Celsius Holdings (CELH.PK), maker of the pre-workout calorie burning beverage Celsius, reported another round of earnings last week, although the report had little impact on the share price and sparked only modest, if any, new investor interest.

After a volatile year in 2010 that saw huge expenditures thrown at a nationwide advertising campaign that ultimately did not pay off as planned, Celsius spent the better part of 2011 regaining its foothold in the healthy and pre-workout beverage markets.

While numbers continue to be modest, signs of stability are emerging, which is key if this company is to mark a turnaround and gain significant traction in the beverage markets.

The fourth quarter sales numbers totaled $1.8 million, up from just $103,000 during the same quarter of the previous year, although down from the $2.5 million number announced for the previous quarter.

As noted in the earnings press release, Celsius continues to reduce the amount of discounts given, which has led to a boost in revenue, but also masks the fact that significant growth is not being realized just yet. To tackle that issue, Celsius plans to return to the small-marketing approach that was utilized before the multi-million dollar ad blitz - which included Mario Lopez - that emptied the company's cash coffers in 2010.

"The Company announced today a strategy to expand the Celsius brand through Direct to Consumer initiatives and to restructure and support its retail sales efforts. The campaigns will include DRTV, Affiliate Networks, Banner Advertising, Social and Digital Media, Direct Mail, Viral Marketing and Health Club Sampling," read last week's press release.

In conjunction with the small marketing strategy, Celsius added a new flavor of powdered packet to the inventory, this one titled 'Outrageous Orange'. The new flavor joins the already-distributed berry flavored powdered packets as a convenient alternative to the sparkling and non-carbonated canned drinks.

With other new flavors, such as the non-carbonated Lemon Iced Tea and Strawberry/Kiwi drinks, Celsius hopes to expand its presence in the beverage industry and spark a potential turnaround that would attract some new investor interest, as well as recover a battered share price and market cap.

Money is a concern for investors as Celsius looks to move forward after having exhausted most of its cash reserves, but as mentioned last quarter, most of the debt the debt that was coming due has been pushed back to 2014. That allows the company and new CEO Gerry David to grow the brand, and potentially grow revenue to a point where profits can be realized while debt is paid down.

If 2010 was a year of failed momentum, 2011 could be viewed as a year of regained footing. This sets up 2012 as a potential year of gained momentum and recovery. That said, it's a volatile and risky industry, so it'll be a work-in-progress to compete with the established big boys, hence the move into the pre-workout drink sector.

Not yet on the cusp of being called a solid rebound play, but the new found stability marked by the below numbers may be providing a starting point for another round of growth.

Still worth keeping on the watch list.

Celsius Holdings Recent Sales Numbers:

Q4 2011 - $1.8 million

Q3 2011 - $2.5

Q2 2011 - $2.0

Q1 2011 - $2.2

Q4 2010 ~ $135,000

Q3 2010 - $1.8

Q2 2010 - $4.1

Q1 2010 - $2.3

Q4 2009 - $2.4

Q3 2009 - $1.3

Q2 2009 - $1.2

Q1 2009 ~ $1.0


Disclosure: Long CELH.

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