Guess I'm not going to reap the fruit of KKD's great earning report. Well, not losing any either...
I'll have to be content with profit lock in at 41 for now.
________
Krispy Kreme Earnings Beat Consensus EPS Increases 63.2%, Systemwide Sales Up 37.5%, Increases Guidance For FY02 And Next Year
WINSTON-SALEM, N.C., Nov 15, 2001 /PRNewswire via COMTEX/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD chart, msgs) today reported financial results for the three months ended October 28, 2001, the Company's third quarter of fiscal 2002.
Systemwide sales, including sales of both company and franchise stores, increased 37.5% to $154.4 million in the third quarter, compared with $112.3 million in the third quarter of fiscal 2001. Sales were driven by an increase in company store sales of 26.9% to $68.6 million and growth in franchise store sales of 47.5% to $85.8 million. On a comparable store basis, systemwide store sales increased 13.6% and company store sales grew 11.1%.
Total company revenues, which include sales from Company Stores, Franchise Operations, and Krispy Kreme Manufacturing and Distribution ("KKM&D"), rose 28.1% to $99.8 million in the third quarter, compared with $77.9 million in the third quarter of fiscal 2001. Sales from Company Stores increased 26.9% to $68.6 million; revenues from Franchise Operations increased 39.7% to $3.4 million; and KKM&D sales increased 30.0% to $27.8 million.
Net income for the third quarter was $6.5 million, an increase of 68.2% compared with $3.9 million in the third quarter last year. Diluted earnings per share increased to $0.11 in the third quarter of fiscal 2002 from $0.07 per share in the prior year comparable period, a 63.2% gain versus last year.
For the nine months ended October 28, 2001, systemwide sales increased 35.8% to $439.1 million from $323.3 million in the same period of last year. This increase was a result of growth in company store sales of 21.9% to $190.8 million and an increase in franchise store sales of 48.9% to $248.2 million.
Total company revenues rose 26.7% to $277.3 million in the first nine months of the year compared with $218.8 million in the same period of the prior year. Sales from Company Stores increased 21.9% to $190.8 million; revenues from Franchise Operations rose 42.9% to $9.6 million; and KKM&D sales increased 38.3% to $76.9 million.
Net income for the nine months was $18.1 million, an increase of 73.0% compared to $10.5 million a year ago. Diluted earnings per share increased to $0.31 in the first nine months of the year from $0.20 per share in the prior year, growing 57.1%.
Commenting on the third quarter results, Scott Livengood, Chairman, President and CEO of Krispy Kreme Doughnuts, Inc., said, "I am extremely pleased with our third quarter results and our continued momentum. Business continues to be strong across all sales channels and across the country. We were also pleased this quarter to announce the development of a new technology, our Krispy Kreme Hot Doughnut Machine, that has the potential to significantly increase the number of stores we will build. As we begin the fourth quarter, we are gratified to announce that our Seattle store, which opened October 30, set an opening week sales record with $454,125 over the first seven days."
The Company also indicated that, based on its performance in the third quarter and projections for the fourth quarter, it now expects to earn $.44 per fully diluted share, or $.02 above consensus, in the current fiscal year and $.61 per share, or $.02 above consensus, in FY2003. Finally, the Company increased its full year guidance on new store openings from 40 to 43.
During the quarter, ten new Krispy Kreme stores were opened, including three new markets in Fresno, CA, Pittsburgh, PA, and Davenport, IA. Additionally, Krispy Kreme closed one store in New York City and one store in Greensboro, NC, during the quarter, bringing the total number of stores at October 28, 2001 to 198. Since the end of the quarter, Krispy Kreme has opened additional franchise stores in Seattle, WA, Salt Lake City, UT (2), Denver, CO, Birmingham, AL, and one company store in Northern California.
The 64-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 204 stores in 32 states.
Krispy Kreme can be found on the World Wide Web at krispykreme.com .
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are its dependence on franchisees to execute its store expansion strategy, supply issues, competition and numerous other factors discussed in Krispy Kreme's periodic reports, proxy statement and other information statements filed with the Securities and Exchange Commission.
Krispy Kreme Doughnuts, Inc.
Summary Financial Results
For the Third Quarter Ended October 28, 2001
(All dollar amounts in thousands except per share data)
Quarter Ended
October October
28, 29,
2001 2000(1) $ Change % Change
Total revenues $99,804 $77,897 $21,907 28.1%
Operating expenses 80,177 65,316 14,861 22.8%
General and administrative expenses 7,023 5,059 1,964 38.8%
Depreciation and amortization
expenses 2,131 1,811 320 17.7%
Income from operations 10,473 5,711 4,762 83.4%
Interest income 679 767 (88) -11.5%
Interest expense 75 47 28 59.6%
Loss from joint ventures 212 64 148 231.3%
Minority interest in consolidated
joint ventures 358 152 206 135.5%
Other expenses 56 -- 56 --
Income before income taxes 10,451 6,215 4,236 68.2%
Provision for income taxes 3,971 2,363 1,608 68.0%
Net income $6,480 $3,852 $2,628 68.2%
Diluted earnings per share (2) $0.11 $0.07 $0.04 63.2%
Diluted shares outstanding (2) 58,601 56,564 2,037 3.6%
Segment Information
Revenues
Company store operations $68,640 $54,103 $14,537 26.9%
Franchise operations 3,361 2,406 955 39.7%
KKM&D 27,803 21,388 6,415 30.0%
Total revenues $99,804 $77,897 $21,907 28.1%
Operating Income
Company store operations $11,313 $6,467 $4,846 74.9%
Franchise operations 2,075 1,413 662 46.9%
KKM&D 4,517 3,230 1,287 39.8%
Unallocated general and
administrative expenses (7,432) (5,399) (2,033) 37.7%
Total operating income $10,473 $5,711 $4,762 83.4%
Operating Margins
Company store operations 16.5% 12.0% 4.5% 37.5%
Franchise operations 61.7% 58.7% 3.0% 5.1%
KKM&D 16.2% 15.1% 1.1% 7.3%
Unallocated general and
administrative expenses 7.4% 6.9% 0.5% 7.2%
Total operating income 10.5% 7.3% 3.2% 43.8%
Depreciation and Amortization
Expenses:
Company store operations $1,563 $1,370 $193 14.1%
Franchise operations 17 18 (1) -5.6%
KKM&D 142 83 59 71.1%
Corporate administration 409 340 69 20.3%
Total depreciation and amortization
expenses $2,131 $1,811 $320 17.7%
Systemwide Sales
Company stores $68,640 $54,103 $14,537 26.9%
Franchise stores 85,774 58,160 27,614 47.5%
Total $154,414 $112,263 $42,151 37.5%
Comparable Store Sales
Company stores 11.1%
Systemwide 13.6%
(1) Certain amounts presented for the second quarter of fiscal 2001 have
been restated for a change in accounting policy for revenue
recognition in accordance with Staff Accounting Bulletin No. 101
("SAB101"), "Revenue Recognition in Financial Statements." The change
had no effect on earnings per share for the quarterly period.
(2) Diluted earnings per share and the number of diluted shares
outstanding for Fiscal 2001 have been restated for two, two-for-one
stock splits paid in the form of stock dividends on March 19, 2001 and
June 14, 2001.
Krispy Kreme Doughnuts, Inc.
Summary Financial Results
For the Nine Months Ended October
28, 2001
(All dollar amounts in thousands
except per share data)
Nine Months Ended
October October
28, 29,
2001 2000(1) $ Change % Change
Total revenues $277,270 $218,827 $58,443 26.7%
Operating expenses 224,055 182,766 41,289 22.6%
General and administrative expenses 19,211 14,060 5,151 36.6%
Depreciation and amortization
expenses 5,955 4,987 968 19.4%
Income from operations 28,049 17,014 11,035 64.9%
Interest income 2,519 1,545 974 63.0%
Interest expense 242 567 (325) -57.3%
Loss from joint ventures 416 664 (248) -37.3%
Minority interest in consolidated
joint ventures 599 403 196 48.6%
Other expenses 95 -- 95 --
Income before income taxes 29,216 16,925 12,291 72.6%
Provision for income taxes 11,102 6,456 4,646 72.0%
Net income $18,114 $10,469 $7,645 73.0%
Diluted earnings per share (2) $0.31 $0.20 $0.11 57.1%
Diluted shares outstanding (2) 58,270 52,876 5,394 10.2%
Segment Information
Revenues
Company store operations $190,830 $156,543 $34,287 21.9%
Franchise operations 9,582 6,704 2,878 42.9%
KKM&D 76,858 55,580 21,278 38.3%
Total revenues $277,270 $218,827 $58,443 26.7%
Operating Income
Company store operations $30,148 $19,802 $10,346 52.2%
Franchise operations 6,077 3,864 2,213 57.3%
KKM&D 12,148 8,282 3,866 46.7%
Unallocated general and
administrative expenses (20,324) (14,934) (5,390) 36.1%
Total operating income $28,049 $17,014 $11,035 64.9%
Operating Margins
Company store operations 15.8% 12.6% 3.2% 25.4%
Franchise operations 63.4% 57.6% 5.8% 10.1%
KKM&D 15.8% 14.9% 0.9% 6.0%
Unallocated general and
administrative expenses 7.3% 6.8% 0.5% 7.4%
Total operating income 10.1% 7.8% 2.3% 29.5%
Depreciation and Amortization
Expenses:
Company store operations $4,432 $3,839 $593 15.4%
Franchise operations 53 54 (1) -1.9%
KKM&D 358 221 137 62.0%
Corporate administration 1,112 873 239 27.4%
Total depreciation and amortization
expenses $5,955 $4,987 $968 19.4%
Systemwide Sales
Company stores $190,830 $156,543 $34,287 21.9%
Franchise stores 248,247 166,773 81,474 48.9%
Total $439,077 $323,316 $115,761 35.8%
Comparable Store Sales
Company stores 12.0%
Systemwide 12.7%
(1) Certain amounts presented for the first six months of fiscal 2001 have
been restated for a change in accounting policy for revenue
recognition in accordance with Staff Accounting Bulletin No. 101
("SAB101"), "Revenue Recognition in Financial Statements." The change
had no effect on earnings per share for the six month period.
(2) Diluted earnings per share and the number of diluted shares
outstanding for Fiscal 2001 have been restated for two, two-for-one
stock splits paid in the form of stock dividends on March 19, 2001 and |
