Green Mountain Coffee, Inc. Reports Record Third Quarter Sales and Earnings.WATERBURY Waterbury, industrial city (1990 pop. 108,961), New Haven co., W Conn., on the Naugatuck River; settled 1674, inc. as a city 1853. The city, once famous for its brass industry, is a financial and commercial center of W Connecticut. , Vt.--(BUSINESS WIRE)--Aug. 3, 1999--
Green Mountain Coffee, 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 :GMCR GMCR Green Mountain Coffee Roasters, Inc
GMCR Grants Management Common Rule ) today announced record financial results for its third fiscal quarter, the twelve weeks ended July July: see month. 3, 1999.
For the fiscal quarter ended July 3, 1999, net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight from continuing operations continuing operations
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the increased 18.1% to a record $14,973,000 compared to net sales of $12,675,000 from continuing operations for the third fiscal quarter of 1998. Gross profit increased year-over-year from 36.2% to 41.1% of sales, due to a combination of sales growth and lower green coffee prices. Net income for the twelve weeks ended July 3, 1999, was a record $515,000, or $0.14 per share, compared to a loss of $1,236,000, or $0.35 per share, for the prior year quarter. Results for the quarter ended July 4, 1998 included a $1.3 million charge related to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action.
DISCONTINUANCE, pleading. A chasm or interruption in the pleading.
2. of the Company's retail store operation.
For the forty weeks ended July 3, 1999, net sales from continuing operations for the year-to-date Year-to-date (YTD)
The period beginning at the start of the calendar year up to the current date. period increased 16.5% to a record $49,493,000 compared to net sales of $42,479,000 from continuing operations for the comparable year-ago period. The Company reported record net income of $1,600,000, or $0.45 per share, for the forty weeks ended July 3, 1999, compared to a net loss of $1,519,000, or $0.43 per share for the comparable fiscal period in 1998. Income for the fiscal 1999 period included a $186,000 favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. adjustment, net of income taxes, to the Company's estimated loss on disposal of its discontinued dis·con·tin·ue
v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues
1. To stop doing or providing (something); end or abandon: company-owned retail store operation. The net loss for the fiscal 1998 period included the previously described $1.3 million disposal charge.
The Company's record performance over the most recent twelve and forty week periods was fueled by growth in the office coffee service, convenience store, supermarket, food service and travel categories of its wholesale business. In the third quarter, growth was most notable in the office coffee service category, where the Company has expanded the number of distributors in new and existing territories and where single-cup coffee sales used in the Keurig Keurig is a coffee machine manufacturing company that is a subsidiary of Green Mountain Coffee Roasters Inc.. Their machines are all designed to brew a single cup of coffee at a time, in under a minute. The coffee grounds are in prepared, single-serving K-Cups. Premium Coffee System(TM) have been popular. Working with its wholesale customers, the Company continued to make inroads inroads
make inroads into to start affecting or reducing: my gambling has made great inroads into my savings
inroads npl to make inroads into [+ into strategic geographic markets during the quarter, experiencing strong growth in particular in the South Atlantic and Mid-Atlantic regions as well as in its traditional northern and southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. markets. During the most recent period, the Company also benefited from lower interest expenses. Earnings were partially offset by higher marketing costs designed to continue building the brand.
Commenting on the quarter, Robert P. Stiller, Chairman, President, and Chief Executive Officer of Green Mountain Coffee said, "I believe our strong financial performance, as reported today, reflects our focus over the past year on profitably building our specialty wholesale business. We are doing what we do best, and doing it better than ever. With the conversion of our direct mail business this week to our PeopleSoft system, we now have a state-of-the-art information technology infrastructure that supports our fulfillment ful·fill also ful·fil
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.
2. and distribution systems throughout all areas of the business. Our initiatives to expand our line of beverages for the convenience store category are going well and the single-cup Keurig Premium Coffee System(TM) has proven, in a very short time, to be incredibly popular."
Speaking about the Company's financial strength, Robert D. Britt britt
Variant of brit.
Noun 1. britt - the young of a herring or sprat or similar fish
young fish - a fish that is young
2. , Chief Financial Officer said, "In addition to Green Mountain Coffee's earnings growth, our balance sheet demonstrates our financial improvement and the underlying strength of the business. Our rolling 12-month EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become from continuing operations as of July 3, 1999 is now over $6.6 million, or 10.5% of sales. Over the past year, we have reduced our debt by over $2.5 million. Primarily because of our improved financial condition, we also have seen a 75 basis point year-to-date performance pricing reduction in the interest rates our lead bank charges us, further contributing to a 32.0% year-over-year decline in third quarter interest expense."
Stiller concluded, "I personally am gratified grat·i·fy
tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies
1. To please or satisfy: His achievement gratified his father. See Synonyms at please.
2. by our financial success at Green Mountain Coffee because it is a testimony to a public company's ability to not only build value for our stockholders, but also be socially and environmentally pro-active pro·ac·tive or pro-ac·tive
Acting in advance to deal with an expected difficulty; anticipatory: proactive steps to prevent terrorism. and responsible. As the Company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and largest stockholder, I care about building stockholder value. As a concerned citizen and parent, I care equally about the positive difference we are making, for generations to come, in the communities where we do business, and the world at large."
Green Mountain Coffee, Inc. is a leader in the specialty coffee industry. The Company roasts high-quality arabica a·rab·i·ca
a. A species of coffee, Coffea arabica, originating in Ethiopia and widely cultivated for its high-quality, commercially valuable seeds.
b. The beanlike seed of this plant.
2. coffees and offers over 60 varieties including single-origin, estate, certified See certification. organic, proprietary blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters Green Mountain Coffee Roasters is a publicly-traded brand of coffee based at Waterbury in the U.S. state of Vermont. The brand specializes in organic, fair-trade, and specialty gourmet coffees. Keurig is wholly owned subsidiary of Green Mountain Coffee Roasters, Inc. (R) brand. The majority of Green Mountain Coffee's revenue is derived from its wholesale operation which services restaurant, supermarket, specialty food store, convenience store, food service, in-room hotel hospitality, university, airline, train, and office coffee service customers. Green Mountain Coffee also operates a direct mail operation and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. web site (http:\\www.GreenMountainCoffee.com) with secure on-line ordering for customers from its Waterbury, Vermont Waterbury is a town in Washington County in central Vermont. It is also the name of a village within that town. Economy
Waterbury is the location of Ben & Jerry's Ice Cream, whose factory tours have become Vermont's most popular tourist attraction. headquarters.
Certain statements contained herein are not based on historical fact and are "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. " within the meaning of the applicable securities laws and regulations. Owing to owing to
Because of; on account of: I couldn't attend, owing to illness.
owing to prep → debido a, por causa de the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, business conditions in the coffee industry and food industry in general, the impact of the loss of one or more major customers, fluctuations in availability and cost of green coffee, economic conditions, competition, the management challenges of rapid growth, variances from budgeted sales mix sales mix
See product mix. and growth rate, customer acceptance of the Company's new products, the impact of a tighter job market, Year 2000 issues, weather and special or unusual events, as well as other risk factors described from time to time in the Company's SEC filings.
GREEN MOUNTAIN COFFEE, INC. Consolidated Statement of Operations (Dollars in thousands except per share data) Twelve Weeks Ended Forty Weeks Ended July 3, 1999 July 4, 1998 July 3, 1999 July 4, 1998 Net sales: Wholesale $ 14,254 $ 12,040 $ 46,718 $ 40,019 Direct mail 719 635 2,775 2,460 Net sales 14,973 12,675 49,493 42,479 Cost of sales 8,821 8,090 30,253 28,255 Gross profit 6,152 4,585 19,240 14,224 Selling and operating expenses 3,969 3,209 12,648 10,404 General and administrative expenses 1,184 1,017 3,686 3,228 Operating income 999 359 2,906 592 Other income (5) 13 6 53 Interest expense (164) (241) (639) (647) Income from continuing operations before income taxes 830 131 2,273 (2) Income tax benefit (expense) (315) (52) (859) 39 Income from continuing operations 515 79 1,414 37 Discontinued operations (1): Loss from discontinued retail stores operations, net of income tax benefits - (56) - (297) Income (loss) on disposal of retail stores operations, net of income tax benefit (expense) - (1,259) 186 (1,259) Net income (loss) $ 515 $ (1,236) $ 1,600 $ (1,519) Basic income (loss) per share: Weighted average shares outstanding 3,494,399 3,530,818 3,499,299 3,530,818 Income from continuing operations $ 0.15 $ 0.02 $ 0.40 $ 0.01 Income (loss) from discontinued operations - (0.37) 0.06 (0.44) Net income (loss) $ 0.15 $ (0.35) $ 0.46 $ (0.43) Diluted income (loss) per share: Weighted average shares outstanding 3,552,574 3,530,818 3,532,541 3,530,818 Income from continuing operations $ 0.14 $ 0.02 $ 0.40 $ 0.01 Income (loss) from discontinued operations - (0.37) 0.05 (0.44) Net income (loss) $ 0.14 $ (0.35) $ 0.45 $ (0.43) (1) The Company discontinued its company-owned retail store operation in the third quarter of fiscal 1998. GREEN MOUNTAIN COFFEE, INC. Consolidated Balance Sheet (Dollars in thousands) July 3, September 26, 1999 1998 Assets Current assets: Cash and cash equivalents $ 958 $ 777 Receivables, less allowances of $180 at July 3, 1999 and $378 at September 26, 1998 5,450 4,789 Inventories 5,342 5,636 Other current assets 536 489 Loans to officers 523 185 Deferred income taxes, net 695 880 Total current assets 13,504 12,756 Fixed assets, net 10,264 10,800 Other long-term assets 254 270 Deferred income taxes, net 409 737 $ 24,431 $ 24,563 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 233 $ 249 Current portion of obligation under capital lease - 12 Accounts payable 3,547 3,131 Accrued payroll 878 827 Accrued expenses 612 507 Accrued losses and other costs of discontinued operations, net 185 178 Total current liabilities 5,455 4,904 Long-term debt 3,858 5,041 Long-term line of credit 4,234 5,150 Stockholders' equity: Common stock, $0.10 par value: Authorized - 10,000,000 shares; Issued - 3,594,753 shares and 3,545,841 shares at July 3, 1999 and September 26, 1998; Outstanding - 3,514,635 shares and 3,538,491 shares at July 3, 1999 and September 26, 1998, respectively 359 355 Additional paid-in capital 13,287 13,018 Accumulated deficit (2,268) (3,868) Treasury shares, at cost, 80,118 shares and 7,350 shares at July 3, 1999 and September 26, 1998, respectively (494) (37) Total stockholders' equity 10,884 9,468 $ 24,431 $ 24,563