Coffee People, Inc. Sales Gain 76 Percent; EBITDA Improves Despite Loss for Quarter.PORTLAND, Ore.--(BUSINESS WIRE)--April 30, 1998--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 retailer and operator of coffee houses, today reported higher revenue and improved earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Sales for the quarter rose 76 percent to $5.6 million from $3.2 million in the same 1997 quarter. The gain stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. from 16 stores opened or acquired since last year's first quarter as same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. declined by 6.8 percent. EBITDA for the quarter increased to $293,000 compared to a negative $217,000 in the year ago quarter. The improved EBITDA reflects lower store operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and lower general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. as a percentage of sales. The loss of $225,000, or $0.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, increased slightly from a loss of $190,000, or $0.06 per diluted share, in the comparable 1997 period. Results in the first quarter 1997 were aided by an income tax benefit of $119,000 which was not available in the 1998 quarter. "Our sales were adversely affected by severe winter weather in January, contributing to the decline in same-store sales," said Taylor H. Devine, president and chief executive officer of Coffee People. Devine said that improved operating efficiencies and expense reductions that allowed the company to achieve profitability in the prior quarter could not overcome lower-than-anticipated sales. "We're disappointed to report a loss for the quarter despite the reduction in general and administrative overhead costs overhead costs see fixed costs. from the same period a year ago," he said. During the quarter, Coffee People sold two of the five stores which it had closed outside its core markets in Oregon and Arizona since July 1997. The two stores sold were located in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Huntington Beach, California Huntington Beach is a seaside city in Orange County in southern California. As of the 2000 census, the city population was 189,594. It is bordered by the Pacific Ocean on the west, by Seal Beach on the north, by Costa Mesa on the south, by Westminster on the northeast, and by . In addition, one of the Chicago stores, which had been previously closed, was sold. These sales allowed the company to recover a portion of its store equipment costs and enables it to cease making ongoing lease payments for the store premises. The company is working with real estate brokers to sell, lease or sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. three other closed sites as well as the two stores continuing to operate in Denver. In other activity, the company reported recently that the proposed merger between Coffee People and the U.S. operations of The Second Cup Ltd (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SKL SKL Conservative Peasants Party (Poland) SKL State Key Laboratory SKL Simple Key Loader SKL Svenska Kriminaltekniska Laboratoriet (Swedish National Criminal Forensics Laboratory) ) of Toronto, Canada is scheduled for a shareholder vote on May 19, 1998. As part of the proposed merger, Gloria Jean's This article or section deals primarily with Australia and does not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Inc., a wholly-owned subsidiary of The Second Cup, will become a wholly-owned subsidiary of Coffee People. In exchange, Coffee People will issue approximately 7.5 million shares of Coffee People stock to Second Cup, giving it a 69.5 percent ownership of the combined company. Gloria Jean's is a leading specialty coffee retailer in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with 277 stores, 246 of which are franchised. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma systemwide sales, which includes sales from both company owned and franchisee operated stores, for the combined companies for the year ended June 28, 1997 were $123 million, with pro forma revenue of $52.2 million and a pro forma net loss of $7.7 million. The net loss included the $5.5 million charge taken by Coffee People in the second quarter of 1997 for closing seven stores and related corporate restructuring. For the 24-week period ended December 13, 1997, pro forma revenue was $30.4 million with pro forma net income of $1.5 million, or $0.14 per share. Coffee People, in business since 1983, currently operates 41 coffee houses, Motor Mokas(R) and Aero Mokas(R) -- 39 of which are located in Oregon and Arizona markets. -0- This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Actual results may differ materially from projected results. For a complete discussion of the risks associated with forward-looking information, refer to the Risk Factors contained in the company's 10-KSB for 1996 and 1997 and the Registration Statement on Form S-4 as filed with the Securities and Exchange Commission on April 24, 1998. The timing of the proposed transaction with Second Cup also is subject to uncertainty, due to several factors outside of Coffee People's control The People's Control in the Soviet Union as a semi-civic, semi-governmental grassroots-based organization to scrutinize the activities or government, local administrations and enterprizes traces its roots back to Rabkrin (Workers' and Peasants' Inspectorate) extablished in 1920. , including obtaining governmental approvals in a timely fashion, obtaining the consent of other third parties to the transaction and the satisfaction of other conditions to closing contained in the Agreement and Plan of Merger, dated February 19, 1998, a copy of which was filed with the SEC as an exhibit to its Registration Statement on Form S-4.
COFFEE PEOPLE, INC.
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31, March 31,
1998 1997
(Unaudited) (Unaudited)
Revenues:
Retail sales $ 5,544 $ 3,160
Wholesale and other 82 33
Total revenues 5,626 3,193
Cost of sales and related occupancy
expenses 2,773 1,559
Store operating expenses 1,951 1,134
Other operating expenses 1 --
Depreciation and amortization 421 203
General and administrative expenses 608 717
Income (loss) from operations (128) (420)
Other income, net 33 126
Interest expense (130) (15)
Income (loss) before benefit
(provision) for income taxes (225) (309)
Benefit (provision) for income taxes -- 119
Net income (loss) $ (225) $ (190)
Earnings (loss) per share - basic
and diluted $ (0.07) $ (0.06)
Shares used in computing earnings
per share 3,268,610 3,271,184
COFFEE PEOPLE, INC.
BALANCE SHEETS
(Dollars in thousands)
ASSETS
March 31, Dec. 31,
1998 1997
(Unaudited)
Current assets:
Cash and cash equivalents $ 2,597 $ 2,545
Accounts receivable 377 227
Inventories 565 632
Prepaid expenses 226 205
Income taxes receivable 149 157
Other current assets -- 20
Total current assets 3,914 3,786
Property and equipment, net 7,091 7,338
Goodwill 5,681 5,781
Other assets 116 118
Total assets $ 16,802 $ 17,023
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 1,276 $ 1,285
Current portion of long-term debt
to related parties 20 22
Line of credit 400 --
Accounts payable 1,118 1,011
Accrued liabilities 479 560
Provision for store closures
and restructuring 1,339 1,434
Income taxes payable -- --
Total current liabilities 4,632 4,312
Deferred tax liability
Long-term debt and capital lease
obligations 3,980 4,298
Long-term debt to related parties 134 137
Stockholders' equity
Common stock, no par value;
authorized, 50,000,000 shares;
issued and outstanding, 3,268,718
and 3,263,872 shares 14,574 14,563
Stock subscription notes receivable (308) (302)
Retained earnings (accumulated
deficit) (6,210) (5,985)
Total stockholders' equity 8,056 8,276
Total liabilities and
stockholders' equity $ 16,802 $ 17,023
CONTACT: Coffee People, Inc. Ken Ross, 503/672-9603 or Coffee People, Inc. 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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