Coolbrands International Inc. Reports Year End And Fourth Quarter Financial Results.Business Editors TORONTO--(BUSINESS WIRE)--Dec. 8, 2000 CoolBrands International Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :COB.A), the world's largest franchisor of frozen yogurt outlets and a leading franchisor of frozen dessert outlets and marketer of frozen desserts and novelties, today reported its financial results for the year and fourth quarter ended August 31, 2000. Revenues for the year ended August 31, 2000 were $97,488,000 as compared with revenues of $112,607,000 for the prior year. Net loss for the year just ended was ($27,826,000) ($0.61 loss per share basic and fully diluted) as compared with net earnings of $3,184,000 ($0.07 earnings per share basic and fully diluted), for the prior year. Net loss for 2000 included $26,513,000 of non-cash special charges, consisting of a $24,850,000 non-cash special charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an asset impairment previously announced with the Company's second quarter results and a $1,663,000 non-cash special charge relating to a loss on repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, of franchise rights. Revenues for the fourth quarter in 2000 were $32,372,000 as compared with $42,102,000 for the same period in 1999. Net loss was ($2,773,000) ($0.06 loss per share basic and fully diluted) as compared with net earnings of $3,060,000 ($0.07 earnings per share basic and fully diluted) for the same period in 1999. Net loss for the fourth quarter included the $1,663,000 non-cash special charge relating to a loss on repossession of franchise rights. The decline in revenues for the year and fourth quarter as compared with 1999 was primarily due to lower sales resulting from unseasonably cool weather in the eastern half of 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. during the fourth quarter. 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, CoolBrands' President and Co-Chief Executive Officer, stated "The fourth quarter was the coldest on record for over 100 years and the resulting sales decline was felt throughout the frozen novelty industry. Strong results during the third quarter in 2000 under ordinary weather conditions more accurately reflect the continued strength in the marketplace of the Company's products." The revenue decline was also partly due to there being 37 fewer company-owned stores in 2000 as compared with 1999, resulting from the sale of 18 company-owned stores to franchisees and the closing of 19 unprofitable locations. The 2000 results include losses of ($1,174,000) for locations sold or re-franchised during the year. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold was $47,569,000 as compared with $54,037,000 for 1999. The gross profit percentage in 2000 was 42.3%, essentially unchanged from the prior year. However, due to the decline in sales, gross profit dollars declined to $34,812,000 in 2000 from $39,824,000 in 1999, which adversely affected earnings before income taxes by $5,012,000. Selling, general and administrative expenses were reduced by $488,000 to $41,319,000 for 2000 as compared to $41,807,000 for 1999. Selling, general and administrative expenses for 2000 included an additional allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. for certain international receivables of $1,498,000 as compared to the prior year, and $1,603,000 in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. new product introductory costs. As previously announced, CoolBrands acquired 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 Corporation on October 6, 2000. The financial results announced today do not include results of Eskimo Pie Corporation, which will be consolidated with CoolBrands' results beginning in fiscal 2001. Mr. Stein commented, "Despite the extraordinary weather conditions during the fourth quarter, the market position of the Company's brands remains strong. The acquisition of Eskimo Pie Corporation, whose products have greater distribution in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century , will in the future help to mitigate the effect of regional weather fluctuations by broadening our geographical distribution the natural arrangements of animals and plants in particular regions or districts. See under Distribution. See also: Distribution Geographic base."
Summary Financial Data (in Thousands of dollars, except for share
data):
Year Ended Quarter Ended
August 31, August 31,
2000 1999 2000 1999
------ ------- ------ ------
$ $ $ $
------ ------- ------ ------
Revenues 97,488 112,607 32,372 42,102
Earnings (Loss) before
non-cash asset impairment
and loss on repossession
special charges (663) 3,728 (930) 4,470
Non-cash asset impairment
special charge (24,850) (43)
Non-cash loss on repossession
of franchise rights (1,663) (1,663)
Earnings (Loss) before income taxes(27,176)3,728(2,636) 4,470
Provision for income taxes 650 544 137 1,410
Net earnings (Loss) before
non-cash asset impairment
and loss on repossession
special charges (1,313) 3,184 (1,067) 3,060
Net earnings (Loss) (27,826) 3,184 (2,773) 3,060
Earnings (Loss) per share
before non-cash asset
impairment and loss on
repossession special charges
Basic and fully diluted (.03) .07 (.02) .07
Earnings (Loss) Per Share
Basic and fully diluted (.61) .07 (.06) .07
Weighted average number of
shares outstanding 45,824 45,826 45,789 45,803
CoolBrands markets a broad range of frozen novelties and frozen dessert products under the Tropicana, 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. , Trix, Yoplait, Colombo, Lucky Charms
Eskimo Pie Corporation, now a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CoolBrands, created the frozen novelty industry in 1921 with the invention of the Eskimo Pie 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, Eskimo Pie markets a broad range of frozen novelties, ice cream and sorbet products under the Eskimo Pie, Welch's, Weight Watchers, Smart Ones, Snackwell's and OREO brand names. Eskimo Pie Foodservice is a leading supplier of premium soft serve ice cream, frozen yogurt, custard and smoothies to the foodservice industry. Eskimo Pie also sells a full line of quality flavours and ingredients for use in private label dairy products dairy products dairy npl → produits laitier dairy products dairy npl → Milchprodukte pl, Molkereiprodukte pl in addition to Eskimo Pie 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 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. |
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