YOCREAM International Third Quarter Sales Up 6%
PORTLAND, Ore., Sept. 15, 2003 /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, 2003. (Logo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b ) YOCREAM third quarter sales increased 5.5% to $6,636,000 from $6,290,000 in the third quarter of 2002. For the nine months ended July 31, sales increased 8.8% to $15,500,000 from $14,245,000 in the year ago period. "Sales increases are related to the Company's classic lines of frozen yogurt and smoothies, as well as the Company's newer, indulgent line of products, including soft frozen custard and gourmet ice cream," said Douglas Caudell, CFO. "YoCream(R) soft frozen custard, which has experienced exceptional sales growth this year, is currently being placed in test markets with two large multi-unit chain accounts. The timing is right for this product, appealing to buyers who are looking for upscale products to differentiate their menu offerings," said Tyler Bargas, Director of Sales. "Military sales have continued to grow through international sales, with approved products being expanded to include select flavors of Dannon YoCream(R) non-fat frozen yogurt, and YoCream(R) Soft Scoop frozen yogurt novelty cups and dispenser smoothies," said Michele Hanna, Director of Sales National Accounts and Military. "We recently initiated a worldwide comprehensive program with the US Air Force. This program provides an introduction to the country's largest air force base, Lackland Air Force Base in Texas, which will begin serving Dannon YoCream(R) products this fall. In response to troop requests, we have also developed a new YoCream(R) strawberry dispenser smoothie flavor, which has been approved for introduction in October," said Hanna. Net income for the third quarter was approximately $336,000, or $0.15 per share compared with $470,000, or $0.21 per share for the same period last year. Net income for the nine months was approximately $485,000, or $0.21 per share compared with $798,000, or $0.35 per share for the same period last year. "Although gross margins improved in the third quarter of 2003, as a result of cost savings, net income was impacted by an unusual expense of $157,000," said Douglas Caudell, CFO. "This represented the settlement of a freight charge claim from the Company's lead customer for shipments in 2001 and 2002. This charge is not expected to recur, because both parties have resolved the underlying circumstances," said Caudell. Premier, Inc., a leading healthcare alliance, recently awarded the Company a 36-month Committed Agreement to supply Dannon YoCream(R) frozen yogurt to Premier healthcare members. This is expected to significantly impact sales starting next fiscal year. Details of this prestigious award will be disclosed in a subsequent release. 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-K, which was filed with the Securities and Exchange Commission on January 29, 2003. YOCREAM INTERNATIONAL, INC. STATEMENTS OF INCOME Three Months Ended Nine Months Ended July 31, July 31, 2003 2002 2003 2002 Sales $6,635,915 $6,289,553 $15,500,197 $14,244,837 Cost of goods sold 4,649,178 4,477,676 11,155,046 10,088,736 Gross profit 1,986,737 1,811,877 4,345,151 4,156,101 Selling, general and administrative expenses 1,284,075 1,051,298 3,388,294 2,843,246 Income from operations 702,662 760,579 956,857 1,312,855 Other expense Unusual expenses (157,163) -- (157,163) -- Interest expense, net (8,701) (7,903) (24,316) (28,136) Income before income taxes 536,798 752,676 775,378 1,284,719 Income tax provision 200,800 282,700 290,000 487,000 Net income $335,998 $469,976 $485,378 $797,719 Earnings per common share - basic $0.15 $0.21 $0.22 $0.35 Earnings per common share - diluted $0.15 $0.21 $0.21 $0.35 Shares used in basic earnings per share 2,257,511 2,248,883 2,253,334 2,254,338 Shares used in diluted earnings per share 2,269,478 2,278,016 2,278,350 2,270,553 YOCREAM INTERNATIONAL, INC BALANCE SHEETS July 31, October 31, 2003 2002 (Unaudited) ASSETS Current assets Cash and cash equivalents $2,215,543 $1,528,818 Trade accounts receivable, net 1,384,138 900,996 Inventories 2,082,834 2,654,432 Other current assets 399,542 311,227 Income taxes receivable 107,056 -- Deferred tax asset 51,000 34,600 Total current assets 6,240,113 5,430,073 Fixed assets, net 4,798,531 4,385,900 Intangible and other long-term assets, net 489,573 408,964 $11,528,217 $10,224,937 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of long-term debt $352,653 $360,358 Accounts payable 1,664,641 1,083,954 Income taxes payable -- 31,709 Other accrued liabilities 144,631 143,754 Total current liabilities 2,161,925 1,619,775 Long-term debt, less current portion 787,500 858,167 Deferred income taxes 550,119 243,800 Total liabilities 3,499,544 2,721,742 Shareholders' equity Common stock, no par value, 30,000,000 shares authorized, 2,262,178 shares issued and outstanding 4,666,081 4,625,981 Retained earnings 3,362,592 2,877,214 Total shareholders' equity 8,028,673 7,503,195 $11,528,217 $10,224,937SOURCE YOCREAM International, Inc.
Web Site: http://www.yocream.com
For more information, contact Terry Lusetti, YoCream Investor Relations, 503-256-3754