USA: Green Mountain Coffee reports fiscal 2001 second quarter net income up 97.2% on revenue growth of 24.5%
Net sales 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 as a percentage of sales steady, at 32.9%, excluding a prior year loss on abandonment of fixed assets. Operating margins 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, Inc. under the Company's previously announced new agreement with Exxon Mobil Corporation. 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® coffee packages for the Keurig® brewing 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 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 anniversary of supporting social and environmental issues, I am delighted to be reporting these strong results to our stockholders. At Green Mountain Coffee, we are focused on superior execution. Whether it is outstanding coffee, outstanding customer service, outstanding corporate citizenship, 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, 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 (EBITDA) increasing 69% to $3.05 million from $1.8 million in the year- ago quarter. Based on our strong balance sheet and recent Federal Reserve actions, our variable rate borrowings under our revolving line of credit 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 Magazine as one of the "200 Best Small Companies in America." The Company roasts high-quality arabica coffees and offers over 60 varieties including single-origin, estate, certified organic, Fair Trade, proprietary blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters® brand.
The majority of Green Mountain Coffee's revenue is derived from its wholesale operation that serves supermarkets, convenience stores, offices, and other locations where fine coffees are sold. Green Mountain Coffee also operates a direct mail operation and e-commerce Web site (http://www.GreenMountainCoffee.com) with secure on-line ordering for customers from its Waterbury, Vermont headquarters. The Company seeks to make the world a better place for present and future generations by operating in an environmentally and socially conscientious manner.
Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Owing to 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 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 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 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.
Earlier this summer, Singapore paid host to Natural Products - Organic Asia 2005. Despite the show's title, there was less emphasis on organic principles, and a greater focus on health foods, such as...
As organic food continues to move into the mainstream, a wealth of companies, from the family-run to the multinational, are taking advantage of this popularity, with new products and line extensions. ...
The organic market appears to be going from strength to strength, especially if this year's BioFach exhibition is anything to go by. With over 2,000 exhibitors from 70 countries and more than 30,000 v...
Natraceutical, a spin-off of Spanish food group Natra-Zahor, has unveiled ambitious expansion plans, spurred on by growth in the functional foods market. With such high levels of interest in healthy f...
The Australian state of Victoria is investing in a programme to identify new opportunities for its food and agriculture industries. As part of this initiative the government conducted extensive resear...
Innovation is king - or is it? Fear of legislation or simple lack of imagination has depressed innovation in the food sector for a couple of years. Brand extensions and me-too copycats are not the sam...
The UK's largest organic sector body, the Soil Association will today (Tuesday) urge the new minister for organic food and farming, Lord Bach to support high welfare standards in organic poultry farmi...
The European Commission has asked European Union ministers that EU member states should continue to import organic meat and other foodstuffs freely for one more year until December 2006, whilst it est...
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Quorn CEO sets out stall for 2017 - interview
- How Tyson's new CEO plans to grow the meat group
- Mondelez goes beyond certified cocoa - analysis
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti