YOCREAM International Reports Third Quarter Results
PORTLAND, Ore., Sept. 14 /PRNewswire-FirstCall/ -- YOCREAM International, Inc., a manufacturer and wholesaler of frozen desserts and smoothies, today reported the financial results for the third quarter and nine months ended July 31, 2005. YOCREAM third quarter sales were $5,895,000, compared with $5,907,000 in the third quarter of 2004. For the nine months ended July 31, 2005 and 2004 sales were $14,438,000 and $14,213,000, respectively. "For the nine months, sales of frozen yogurt have increased 13.7% when compared to the same period in the prior year," stated Tyler Bargas, Director of Sales. "We intend to complement growth in our core brand with our new product lines: Dannon(R) Frozen Frusion(R), Fruitquake(R) dispenser smoothies, YoCaffe(R) Latte, and Jolly Rancher(TM) frozen beverages." "The Company continues to support market tests of several proprietary products for potentially significant customers that offer high volume opportunities for the upcoming fiscal year," noted Matt Hanna, Director of Administration. "This is consistent with the Company's plan to promote copacking capabilities and flexibility in manufacturing different products." Net income for the third quarter was approximately $101,000, or $0.05 per share compared with $189,000 or $0.08 per share for the same period last year. Net income for the nine months was approximately $184,000, or $0.09 per share compared with $349,000, or $0.15 per share for the same period last year. "Earnings were impacted by the increase in transportation costs directly related to fuel surcharges," stated Terry Oftedal, Director of Operations. "The Company continues to analyze all costs and pursue opportunities to reduce ingredient, packaging, logistics, and production costs." 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. NOTE: The JOLLY RANCHER trademark is used under license. 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 Nine Months Ended July 31, July 31, 2005 2004 2005 2004 Sales $5,894,733 $5,906,991 $14,438,153 $14,212,727 Cost of goods sold 4,547,530 4,439,177 10,697,940 10,423,754 Gross profit 1,347,203 1,467,814 3,740,213 3,788,973 Selling, general and administrative expenses 1,223,900 1,177,716 3,426,444 3,201,480 Income from operations 123,303 290,098 313,769 587,493 Other income (expenses) Other income 37,417 14,191 46,115 16,685 Interest expense (37,587) (21,438) (108,298) (66,108) Income before income taxes 123,133 282,851 251,586 538,070 Income tax provision 21,700 93,500 67,900 189,000 Net income $101,433 $189,351 $183,686 $349,070 Earnings per common share - basic $0.05 $0.08 $0.09 $0.15 Earnings per common share - diluted $0.05 $0.08 $0.09 $0.15 Shares used in basic earnings per share 2,109,338 2,277,956 2,142,624 2,277,956 Shares used in diluted earnings per share 2,131,218 2,285,028 2,152,284 2,298,169 YOCREAM INTERNATIONAL, INC BALANCE SHEETS July 31, October 31, 2005 2004 (unaudited) ASSETS Current assets Cash and cash equivalents $2,523,544 $3,806,993 Accounts receivable, net 1,434,351 858,720 Inventories 2,051,055 1,866,051 Other current assets 450,826 219,634 Income taxes receivable 5,300 51,154 Deferred tax asset 205,220 194,519 Total current assets 6,670,296 6,997,071 Fixed assets, net 6,190,715 6,328,875 Intangible and other long-term assets, net 419,881 399,672 $13,280,892 $13,725,618 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $403,319 $403,319 Accounts payable 1,546,392 1,170,882 Accrued liabilities 152,472 156,120 Total current liabilities 2,102,183 1,730,321 Long-term debt, less current portion 2,004,596 2,305,939 Interest rate swap, at fair value (13,300) -- Deferred tax liability 1,127,369 1,070,720 Other liabilities 58,522 46,060 Total liabilities 5,279,370 5,153,040 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized, 2,106,300 shares issued and outstanding 3,976,639 4,739,581 Retained earnings 4,016,683 3,832,997 Accumulated other comprehensive income 8,200 -- Total shareholders' equity 8,001,522 8,572,578 $13,280,892 $13,725,618SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754