Coffee People, Inc. Posts Higher Sales in Third Quarter.PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--Nov. 5, 1996--Coffee People, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MOKA MOKA Methodology and Software Tools Oriented to Knowledge Based Engineering Applications ), a specialty coffee retailer and operator of coffee houses, today reported revenues of $3.1 million for the quarter ended September September: see month. 30, 1996, up 4 percent from the same 1995 quarter. Costs associated with growth lowered net income to $47,000 in the quarter from $63,000 a year ago. Earnings per share for the quarter were $.02 compared to $.04 and were affected by an increase in shares due to a private placement of common stock completed in January January: see month. 1996. For the nine months ended September 30, 1996, revenues were $9.0 million, up 9 percent from $8.3 million in the comparable 1995 period. Net income for the nine-month period increased to $181,000, or $.09 per share on a larger number of shares, from $155,000, or $.10 per share. "Our increase in retail sales is attributable to the opening of one new store since the 1995 quarter," said Jim Roberts Jim Roberts can refer to
Roberts explained that results at two stores were primarily responsible for the decline in comparable sales for the 18 stores open for the full third quarters of 1996 and 1995. One store is located in a shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into in the process of redevelopment which affected customer access and lowered sales 21 percent. The second store, which the company expects to close when the lease expires in April, 1997, is in close proximity to one of the company's top producing stores and experienced a 17 percent sales decline. "We continue to be pleased with our average store sales for our core stores," Roberts said. The 12 neighborhood and drive-through drive-through or drive-thru adj. 1. Relating to or conducting exchanges with clients who drive up to a window and remain in their automobiles: drive-thru banking. 2. stores open for the full quarter had average store sales of $186,000 for the quarter. The average store contribution margin for the quarter for these 12 stores was 18.7 percent, down from 19.5 percent realized by these stores in the same 1995 period. "The slight decline in store contribution margin was due to higher costs for milk, chocolate and pastry pastry, general name for baked articles of food made of paste or having paste as a necessary ingredient. The name is also used for the paste itself. The essential elements of paste are flour, liquid (usually milk or water, sometimes beaten egg), and shortening. ," Roberts noted. "In response to these cost increases, the company raised prices on its coffee beverages in September." In addition to higher costs for certain products, net income for the quarter was affected by higher general and administrative expenses. "The largest expense increase was tied to strengthening our management team in preparation for rapid expansion of the company," said Roberts. Coffee People completed an initial public offering of 1,225,000 shares of common stock in September 1996 that raised approximately $10 million in proceeds before offering costs. The company plans to use these proceeds to open new stores and develop new markets. "We are on track with our plan," said Roberts. "We opened a new store in late October October: see month. in the Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. area and have signed leases for two locations in the Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. area for stores that are expected to open in November November: see month. ," Roberts said. The company's growth strategy targets the opening of at least 30 new stores in selected cities by the end of 1997. The company also announced that Patricia J. Roberts, co-founder of the company, has decided to step down from her current position as vice president of human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . She will continue her employment with the company, focusing on special projects in the areas of customer and corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. . In business since 1983, Coffee People currently has 20 outlets in Oregon including coffee houses, drive through Motor Mokas(R) and Aero Moka(TM) kiosks at Portland International Airport
. The company's stores feature a menu of more than 200 coffee drinks, shakes, pastries and other coffee-related products. -0-
COFFEE PEOPLE, INC.
STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1996 1995 1996 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Retail sales $ 3,107 $ 2,984 $ 8,885 $ 8,131
Wholesale and
other 41 50 142 148
Total revenues 3,148 3,034 9,027 8,279
Costs of sales and
related occupancy
expenses 1,542 1,465 4,324 3,996
Store operating
expenses 976 939 2,745 2,556
Other operating
expenses 5 16 44 46
Depreciation and
amortization 132 104 364 271
General and
administrative
expenses 443 387 1,323 1,106
Income from
operations 50 123 227 304
Other income, net 49 8 132 28
Interest expense (22) (36) (65) (95)
Income before
provision for
income taxes 77 95 294 237
Provision for income
taxes (30) (32) (113) (82)
Net income $ 47 $ 63 $ 181 $ 155
Earnings per share $ 0.02 $ 0.04 $ 0.09 $ 0.10
Shares used in
computing earnings
per share 2,134,929 1,507,687 2,066,253 1,498,541
COFFEE PEOPLE, INC.
BALANCE SHEETS
(Dollars in Thousands)
ASSETS
September 30, December 31,
1996 1995
(Unaudited)
Current assets:
Cash and cash equivalents $ 13,207 $ 260
Accounts receivable 21 9
Inventories 198 264
Prepaid expenses 107 112
Other current assets 44 13
Total current assets 13,577 658
Property and equipment, net 2,650 2,155
Other assets 61 23
Total assets $ 16,288 $ 2,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 131 $ 147
Line of credit -- 175
Accounts payable 544 775
Accrued liabilities 319 196
Income taxes payable 53 55
Total current liabilities 1,047 1,348
Deferred tax liability 66 66
Long-term debt and capital lease
obligations 475 567
Stockholders' equity:
Preferred stock, no par value;
authorized 10,000,000 shares,
none issued or outstanding - -
Common stock, no par value;
authorized, 50,000,000 shares;
issued, 3,228,020 and 1,936,233
shares; outstanding, 3,228,020 and
1,405,044 14,608 1,476
Stock subscription notes receivable (275) (341)
Retained earnings 367 187
Treasury stock - (467)
Total stockholders' equity 14,700 855
Total liabilities and stockholders'
equity $ 16,288 $ 2,836
CONTACT: Coffee People Inc., Portland Ken Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. , 503/223-7714 Dolores Dolores (or Delores) was a common given name (until the 1960s in the USA); it is cognate with the English word "dolorous" (meaning sorrowful) and equivalent in meaning. Chenoweth, 503/291-1924 |
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