PORTLAND, Ore., Aug. 27 OR-YoCream-Q3-Earns
PORTLAND, Ore., Aug. 27 /PRNewswire-FirstCall/ -- YoCream International,
Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler of frozen desserts and
beverages, today reported the financial results for the third quarter ended
July 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b)
It was a record third quarter with sales up 51.2% to $15,152,000 and net
income up 284% to $1,924,000. Gross profit margins in the third quarter were
42.7% compared with 34.6% in the prior year; income from operations was
$3,297,000, a 257% increase over the same period in 2007.
Sales for the nine months ended July 31, 2008 were up 42.7% to
$29,631,000. Gross profit margins were 41.9% in 2008 compared with 36.9% in
2007; income from operations was $5,100,000, a 282% increase over the prior
year; net income was up 369% to $2,934,000, or $1.27 per share, compared with
$625,000 or $0.29 per share for the same period last year. Copacking sales
were purposefully limited in order to operationally meet the significant sales
growth of the Company's proprietary products. Sales by category were as
follows:
9 months % 9 months %Dollar%
Category 2008 Total 2007 Total IncreaseChange
Frozen
Desserts $21,369,00072.1% $11,888,000 57.2%$9,481,000 79.7%
Frozen
Beverages8,107,00027.4%7,800,000 37.6% 307,0003.9%
Co-packing 155,000 0.5%1,083,0005.2% (928,000)
Total $29,631,000 100.0% $20,771,000 100.0%$8,860,000 42.7%
"It has been an outstanding year to date for us, with 9 months sales and
earnings breaking through the 12 months results of previous years, and the
momentum continues," observed Matt Hanna, Director of Administration. "Meeting
the operational challenges of such explosive growth is a testimony to the
commitment and capability of our YoCream team."
The third quarter of 2008 represents the ninth consecutive quarter of
double digit sales growth for YoCream. Total YTD foodservice sales, exclusive
of club and co-packing business were up approximately 105%. "We are enjoying
considerable growth in major markets across the U.S.," noted Tyler Bargas,
Director of Sales. "YoCream continues to nationally lead the away-from-home
frozen yogurt and beverage category with a firm knowledge of the customer base
and well-executed sales strategies."
New product introductions in the fourth quarter of 2008 are expected to
advance sales into the 2009 selling season. "We completed a third quarter
consumer taste test and will roll out 7 frozen yogurt flavors in a new YoCream
Select line," noted Suzanne Gardner, Director of Marketing. "Five new frozen
beverage flavors will also be introduced at the National Association of
Convenience Stores (NACS) Show in Chicago on October 5, 2008. The new frozen
yogurt flavors and beverages both carry national brands that compliment the
high quality of YoCream products."
YoCream International, Inc., with headquarters and a dairy and
manufacturing facility in Portland, OR, is a pioneer and leading producer of
frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces,
markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream
and frozen custard mixes under the YoCream brand. YoCream's frozen beverage
product lines include Fruitquake(TM) Frozen Drinks and Smoothies for blender,
bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble
Yum(TM), Twizzlers(TM), and Jarritos(TM) Frozen Beverages for frozen
carbonated and uncarbonated machine dispensing. The Company also co-packs
similar products for other companies. 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 co-packing relationships and 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 EndedNine Months Ended
July 31, July 31,
2008 2007 2008 2007
Sales $15,152,365 $10,021,957 $29,630,827 $20,771,007
Cost of goods sold8,682,0876,549,401 17,215,339 13,116,331
Gross profit6,470,2783,472,556 12,415,488 7,654,676
Operating costs and
expenses
Distribution expenses 1,555,8801,202,864 3,371,3802,672,995
Selling, and marketing
expenses 936,965 796,840 2,184,0032,100,474
General and
administrative expenses 680,099 548,718 1,759,9791,546,212
Income from operations 3,297,334 924,134 5,100,1261,334,995
Other income (expenses)
Interest income 2,088- 3,382 14,516
Interest expense (123,189)(144,127) (393,483)(373,803)
Restricted stock
compensation(196,900) (37,400) (196,900) (37,400)
Other (net) -2,000 -2,188
Income before income
taxes 2,979,333 744,607 4,513,125 940,496
Income tax provision 1,055,000 243,600 1,579,500 315,100
Net income $1,924,333 $501,007 $2,933,625 $625,396
Earnings per common
share - basic$0.87$0.24 $1.34$0.30
Earnings per common
share - diluted $0.82$0.23 $1.27$0.29
Shares used in basic
earnings per share 2,214,4452,099,341 2,187,8862,096,948
Shares used in diluted
earnings per share 2,345,8292,156,396 2,307,3412,142,833
YOCREAM INTERNATIONAL, INC
BALANCE SHEETS
July 31, October 31,
2008 2007
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $2,601,429 $70,701
Accounts receivable, net3,327,7911,562,955
Inventories 3,908,6033,748,525
Other current assets 539,542 388,931
Deferred tax assets 172,708 172,708
Total current assets 10,550,0735,943,820
Fixed assets, net15,228,186 15,005,641
Intangible and other long-term assets, net 997,0591,035,022
Deferred tax assets 172,800 101,100
$26,948,118 $22,085,583
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Note payable - line of credit $- $634,475
Current portion of long-term debt 573,413 569,588
Accounts payable2,960,7371,616,467
Income tax payable 1,296,266 125,882
Other accrued liabilities 499,654 473,633
Total current liabilities 5,330,0703,420,045
Long-term debt, less current portion 7,824,4597,996,013
Deferred tax liabilities 1,184,9081,184,908
Other liabilities 114,434 100,895
Total liabilities14,453,871 12,701,861
Shareholders' equity
Preferred stock, no par value, none issued
or outstanding --
Common stock, no par value, 30,000,000
shares authorized, 2,219,356 and 2,174,606
issued and outstanding at July 31, 2008
and October 31, 2007, respectively 6,521,7656,426,965
Unearned compensation - restricted stock (1,838,100) (2,035,000)
Retained earnings 8,087,6825,154,057
Accumulated other comprehensive income (277,100)(162,300)
Total shareholders' equity 12,494,2479,383,722
$26,948,118 $22,085,583
YOCREAM INTERNATIONAL, INC.
STATEMENTS OF CASH FLOWS
For the nine months ended July 31, 2008 and 2007
(Unaudited)
20082007
Cash flows from operating activities
Net income $2,933,625 $625,396
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization 714,386630,263
Deferred income taxes - 18,900
Change in assets and liabilities
Accounts receivable (1,764,836) (620,589)
Inventories(160,078) (144,812)
Other assets (112,648) (170,049)
Accounts payable 1,344,270114,856
Income taxes receivable and payable 1,170,384205,775
Restricted stock compensation 196,900 37,400
Other accrued liabilities39,560(21,051)
Net cash provided by operating
activities 4,361,563676,089
Cash flows from investing activities
Expenditures for fixed assets(1,026,931)(3,266,637)
Net cash used in investing
activities(1,026,931)(3,266,637)
Cash flows from financing activities
Proceeds from (payments on) line of credit (634,475) 483,128
Proceeds from long-term debt 90,000 -
Proceeds from development related grant 90,000 -
Proceeds from finance lease line -139,393
Proceeds from exercise of stock options 23,150 -
Principal payments on long-term debt (444,229) (319,571)
Repurchase of common stock (46,250) -
Excess tax benefits of options and
restricted stock 117,900 -
Net cash provided by (used in)
financing activities(803,904) 302,950
Net increase (decrease) in cash
and cash equivalents 2,530,728 (2,287,598)
Cash and cash equivalents, beginning of period 70,701 2,386,645
Cash and cash equivalents, end of period $2,601,429$99,047
SOURCE YoCream International, Inc.
