YOCREAM International Annual Sales Up 24% and Earnings Up 14%
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 twelve months ended October 31, 2002. For the twelve months ended October 31, 2002, sales were $19.4 million compared to $15.6 million in 2001, an increase of 24.5%. Pre-tax income increased 34% to $1,368,000 in 2002, while net income increased 13.7% to approximately $856,000 or $0.38 per share, compared to $753,000 or $0.33 per share for the same period in 2001. Fourth quarter 2002 sales were $5.2 million, a 20.4% increase compared with the same period in 2001. Net income was approximately $58,000, or $0.03 per share, compared with $184,000, or $0.08 per share for the same period in 2001. Quarterly results in 2002 were impacted by a one-time unusual expense of $147,000. This represented settlement of a freight charge claim to a customer for shipments in 1999 and 2000. "The growth in sales has continued to be broad-based with contributions from all products; yogurt and smoothies, coffee latte, custard, ice cream and copacking," said Douglas Caudell, CFO. In addition to growth in core products and new business relationships, the Dannon alliance and the related nationwide roll out of the Dannon/YoCream co-branded yogurt products have contributed to the increase in foodservice sales. Yogurt sales to military customers are at an early stage, but have grown significantly, since the Company entered this segment in April 2001, following its alliance with Dannon. The Company recently announced an expansion of its business association with The Dannon Company and in February 2003 will begin representing the product lines of both firms through combined sales activities. "We expect that the efficiencies of a unified sales force of yogurt experts will increase the presence in the market place and maximize sales potential," said Tyler Bargas, Director of Sales & Marketing. "Coffee latte freeze product sales to Costco Wholesale have grown significantly," said Terry Lusetti, Manager of Club & International Sales. Although this product is still in the early stages of rollout, the demand has been so compelling that the Company has responded to its customer's need for this product in an aseptic package. Accordingly, the Company finalized production plans and began providing this product in an aseptic package with extended shelf life in the fourth quarter. Custard and ice cream sales continue to grow due to the soft frozen custard business with Runza(R) Restaurants which the Company announced in June 2002, and the gourmet softened ice cream business with Tully's Coffee Corporation, which the Company announced in September 2002. 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, military 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 most recent Form 10-K. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Twelve Months Ended October 31, October 31, 2002 2001 2002 2001 Sales $5,194,055 $4,314,918 $19,438,892 $15,616,943 Cost of goods sold 3,858,509 3,046,070 13,947,245 11,024,318 Gross profit 1,335,546 1,268,848 5,491,647 4,592,625 Selling, general and administrative expenses 1,099,167 963,977 3,942,413 3,467,544 Income from operations 236,379 304,871 1,549,234 1,125,081 Other income (expenses) Unusual expenses (147,487) -- (147,487) -- Other expenses (net) (5,541) (85,112) (33,677) (103,888) Income before income taxes 83,351 219,759 1,368,070 1,021,193 Income tax provision 25,000 35,600 512,000 268,000 Net income $58,351 $184,159 $856,070 $753,193 Earnings per common share - basic $0.03 $0.08 $0.38 $0.33 Earnings per common share - diluted $0.03 $0.08 $0.38 $0.33 Shares used in basic earnings per share 2,249,978 2,263,897 2,253,248 2,262,657 Shares used in diluted earnings per share 2,280,285 2,268,466 2,272,986 2,271,186 YOCREAM INTERNATIONAL, INC BALANCE SHEETS October 31, October 31, 2002 2001 ASSETS Current assets Cash and cash equivalents $1,528,818 $1,161,661 Trade accounts receivable, net 900,996 1,039,003 Inventories 2,654,432 2,473,538 Other current assets 311,227 266,795 Deferred tax assets 34,600 51,800 Total current assets 5,430,073 4,992,797 Fixed assets, net 4,385,900 4,344,981 Intangible and other long-term assets, net 408,964 313,783 $10,224,937 $9,651,561 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $360,358 $344,676 Accounts payable 1,083,954 1,142,398 Income taxes payable 31,709 122,175 Other accrued liabilities 143,754 140,140 Total current liabilities 1,619,775 1,749,389 Long-term debt, less current portion 858,167 1,037,024 Deferred tax liabilities 243,800 46,800 Total liabilities 2,721,742 2,833,213 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized, 2,250,178 shares issued and outstanding 4,625,981 4,797,204 Retained earnings 2,877,214 2,021,144 Total shareholders' equity 7,503,195 6,818,348 $10,224,937 $9,651,561SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754