YoCream International Announces Record Second Quarter Results With Sales Up Over 11%
PORTLAND, Ore., June 21 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler of frozen desserts and beverages, today reported the financial results for the second quarter ended April 30, 2010.
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Sales for the three months ended April 30, 2010 increased 11.3% to $14,062,000. Sales for the six months increased 9.4% to $23,276,000.
Net income for the second quarter was $1,735,000 compared with $1,840,000, and net income for the six months was $2,637,000 compared with $2,795,000 for the same periods in 2009. While the costs of certain dairy ingredients have increased, the Company has chosen not to raise prices at this time in recognition of the general state of the economy.
Sales of the Company's core frozen yogurt business grew 52.1% in the second quarter following 30.9% in the first quarter. Frozen yogurt establishments continue to open across the nation, and the Company is seeing frozen yogurt introductions as secondary menu items in establishments like delis and sandwich shops. Expanded availability of frozen yogurt is enthusiastically accepted by consumers wanting to enjoy healthy probiotic frozen desserts on a more regular basis. While the tarter profile frozen yogurts, like Original Tart™ (available in 7 flavors) and EuroTart™ are popular with many consumers, the sweeter profile frozen yogurts are still the leading sellers. Nonfat and premium sweet flavors, like Georgia Peach and Red Velvet Cake are being enjoyed by consumers that might have traditionally favored ice cream or frozen custard.
The Company is further enthused as attendance at its YoCream University (Yo - U™), an intensive two day course on starting and operating a frozen yogurt business, has helped many new operators open their establishments. To meet the demand of entrepreneurs wanting to attend Yo-U™, the class size was increased earlier this year and has continued to be conducted at capacity with waiting lists each month.
YoCream's complete quarterly report and management's discussion and analysis is posted at www.yocream.com and www.pinksheets.com.
YoCream International, Inc. is a world leader in the frozen yogurt industry. Since 1977, YoCream has pioneered the innovation, production and marketing of frozen yogurt and fruit-based frozen desserts and beverages. The Company operates a state-of-the-art production facility in Portland, Oregon, to manufacture its "true" frozen yogurt, which contains the real yogurt that is fermented and cultured on site daily. The Company offers over 110 flavors of frozen yogurt, ice cream, frozen custard, sorbet, smoothies, frozen carbonated beverages, slushes and frozen drink mixes. In addition to the YoCream brand, the Company also provides other branded flavors such as Hershey's™ (e.g. Hershey's™ Kisses™, Reese's™, York™, Jolly Rancher™, Twizzlers™, Bubble Yum™) and Rockstar™ under exclusive licenses. YoCream's end-user customers number in the thousands and include marquee convenience stores, quality quick service restaurants, warehouse stores, prestigious eating establishments, large grocery chains, frozen yogurt shops, colleges, military and government foodservice locations, international restaurants and neighborhood stores involving over 250 specialty and full line distributors in the supply chain.
This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.
YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME (Unaudited) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
April 30, |
April 30, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Sales |
$ 14,061,607 |
$ 12,626,710 |
$ 23,276,072 |
$ 21,268,610 |
||||
Cost of goods sold |
7,700,774 |
6,384,630 |
12,839,919 |
11,267,978 |
||||
Gross profit |
6,360,833 |
6,242,080 |
10,436,153 |
10,000,632 |
||||
Operating costs and expenses |
||||||||
Distribution expenses |
1,591,863 |
1,149,728 |
2,663,984 |
1,950,911 |
||||
Selling, and marketing expenses |
1,058,771 |
908,014 |
1,796,012 |
1,602,222 |
||||
General and administrative expenses |
822,628 |
960,954 |
1,589,550 |
1,651,467 |
||||
Income from operations |
2,887,571 |
3,223,384 |
4,386,607 |
4,796,032 |
||||
Other income (expenses) |
||||||||
Interest income |
5,586 |
7,559 |
13,121 |
16,754 |
||||
Interest expense |
(100,272) |
(119,112) |
(206,753) |
(232,388) |
||||
Restricted stock compensation |
- |
(280,500) |
- |
(280,500) |
||||
Income before income taxes |
2,792,885 |
2,831,331 |
4,192,975 |
4,299,898 |
||||
Income tax provision |
(1,057,600) |
(991,000) |
(1,556,000) |
(1,505,000) |
||||
Net income |
$ 1,735,285 |
$ 1,840,331 |
$ 2,636,975 |
$ 2,794,898 |
||||
Earnings per common share – basic |
$0.67 |
$0.80 |
$1.01 |
$1.22 |
||||
Earnings per common share – diluted |
$0.67 |
$0.76 |
$1.01 |
$1.16 |
||||
Shares used in basic earnings per share |
2,607,898 |
2,305,418 |
2,607,898 |
2,283,814 |
||||
Shares used in diluted earnings per share |
2,607,898 |
2,426,484 |
2,607,898 |
2,415,553 |
||||
YOCREAM INTERNATIONAL, INC BALANCE SHEETS |
||||
April 30, |
October 31, |
|||
2010 |
2009 |
|||
(Unaudited) |
(Audited) |
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 6,264,973 |
$ 12,118,067 |
||
Accounts receivable, net |
5,151,177 |
2,542,618 |
||
Inventories |
6,368,415 |
5,151,899 |
||
Income tax receivable |
- |
100,248 |
||
Other current assets |
712,228 |
569,775 |
||
Deferred tax assets |
243,775 |
243,775 |
||
Total current assets |
18,740,568 |
20,726,382 |
||
Fixed assets, net |
14,594,681 |
14,712,748 |
||
Intangible and other long-term assets, net |
1,304,730 |
1,196,655 |
||
Deferred tax assets |
294,900 |
309,500 |
||
$ 34,934,879 |
$ 36,945,285 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Current liabilities |
||||
Note payable – line of credit |
$ - |
$ - |
||
Current portion of long-term debt |
520,414 |
647,873 |
||
Accounts payable |
4,183,273 |
3,440,694 |
||
Income tax payable |
613,402 |
- |
||
Other accrued liabilities |
293,164 |
761,085 |
||
Total current liabilities |
5,610,253 |
4,849,652 |
||
Long-term debt, less current portion |
7,085,972 |
7,378,449 |
||
Deferred tax liabilities |
2,163,975 |
2,144,975 |
||
Other liabilities |
159,905 |
145,250 |
||
Total liabilities |
15,020,105 |
14,518,326 |
||
Shareholders' equity |
||||
Preferred stock, no par value, none issued or outstanding |
- |
- |
||
Common stock, no par value, 30,000,000 shares authorized, 2,607,898 issued and outstanding as of April 2010 and October 2009 |
7,750,865 |
7,750,865 |
||
Retained earnings |
12,636,809 |
15,172,494 |
||
Accumulated other comprehensive income |
(472,900) |
(496,400) |
||
Total shareholders' equity |
19,914,774 |
22,426,959 |
||
$ 34,934,879 |
$ 36,945,285 |
|||
YOCREAM INTERNATIONAL, INC. STATEMENTS OF CASH FLOWS For the six months ended April 30, 2010 and 2009 (Unaudited) |
||||
2010 |
2009 |
|||
Cash flows from operating activities |
||||
Net income |
$ 2,636,975 |
$ 2,794,898 |
||
Adjustments to reconcile net income to net cash provided by operating activities |
||||
Depreciation and amortization |
541,634 |
497,559 |
||
Deferred income taxes |
19,000 |
105,400 |
||
Change in assets and liabilities |
||||
Accounts receivable |
(2,608,559) |
(601,306) |
||
Inventories |
(1,216,516) |
(2,063,220) |
||
Other assets |
(250,528) |
(66,983) |
||
Accounts payable |
923,253 |
505,496 |
||
Income taxes payable |
713,650 |
(1,284,300) |
||
Restricted stock compensation |
- |
280,500 |
||
Other accrued liabilities |
(453,266) |
(147,067) |
||
Net cash provided by operating activities |
305,643 |
20,977 |
||
Cash flows from investing activities |
||||
Proceeds from sale and leaseback of equipment |
- |
438,753 |
||
Expenditures for fixed assets |
(604,241) |
(1,615,837) |
||
Net cash used in investing activities |
(604,241) |
(1,177,084) |
||
Cash flows from financing activities |
||||
Principal payments on long-term debt |
(381,836) |
(357,223) |
||
Excess tax benefits of restricted stock |
- |
253,100 |
||
Cash dividend payment |
(5,172,660) |
- |
||
Net cash used in financing activities |
(5,554,496) |
(104,123) |
||
Net decrease in cash and cash equivalents |
(5,853,094) |
(1,260,230) |
||
Cash and cash equivalents, beginning of period |
12,118,067 |
7,169,393 |
||
Cash and cash equivalents, end of period |
$ 6,264,973 |
$ 5,909,163 |
||
SOURCE YoCream International, Inc.
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