Odwalla Announces Return to Profitability; Odwalla and Fresh Samantha Merger Completed in May.Business Editors HALF MOON BAY, Calif.--(BUSINESS WIRE)--July 6, 2000 Odwalla Odwalla (pronounced Oh-dwa-la) is a juice company founded in Santa Cruz, California in 1980 by Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. It is now headquartered in Dinuba, CA. , 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 : ODWA ODWA Oregon Draymen and Warehousemen's Association ODWA Old Dauphin Way Association (Mobile, Alabama) ) today announced financial results for its third quarter ended May 27, 2000. Third 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 were $25.7 million, compared to $19.1 million in the same quarter a year ago. Odwalla recorded a $3.97 million net income for the quarter compared to a loss of $279,000 for the same period last year. Financial information includes the results of Fresh Samantha since May 2, 2000, the merger closing date. "We had a very good third quarter; the best quarter in the company's history," said Stephen Williamson Stephen Williamson (1827 – 16 June 1903), of Copley in Cheshire and Glenogil in Forfarshire, was a Scottish Member of Parliament. He elected to the House of Commons for St Andrews in 1880, a seat he held until 1885, and then represented Kilmarnock Burghs between 1886 and 1895. , Chairman and Chief Executive Officer. "Sales grew 34% over last year and we earned $1.3 million in 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. . We completed our merger with Fresh Samantha. And finally, we settled the lawsuit lawsuit: see procedure; tort. against our insurance company for our 1996 business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. claim, resulting in a $5.5 million net settlement. We have made good progress in bringing our East and West Coast operations together, creating a unified single company focused on delivering nourishment nour·ish·ment n. Something that nourishes; food. coast to coast." Gross profit for the third quarter was 50.6% of net sales compared to 47.3% in the third quarter of fiscal 1999. The end of the impact of the December 1998 California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). citrus citrus Any of the plants that make up the genus Citrus, in the rue family, that yield pulpy fruits covered with fairly thick skins. The genus includes the lemon, lime, sweet and sour oranges, tangerine, grapefruit, citron, and shaddock (C. maxima, or C. grandis; also called pomelo). crop freeze contributed to the improved gross profit. Sales and distribution costs distribution costs distribute npl → Vertriebskosten pl for the third quarter were 32.4% of net sales compared to 33.8% for the same period last year. The company began to see results from its investment in new markets in prior periods and did not enter any new markets during the quarter. With the completion of the Fresh Samantha merger, some structural changes occurred in the third quarter within the sales and distribution organization, which may cause a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. increase in expenses for the remainder of fiscal 2000. Odwalla intends to continue to invest in strengthening its overall sales and distribution organization. Marketing and general and administrative expenses were $3.4 million for the third quarter of this year compared to $2.9 million for the same quarter last year. The increase was primarily due to the merger with Fresh Samantha. In April 2000, Odwalla settled its business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril claim filed following the product recall in 1996 and recorded the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $5.5 million. In May 2000, following shareholder approval at our April annual meeting, all of our redeemable Redeemable Eligible for redemption under the terms of an indenture. and convertible Series A preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. was converted into common stock at the close of the Fresh Samantha acquisition. This early conversion was accomplished by issuing 258,667 additional shares of common stock to the Series A shareholder as an inducement Inducement Electra incited brother, Orestes, to kill their mother and her lover. [Gk. Myth.: Zimmerman, 92; Gk. Lit.: Electra, Orestes] Hezekiah exhorts Judah to stand fast against Assyrians. [O.T. for early conversion. The $1.6 million non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) for this conversion was recorded in the third quarter. Net income was $1.1 million or $0.16 per basic and 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 for the third quarter of fiscal 2000, before considering, net of tax, the insurance settlement proceeds, the cost of converting the Series A preferred stock and the preferred stock dividend. This compares to a net loss of $279,000 or $0.05 per share for the same period in fiscal 1999. For the first thirty-nine weeks of fiscal 2000, net sales were $60.5 million or 19% higher than the $50.8 million of net sales for the same period last year. Gross profit was 48.4% compared to 47.4% for the first thirty-nine weeks of fiscal 1999. The end of the impact of the December 1998 California citrus freeze accounts for much of the improved gross profit. Sales and distribution costs were 34.4% of net sales for the first thirty-nine weeks of this year compared to 34.7% in the first thirty-nine weeks of fiscal 1999. Marketing and general and administrative expenses were $8.3 million in the first thirty-nine weeks of fiscal 2000 compared to $8.1 million for the same period last year. Net income was $69,000 or $0.01 per basic and diluted share for the first thirty-nine weeks of this year, before considering, net of tax, the insurance settlement proceeds, the cost of converting the Series A preferred stock and the preferred stock dividend, compared to a loss of $1.6 million or $0.31 per share for the same period last year. This press release contains 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. that involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including without limitation, those described in documents the Company files periodically with the Securities and Exchange Commission. Odwalla, Inc. (NASDAQ: ODWA) is the nation's leading brand of all-natural, super-premium juices and smoothies, dairy-free shakes, natural spring water and food bars serving thousands of accounts coast to coast from its production facility in Dinuba, California Dinuba is a city in Tulare County, California, United States. The population was 16,844 at the 2000 census. Current city limit signs indicate the populaton at 20,007 It is considered to be a part of the Visalia Metropolitan Statistical Area by the United States Census Bureau. . As a brand of Odwalla, Fresh Samantha will continue to be the leading supplier of all-natural, super premium fruit and vegetable juices Vegetable juice is a popular drink all over the world. Vegetable juice is an alternative to fruit juice. Most commercial brands do however contain a large amount of sodium. If making vegetable juice at home, a juicer that can process vegetables will be needed. , soy shakes, water, and frozen fruit bars from the facility in Saco, Maine Saco is a city in York County, Maine, United States. The population was 16,822 at the 2000 census. It is home to Ferry Beach State Park, Funtown Splashtown USA, and Thornton Academy, established in 1811. . To learn more about the Odwalla and Fresh Samantha brands, please visit us at www.odwalla.com and at www.freshsamantha.com.
ODWALLA, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Thirteen weeks ended Thirty-nine weeks ended
May 29, May 27, May 29, May 27,
1999 2000 1999 2000
-------- -------- -------- --------
Net sales $ 19,124 $ 25,682 $ 50,798 $ 60,541
Cost of sales 10,076 12,688 26,721 31,228
-------- -------- -------- --------
Gross profit 9,048 12,994 24,077 29,313
-------- -------- -------- --------
Operating expenses
Sales and
distribution 6,455 8,328 17,635 20,827
Marketing 806 726 2,375 1,858
General and
administrative 2,089 2,638 5,743 6,441
-------- -------- -------- --------
Total
operating
expenses 9,350 11,692 25,753 29,126
-------- -------- -------- --------
Income (loss)
from operations (302) 1,302 (1,676) 187
Proceeds from
insurance settlement,
net of legal fees -- 5,458 -- 5,458
Series A preferred
stock inducement expense
to convert to common stock -- (1,587) -- (1,587)
Interest and other income
(expense), net (26) (55) (176) (106)
-------- -------- -------- --------
Income (loss)
before income taxes (328) 5,118 (1,852) 3,952
Income tax
benefit (expense) 49 (1,006) 277 (831)
-------- -------- -------- --------
Net income (loss) (279) 4,112 (1,575) 3,121
Preferred
stock dividend -- (142) -- (568)
-------- -------- -------- --------
Net income (loss)
applicable to
common shareholders $ (279) $ 3,970 $ (1,575) $ 2,553
======== ======== ======== ========
Net income (loss)
applicable to common
shareholders after
stock dividend -
Basic $ (0.05) $ 0.59 $ (0.31) $ 0.45
======== ======== ======== ========
Diluted $ (0.05) $ 0.58 $ (0.31) $ 0.45
======== ======== ======== ========
Shares used
in per share
amounts
Basic 5,104 6,710 5,077 5,654
======== ======== ======== ========
Diluted 5,104 6,796 5,077 5,704
======== ======== ======== ========
Odwalla, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
August 28, May 27,
1999 2000
------- -------
Current assets
Cash, cash equivalents and
short-term investments $ 7,369 $ 5,900
Trade accounts receivable 6,072 10,551
Inventories 3,718 5,285
Prepaid expenses and other 1,530 3,983
Deferred tax asset 1,358 577
------- -------
Total current assets 20,047 26,296
Plant, property and equipment, net 12,877 19,395
Total other assets 2,381 32,882
------- -------
$35,305 $78,573
======= =======
Current liabilities
Accounts payable $ 6,876 $ 8,639
Other accrued liabilities 3,268 5,993
Line of credit 2,319 1,950
Current maturities of capital
lease obligations and long-term debt 200 439
------- -------
Total current liabilities 12,663 17,021
Long-term liabilities,
less current maturities 688 1,414
------- -------
Total liabilities 13,351 18,435
Mandatorily redeemable and
convertible preferred stock 7,505 --
Shareholders' equity 14,449 60,138
------- -------
$35,305 $78,573
======= =======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion