YoCream International, Inc. Announces Fourth Quarter Earnings PORTLAND, Ore., Jan. 29 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the twelve months and the fourth quarter ended October 31, 2003. YoCream sales for the twelve months ended October 31 increased 5.3% to $20,478,000 from $19,439,000 in the previous year. Fourth quarter sales decreased 4.2% to $4,978,000 from $5,194,010. "We achieved a modest sales increase in a tough economy," said Tyler Bargas, Director of Sales and Marketing. "We lost a regional chain which effected fourth quarter results but we have outstanding new products that open new opportunities." Bargas referred to the Company's investment of over $2 million in an aseptic processing system. The system expands production capabilities, and enables the Company to produce shelf stable fruit and coffee beverage products that do not require refrigeration for shipping or storage. "The Company's new aseptically packed Fruitquake(R) smoothies and YoCaffee'(R) Latte', a concentrated coffee frozen beverage designed to be mixed with milk at the customer's location, will be introduced at food shows in the second quarter of 2004," stated Bargas. "The new shelf stable 1/2 gallon bag appeals to a broader away-from-home market, such as coffee shops and restaurants, that may have limited frozen or refrigerated storage." The Company recently initiated a worldwide comprehensive smoothie program with the US Air Force. This program provided an introduction to two of the country's largest air force bases, Lackland Air Force Base in Texas and Keesler Air Force Base in Mississippi, which will begin serving the Company's Fruitquake(R) smoothies and Dannon/YoCream Frozen yogurt products in the second quarter of 2004. "The shelf-stable attributes of the new smoothie products effectively address the storage needs of many military installations, both domestic and international," stated Michele Hanna Emery, Director of Sales, National Accounts and Branding. Following the Company's historical trend of developing innovative, high quality products, the Company is introducing a low-carb frozen yogurt to respond to strong consumer demand. This product will be presented at food shows beginning in February 2004. Introduction of YoCream products to Premier members began at shows in October and sales are increasing. Premier Inc., a leading healthcare alliance, awarded the Company a 36-month Committed Agreement in the fourth quarter of 2003. In the first quarter of 2004, the Company opened seven new national points of distribution to facilitate Premier sales, with five additional distributors targeted in the second quarter of 2004. Sales to Premier members have also increased sales volume with existing distributors. In December 2003, the Company became an approved supplier for the Amerinet manufacturer program. Amerinet is a health care group purchasing organization in the United States with more than 1,800 hospitals and other health care member facilities. The 24-month agreement covers all YoCream products and certain other private label frozen dessert products that the Company manufactures, with sales expected to begin in the second quarter of fiscal 2004. "These new contracts launch national expansion into the healthcare sector and are significant in broadening the Company's market base," stated Emery. "We are dedicated to offering superb products that meet the health needs of this important market." Net income for the twelve months was approximately $535,000 or $0.24 per share compared with $856,000, or $0.38 per share for the same period last year. Net income for the fourth quarter was approximately $50,000, or $0.02 per share compared with $58,000, or $0.03 per share for the same period last year. "Key raw material costs for our industry soared over the last year," stated Terry Oftedal, Director of Supply Chain Operations. "The Company has responded with high quality product reformulations and we expect that this will result in improved margins." Oftedal also reported that the Company has significantly reduced inventory levels as a result of operating initiatives. "While the accounting effect of this reduction negatively impacts 2003 operating income, we expect future benefits of increased inventory turns, reduced storage expenses, as well as increased cash flow." Another substantial unusual one-time charge against earnings reported by the Company related to a freight reimbursement settlement. Doug Caudell, Chief Financial Officer, reported that the underlying circumstances of this charge have been remedied with the customer and that the matter is resolved. "We are committed to the industry," said Caudell, "as indicated by our significant investment for expansion. We believe that our responsible plan for growth effectively positions the Company to increase shareholder value." YoCream International, Inc., with corporate headquarters and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt. Founded in 1977, YoCream(R) produces, markets and sells frozen yogurt, ice cream, frozen custard, and smoothies to an established and expanding global marketplace. With a proven history of producing the highest quality product and providing solution-based customer service, YoCream International is an industry leader poised for long-term growth. For more information about YoCream(R), call 1-800-YOCREAM (962-7326) or log on to http://www.yocream.com. 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 was filed with the Securities and Exchange Commission on January 29, 2004. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Twelve Months Ended October 31, October 31, 2003 2002 2003 2002 Sales $4,977,737 $5,194,055 $20,477,934 $19,438,892 Cost of goods sold 3,713,278 3,858,509 14,868,324 13,947,245 Gross profit 1,264,459 1,335,546 5,609,610 5,491,647 Selling, general and administrative expenses 1,231,423 1,099,167 4,619,717 3,942,413 Income from operations 33,036 236,379 989,893 1,549,234 Other expense Unusual expenses -- (147,487) (157,163) (147,487) Other expense, net (7,395) -- (7,395) -- Interest expense, net 2,125 (5,541) (22,191) (33,677) Income before income taxes 27,766 83,351 803,144 1,368,070 Income tax provision (benefit) (22,000) 25,000 268,000 512,000 Net income $49,766 $58,351 $535,144 $856,070 Earnings per common share - basic $0.02 $0.03 $0.24 $0.38 Earnings per common share - diluted $0.02 $0.03 $0.23 $0.38 Shares used in basic earnings per share 2,271,435 2,249,978 2,257,998 2,253,248 Shares used in diluted earnings per share 2,288,904 2,280,285 2,280,233 2,272,986 YOCREAM INTERNATIONAL, INC BALANCE SHEETS October 31, October 31, 2003 2002 ASSETS Current assets Cash and cash equivalents $2,644,436 $1,528,818 Trade accounts receivable, net 934,259 900,996 Inventories 1,846,989 2,654,432 Other current assets 247,012 311,227 Income taxes receivable 378,269 -- Deferred tax asset 74,250 34,600 Total current assets 6,125,215 5,430,073 Fixed assets, net 6,241,922 4,385,900 Intangible and other long-term assets, net 499,970 408,964 $12,867,107 $10,224,937 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $336,333 $360,358 Accounts payable 1,144,045 1,083,954 Income taxes payable -- 31,709 Other accrued liabilities 140,146 139,196 Total current liabilities 1,620,524 1,615,217 Long-term debt, less current portion 2,279,667 858,167 Deferred income taxes 795,451 243,800 Other liabilities 25,826 4,558 Total liabilities 4,721,468 2,721,742 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized, 2,277,956 shares issued and outstanding 4,733,281 4,625,981 Retained earnings 3,412,358 2,877,214 Total shareholders' equity 8,145,639 7,503,195 $12,867,107 $10,224,937SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754