YOCREAM International Reports Fourth Quarter Earnings
PORTLAND, Ore., Jan. 31 /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 the twelve months ended October 31, 2004. Fourth quarter 2004 sales were $5,060,000, a 1.6% increase compared with $4,978,000 in 2003. Sales for the twelve months ended October 31 were $19,272,000, a 5.9% decrease compared with $20,478,000 in the previous year. "Sales of the Company's core products increased 7.1% in 2004; however, overall sales decreased 5.9% primarily related to previously reported events that took place in the prior year," stated Douglas Caudell, CFO. "These events include the Company's lead customer switching from the Company's premixed coffee latte freeze to a competitor's coffee concentrate product, a regional chain of specialty restaurants suspending purchases of a proprietary gourmet ice cream, and a copacking customer acquiring its own production facility." "We are pleased that sales of our core products continued to grow and remain strong," said Tyler Bargas, Director of Sales. "Expanded distribution and increased selling activities are effectively growing this business." The Company's focus on distribution in 2004 resulted in 28 new national distribution points. Additionally, military and healthcare sales rose through concentrated selling activities. Net income for the fourth quarter increased 43.8% to $71,600 compared with $49,800, and diluted earnings per share were $0.03 compared with $0.02 for the same period last year. Net income for the twelve months decreased 21.4% to $420,600 compared with $535,100, and diluted earnings per share were $0.18 compared with $0.23 last year. "The increase in profits for the quarter resulted from the growth in sales and reduction in general and administrative expenses. Fiscal year earnings were impacted by increased freight rates, the decrease in sales earlier in the year and increased fixed costs due to the plant expansion completed in the fourth quarter of fiscal 2003," Caudell stated. 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 frozen beverages 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 most recent Form 10-KSB filed with the Securities and Exchange Commission on January 31, 2005. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Twelve Months Ended October 31, October 31, 2004 2003 2004 2003 Sales $5,059,649 $4,977,737 $19,272,376 $20,477,934 Cost of goods sold 3,791,056 3,713,278 14,214,810 14,868,324 Gross profit 1,268,593 1,264,459 5,057,566 5,609,610 Selling, general and administrative expenses 1,162,542 1,231,423 4,364,022 4,619,717 Income from operations 106,051 33,036 693,544 989,893 Other expense Unusual expenses -- -- -- (157,163) Other income (expense), net 15,442 (7,395) 28,442 (7,395) Interest expense, net (19,924) 2,125 (82,347) (22,191) Income before income taxes 101,569 27,766 639,639 803,144 Income tax provision (benefit) (30,000) (22,000) 219,000 268,000 Net income $71,569 $49,766 $420,639 $535,144 Earnings per common share - basic $0.03 $0.02 $0.18 $0.24 Earnings per common share - diluted $0.03 $0.02 $0.18 $0.23 Shares used in basic earnings per share 2,279,269 2,271,435 2,278,284 2,257,998 Shares used in diluted earnings per share 2,283,391 2,288,904 2,294,474 2,280,233 YOCREAM INTERNATIONAL, INC BALANCE SHEETS October 31, October 31, 2004 2003 Current assets Cash and cash equivalents $3,806,993 $2,644,436 Trade accounts receivable, net 910,010 934,259 Inventories 1,866,051 1,846,989 Other current assets 198,622 247,012 Income taxes receivable 51,154 378,269 Deferred tax asset 194,519 74,250 Total current assets 7,027,349 6,125,215 Fixed assets, net 6,328,875 6,241,922 Intangible and other long-term assets, net 399,672 499,970 $13,755,896 $12,867,107 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $403,319 $336,333 Accounts payable 1,208,074 1,144,045 Other accrued liabilities 149,206 140,146 Total current liabilities 1,760,599 1,620,524 Long-term debt, less current portion 2,305,939 2,279,667 Deferred income taxes 1,070,720 795,451 Other liabilities 46,060 25,826 Total liabilities 5,183,318 4,721,468 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized, 2,282,500 shares issued and outstanding 4,739,581 4,733,281 Retained earnings 3,832,997 3,412,358 Total shareholders' equity 8,572,578 8,145,639 $13,755,896 $12,867,107SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754