YOCREAM International Second Quarter Sales Up 4%PORTLAND, Ore., June 14 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the second quarter and six months ended April 30, 2005. YOCREAM second quarter sales increased 3.7% to $5,037,300 from $4,855,800 in the second quarter of 2004. For the six months ended April 30, sales increased 2.9% to $8,543,400 from $8,305,700 in the year ago period. "The sales increases would have been more were it not for our lead club customer electing to use a competitor's smoothie product for one of its nine distribution centers. A noteworthy trend however, is that despite the loss of that club business, we enjoyed double digit growth in other foodservice markets," stated Douglas Caudell, CFO. Net income for the second quarter was approximately $151,000, or $0.07 per share compared with $168,200, or $0.07 per share for the same period last year. Net income for the six months was approximately $82,300, or $0.04 per share compared with $159,700, or $0.07 per share for the same period last year. "As expected, selling expenses have been higher in 2005 compared to 2004," stated Tyler Bargas, Director of Sales. "We continue to believe that our investment in high-caliber personnel and increased travel associated with our aggressive sales plan will pay off, as already reflected in the increase in non-club foodservice sales. In the first half of 2005, we also processed new proprietary products for test marketing by significant customers that could result in high volume copacking business in the near future." 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, 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-KSB, which was filed with the Securities and Exchange Commission on January 31, 2005. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Six Months Ended April 30, April 30, 2005 2004 2005 2004 Sales $5,037,260 $4,855,752 $8,543,420 $8,305,736 Cost of goods sold 3,616,140 3,493,765 6,150,410 5,984,577 Gross profit 1,421,120 1,361,987 2,393,010 2,321,159 Selling and marketing expenses 589,803 550,870 1,104,218 984,359 General and administrative expenses 558,641 521,973 1,098,326 1,039,405 Income from operations 272,676 289,144 190,466 297,395 Other income (expenses), net (35,089) (20,358) (62,013) (42,176) Income before income taxes 237,587 268,786 128,453 255,219 Income tax provision 86,600 100,600 46,200 95,500 Net income $150,987 $168,186 $82,253 $159,719 Earnings per common share - basic $0.07 $0.07 $0.04 $0.07 Earnings per common share - diluted $0.07 $0.07 $0.04 $0.07 Shares used in basic earnings per share 2,134,810 2,277,956 2,159,268 2,277,956 Shares used in diluted earnings per share 2,138,360 2,302,939 2,162,818 2,304,740 YOCREAM INTERNATIONAL, INC BALANCE SHEETS April 30, October 31, 2005 2004 (Unaudited) ASSETS Current assets Cash and cash equivalents $2,630,366 $3,806,993 Accounts receivable, net 1,066,992 910,010 Inventories 2,265,725 1,866,051 Other current assets 554,283 219,634 Income taxes receivable 21,254 51,154 Deferred tax asset 194,519 194,519 Total current assets 6,733,139 7,048,361 Fixed assets, net 6,177,451 6,328,875 Intangible and other long-term assets, net 413,144 399,672 $13,323,734 $13,776,908 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $403,319 $403,319 Accounts payable 1,562,931 1,208,074 Accrued liabilities 197,903 170,218 Total current liabilities 2,164,153 1,781,611 Long-term debt, less current portion 2,105,784 2,305,939 Interest rate swap, at fair value 4,000 -- Deferred tax liability 1,084,120 1,070,720 Other liabilities 54,270 46,060 Total liabilities 5,412,327 5,204,330 Shareholders' equity Common stock, no par value, 30,000,000 shares Authorized; 2,110,400 and 2,282,500 shares issued and outstanding at April 30, 2005 and October 31, 2004, respectively 3,998,757 4,739,581 Retained earnings 3,915,250 3,832,997 Accumulated other comprehensive loss (2,600) -- Total shareholders' equity 7,911,407 8,572,578 $13,323,734 $13,776,908SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754