CoolBrands International Inc. Reports Record Revenues And Earnings For Third Quarter.Business Editors MARKHAM, Ontario--(BUSINESS WIRE)--July 23, 2002 CoolBrands International Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : COB.A) announced that revenues for the quarter ended May 31, 2002 increased to $67,989,000 from $54,903,000 for the quarter ended May 31, 2001, an increase of 24%. Net earnings for the Third Quarter of fiscal 2002 were $6,826,000 ($0.14 basic and $0.13 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ) as compared with net earnings adjusted for the exclusion of goodwill amortization of $4,095,000 ($0.09 basic and diluted earnings per share) for the same period last year, an increase of 67%. Revenues for the nine months ended May 31, 2002 were $155,857,000 as compared with $115,166,000 for the same period last year, an increase of 35%. Net earnings for the first nine months of fiscal 2002 were $11,883,000 ($0.25 basic and $0.24 diluted earnings per share) as compared with net earnings adjusted for the exclusion of goodwill amortization of $7,048,000 ($0.15 basic and diluted earnings per share) for the first nine months of fiscal 2001, an increase of 69%. Effective September 1, 2001 the Company adopted the new recommendations of the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. in accounting for goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . As a result of this change, beginning with the first quarter of fiscal 2002, the Company no longer amortizes goodwill. Due to the exclusion of such amortization of goodwill, net earnings as reported last year would have increased by $444,000 ($0.01 per share) for the third quarter, and $1,286,000 ($0.03 per share) for the first nine months. Excluding amortization of goodwill, reported earnings before income taxes last year would have increased by $711,000 for the third quarter, and $2,058,000 for the first nine months. Earnings before income tax in 2002 thus reflect an increase of $3,316,000, or 47%, for the third quarter, and $5,373,000, or 43% for the first nine months, over the same periods of the prior year, after adjusting for the exclusion of amortization of goodwill. Revenues increased due to an increase in sales of $13,248,000, or 25%, to $65,483,000 as compared with $52,235,000 for the same period last year. This increase was primarily due to increased prepackaged pre·pack·age tr.v. pre·pack·aged, pre·pack·ag·ing, pre·pack·ag·es To wrap or package (a product) before marketing. Adj. 1. consumer products sales. Operating results for the quarter reflect an increase in gross profit dollars of $9,335,000, primarily due to the increase in sales and an increase in the gross profit percentage of 5.4%. The improvement in the gross profit percentage reflects a sale mix of products with higher gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . Selling, general and administrative expenses increased by $5,854,000, due primarily to increased marketing and promotional spending and expenses associated with the increased sales activity. Commenting on the results, David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Stein, President and Co-Chief Executive Officer of CoolBrands International Inc. stated, "The Company's performance during the third quarter continued the strong internal growth trends in revenues and earnings from the last seven consecutive fiscal quarters. Strong consumer demand, widened distribution and increased production capacity for key consumer product offerings should continue to drive growth in the fourth quarter and beyond." During the quarter, the Company received $14,120,000, net of underwriters' commission and expenses, from the sale of 3,750,000 special warrants issued on March 4, 2002, which were subsequently exercised and resulted in the issuance of 3,750,000 shares on April 19, 2002. Summary Financial Data:
Three Months Ended
May 31, 2002 May 31, 2001
------------ ------------
Revenues 67,989,000 54,903,000
Earnings before income taxes 10,433,000 6,406,000
Provision for income taxes 3,607,000 2,755,000
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Reported net earnings 6,826,000 3,651,000
Goodwill amortization 444,000
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Adjusted net earnings 6,826,000 4,095,000
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Basic earnings per share:
Reported net earnings $0.14 $0.08
Goodwill amortization $0.01
-------------------------
Adjusted net earnings $0.14 $0.09
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Diluted earnings per share:
Reported net earnings $0.13 $0.08
Goodwill amortization $0.01
-------------------------
Adjusted net earnings $0.13 $0.09
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EBITDA 11,904,000 9,105,000
Depreciation and amortization 916,000 1,793,000
Interest expense 555,000 907,000
Weighted average number
of shares outstanding 48,658,000 45,826,000
Nine Months Ended
May 31, 2002 May 31, 2001
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Revenues 155,857,000 115,116,000
Earnings before income taxes 17,907,000 10,476,000
Provision for Income Taxes 6,024,000 4,714,000
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Reported net earnings 11,883,000 5,762,000
Goodwill amortization 1,286,000
-------------------------
Adjusted net earnings 11,883,000 7,048,000
-------------------------
Basic earnings per share:
Reported net earnings $0.25 $0.12
Goodwill amortization $0.03
-------------------------
Adjusted net earnings $0.25 $0.15
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Diluted earnings per share:
Reported net earnings $0.24 $0.12
Goodwill amortization $0.03
-------------------------
Adjusted net earnings $0.24 $0.15
-------------------------
EBITDA 22,781,000 18,028,000
Depreciation and amortization 2,910,000 4,891,000
Interest expense 1,964,000 2,661,000
Weighted Average number of
shares outstanding 46,834,000 45,826,000
Coolbrands markets Eskimo Pie Eskimo Pie is a brand name for a chocolate-covered vanilla ice cream bar wrapped in foil, the first such dessert sold in the United States. Danish immigrant Christian Kent Nelson, a schoolteacher and candy store owner, claimed to have received the inspiration for the Eskimo (R) branded frozen novelties A novelty is a small manufactured adornment, especially a personal adornment. In this sense, the word is usually used in the plural, novelties. The word is also used to denote novelty item. and frozen dessert products. Eskimo Pie(R) created the frozen novelty industry in 1921 when its founder, Christian K. Nelson, invented the chocolate-coated ice cream bar An ice cream bar is a frozen dessert on a stick or a candy bar that has ice cream in it. The coating is usually a thin layer of chocolate. Sometimes there is some crunchy goodness on the outside too. . Today, more than 80 years later, Eskimo Pie(R) remains one of the best-known and most widely distributed Adj. 1. widely distributed - growing or occurring in many parts of the world; "a cosmopolitan herb"; "cosmopolitan in distribution" cosmopolitan bionomics, environmental science, ecology - the branch of biology concerned with the relations between organisms of all frozen novelty brands. The Company also markets a broad range of frozen novelties and frozen dessert products under the Tropicana(R), Welch's(R), Weight Watchers(R) Smart Ones(R), Betty Crocker Betty Crocker, an invented persona and mascot, is a brand name and trademark of American food company General Mills. The name was first developed by the Washburn Crosby Company in 1921 as a way to give a personalized response to consumer product questions. (R), Trix(R), Yoplait(R), Colombo(R) and Yoo Hoo(R) brand names pursuant to long-term licensing agreements. In addition, Coolbrands franchises and licenses frozen dessert outlets operated under a Family of Brands including Yogen Frz(R), I Can't Believe It's Yogurt yogurt: see fermented milk. yogurt Semisolid, fermented, often flavoured milk food. Yogurt is known and consumed in almost all parts of the world. (R), Bresler's(R), Swensen's(R), Golden Swirl(R), Ice Cream Churn churn: see butter. (R), and Java Coast(R) Fine Coffees, with company-owned, franchised and non-traditional partnership locations in approximately 80 countries around the world. Coolbrands' Foodservice Division is a leading manufacturer and supplier of premium soft serve ice cream, frozen yogurt, custard and smoothies to the foodservice industry. The Company also manufactures and sells a full line of quality flavors, chocolate coatings, fudge sauces Noun 1. fudge sauce - thick chocolate sauce served hot hot-fudge sauce chocolate sauce, chocolate syrup - sauce made with unsweetened chocolate or cocoa and sugar and water , powders for chocolate milk, egg nog A drink make from eggs beaten with milk, cream, and sugar, often spiked with rum or other alcoholic liquor, and sometimes seasoned with cinnamon; usually spelled eggnog sp>. It is a traditional drink served at social gatherings during the Christmas season. See also: Nog bases and other ingredients and flexible packaging products for use in private label dairy products dairy products dairy npl → produits laitier dairy products dairy npl → Milchprodukte pl, Molkereiprodukte pl in addition to the Company's brands. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Information in this release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future plans and performance are "forward looking statements" and, as such, involve certain risks and uncertainties that could cause actual results to vary materially. Potential risks and uncertainties include, but are not limited to: (1) the highly competitive nature of the frozen dessert market and the level of consumer interest in the Company's products, (2) product costing, (3) the weather, (4) the performance of management, including management's ability to implement its plans as contemplated, (5) the Company's relationships with its customers, franchisees, licensees and licensors, and (6) government regulation. COOLBRANDS INTERNATIONAL, INC. 8300 Woodbine woodbine, name for several vines, among them honeysuckle and Virginia creeper. woodbine Any of many species of vines belonging to various flowering-plant families, especially the Virginia creeper (Parthenocissus quinquefolia, family Vitaceae) of Avenue, 5th Floor Markham, Ontario Markham (2006 Population 261,573[0]) is located in York Region, directly north of Toronto, and is part of Toronto's CMA. It is larger than many Canadian cities. Despite its qualifications regarding population, it has not had the title of city conferred upon it by the , Canada, L3R 9Y7 |
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