Gimmie a Glazed..........
krem up 4.7 today........
Krispy Kreme Announces Record Sales and Earnings
WINSTON-SALEM, N.C., March 8 /PRNewswire/ -- Krispy Kreme Doughnuts, Inc. (Nasdaq: KREM) today
reported financial results for the fourth quarter and fiscal year ended January 28, 2001.
Systemwide sales, including sales of both company and franchise stores, increased 43.6% to $124.8 million in
the fourth quarter, compared with $86.9 million in the fourth quarter of fiscal 2000. Sales were driven by an
increase in company store sales of 32.5% to $57.1 million and an increase in franchise store sales of 54.6% to
$67.7 million. On a comparable store basis, systemwide store sales were up 14.9% and company store sales
increased 20.6%.
Total company revenues, which include sales from company stores, franchise operations, and Krispy Kreme
Manufacturing and Distribution ("KKM&D"), rose 39.3% to $81.8 million in the fourth quarter, compared with
$58.7 million in the fourth quarter of fiscal 2000. Sales from company stores increased 32.5% to $57.1 million;
revenues from franchise operations were up 58.3% to $2.7 million; and KKM&D sales increased 58.3% to $21.9
million.
Net income for the fourth quarter was $4.2 million, an increase of 265.3% compared with $1.2 million in the
fourth quarter last year. Diluted earnings per share increased to $0.30 in the fourth quarter of fiscal 2001 from
$0.11 per share in the prior year comparable period.
For the fiscal year ended January 28, 2001, systemwide sales increased 40.5% to $448.1 million from $318.9
million for the fiscal year ended January 30, 2000. This is a result of an increase in company store sales of
30.1% to $213.7 million and an increase in franchise store sales of 51.6% to $234.4 million.
Total company revenues rose 36.5% to $300.7 million for the year compared with $220.2 million in the prior
year. Sales from company stores increased 30.1% to $213.7 million; revenues from franchise operations were up
70.8% to $9.4 million; and KKM&D sales increased 53.7% to $77.6 million.
Net income for the fiscal year was $14.7 million, an increase of 147.2% compared to $6.0 million a year ago.
Diluted earnings per share increased to $1.10 for the year from $0.61 per share in the prior year.
Commenting on company's financial performance, Scott Livengood, Chairman, President and CEO of Krispy
Kreme Doughnuts, said: "I am pleased to report that our momentum from the first three quarters continued into
the fourth quarter and contributed to record results for fiscal 2001. We once again achieved strong results across
all major sales channels and across the country. I attribute our success during this first year as a public company
to maintaining a clear focus on our business strategy, continued support by our loyal customers and an
organization comprised of dedicated and passionate Krispy Kremers. It has been another great quarter and year
for our company. I am very proud of what our employees and franchise partners have been able to accomplish."
During the quarter, eleven new Krispy Kreme stores were opened. New markets entered included San Diego,
New Orleans, Bakersfield, Rochester and Austin. In addition, six markets gained additional locations bringing the
total number of stores at January 28, 2001 to 174. Since the end of the quarter, Krispy Kreme has opened two
additional franchise stores in Southern California and one additional franchise store in Dallas/Ft. Worth.
The company also provided guidance for fiscal 2002 generally and for the first quarter specifically. The
company's long-term business model is for 20% revenue growth, mid-single digit comparable store sales growth,
and 25% earnings per share growth annually. The company's expectations for fiscal 2002 are consistent with
this model, which would result in diluted earnings per share of $1.38. For the first quarter of fiscal 2002, the
company expects comparable store sales growth of mid-single digits and diluted earnings per share of $.34, a
26% improvement above the comparable period last year. These earnings per share expectations do not give
effect to the two-for-one stock split in the form of a stock dividend payable on March 19, 2001 to shareholders
of record as of the close of business on March 5, 2001.
The 63-year-old North Carolina-based company is a leading branded specialty retailer of premium quality
doughnuts, including the company's signature Hot Original Glazed. Krispy Kreme currently operates 177 stores in
28 states.
Krispy Kreme can be found on the World Wide Web at www.krispykreme.com . |
