YOCREAM International, Inc. Sales up 49 Percent, Operating Income Doubles In Third Quarter
Nine Months Results Exceed Full Year 1998
PORTLAND, Ore., Sept. 1 /PRNewswire/ -- YOCREAM International, Inc. (Nasdaq: YOCM - news), 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.
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