 Announced merger with ARIIX and four additional e-commercedirect selling companies is expected to create an over 500 million global healthy products omni-channel leader WATERisLIFE WATERisLIFEDENVER, Aug. 10, 2020 GLOBE NEWSWIRE -- NewAge, Inc. Nasdaq: NBEV, the Colorado-based healthy and organic products company with current presence in more than 60 countries, today announced financial results for the quarter ended June 30, 2020 with net revenue reaching 62.6 million. This does not include revenues from its recently announced combination with ARIIX and four other e-commerce, direct selling companies, which is expected to more than double the size of the Company, and significantly improve the combined entitys profitability. The pending merger is expected to close during the third quarter of this year.Brent Willis, Chief Executive Officer of NewAge, commented, We are pleased with how the business is holding up in the current business environment, especially compared to most peer group companies. Despite our Japan and China markets being locked down because of the pandemic for much of the quarter, we are seeing good organic growth in North America, Latin America, Western Europe and recovery in certain Asia Pacific markets as they began to reopen.NewAge, Inc., which recently changed its name from New Age Beverages Corporation to reflect the expanded breadth of opportunities in front of the Company, announced the signing of a definitive agreement to acquire ARIIX and four other e-commercedirect selling companies on July 20, 2020. The combination creates a company with expected annual revenues of more than 500 million, a blended gross margin of 70, and expected EBITDA of more than 30 million. Greg Gould, Chief Financial Officer of NewAge, commented, The impending merger will be transformational for NewAge, not just in terms of scale and reach, but also in terms of profitability, financial flexibility, and strength to further the Companys mission. With the imminent disposition of many of the low margin retail brands and the expected cost savings accruing from the merger of more than 20 million, we expect the combined entity to generate significant positive EBITDA going forward. Second Quarter 2020 Financial Results Net revenue reached 62.6 million for the quarter ended June 30, 2020, versus 66.3 million for the second quarter of the prior year, primarily due to the impact of COVID-19 in our Asia markets. The United States delivered revenue growth of 13 in the second quarter versus the same quarter in the prior year. Included in our United States region is the DSD Division that grew nearly 30 in June of 2020 versus the same month in the prior year. Year to date, the United States is up 15 in net revenue.Revenue was up 2 in Western Europe and up 10 in Latin America in the second quarter of 2020 versus the prior year second quarter. Revenue in China was down in the second quarter of 2020 but overall year-to-date is down less than 2 from the prior year period as the Company continues to implement its new compensation system. Japan was also down in the quarter compared to the prior year due to the impact of COVID-19, and year-to-date is down 5 in the first six months of 2020 compared to the first half of 2019. Gross margin in the second quarter of 2020 reached 38.1 million, or 61 as a percent of net revenue. Gross margin was affected mostly by product mix, reflecting slightly lower sales in our Noni by NewAge division related to impacts from the COVID-19 pandemic, especially in China and Japan, and low margin retail brand sales, offset by the revenue growth in the other regions around the world.Net loss decreased to 9.6 million, or 0.10 per share, during the second quarter of 2020, compared to a net loss of 11.7 million, or 0.15 per share, in the second quarter of 2019. Adjusted EBITDA1 was a loss of 5.4 million for the second quarter of 2020, a sequential improvement of 1.7 million compared to Adjusted EBITDA for the first quarter of 2020. The Adjusted EBITDA in the second quarter of 2019 was less than 0.1 million, which included the gain on the change in fair value on the Morinda earnout obligation of 6.7 million.NewAges cash balance increased 48 to 40.7 million at June 30, 2020 from 27.5 million at March 31, 2020. NewAge also holds additional restricted cash balances of 18.4 in the US, China and other markets for a total of 59.0 million in cash as of June 30, 2020. Total current assets increased 19 to 93.4 million at June 30, 2020 versus 78.8 million at March 31, 2020. Total current liabilities were 3 lower, 59.8 million at June 30, 2020 compared to 61.8 million at March 31, 2020. Working capital improved 98 at June 30, 2020 as compared to March 31, 2020, 33.6 million compared to 17.0 million, respectively.1 EBITDA and Adjusted EBITDA are non-GAAP financial measures with reconciliations provided in the table below. Conference CallThe Company will host a live conference call and webcast today at 8:00 a.m. ET. Conference call details are provided below. Interested investors can dial into the conference call to hear the details of managements update and participate in a question and answer session.Date: Monday, August 10, 2020 Time: 8:00 a.m. Eastern time Toll-free dial-in number: 1-877-407-3982 International dial-in number: 1-201-493-6780 Conference ID: 13706963The conference call will also be broadcast live and available for replay here and via the investors section of the Companys website at The webcast replay will be available for approximately 45 days following the call.Please dial into the conference call 15 minutes prior to the start time due to increased demand for conference calls. You will be asked to register your name and organization.A replay of the conference call will be available after 11:00 a.m. Eastern Time on the same day through Monday, August 17, 2020.Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 13706963About NewAge, Inc. NASDAQ: NBEV NewAge is a Colorado-based organic and healthy products company dedicated to inspiring and educating consumers to Live Healthy. The Company is an omni-channel distribution company with access to traditional retail, e-commerce, direct-to-consumer, and medical channels across 60 countries worldwide. NewAge markets a portfolio of better-for-you products including the brands Tahitian Noni, TeMana, Nestea, Volvic, Illy Coffee, Evian, Búcha Live Kombucha, Nhanced and others. The Company operates the websites and a number of other individual brand websites.NewAge has announced a transaction with ARIIX LLC. Once the ARIIX transaction is completed, we will be the only omni-channel company with access to traditional retail, e-commerce, direct-to-consumer, and other channels across more than 75 countries worldwide, with a network of over 400,000 exclusive independent product consultants, representatives, and affiliates around the globe. After the transaction closes, NewAge will market a portfolio of better-for-you products along with the companies, ARIIX, ZENNOA, Shannen, MaVie, and Limu in healthy hydration and wellness, healthy appearance, and nutritional performance platforms. The Company announced NewAges entry into a definitive agreement to acquire ARIIX and four other e-commercedirect selling companies on July 20, 2020. This transaction is anticipated to close during the third quarter of 2020.Safe Harbor Disclosure This press release contains forward-looking statements that are made under the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting managements expectations regarding future results of operations, economic performance, financial condition, the acquisition of ARIIX, statements about the benefit of the ARIIX transaction including the proforma revenue, blended gross margin, expected EBITDA and expected cost savings, and the extent and duration of COVID-19 on its business. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable, but there is no assurance they will prove to be accurate. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. NewAge competes in a rapidly growing and transforming industry, and risk factors, including those disclosed in the Companys filings with the Securities and Exchange Commission, might affect the Companys operations. Unless required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.NewAge has exclusively partnered with the worlds 5th largest water charity, WATERisLIFE, to end the world water crisis with the most innovative technologies available. Donate at WATERisLIFE.com to help us EnditToday.A photo accompanying this announcement is available at investor inquiries about NewAge please contact:NewAge Investor Relations: Riley Timmer Vice President, Investor Relations Tel: 1-801-870-8685 Relations Counsel: John MillsScott Van Winkle ICR Strategic Communications and Advisory Tel: 1-646-277-12541-617-956-6736 Inc.: Gregory A. 