CoolBrands International Inc. announced today that revenues for the quarter ended November 30, 2000 increased by 30% to $26,878,000 as compared with $20,743,000 for the quarter ended November 30, 1999.
Net earnings for the first quarter of fiscal 2001 were $274,000 ($0.01 net earnings per share) as compared with a net loss of ($670,000) ($0.01 net loss per share) for the same period last year. Earnings before taxes were $494,000, as compared with a loss before taxes of ($1,070,000) for the first quarter of 2000, an increase of $1,564,000. EBITDA increased by $2,721,000, or 573%, to $3,196,000, from $475,000 for the same period last year.
Revenues increased due to a 42% increase in sales to $23,973,000 as compared with $16,862,000 for the same period of the prior year. This increase in sales was primarily due to increased prepackaged consumer product sales resulting from the acquisition of Eskimo Pie Corporation on October 6, 2000 and the sales from Eskimo Pie’s Foodservice and Flavors and Ingredients operations.
Operating results for the quarter reflect an increase in gross profit dollars of $2,362,000, primarily due to the increase in sales. Gross profit dollars would have increased even more dramatically, but were adversely affected by $914,000 in one-time expenses incurred closing the Company’s Dallas, Texas manufacturing facility and consolidating that production volume into the Eskimo Pie Foodservice facility in Russellville, Arkansas. Selling, general and administrative expenses increased by $1,203,000, due primarily to increased depreciation, amortization and interest expense associated with the acquisition of Eskimo Pie, but declined as a percentage of revenues to 35.6% from 40.4% in the same period of the prior year.
Commenting on the results, David J. Stein, President and Co-Chief Executive Officer of CoolBrands International Inc. stated “Our results for the first quarter give a strong indication for the Company’s outlook for fiscal 2001. Even though these results do not yet fully reflect the benefits we expect to realize from the Eskimo Pie acquisition, which occurred mid-way through the quarter, they clearly demonstrate that the acquisition is immediately accretive to earnings. Based on our plan to realize the maximum synergies and growth potential inherent in the combination of Eskimo Pie and our existing operations, we believe the Company is positioned to perform extremely well during the remainder of fiscal 2001.”
Summary Financial Data:
Three Months Ended
Revenues 26,878,000 20,743,000
Earnings (Loss) Before Taxes 494,000 (1,070,000)
Provision for (benefit of) Income Taxes 220,000 (400,000)
Net Earnings (Loss) 274,000 (670,000)
Earnings (Loss) Per Share
– Basic and fully diluted $0.01 ($0.01)
EBITDA 3,196,000 475,000
Number of Shares Outstanding 45,826,000 45,828,000
CoolBrands markets a broad range of frozen novelties and frozen dessert products under the Tropicana, Betty Crocker, Trix, YOPLAIT, Colombo, Lucky Charms, and Yoo Hoo brand names, pursuant to long-term licensing agreements. In addition, CoolBrands franchises and licenses outlets operated under a Family of Brands including Yogen Fruz, I Can’t Believe It’s Yogurt, Bresler’s Ice Cream and Premium Frozen Yogurt, Swensen’s Ice Cream, Golden Swirl, Paradise, Ice Cream Churn, and Java Coast Fine Coffees, with company-owned, franchised and non-traditional partnership locations in 82 countries as of November 30, 2000.
Eskimo Pie Corporation, now a wholly owned subsidiary of CoolBrands, created the frozen novelty industry in 1921 with the invention of the Eskimo Pie ice cream bar. Today, the Company markets a broad range of frozen novelties, ice cream and sorbet products under the Eskimo Pie, Welch‘s and WEIGHT WATCHERS Smart Ones brand names. Eskimo Pie Foodservice is a leading supplier of premium soft serve ice cream, frozen yogurt, custard and smoothies to the foodservice industry. The Company also sells a full line of quality flavors and ingredients for use in private label dairy products in addition to the Company’s brands.