YoCream International Third Quarter Sales Increased 30% and Earnings Increased 142%
Tuesday September 25, 1:20 pm ET
PORTLAND, Ore., Sept. 25 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM - News), a manufacturer and wholesaler of frozen desserts and beverages, reported outstanding third quarter financial results.
For quarter ended July 31, 2007, the Company experienced a sales growth of 30.3% and enjoyed record sales of $10,022,000, compared to $7,694,000 in the third quarter of 2006. For the nine months ended July 31, 2007, sales increased 24.9% to $20,771,000 compared to $16,634,000 in the same period of 2006. The breakdown of sales by category was as follows:
% % Dollar %
Category 2007 Total 2006 Total Increase Change
Frozen
Desserts $11,878,000 57.1% $9,953,000 59.8% $1,925,000 19.3%
Frozen
Beverages 7,800,000 37.6% 5,747,000 34.6% 2,053,000 35.7%
Co-packing 1,093,000 5.3% 934,000 5.6% 159,000 17.0%
Total $20,771,000 100.0% $16,634,000 100.0% $4,137,000 24.9%
"The Company reached a milestone with its first $10 million quarter," stated John Hanna, CEO and Chairman of the Board. "We are pleased that both frozen dessert and frozen beverage categories are up, as in the previous four quarters, indicative of a positive growth trend."
Sales of frozen beverage products to a large convenience store chain and a retailer foodservice food court lead increases in the beverage category this quarter. "Intense sales activity has resulted in new distribution and penetration in the convenience store market overall," noted Tyler Bargas, Director of Sales. "Total foodservice sales, exclusive of club and co-packing business, are up approximately 90%."
A significant amount of the increased volume was contributed by frozen dessert sales, mainly the Company's core frozen yogurt products. "Sales efforts toward this product line, especially the Original Tart frozen yogurt, have produced excellent results," continued Bargas. The popularity of probiotic products and consumer's demand for healthier food choices has created a renewed interest in frozen yogurt. In August, YoCream was approved by the National Yogurt Association (NYA) to use the Live and Active Culture (LAC) Seal on the Company's nonfat frozen yogurts. While YoCream has been committed to producing genuine yogurt products since 1977, the management team decided that now is the right time to join forces with the NYA to promote the benefits of frozen yogurt.
Development of new flavors was completed in the third quarter, including Cookies and Cream frozen yogurt, Green Tea Original Tart frozen yogurt, and Twizzlers(TM) frozen beverage. "These products were introduced in the fourth quarter and additional new flavors and brands will be introduced in the first quarter of the 2008 fiscal year," stated Suzanne Gardner, Director of Marketing. "To continue our concentrated action in the highly competitive frozen dessert and beverage market, YoCream will provide innovative flavors and brands designed to support our leadership position in the industry."
Co-packing sales continued a positive trend this quarter. "Custom manufacturing for selective customers continues to utilize some plant capacity," stated Matt Hanna, Director of Administration and Custom Manufacturing Sales. "For instance, we presently are producing a coffee product for a California-based coffee company selling to the convenience store market."
Income from operations for the third quarter of 2007 increased 230% to $924,000 from $280,000 for the same period in 2006. For the nine months ended July 31, income from operations increased 145% to $1,335,000 from $545,000 for the same period in 2006. The Company expects a positive sales trend to continue as a result of its new product introductions and intense sales activity.
Net income for the third quarter of 2007 increased 142% to $501,000, or $0.23 per share, compared with $207,000 or $0.10 per share for the same period last year. Net income for the nine months ended July 31, 2007 increased 75% to $625,000, or $0.29 per share, compared with $358,000 or $0.17 per share for the same period last year.
For the full third quarter report, please visit yocream.com.
YoCream International, Inc., with headquarters and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt. Founded in 1977, YoCream produces, markets and sells frozen yogurt, ice cream and frozen custard mixes as well as fruit and dairy smoothies and frozen beverages. The Company has 30 years experience of providing solutions to the away-from-home foodservice market. With a proven history of providing high-quality products and solution-based customer service, YoCream International is an established food service vendor, co-packer, and industry leader poised for long-term growth.
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, and regulatory factors affecting the Company's operations, pricing, products and service.
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Source: YoCream International, Inc.
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