YOCREAM International Reports First Quarter Results
PORTLAND, Ore., March 16, 2004 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the first quarter ended January 31, 2004. Sales for the three months ended January 31, 2004 were $3.4 million, 10.8% under the same quarter in 2003. The decrease in sales was primarily due to the discontinuance of lower margin coffee latte4 smoothies and the loss of gourmet ice cream sales to a regional chain. Gross profit margins, as a percentage of sales, improved during the quarter, primarily due to the reduction in lower margin coffee latte4 sales. However, the loss of gourmet ice cream sales along with the severe winter caused a decline in other sales resulting in a net loss of approximately $8,500 for the quarter, compared with a net income of approximately $10,600 for the same period last year. "Our first quarter, which comes during the winter is normally our slowest quarter," said Douglas Caudell, CFO. "Sales and earnings have historically increased as we approach the busier summer season. We expect a favorable year from the further development of the Company's military and healthcare business and the introduction of new products." "The Company has now introduced its products to Premier healthcare members at food shows as well as through direct sales calls resulting in an increased rate of member conversions to YoCream products," reported Michele Hanna Emery, Director of Sales, National Accounts and Branding. The Company was awarded a 36-month Committed Agreement in October 2003 to supply Dannon(R) YoCream(R) Frozen Yogurt to Premier healthcare members. Premier, Inc. is a leading healthcare alliance. Emery continued, "As part of the Company's plan to broaden its market base in the healthcare sector, we became an approved supplier for the Amerinet manufacturer allowance program in December 2003 and expect sales to begin in the second quarter of Fiscal 2004." The 24-month agreement covers all YoCream products and certain other private label frozen dessert products that the Company manufactures. Amerinet is a health care group purchasing organization in the United States serving more than 1,800 hospitals and other health care member facilities. Tyler Bargas, Director of Sales announced, "The Company will be introducing Dannon(R) YoCream(R) Low-Carb Premium Soft Serve Frozen Yogurt in response to the quickest emerging and fasting growing product category in recent times." Superior taste and very pleasing product texture set Dannon(R) YoCream(R) Low-Carb apart from competitive products. The Company believes that this gourmet product is the only nationally branded low-carb soft serve that includes live active yogurt cultures to promote a healthy digestive system. Sweetened with Splenda brand sucralose, this product has net carbohydrate counts ranging from 3 grams to 5 grams depending on flavor, and meets the dietary guidelines for low-carb as well as diabetic consumers. Bargas added, "The product has been previewed at selected spring 2004 food shows, and is already generating significant interest." Bargas also reported, "Since the aseptic packaging line was completed in October, the Company has reformulated its coffee latti product into an aseptically packaged coffee concentrate designed to be mixed with milk at the customer's location." Aseptic shelf stable packaging meets the needs of operators that have limited refrigeration or, as in the military, geographic locations without refrigeration. "Our product is packed in convenient 1/2 gallon bags and can be delivered to operators through dairy or broadline distribution," added Bargas. The Company's YoCaffe(R) Latte(R) coffee concentrate will be introduced to the marketplace in the second quarter fiscal 2004. The Company also plans to extend its fruit smoothie product line to include a shelf stable bag-in-the box product in 2004. YOCREAM International, Inc. makes, markets and sells frozen desserts and beverages 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, government and military installations, 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, 2004. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended January 31, 2004 2003 Sales $3,449,984 $3,869,008 Cost of goods sold 2,490,812 2,897,099 Gross profit 959,172 971,909 Selling, general and administrative expenses 950,921 947,970 Income from operations 8,251 23,939 Other income (expenses), net (21,818) (6,892) Income (loss) before income taxes (13,567) 17,047 Income tax (benefit) provision (5,100) 6,400 Net income (loss) $(8,467) $10,647 Earnings (loss) per common share - basic $0.00 $0.00 Earnings (loss) per common share - diluted $0.00 $0.00 Shares used in basic earnings per share 2,277,956 2,250,311 Shares used in diluted earnings per share 2,277,956 2,293,806 YOCREAM INTERNATIONAL, INC BALANCE SHEETS January 31, October 31, 2004 2003 ASSETS Current assets Cash and cash equivalents $2,336,322 $2,644,436 Accounts receivable, net 821,788 934,259 Inventories 2,007,161 1,846,989 Other current assets 396,260 247,012 Income taxes receivable 381,384 378,269 Deferred tax asset 74,250 74,250 Total current assets 6,017,165 6,125,215 Fixed assets, net 6,322,365 6,241,922 Intangible and other long-term assets, net 488,562 499,970 $12,828,092 $12,867,107 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $384,000 $336,333 Accounts payable 883,925 1,144,045 Accrued liabilities 61,928 140,146 Total current liabilities 1,329,853 1,620,524 Long-term debt, less current portion 2,536,809 2,279,667 Deferred tax liability 793,251 795,451 Other liabilities 31,007 25,826 Total liabilities 4,690,920 4,721,468 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 4,733,281 4,733,281 Retained earnings 3,403,891 3,412,358 Total shareholders' equity 8,137,172 8,145,639 $12,828,092 $12,867,107SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754