Green Mountain Coffee, Inc. Reports Second Fiscal Quarter Earnings.WATERBURY, Vt.--(BUSINESS WIRE)--May 18, 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 financial results for its second fiscal quarter, the twelve weeks ended April 10, 1999. For the twelve weeks ended April 10, 1999, coffee pounds sold 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 by 13.7% to a second quarter record of 2,031,000 pounds compared to 1,786,000 pounds in the year-ago second fiscal quarter. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: 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 increased 12.7% to a record $14,452,000 compared to net sales of $12,826,000 from continuing operations for the second fiscal quarter of 1998. Gross profit from continuing operations increased year-over-year by 37.5% to $5,560,000, due to a combination of sales growth and lower coffee bean coffee bean see sesbania. prices. The Company generated record operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from continuing operations of $746,000, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. from continuing operations of $236,000 for the second fiscal quarter of 1998. Net income for the twelve weeks ended April 10, 1999, was $544,000, or $0.15 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, compared to a loss of $387,000 or $0.11 per share, for the prior year fiscal quarter. Net income for the fiscal 1999 quarter included a $186,000 favorable fa·vor·a·ble adj. 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 v.tr. 1. To stop doing or providing (something); end or abandon: company-owned retail store operation. Without this adjustment, the Company's earnings from continuing operations for the current quarter were $0.10 per share, compared to a loss from continuing operations for the prior year quarter of $0.06 per share. For the twenty-eight weeks ended April 10, 1999, Green Mountain Coffee realized a 17.9% increase in total coffee pounds sold. Net sales from continuing operations for the year-to-date period increased 15.8% to $34,520,000 compared to net sales of $29,803,000 from continuing operations for the year-ago period. The Company reported net income of $1,085,000, or $0.31 per share, for the twenty-eight weeks ended April 10, 1999, compared to a loss of $283,000, or $0.08 per share for the first half of fiscal 1998. Net income for the fiscal 1999 year-to-date period included the previously described second quarter reversal relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Commenting on the Company's earnings, Robert P. Stiller, Chairman, President, and Chief Executive Officer of Green Mountain Coffee said, "Our primary financial goal at Green Mountain Coffee this year has been to strengthen the Company's profitability. Green Mountain Coffee's performance represents a dramatic turnaround from where we were just a year ago. While we have benefited from lower green coffee prices, the earnings we reported today also reflect the tremendous effort throughout the Company to focus on building the brand in a manner that increases profits as well as sales. Another tangible example of the Company's bottom-line focus is our success in disposing of our retail store operation at a lower cost than we originally estimated, resulting in the $186,000 favorable adjustment for the quarter, and delivering an additional $0.05 per share in earnings to stockholders." Stiller also talked about Green Mountain Coffee's continued emphasis on maintaining the very high quality of its coffee and being socially and environmentally responsible, saying, "Green Mountain Coffee's Colombian Supremo su·pre·mo n. pl. su·pre·mos Chiefly British One who is highest in authority or command, as of an organization. [Spanish and Italian, supreme, supremo, from Latin Popayan coffee recently was rated very highly by the Coffee Review, a highly-regarded coffee industry newsletter. In addition, Green Mountain has introduced a new environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] , decaffeinated de·caf·fein·at·ed adj. Having the caffeine removed: decaffeinated coffee; decaffeinated soft drinks. de·caf organic coffee called Organic House Blend House Blend (2002) was a pilot for an American Television Series written by Anne Flett-Giordano and Chuck Ranberg and directed by John Whitesell. It was made by Paramount Network Television Productions. It first aired on May 1, 2002. (tm) Decaf. This coffee is a blend of light and dark roasted certified See certification. organic coffee from Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. that has been decaffeinated using the Swiss Water(R) Process." Stiller continued stating, "Green Mountain Coffee recently has been given a Social Assessment Rating of `excellent', the highest rating, by Trillium trillium or wake-robin (trĭl`ēəm), any plant of the large genus Trillium, attractive spring wildflowers of the family Liliaceae (lily family), native to North America and E Asia. Asset Management, a socially responsible research and investment advisory firm headquartered in Boston." Green Mountain Coffee, Inc. is a leader in the specialty coffee industry. The Company roasts high-quality arabica a·rab·i·ca n. 1. 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 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 website (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 Industry 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 prep. 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, prevailing interest rates, 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. -0-
GREEN MOUNTAIN COFFEE, INC.
Consolidated Statement of Operations
(Dollars in thousands except per share data)
Twelve Weeks Ended Twenty eight Weeks Ended
April 10, April 11, April 10, April 11,
1999 1998 1999 1998
Net sales:
Wholesale $ 13,723 $ 12,172 $ 32,464 $ 27,977
Direct mail 729 654 2,056 1,826
Net sales 14,452 12,826 34,520 29,803
Cost of sales 8,892 8,783 21,432 20,164
Gross profit 5,560 4,043 13,088 9,639
Selling and
operating expenses 3,711 3,291 8,679 7,195
General and
administrative expenses 1,103 988 2,502 2,211
Operating income (loss) 746 (236) 1,907 233
Other income 7 4 11 39
Interest expense (175) (193) (475) (407)
Income (loss) from
continuing operations
before income taxes 578 (425) 1,443 (135)
Income tax
benefit (expense) (220) 201 (544) 91
Income (loss)from
continuing operations 358 (224) 899 (44)
Discontinued operations (a):
Income (loss)
from discontinued
retail stores operations,
net of income tax
benefits (expense) 186 (163) 186 (239)
Net income (loss) $ 544 $ (387) $ 1,085 $ (283)
Basic income (loss) per
share:
Weighted average
shares outstanding 3,483,044 3,530,818 3,501,446 3,530,818
Income (loss)from
continuing
operations $ 0.10 $ (0.06) $ 0.25 $ (0.01)
Income (loss)
from discontinued
operations 0.06 (0.05) 0.06 (0.07)
Net income (loss) $ 0.16 $ (0.11) $ 0.31 $ (0.08)
Diluted income
(loss)per share:
Weighted
average shares
outstanding 3,537,410 3,530,818 3,523,955 3,530,818
Income (loss) from
continuing
operations $ 0.10 $ (0.06) $ 0.25 $ (0.01)
Income (loss) from
discontinued
operations 0.05 (0.05) 0.06 (0.07)
Net income (loss) $ 0.15 $ (0.11) $ 0.31 $ (0.08)
(a) 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)
April 10, September 26,
1999 1998
Assets
Current assets:
Cash and cash equivalents $ 569 $ 777
Receivables, less allowances
of $232 at April 10, 1999 and $378
at September 26, 1998 5,268 4,789
Inventories 5,486 5,636
Other current assets 519 489
Loans to officers 412 185
Deferred income taxes, net 902 880
Total current assets 13,156 12,756
Fixed assets, net 10,418 10,800
Other long-term assets 265 270
Deferred income taxes, net 487 737
$ 24,326 $ 24,563
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 247 $ 249
Current portion of obligation
under capital lease -- 12
Accounts payable 4,156 3,131
Accrued payroll 749 827
Accrued expenses 452 507
Accrued losses and other costs of
discontinued operations, net 145 178
Total current liabilities 5,749 4,904
Long-term debt 4,906 5,041
Long-term line of credit 3,476 5,150
Stockholders' equity:
Common stock, $0.10 par value:
Authorized - 10,000,000 shares;
Issued - 3,567,453 shares and
3,545,841 shares at April 10, 1999
and September 26, 1998;
Outstanding - 3,487,335 shares and
3,538,491 shares at April 10,
1999 and September 26, 1998,
respectively 357 355
Additional paid-in capital 13,115 13,018
Accumulated deficit (2,783) (3,868)
Treasury shares, at cost, 80,118
shares and 7,350 shares at April 10,
1999 and September 26, 1998,
respectively (494) (37)
Total stockholders' equity 10,195 9,468
$ 24,326 $ 24,563
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