Green Mountain Coffee, Inc. (NASDAQ: GMCR) yesterday reported another strong quarter, with a 24.5% increase in sales and a 97.2% increase in net income for its fiscal second quarter of 2001.
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.
Go deeper with GlobalData
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.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRobert 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.
