YOCREAM International Reports First Quarter Results
PR Newswire, Thursday, March 15, 2001 at 07:50
Sales decreased slightly for the quarter to $2.77 million from $2.84 million, and net income decreased slightly to $70,000, or $.03 per share compared to $76,000, or $.03 per share in 2000. Gross margins of 32.4% are up 1.7% due to supply chain management and production efficiencies.
"The drop in sales primarily related to a decline in the sale of frozen yogurt products," said Douglas Caudell, Chief Financial Officer of YOCREAM. "Due to the seasonal nature of the business, frozen yogurt sales are normally less during the winter months, and sensitive to changes in weather. This year the weather in certain parts of the country, which is normally warmer during winter, was colder than normal and thus impacted sales."
Caudell said that "the plant upgrade project was completed in January. We are looking forward to realizing the benefits of improved control of supplies and related costs, production efficiencies, increased capacity of over 150%, and additional manufacturing flexibility that is facilitated by the upgrade."
"To target new markets, we recently developed several additional products, including a soft serve frozen custard, a shake base, a soft serve ice cream, a coffee smoothie adapted for high volume dispensers, and a margarita base smoothie formulated for blenders," said John Hanna, Chief Executive Officer of YOCREAM. "We also developed a smoothie bar concept suited for convenience stores, in cooperation with a major international company. And a premium line of hard pack low fat frozen yogurt was developed for a valued European customer who plans to begin testing the product this spring. We expect to see the sales contribution from these products this year."
Hanna also said that "in addition to new products and markets, we are aggressively seeking new business relationships believing that alliances with other reputable companies are strategic to continued growth. Our enhanced manufacturing capabilities offer new copacking opportunities, and we plan to make this widely known to the industry. We are also pursuing other more creative networking possibilities that could potentially spur an unprecedented sales surge."
Caudell also pointed out that "the book value at January 31, 2001 is $2.74 per share, and that cash and cash equivalents is $157,000 after funding nearly $1.3 million in capital expenditures from internal cash flow during the first quarter."
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 was filed with the Securities and Exchange Commission on January 29, 2001.YOCREAM INTERNATIONAL, INC.
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
January 31,
2001 2000
Sales $2,774,158 $2,838,025
Cost of goods sold 1,874,361 1,965,761
Gross profit 899,797 872,264
Selling, general and administrative expenses 796,502 748,359
Income from operations 103,294 123,905
Other income, net 10,264 (482)
Income before income taxes 113,558 123,423
Income tax provision 43,600 47,400
Net income $69,958 $76,023
Earnings per common share - basic $0.03 $0.03
Earnings per common share - diluted $0.03 $0.03
Shares used in basic earnings per share 2,262,348 2,298,391
Shares used in diluted earnings per share 2,280,016 2,336,411
YOCREAM INTERNATIONAL, INC
BALANCE SHEETS
January 31, October 31,
2001 2000
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $157,303 $719,139
Trade accounts receivable, net 677,294 997,076
Inventories 2,143,475 2,497,413
Other current assets 233,053 159,176
Total current assets 3,211,124 4,372,804
Fixed assets, net 3,914,618 2,706,420
Deferred income taxes 55,400 54,000
Intangible and other
long-term assets, net 297,242 293,351
$7,478,384 $7,426,575
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $104,123 $106,675
Accounts payable 839,549 880,882
Other accrued liabilities 233,882 183,453
Total current liabilities 1,177,554 1,171,010
Long-term debt, less current portion 101,781 125,073
Total liabilities 1,279,335 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 4,861,142 4,862,541
Retained earnings 1,337,907 1,267,951
Total shareholders' equity 6,199,049 6,130,492
$7,478,384 $7,426,575
SOURCE YOCREAM International, Inc.
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754