YOCREAM International, Inc. Sales in Third Quarter Expected to Climb 50 Percent

PORTLAND, Ore., July 29, 1999/PRNewswire/ -- YOCREAM International, Inc. (NASDAQ:YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, announced today that the company estimates sales for the third quarter ended July 31, 1999 will reach approximately $4.9 million, a 50 percent increase from $3.2 million in the same quarter a year ago. The quarterly sales, 48 percent of total sales in fiscal 1998, set a new record for the company.

Sales for the nine months ended July 31, 1999, are expected to be approximately $10.7 million, 51 percent higher than the $7.1 million reported in the 1998 same period. The 1999 nine months sales exceed total sales in fiscal 1998 of $10.2 million. The company anticipates releasing full quarterly financial information by August 31, 1999.

"Sales have been expanding at a significant pace in the last five quarters," said John Hanna, chief executive officer of YOCREAM. "In the third quarter, our sales will surpass the $3.7 million in the second quarter of 1999 by 32 percent." He attributed the higher sales to increasing demand for its smoothie products and to a growing market share in soft-serve frozen yogurt.

"With fuller utilization of our manufacturing facilities, our operating income performance will be significantly higher for both the 1999 third quarter and nine months than in comparable 1998 periods," Hanna noted.

YOCREAM International, Inc. (formerly International Yogurt Company) makes, markets and sells frozen desserts, snacks and smoothies throughout the United States and in several foreign countries. For the fiscal year ended October 31, 1998, the company reported sales of $10.2 million, up 18 percent from the prior year. Sales for the six months ended April 30, 1999 increased 52 percent to $5.8 million, operating income rose 179 percent to $542,583 and net income improved 92 percent to $357,666 or $0.15 per share (basic and diluted).

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 filed with the Securities and Exchange Commission on February 1, 1999.

SOURCE YOCREAM International, Inc.

For more information, contact Terry Lusetti,Investor Relations, 503-256-3754, or Dolores Chenoweth, 503-469-0338, of in.ves'com for YOCREAM

 
YOCREAM International, Inc. Sales up 49 Percent, Operating Income Doubles In Third Quarter PR Newswire, Sep 1 14:19 Nine Months Results Exceed Full Year 1998 PORTLAND, Ore., Sept. 1 /PRNewswire/ -- YOCREAM International, Inc. (NASDAQ:YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported that sales for the third quarter ended July 31, 1999 rose 49 percent and income from operations improved 109 percent from the same quarter a year ago. Sales for the quarter were $4.8 million compared to $3.2 million in the 1998 period. Operating income jumped 109 percent to $561,225 compared to $269,147, driven by higher sales, stronger gross margins and lower expenses as a percentage of sales. Net income was up 26 percent at $394,914, or $.17 per share, from $313,461 in the prior year. The 1999 quarter included a provision for income taxes while the 1998 quarter was positively affected by a tax benefit. "We're extremely pleased with our continued sales growth and improved profitability," said Douglas Caudell, chief financial officer of YOCREAM. "This quarter was our fifth consecutive quarter of higher sales, compared to the same period in the prior year. The higher sales are due to an increasing demand for YOCREAM's smoothie products and additional penetration in the soft-serve frozen yogurt market." During the third quarter, YOCREAM added a chain of 56 coffee houses headquartered in Boise, Idaho to its growing customer list. Results for the nine months ended July 31, 1999 exceeded sales and net income for the full 12 months of fiscal 1998. Sales climbed to $10.7 million -- up 51 percent from $7.1 million in the prior year nine months. Income from operations of $1.1 million improved 138 percent from $463,709. Net income of $752,579, or $.32 per share, rose 51 percent from $499,475, or $.21 per share, despite an income tax provision of $293,200 in the 1999 period versus a tax benefit of $125,000 in the same period a year ago. The company has the benefit of a net operating loss carryforward. Consequently, normal tax payments are not required. In fiscal 1998, the company reported sales of $10.2 million and net income of $702,703, or $.30 per share diluted. "In addition to improved financial performance, the company's balance sheet is considerably stronger," Caudell pointed out. "Working capital of $2.4 million is 70 percent higher than at fiscal year end October 30, 1998. In the past nine months, we have reduced the outstanding balance on our line of credit to $99,200 from $782,800 at October 1998, as a result of improved cash flow. In the third quarter of 1998, the balance was $1.2 million." YOCREAM International, Inc. (formerly International Yogurt Company) makes, markets and sells frozen desserts, snacks and smoothies throughout the United States and in several foreign countries. 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 filed with the Securities and Exchange Commission on February 1, 1999. YOCREAM INTERNATIONAL, INC. Income Statement (unaudited) Three Months Ended Nine Months Ended July 31, July 31, 1999 1998 1999 1998 Sales $4,846,763 $3,245,886 $10,675,144 $7,078,116 Cost of sales 3,378,361 2,328,030 7,366,610 4,865,701 Gross profit 1,468,402 917,856 3,308,534 2,212,415 Selling, general and administrative expenses 907,177 646,709 2,204,727 1,748,706 Income from operations 561,225 269,147 1,103,807 463,709 Other Income (expenses) (13,111) (30,666) (58,028) (89,234) Income before taxes 548,114 238,461 1,045,779 374,475 Income tax (provision) benefit (153,200) 75,000 (293,200) 125,000 Net Income $394,914 $313,461 $752,579 $499,475 Earnings per common share Basic $.17 $.13 $.32 $.22 Diluted $.17 $.13 $.32 $.21 Shares used in per share calculation Basic 2,312,585 2,332,594 2,316,614 2,278,505 Diluted 2,367,678 2,414,891 2,374,965 2,330,806 SOURCE YOCREAM International, Inc. -0- 09/01/1999 /CONTACT: Terry Lusetti, Investor Relations of YOCREAM International, Inc., 503-256-3754; or Dolores Chenoweth of in.ves'com, 503-469-0338, for Companies or Securities discussed in this article: Symbol Name NASDAQ:YOCM Yocream Intl Inc Fundamental information provided by Market Guide. NYSE and AMEX quotes are delayed by at least 20 minutes. All other quotes are delayed by at least 15 minutes. © 1995-1999 Quote.com, Inc.