YOCREAM International Third Quarter Sales Up 25.2%
PORTLAND, Ore., Aug. 29, 2002 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the third quarter and nine months ended July 31, 2002. (Photo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b ) YOCREAM's third quarter 2002 sales were $6.3 million, a 25.2% increase compared with the same period in 2001. Pre-tax income increased 40.3% to $753,000 for the quarter, while net income increased 15.8% to approximately $470,000 or $0.21 per share, compared to $406,000 or $0.18 per share for the same period in 2001. For the nine months ended July 31, 2002, sales were $14.2 million, a 26.0% increase compared with the same period in 2001. Pre-tax income increased 60.3% to $1,285,000 for the nine months, while net income increased 40.2% to approximately $798,000 or $0.35 per share, compared to $569,000 or $0.25 per share for the same period in 2001. The percentage increase in pre-tax income was higher than the percentage increase in net income for both the quarter and nine-month periods in 2002, because the effective tax rate was lower in 2001. The tax rate in the prior year was less than normal because it reflected the benefit of research and development tax credits relating to several years. "The growth in sales and earnings for the fifth consecutive quarter has continued to be broad-based with contributions from all products; yogurt and smoothies, coffee latte, custard, ice cream and copacking," said Douglas Caudell, CFO. In addition to growth in core products and business relationships, the Dannon alliance and the related nationwide roll out of the Dannon / YoCream co-branded yogurt products has helped East Coast sales where there is a strong Dannon brand recognition and YoCream has less penetration. The Dannon alliance continues to be effective with increased sales activity, including joint sales calls. The companies are also jointly working on sales and marketing programs that management expects will result in increased exposure for both brands. Yogurt sales to military customers are at an early stage, but have grown significantly, since the Company penetrated this segment in April 2001, following the alliance with Dannon. "YoCream has entered into a three-year branded program with Garden Ridge Corporation to sell YoCream(R) Dispenser Smoothies," said Michele Hanna, Director of National Accounts and Branding. Garden Ridge, "the home decor and craft marketplace," is a Texas-based chain with 43 stores in thirteen states. YoCream(R) smoothies will be served in the Cafe, an in-store food service area providing refreshments for shoppers. Garden Ridge is currently in the process of rolling the product out to 18 stores. "We anticipate that the 18 stores will generate approximately $200,000 to $300,000 in revenue over the next 12 to 18 months," said Hanna. In addition, the companies expect to roll out the smoothie program system wide in 2003. The program increases YoCream(R) brand exposure in the Southwest and Southeast and broadens smoothie distribution in these markets. "Coffee latte freeze product sales to Costco Wholesale have grown significantly," said Terry Lusetti, Manager of Club & International Sales. Although this product is still in the early stages of rollout, the demand for this product has been so compelling that the Company has responded to the needs of its customer and is in the process of finalizing plans with suppliers, machine manufacturers and an outside co-packer to provide an aseptic package for extended shelf life. "It is expected that this new process will be operating in the next 30 days," said Lusetti. The customer already has equipment available to dispense this product in an additional forty foodcourts. Custard and ice cream sales are up due to the soft frozen custard business with Runza(R) Restaurants which was announced in June 2002. "We anticipate that this new account will generate approximately $900,000 to $1,400,000 in sales over the next 12 to 18 months," said Tyler Bargas, Director of Sales & Marketing. On August 28, 2002 the Company filed its Form 10-Q along with certifications by the Chief Executive Officer, and Chief Financial Officer. 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, military 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, 2002. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended July 31, July 31, 2002 2001 2002 2001 Sales 6,289,553 5,024,496 14,244,837 11,302,026 Cost of goods sold 4,477,676 3,527,654 10,088,736 7,978,248 Gross profit 1,811,877 1,496,842 4,156,101 3,323,778 Selling, general and administrative expenses 1,051,298 941,741 2,843,246 2,503,567 Income from operations 760,579 555,101 1,312,855 820,211 Other expenses, net (7,903) (18,454) (28,136) (18,777) Income before income taxes 752,676 536,647 1,284,719 801,434 Income tax provision 282,700 130,700 487,000 232,400 Net income $469,976 $405,947 $797,719 $569,034 Earnings per common share - basic $0.21 $0.18 $0.35 $0.25 Earnings per common share - diluted $0.21 $0.18 $0.35 $0.25 Shares used in basic earnings per share 2,248,883 2,262,191 2,254,338 2,262,243 Shares used in diluted earnings per share 2,278,016 2,268,531 2,270,553 2,271,900 YOCREAM INTERNATIONAL, INC BALANCE SHEETS July 31, October 31, 2002 2001 (Unaudited) ASSETS Current assets Cash and cash equivalents $1,667,512 $1,161,661 Trade accounts receivable, net 1,625,369 1,039,003 Inventories 2,372,630 2,473,538 Other current assets 340,443 256,536 Total current assets 6,005,954 4,930,738 Fixed assets, net 4,370,004 4,344,981 Deferred income taxes -- 5,000 Intangible and other long-term assets, net 315,400 309,050 $10,691,358 $9,589,769 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $289,700 $344,676 Accounts payable 1,581,826 1,142,398 Income taxes payable 107,909 122,175 Other accrued liabilities 182,682 125,148 Total current liabilities 2,162,117 1,734,397 Long-term debt, less current portion 976,398 1,037,024 Deferred income taxes 107,900 -- Total liabilities 3,246,415 2,771,421 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized 4,626,082 4,797,204 Retained earnings 2,818,861 2,021,144 Total shareholders' equity 7,444,943 6,818,348 $10,691,358 $9,589,769SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754