YOCREAM International Fourth Quarter Sales Up 16%
PORTLAND, Ore., Jan. 16 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the fourth quarter and fiscal year ended October 31, 2001. (Photo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b ) Fourth quarter 2001 sales were $4.4 million, a 16.4% increase compared to $3.8 million in the same quarter in 2000. Net income was approximately $184,000, or $0.08 per share, compared with $263,000 or $0.12 per share for the same period in 2000. For the twelve months, sales were $15.9 million, a 5.3% increase compared to $15.1 million in 2000. Net income was approximately $753,000, or $0.33 per share compared to $1,025,000, or $0.45 per share in 2000. Foodservice sales increased significantly in both the fourth quarter and the last half of fiscal 2001 as a result of the Company's strategic alliance with the Dannon Company, Inc. which began in July 2001, and an expansion of the Company's field sales personnel. "The Dannon alliance has given us a number of new brokers and distributors in new markets. We are also accessing national and international accounts through the alliance that we could not penetrate in the past," commented CEO John Hanna. "Club store sales have also increased as a result of new store openings, innovative programs and the roll out of a superb new coffee product." "Earnings were impacted by our commitment to expand our sales organization and intensify our marketing programs," commented CFO Douglas Caudell. As a result we are enjoying significant growth. Sales and earnings would have been even more were it not for the downturn in the economy. Earnings were also affected by pressure on prices and increased raw material and transportation costs, as well as by costs associated with the Company's investment in its upgraded plant facilities. In January 2001, the Company completed a major upgrade of its plant facilities. The project more than doubled the Company's production capacity, automated a number of production processes, and upgraded bottling and bag-in-box filling capabilities. "This bold investment in plant and equipment is indicative of our commitment to customers and to the market place," commented CEO John Hanna. Hanna acknowledged that the September 11 tragedy and the special challenges it created for the Company affected financial results. "Considering these factors we are especially pleased with the Company's performance. The upgraded plant facilities, increased sales staff, and the Dannon alliance are continuing to contribute to growth. The first two months of our new fiscal year showed sales increases of over 30% compared to the same period in the prior year. "This is exceptional performance during what would normally be our slowest season of the year", Hanna said. As a result of our expanded alliance with the Dannon Company, we expect a midyear introduction of a Dannon/Yocream co-branded soft serve yogurt line of products. We anticipate that this will enhance our national branding and further contribute to sales growth. We are also aggressively pursuing new co-packing opportunities and supporting the rollout of a superb new coffee product for a major club store customer. CFO Douglas Caudell commented, "During fiscal year 2001, YOCREAM repurchased 45,592 shares of its common stock." It has been the Company's practice to repurchase shares of its stock from time to time because management believes that the Company's stock is undervalued. The Company expects to continue this practice in fiscal 2002, pursuant to a board approved plan. YOCREAM International, Inc. makes, markets and sells frozen desserts, snacks and smoothies throughout the United States and in several foreign countries. It sells primarily to food distributors and wholesale clubs; and the company's products are available in restaurants, convenience stores, schools, hospitals, corporate cafeterias and wholesale clubs. 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, regulatory and factors affecting the company's operations, pricing, products and service. For a more complete discussion of the risks associated with forward-looking information, refer to the Risk Factors contained in the company's Form 10-K which is expected to be filed with the Securities and Exchange Commission on January 29, 2002. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Fiscal Year Ended October 31, October 31, 2001 2000 2001 2000 Sales $4,424,399 $3,799,634 $15,882,540 $15,088,532 Cost of goods sold 3,033,122 2,519,244 10,943,022 10,196,307 Gross profit 1,391,277 1,280,390 4,939,518 4,892,225 Selling, general and administrative expenses 1,086,406 964,786 3,814,437 3,349,488 Income from operations 304,871 315,604 1,125,081 1,542,737 Other income (expenses), net (85,112) 31,817 (103,888) 30,181 Income before income taxes 219,759 347,421 1,021,193 1,572,918 Income tax provision 35,600 84,800 268,000 548,000 Net income $184,159 $262,621 $753,193 $1,024,918 Earnings per common share - basic $0.08 $0.12 $0.33 $0.45 Earnings per common share - diluted $0.08 $0.12 $0.33 $0.45 Shares used in basic earnings per share 2,263,897 2,261,814 2,262,657 2,282,180 Shares used in diluted earnings per share 2,268,466 2,274,744 2,271,266 2,303,639 YOCREAM INTERNATIONAL, INC BALANCE SHEETS October 31, 2001 2000 ASSETS Current assets Cash and cash equivalents $1,161,661 $719,139 Trade accounts receivable, net of allowance for doubtful accounts of $28,500 in 2001 and $20,586 in 2000 1,039,003 997,076 Inventories 2,473,538 2,497,413 Other current assets 256,536 159,176 Total current assets 4,930,738 4,372,804 Fixed assets, net 4,344,981 2,706,420 Deferred income taxes 5,000 54,000 Intangible and other long-term assets, net 309,050 293,351 $9,589,769 $7,426,575 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $344,676 $106,675 Accounts payable 1,142,398 880,882 Income taxes payable 122,175 68,996 Other accrued liabilities 125,148 114,457 Total current liabilities 1,734,397 1,171,010 Long-term debt, less current portion 1,037,024 125,073 Total liabilities 2,771,421 1,296,083 Shareholders' equity Preferred stock, no par value, 5,000,000 shares authorized, none issued or outstanding -- -- Common stock, no par value, 30,000,000 shares authorized 4,797,204 4,862,541 Retained earnings 2,021,144 1,267,951 Total shareholders' equity 6,818,348 6,130,492 $9,589,769 $7,426,575SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754