AVP, INC. 
By
First Quarter 2008 Highlights:
-- Hot Winter Nights -- The national indoor beach volleyball tour in
partnership with Anschutz Entertainment Group (AEG). The inaugural
tour schedule included 19 stops throughout the country.
-- Crocs Tour Australia -- Five beach volleyball events held in prominent
beach locations throughout Australia.
For the three months ended
The net loss for the three months ended
AVP's business has been historically seasonal; therefore revenues, gross profits and operating income or loss amounts and percentages for the first and fourth quarters are not representative of our performance. The majority of AVP's revenues are derived from sponsorship and advertising contracts with national and local sponsors. AVP recognizes sponsorship and advertising revenue only during the tour season as the events occur and collections are reasonably assured.
"2008 has started as a very exciting year for the AVP," said
"Additionally, at a time when the AVP is moving forward with dynamic initiatives, we are taking the steps necessary to show the continued growth of the company while concurrently creating increased shareholder value. We are pleased to have recently welcomed several new, and highly qualified, directors to our Board who share a vision of sustainable growth and a focus on profitability."
"We are looking forward to another successful season on the AVP Crocs Tour, our flagship property. This is a big year for beach volleyball with many events taking place this summer including the Olympics and the continuation of the AVP Crocs Tour, that will highlight this tremendous sport. We are excited to share our sport on the national stage with an enhanced national network television presence over the summer in 2008."
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
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)
March 31, December 31,
2008 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents $3,530,182 $2,257,453
Accounts receivable, net of
allowance for doubtful accounts
of $150,871 and $149,748 2,420,017 2,008,253
Prepaid expenses 531,625 388,649
Other current assets 54,546 116,393
TOTAL CURRENT ASSETS 6,536,370 4,770,748
PROPERTY AND EQUIPMENT, net 447,474 392,447
OTHER ASSETS 32,562 115,496
TOTAL ASSETS $7,016,406 $5,278,691
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $1,712,930 $908,020
Accrued expenses 2,348,687 1,663,975
Deferred revenue 3,143,915 101,245
TOTAL CURRENT LIABILITIES 7,205,532 2,673,240
NON-CURRENT LIABILITIES 84,392 96,419
TOTAL LIABILITIES 7,289,924 2,769,659
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, 2,000,000 shares
authorized:
Series A convertible preferred
stock, $.001 par value, 1,000,000
shares authorized, no shares issued
and outstanding - -
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 39,935,262 39,732,837
Accumulated deficit (40,229,916) (37,244,343)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (273,518) 2,509,032
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $7,016,406 $5,278,691
AVP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
2008 2007
REVENUE
Sponsorships/Advertising $875,520 $-
Other 115,470 169,000
TOTAL REVENUE 990,990 169,000
EVENT COST 1,044,234 52,299
GROSS PROFIT (LOSS) (53,244) 116,701
OPERATING EXPENSES
Sales and Marketing (1) 1,271,655 875,713
Administrative (2) 1,670,713 1,446,303
TOTAL OPERATING EXPENSES 2,942,368 2,322,016
OPERATING LOSS (2,995,612) (2,205,315)
OTHER INCOME (EXPENSE)
Interest income 11,189 56,457
Gain on sale of asset - 8,449
TOTAL OTHER INCOME 11,189 64,906
LOSS BEFORE INCOME TAXES (2,984,423) (2,140,409)
INCOME TAXES (1,150) (800)
NET LOSS $(2,985,573) $(2,141,209)
Loss per common share:
Basic $(0.15) $(0.11)
Diluted $(0.15) $(0.11)
Shares used in computing loss per share:
Basic 20,535,159 19,783,309
Diluted 20,535,159 19,783,309
(1) Sales and marketing expenses includes stock based expenses of
$18,182 and $72,907 for the three months ended March 31, 2008 and
2007, respectively.
(2) Administrative expenses includes stock based expenses of $203,023 and
$21,360 for the three months ended March 31, 2008 and 2007,
respectively.
SOURCE AVP, Inc.
