YOCREAM International First Quarter Sales Up 2%PORTLAND, Ore., March 18 /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, 2005. Sales for the three months ended January 31, 2005 were $3,506,000, a 1.6% increase compared to the same quarter in 2004. "Frozen yogurt sales increased 17.5% due to continued growth in wholesale club, healthcare/institutions, and other foodservice sectors," stated Douglas Caudell, CFO. "This offset the decreases in sales of Coffee Latte Freeze(R), which was discontinued in 2004, and 5% ice cream, because a Midwest restaurant chain elected not to renew its contract that ended in December 2004." Net loss for the quarter was $68,700, compared with a net loss of $8,500 for the same period last year. "As expected, selling and marketing expenses were higher in the first quarter of 2005 compared to 2004," stated Tyler Bargas, Director of Sales. "Our investment in high-caliber personnel and increased travel associated with our aggressive sales plan is beginning to show positive results as indicated by the growth in our core product line." The Company expects to see even greater benefit this fiscal year. "Sales focus on distribution has allowed the Company to secure 25 new national points of distribution in the last two years and 6 new points of distribution in the first quarter of 2005 alone," added Bargas. In March 2005, the Company became a sponsor for the Major League Baseball Arizona Diamondbacks. This sponsorship allows the Company to sell its soft serve frozen yogurt in Bank One Ballpark, for the next two years with an option for a third year. Bargas continued, "Strategically, servicing this high-profile sponsorship opens new distribution for this account as well as the surrounding Arizona market." YOCREAM International, Inc. makes, markets and sells health-oriented frozen desserts, beverages and novelties throughout the United States and in several foreign countries. It sells primarily to foodservice 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 copacking 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-KSB, which was filed with the Securities and Exchange Commission on January 31, 2005. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended January 31, 2005 2004 Sales $3,506,160 $3,449,984 Cost of goods sold 2,534,270 2,490,812 Gross profit 971,890 959,172 Selling and marketing expenses 514,415 433,489 General and administrative expenses 539,685 517,432 Income (loss) from operations (82,210) 8,251 Other income (expenses), net (26,924) (21,818) Loss before income taxes (109,134) (13,567) Income tax benefit 40,400 5,100 Net loss $(68,734) $(8,467) Loss per common share - basic $(0.03) $0.00 Loss per common share - diluted $(0.03) $0.00 Shares used in basic loss per share 2,183,726 2,277,956 Shares used in diluted loss per share 2,183,726 2,277,956 YOCREAM INTERNATIONAL, INC BALANCE SHEETS January 31, October 31, 2005 2004 ASSETS Current assets Cash and cash equivalents $2,201,409 $3,806,993 Accounts receivable, net 767,275 910,010 Inventories 2,214,516 1,866,051 Other current assets 410,100 198,622 Income tax receivable 85,354 51,154 Deferred tax asset 194,519 194,519 Total current assets 5,873,173 7,027,349 Fixed assets, net 6,260,311 6,328,875 Intangible and other long-term assets, net 406,408 399,672 $12,539,892 $13,755,896 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $403,319 $403,319 Accounts payable 810,787 1,208,074 Accrued liabilities 78,219 149,206 Total current liabilities 1,292,325 1,760,599 Long-term debt, less current portion 2,206,250 2,305,939 Interest rate swap, at fair value 25,700 -- Deferred tax liability 1,053,520 1,070,720 Other liabilities 50,008 46,060 Total liabilities 4,627,803 5,183,318 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 4,164,026 4,739,581 Retained earnings 3,764,263 3,832,997 Accumulated other comprehensive loss (16,200) -- Total shareholders' equity 7,912,089 8,572,578 $12,539,892 $13,755,896SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754