 Additional paid-in capital 40,085,313 39,732,837 Accumulated
deficit (40,485,525) (37,244,343) TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) (379,076) 2,509,032 TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $6,095,687 $5,278,691 AVP, INC CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30,
Six Months Ended June 30, 2008 2007 2008 2007 REVENUE Sponsorships/
Advertising $6,192,498 $8,990,790 $7,068,018 $8,990,790 Other
1,635,636 1,857,611 1,751,106 2,026,611 TOTAL REVENUE 7,828,134
10,848,401 8,819,124 11,017,401 EVENT COST 5,716,951 7,185,169
6,761,185 7,237,468 GROSS PROFIT 2,111,183 3,663,232 2,057,939
3,779,933 OPERATING EXPENSES Sales and marketing (1) 800,109
862,503 2,071,764 1,738,216 Administrative (2) 1,570,616 1,958,237
3,241,329 3,404,540 TOTAL OPERATING EXPENSES 2,370,725 2,820,740
5,313,093 5,142,756 OPERATING INCOME (LOSS) (259,542) 842,492
(3,255,154) (1,362,823) OTHER INCOME (EXPENSE) Interest income
6,014 57,520 17,203 113,977 Gain on sale of asset 3,500 1,325 3,500
9,774 Foreign exchange loss (5,581) - (5,581) - TOTAL OTHER INCOME
3,933 58,845 15,122 123,751 INCOME (LOSS) BEFORE INCOME TAXES
(255,609) 901,337 (3,240,032) (1,239,072) INCOME TAXES - - (1,150)
(800) NET INCOME (LOSS) $(255,609) $901,337 $(3,241,182)
$(1,239,872) Earnings (loss) per common share: Basic $(0.01) $0.05
$(0.16) $(0.06) Diluted $(0.01) $0.03 $(0.16) $(0.06) Shares used
in computing earnings (loss) per share: Basic 21,089,626 19,960,250
20,812,392 19,872,269 Diluted 21,089,626 27,596,052 20,812,392
19,872,269 (1) Sales and marketing expenses includes stock-based
expenses of $18,182 and $9,313 for the three months ended June 30,
2008 and 2007, respectively, and $36,364 and $82,220 for the six
moths ended June 30, 2008 and 2007, respectively. (2)
Administrative expenses includes stock-based expenses of $150,051
and $21,596 for the three months ended June 30, 2008 and 2007,
respectively, and $353,074 and $42,956 for the six months ended
June 30, 2008 and 2007, respectively. DATASOURCE: AVP, Inc.
CONTACT: Investor Relations of AVP, Inc., +1-310-426-7177; or
Media, Crystal Fukumoto of Brener Zwikel & Associates,
+1-818-462-5605, , for AVP, Inc. Web site: http://www.avp.com/
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