E Interview With Long Island Iced Tea Corp.

I’m speaking with Phil Thomas, CEO of Long Island Iced Tea Corp. (LIIT) (Nasdaq: LTEA), today about the company and where it is headed. LIIT makes an assorted selection of iced tea drinks which can be found in numerous supermarkets, mostly in the eastern part of the country. These iced teas are also available online at Amazon.

Ilene: What makes your product, Long Island Iced Tea, special?
Philip Thomas: We use premium, non-GMO ingredients including cane sugar (not high fructose corn syrup) in our proprietary recipes. Our diet teas do not contain Aspartame. We sell these high-quality, great tasting drinks at very affordable prices.

Ilene: Your sales are up triple digits from last year, but expenses are up around that much too. How and when do you see sales surpassing expenses?
Philip Thomas: Expenses were high due to our building a platform for growth ahead of the revenue growth we are hoping for. Also, a large amount of the financial expenses are one time and non-cash, stock-based expenses. We expect expenses to normalize as a percent of sales as we grow.

Ilene: At what rate do you anticipate growing revenue during the next couple of years?
Philip Thomas: We would hope to maintain our current growth rate for as long as possible during the near future.

Ilene: Your net loss for the past two years has been a little over $3 million per year. Will losses decrease next year? When do you expect your company to become profitable?
Philip Thomas: Profitability will depend on how much operating cash flow we decide to reinvest into the business, which will depend on how fast we grow. At this point it’s hard to tell when profitability will occur, as we plan to reinvest operating cash flow into our brand for the foreseeable future.

Ilene: Will you need to sell shares of stock or take out loans before LIIT reaches profitability?
Philip Thomas: This will depend on how fast we will grow and how much we reinvest into our brand.

Ilene: You have a group of very experienced individuals on your management team. Can you tell me more about you and your team members’ roles at other beverage companies and at LIIT?
Philip Thomas: I have over 20+ years of beverage experience. I served as our Chief Executive Officer since the consummation of the Business Combination on May 27, 2015. I also served as our Chairman of the Board from May 2015 until June 2016. I previously served as the Chief Executive Officer of Long Island Brand Beverages, LLC (predecessor to LIIT) since its formation in February 2011 and as the Managing Member and a member of the board of managers of LIBB from February 2011 until May 2015. Prior to this, I revitalized a 45-year old family owned food and beverage distribution business, Magnum Enterprises, in 2003 by creating strategic partnerships with Coca‐Cola and Vitamin Water. I founded Capital Link in 2005, which was involved in a nationally recognized ATM processing network that funds over 13,000 ATMs.

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time, and ...

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David P. Goldsmith 2 years ago Member's comment

Ilene Carrie and Philip Thomas : what's your take on the news that $LTEA's parent company is shifting it's focus to blockchain? If it were April 1st, I would have assumed this was a joke, but sounds legit: www.talkmarkets.com/.../long-island-iced-tea-soars-500-after-changing-its-name-to-long-blockchain

Philip Thomas 3 years ago Member's comment

Thanks for the interview Ilene. Happy to answer any questions investors have about $LTEA

Ilene Carrie 3 years ago Author's comment

Thank you!

Alpha Stockman 3 years ago Member's comment

Ilene Carrie, thanks for your article on $LTEA. Would you recommend investing in this stock over others in the beverage place? I don't deny they are delicious, just not sure it's as tasty as an investment.

Ilene Carrie 3 years ago Author's comment

Alpha and Craig: For more info, you can try calling company, SEC files, googling the company. What more information do you think is important/what would you ask?

Craig Richards 3 years ago Member's comment

I agree, looks like an intersting investment option. Would love if someone can point me to where I can learn more about $LTEA.

John Fitch 3 years ago Member's comment

It's great to see drink companies starting to use real cane sugar again. Smart move on the company's part I think. I've never tried their product, but will. However, before I buy $LTEA I'll be doing more due diligence. Any more articles on this stock?