Green Mountain Coffee Reports Fiscal 2001 Second Quarter Net Income Up 97.2% on Revenue Growth of 24.5%.Business EditorsWATERBURY 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)--May 17, 2001 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 reported another strong quarter, with a 24.5% increase in sales and a 97.2% increase in net income for its fiscal second quarter of 2001. 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 increased 24.5% to $22,741,000 for the twelve weeks ended April 14, 2001, compared to $18,259,000 for the twelve weeks ended April 8, 2000. Total coffee pounds sold for the quarter increased 22.3% year-over-year to 2,913,000 pounds. Green Mountain Coffee's gross profit for the quarter was 42.6% of sales compared to 39.8% of sales in the year ago period, as the Company continued to benefit from brand strength and low green coffee commodity prices. The Company held 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. as a percentage of sales steady, at 32.9%, excluding a prior year loss on abandonment abandonment, in law, voluntary, intentional, and absolute relinquishment of rights or property without conveying them to any other person. Abandonment also means willfully leaving one's spouse or children, intending not to return (see desertion). of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 9.7% of sales, compared to 6.1% of sales a year ago. The Company achieved a 97.2% year-over-year increase in net income to $1,213,000, and earnings per share rose from $0.09 a year ago, to $0.17 for the twelve weeks ended April 14, 2001. The area of the highest volume increase in coffee pounds sold was the convenience store channel, with second quarter year-over-year growth of 37.1%, due in part to the initial ramp-up in sales to the distributor McLane Company McLane Company, Inc. is the nation's largest wholesale-distributor of consumer packaged goods to the convenience store trade and other retail channels. It is also a major foodservice distributor to the quickservice restaurant industry. , Inc. under the Company's previously announced new agreement with Exxon Mobil Corporation Exxon Mobil Corporation U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. . The office coffee services channel experienced growth of 26.8% year-over-year during the quarter due primarily to the continued strength of the single-serve K-cup K-Cup portion packs are used with Keurig single cup brewing systems to brew a cup of coffee or tea. Each K-Cup is a plastic container with a coffee filter inside. Ground coffee beans are packed in the K-Cup and sealed air-tight with a combination plastic and foil lid. (R) coffee packages for 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. (R) brewing brewing: see beer. system. Growth in the supermarket channel also was strong at 16.5% year-over-year. For the twenty-eight weeks ended April 14, 2001, Green Mountain Coffee sales were up 24.8% to $53,646,000, compared to $43,001,000 for the twenty-eight weeks ended April 8, 2000. The Company realized a 19.1% increase in coffee pounds sold for this same period. Net income increased 58.4% to $3,033,000, or $0.43 per share, for the current period, compared to $1,915,000, or $0.27 per share, for the twenty-eight weeks ended April 8, 2000. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. P. Stiller, Chairman, President, and Chief Executive Officer of Green Mountain Coffee said, "As we prepare to celebrate our twentieth anniversary as a company, and tenth Tenth can mean: In mathematics:
The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim it to create higher standards of living and quality of life in the community in which it operates, while , or outstanding financial results, the employees throughout Green Mountain Coffee are doing their part to make it happen. The opportunities for the brand and the business, as we take advantage of new technologies, new partnerships, and new geographic markets, are very exciting. At the same time, our successful growth expands our ability to improve the environment and make our local and global communities better, which also is very exciting. I want to thank all our employees, our loyal customers, and the consumers who love our coffee, for making it possible." Robert D. Britt britt n. Variant of brit. Noun 1. britt - the young of a herring or sprat or similar fish brit young fish - a fish that is young 2. , Chief Financial Officer, elaborated upon the Company's impressive second quarter results, saying, "This past quarter we essentially doubled our earnings over the comparable prior year quarter. Our cash flow also was very strong with 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.
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. have now dropped well below 6%, supporting our efforts to grow earnings faster than sales, and continue to build stockholder value." The Company also reported that between April 19 and May 11, 2001, the trustee for its Employee Stock Ownership Trust purchased 25,800 shares of the Company's stock at an average price of $25.15 per share. Although the Employee Stock Ownership Trust was created by the Board of Directors of Green Mountain Coffee to increase employee ownership in the Company, the Trustee acts independently of the Board and management in making these open market purchases. Green Mountain Coffee, Inc. is a leader in the specialty coffee industry and has been recognized by Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes Magazine as one of the "200 Best Small Companies in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. ." 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 See certification. organic, Fair Trade, 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 de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from its wholesale operation that serves supermarkets, convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , offices, and other locations where fine coffees are sold. 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 Industry Waterbury is the location of Ben & Jerry's Ice Cream, whose factory tours have become Vermont's most popular tourist attraction. headquarters. The Company seeks to make the world a better place for present and future generations by operating in an environmentally and socially conscientious con·sci·en·tious adj. 1. Guided by or in accordance with the dictates of conscience; principled: a conscientious decision to speak out about injustice. 2. manner. 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, fluctuations in availability and cost of green coffee, the impact of a weaker economy, competition and other business conditions in the coffee industry and more generally in the food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. industry, the impact of the loss of one or more major customers, delays in the timing of adding new locations with existing customers, the Company's level of success in continuing to attract new customers, variances from budgeted sales mix sales mix See product mix. and growth rate, weather and special or unusual events, as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission. Green Mountain Coffee will be discussing its fiscal second quarter financial results and future prospects with analysts and investors in a conference call available via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . The call will take place today, May 17, 2001, at 10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT and will be available via live Web cast on the Company's Web site at www.GreenMountainCoffee.com and on Street Events at www.StreetEvents.com, as well as AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Yahoo and other major portals. The Company archives the latest conference call on the Investor Services section of its Web site for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, confirmation number 505000, from 2:00 p.m. EDT on May 17th, through midnight on Thursday Thursday: see week. , May 31st, 2001. Green Mountain Coffee urges coffee lovers, investors and everyone else who is interested in the Company and its news to sign up for automatic e-mail receipt of its press releases. To take advantage of this free service, go to the investor services section of the Company's Web site, which can be accessed directly at http://GreenMountainCoffee.com/scripts/investor.asp. Next, click on "News Releases via E-mail" to sign up.
GREEN MOUNTAIN COFFEE, INC.
Consolidated Statement of Operations
(Dollars in thousands except per share data)
Unaudited
Twelve Twelve Twenty-eight Twenty-eight
weeks weeks weeks weeks
ended ended ended ended
4/14/01 4/8/00 4/14/01 4/8/00
Net sales:
Wholesale $ 21,915 $ 17,594 $ 50,950 $ 40,808
Consumer direct 826 665 2,696 2,193
Net sales 22,741 18,259 53,646 43,001
Cost of sales 13,061 10,990 31,445 25,686
Gross profit 9,680 7,269 22,201 17,315
Selling and
operating expenses 5,756 4,642 13,152 10,691
General and
administrative
expenses 1,721 1,372 3,608 3,056
Loss on abandonment
of fixed assets -- 135 -- 135
Operating income 2,203 1,120 5,441 3,433
Other income 14 14 27 10
Interest expense (146) (107) (344) (248)
Income before
income taxes 2,071 1,027 5,124 3,195
Income tax expense (858) (412) (2,091) (1,280)
Net income $ 1,213 $ 615 $ 3,033 $ 1,915
Basic income
per share:
Weighted average
shares outstanding 6,353,999 6,719,956 6,302,420 6,838,890
Net income $ 0.19 $ 0.09 $ 0.48 $ 0.28
Diluted income
per share:
Weighted average
shares outstanding 7,178,428 7,093,768 7,118,183 7,088,950
Net income $ 0.17 $ 0.09 $ 0.43 $ 0.27
GREEN MOUNTAIN COFFEE, INC.
Consolidated Balance Sheet
(Dollars in thousands)
April 14, September 30,
2001 2000
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,258 $ 559
Receivables, less allowances
of $436 at April 14, 2001
and $320 at September 30, 2000 9,852 8,454
Inventories 4,974 5,350
Other current assets 1,300 510
Deferred income taxes, net 234 182
Total current assets 17,618 15,055
Fixed assets, net 11,831 11,274
Other long-term assets 292 348
Deferred income taxes, net 343 497
$ 30,084 $ 27,174
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of
long-term debt $ 160 $ 135
Accounts payable 6,184 6,125
Accrued compensation costs 1,566 1,381
Accrued expenses 1,182 614
Accrued losses and
other costs of discontinued
operations, net 119 119
Total current liabilities 9,211 8,374
Long-term debt 272 283
Long-term line of credit 6,000 8,500
Commitments and contingencies
Stockholders' equity:
Common stock, $0.10 par value:
Authorized - 10,000,000 shares;
Issued - 7,544,602 and 7,342,010
shares at April 14, 2001 and
September 30, 2000, respectively 754 734
Additional paid-in capital 15,186 13,534
Retained earnings 5,811 2,778
Other comprehensive (loss) (121) --
Treasury shares, at cost -
1,137,506 shares at
April 14, 2001 and
September 30, 2000 (7,029) (7,029)
Total stockholders' equity 14,601 10,017
$ 30,084 $ 27,174
GREEN MOUNTAIN COFFEE, INC.
Total Company Coffee Pounds Sold by Sales Channel
(As a Percent of Total Coffee Pounds Sold)
Unaudited
Channel Q2 Q2
12 wks. 12 wks. Q2 Q2
ended ended Y/Y lb. % Y/Y lb.
4/14/01 4/8/00 Increase Increase
Supermarkets 22.3% 23.4% 92,000 16.5%
Convenience Stores 30.7% 27.4% 242,000 37.1%
Other Retail 1.8% 2.3% (4,000) (7.3)%
Restaurants 8.7% 11.6% (24,000) (8.7)%
Office Coffee Service 26.0% 25.2% 160,000 26.8%
Distributors
Other Food Service 8.5% 8.4% 46,000 22.9%
Consumer Direct 2.0% 1.7% 19,000 47.5%
Totals 2,913,000 2,382,000 531,000 22.3%
Note 1: Certain prior year customer channel classifications were
reclassified to conform to current year classifications.
Note 2: Consumer Direct is comprised of direct mail and e-commerce Web
site sales to consumers.
GREEN MOUNTAIN COFFEE, INC.
Total Company Coffee Pounds Sold by Sales Channel
(As a Percent of Total Coffee Pounds Sold)
Unaudited
Channel Q2 YTD Q2 YTD Q2 Q2
28 wks. 28 wks. YTD YTD
ended ended Y/Y lb. % Y/Y lb.
4/14/01 4/8/00 Increase Increase
Supermarkets 24.0% 24.3% 241,000 17.6%
Convenience Stores 28.4% 27.1% 380,000 25.0%
Other Retail 2.0% 2.5% (1,000) (0.7)%
Restaurants 9.3% 11.5% (26,000) (4.0)%
Office Coffee Service 25.3% 22.8% 407,000 31.7%
Distributors
Other Food Service 8.5% 9.2% 50,000 9.7%
Consumer Direct 2.5% 2.6% 22,000 15.3%
Totals 6,697,000 5,624,000 1,073,000 19.1%
Note 1: Certain prior year customer channel classifications were
reclassified to conform to current year classifications.
Note 2: Consumer Direct is comprised of direct mail and e-commerce Web
site sales to consumers.
Wholesale Coffee Pounds Sold, by Geographic Region
(As a Percentage of Total Wholesale Coffee Pounds Sold)
Unaudited
Q2 Q2
12 wks 12 wks Q2 Q2
ended ended Y/Y lb. % Y/Y lb.
4/14/01 4/8/00 Increase Increase
Northern New England 29.3% 32.1% 84,000 11.2%
Southern New England 24.1% 24.2% 122,000 21.5%
Mid-Atlantic 21.5% 21.6% 106,000 20.9%
South Atlantic 8.7% 7.4% 75,000 43.4%
Midwest 2.2% 2.8% (1,000) (1.5)%
South Central & West 5.9% 2.3% 115,000 213.0%
Multi-Regional 7.2% 8.4% 8,000 4.1%
International 1.1% 1.2% 3,000 10.7%
Totals 2,854,000 2,342,000 512,000 21.9%
Note 1: Excludes coffee pounds sold in the Consumer Direct channel.
Note 2: The allocation by region of coffee pounds sold to certain
McLane Company, Inc. warehouses for distribution to ExxonMobil
convenience stores has been estimated. This information will be
adjusted in future quarters once the detailed sales data to ExxonMobil
locations is made available to GMCR.
Wholesale Coffee Pounds Sold, by Geographic Region
(As a Percentage of Total Wholesale Coffee Pounds Sold)
Unaudited
Q2 YTD Q2 YTD Q2 YTD Q2 YTD
28 wks ended 28 wks ended Y/Y lb. % Y/Y lb.
4/14/01 4/8/00 Increase Increase
Northern New England 30.8% 33.5% 174,000 9.5%
Southern New England 24.8% 24.3% 286,000 21.5%
Mid-Atlantic 21.9% 21.3% 265,000 22.7%
South Atlantic 8.0% 6.5% 161,000 45.0%
Midwest 2.5% 2.5% 26,000 19.3%
South Central & West 4.1% 2.2% 153,000 130.8%
Multi-Regional 6.8% 8.7% (35,000) (7.3)%
International 1.1% 1.0% 21,000 38.9%
Totals 6,531,000 5,480,000 1,051,000 19.2%
Note 1: Excludes coffee pounds sold in the Consumer Direct channel.
Note 2: The allocation by region of coffee pounds sold to certain
McLane Company, Inc. warehouses for distribution to ExxonMobil
convenience stores has been estimated. This information will be
adjusted in future quarters once the detailed sales data to ExxonMobil
locations is made available to GMCR.
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