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CELESTIAL SEASONINGS ANNOUNCES HIGHER RESULTS

 BOULDER, Colo., Aug. 9 /PRNewswire/ -- Celestial Seasonings Inc. (NASDAQ: CTEA) today reported pro forma earnings per share for the three months ended June 30, 1993 of 21 cents versus 3 cents in the comparable period in 1992. The earnings increase was provided by a 3 percent increase in volume and a 14 percent decrease in selling and marketing expenses, particularly trade and consumer promotion expense. The pro forma earnings give retroactive effect to the company's initial public offering of 2,130,000 shares of common stock completed July 19, 1993. Simultaneously, the company completed a new credit facility with Fleet Credit Corp. and Bank of America NT & SA. The pro forma earnings give effect to both lower levels of outstanding debt and more favorable rates inherent in the new credit agreement. On a historical basis, the company reported a net loss attributable to common stockholders (after preferred stock dividends) of $518,000 for the three months ended June 30, 1993 versus a net loss of $1,336,000 for the 1992 period. Net sales totaled $11.2 million in the 1993 quarter versus $10.8 million in the 1992 quarter.
 For the nine-month period ended June 30, 1993 pro forma earnings per share totaled $1.08 versus 51 cents for the comparable 1992 period. Historical net income attributable to common stockholders was $114,000 versus a net loss of $2,385,000 in the 1993 and 1992 nine-month periods, respectively. Net sales in the nine months increased 8.3 percent to $49.8 million from $46.0 million in the 1992 period.
 The sales volume increases in both the three-month and nine-month periods of 1993 were a result of higher iced tea sales. Mo Siegel, chairman and chief executive officer said, "We are pleased with the acceptance of our new iced tea products in the market. We continue to emphasize and promote the dry teabag product, 'Iced Delight,' to our industry partners and our consumers. The potential for summertime consumption of our specialty flavored iced tea products such as Iced Delight is significantly greater than our core hot herb teas."
 Celestial Seasonings is the largest manufacturer and marketer of herb teas in the United States. Its leading brands of herb tea include Sleepytime, Lemon Zinger, Mandarin Orange Spice, Peppermint and a variety of other proprietary blends. The company's new Iced Delight line was introduced nationally in 1993. In addition, Perrier Group of America manufactures and markets a line of ready-to-drink Celestial Seasonings iced tea under a licensing agreement with the company.
 CELESTIAL SEASONINGS INC.
 Summary Statement of Operations
 (in thousands, except per share amounts)
 (unaudited)
 Three Months Ended Nine Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Case volume 675 656 2,933 2,776
 Net sales $11,151 $10,796 $49,782 $45,965
 Cost of goods sold 4,526 4,394 18,254 17,409
 Gross profit 6,625 6,402 31,528 28,556
 Operating expenses:
 Selling and marketing 3,528 4,084 20,307 19,771
 General and
 administrative 1,019 951 3,178 3,002
 Amortization of
 intangibles 741 721 2,205 2,172
 Total operating
 expenses 5,288 5,756 25,690 24,945
 Operating income $1,337 $646 $5,838 $3,611
 Net income (loss) before
 preferred stock dividends $279 $(646) $2,426 $(402)
 Net income (loss)
 attributable to
 common stock $(518) $(1,336) $114 $(2,385)
 Pro forma net income(1)(2) $891 $136 $4,470 $2,101
 Pro forma net income per
 common share(1) $0.21 $0.03 $1.08 $0.51
 Weighted average common
 shares in pro forma
 calculations(1) 4,146 4,113 4,142 4,116
 (1) Pro forma adjustments have been made to present the results on
 a comparable basis. The pro forma earnings figures assume that
 the offering of 2,130,000 shares at $20 per share was completed
 on Oct. 1, 1992 and adjust for the resultant interest savings.
 The figures exclude non-recurring charges of $3.2 million
 related to the refinancing. Such charges will be recorded in
 the company's historical financial statements in the fourth
 quarter of 1993.
 (2) Pro forma net income reflects the utilization of the company's
 net operating loss carryforward to reduce income taxes.
 -0- 8/9/93
 /CONTACT: Philip Livingston of Celestial Seasonings, 303-581-1245/
 (CTEA)


CO: Celestial Seasonings Inc. ST: Colorado IN: FOD SU: ERN

MC -- DV006 -- 0871 08/09/93 16:08 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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