YOCREAM International, Inc. Net Income Jumps 53 Percent in First Quarter on 30 Percent Higher Sales
PORTLAND, Ore., March 2 /PRNewswire/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today reported its seventh consecutive quarter of increased sales and net income.
Sales rose 30 percent for the quarter ended January 31, 2000 to $2.8 million from $2.2 million in the same 1999 period on the strength of higher demand from existing customers for smoothie and frozen yogurt products. Net income of $76,000 increased 53 percent from $49,500 a year ago -- fueled by higher sales, increased gross margins and lower interest expense. On a per share basis, earnings were up 50 percent to $.03 per diluted share compared to $.02 in the same 1999 quarter.
"Our existing smoothie and frozen yogurt products continue to gain market share," said Douglas Caudell, chief financial officer of YOCREAM International. "In addition, we plan to introduce two new products within the next six months that will further expand our product line in both wholesale and retail markets." At the same time, the company is increasing its presence in the international market and anticipates shipping its initial product to a customer in Great Britain during the second quarter of fiscal 2000.
Caudell said that the company is well positioned for continued growth. "Our balance sheet is strong, " he said. "We have completely paid down our working capital line of credit and reduced interest expense more than 70 percent quarter-over-quarter."
The company has kept pace with growing sales in the past two years from its existing production plant, according to Caudell. During fiscal 2000, additional production capacity is planned by reconfiguring current plant space in Portland and by installing additional equipment. The move is expected to increase production capacity by approximately 50 percent with a minimum of capital expenditure.
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 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 filed with the Securities and Exchange Commission on January 28, 2000.
YOCREAM International, Inc.
Income Statement
(Unaudited)
Three Months Ended
January 31,
2000 1999
Sales $2,838,025 $2,177,866
Cost of sales 1,965,761 1,527,360
Gross profit 872,264 650,506
Selling, general and
administrative expenses 748,359 559,759
Income from operations 123,905 90,747
Other income (expenses) (482) (22,244)
Income before taxes 123,423 68,503
Income tax provision 47,400 19,000
Net income $76,023 $49,503
Earnings per common share
Basic $0.03 $0.02
Diluted $0.03 $0.02
Shares used in per share calculation
Basic 2,298,391 2,318,908
Diluted 2,336,411 2,384,456
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SOURCE: YOCREAM International, Inc.
CONTACT: Terry Lusetti, Investor Relations of YOCREAM International, Inc., 503-256-3754; or Dolores Chenoweth of in.ves'com, 503-469-0338, for YOCREAM International, Inc. |
