YoCream International Announces Another Record Quarter: Sales Up 51.2% and Net Income Up 284%
Wednesday August 27, 6:00 am ET
PORTLAND, Ore., Aug. 27 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM - News), a manufacturer and wholesaler of frozen desserts and beverages, today reported the financial results for the third quarter ended July 31, 2008.
It was a record third quarter with sales up 51.2% to $15,152,000 and net income up 284% to $1,924,000. Gross profit margins in the third quarter were 42.7% compared with 34.6% in the prior year; income from operations was $3,297,000, a 257% increase over the same period in 2007.
Sales for the nine months ended July 31, 2008 were up 42.7% to $29,631,000. Gross profit margins were 41.9% in 2008 compared with 36.9% in 2007; income from operations was $5,100,000, a 282% increase over the prior year; net income was up 369% to $2,934,000, or $1.27 per share, compared with $625,000 or $0.29 per share for the same period last year. Copacking sales were purposefully limited in order to operationally meet the significant sales growth of the Company's proprietary products. Sales by category were as follows:
9 months % 9 months % Dollar %
Category 2008 Total 2007 Total Increase Change
Frozen
Desserts $21,369,000 72.1% $11,888,000 57.2% $9,481,000 79.7%
Frozen
Beverages 8,107,000 27.4% 7,800,000 37.6% 307,000 3.9%
Co-packing 155,000 0.5% 1,083,000 5.2% (928,000)
Total $29,631,000 100.0% $20,771,000 100.0% $8,860,000 42.7%
"It has been an outstanding year to date for us, with 9 months sales and earnings breaking through the 12 months results of previous years, and the momentum continues," observed Matt Hanna, Director of Administration. "Meeting the operational challenges of such explosive growth is a testimony to the commitment and capability of our YoCream team."
The third quarter of 2008 represents the ninth consecutive quarter of double digit sales growth for YoCream. Total YTD foodservice sales, exclusive of club and co-packing business were up approximately 105%. "We are enjoying considerable growth in major markets across the U.S.," noted Tyler Bargas, Director of Sales. "YoCream continues to nationally lead the away-from-home frozen yogurt and beverage category with a firm knowledge of the customer base and well-executed sales strategies."
New product introductions in the fourth quarter of 2008 are expected to advance sales into the 2009 selling season. "We completed a third quarter consumer taste test and will roll out 7 frozen yogurt flavors in a new YoCream Select line," noted Suzanne Gardner, Director of Marketing. "Five new frozen beverage flavors will also be introduced at the National Association of Convenience Stores (NACS) Show in Chicago on October 5, 2008. The new frozen yogurt flavors and beverages both carry national brands that compliment the high quality of YoCream products."
YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces, markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream and frozen custard mixes under the YoCream brand. YoCream's frozen beverage product lines include Fruitquake(TM) Frozen Drinks and Smoothies for blender, bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble Yum(TM), Twizzlers(TM), and Jarritos(TM) Frozen Beverages for frozen carbonated and uncarbonated machine dispensing. The Company also co-packs similar products for other companies. YoCream's end-user customers number in the thousands and include marquee convenience stores, quality quick service restaurants, warehouse stores, prestigious eating establishments, large grocery chains, frozen yogurt shops, colleges, military and government foodservice locations, international restaurants and neighborhood stores involving over 250 specialty and full line distributors in the supply chain.
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YOCREAM INTERNATIONAL, INC.
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
2008 2007 2008 2007
Sales $15,152,365 $10,021,957 $29,630,827 $20,771,007
Cost of goods sold 8,682,087 6,549,401 17,215,339 13,116,331
Gross profit 6,470,278 3,472,556 12,415,488 7,654,676
Operating costs and
expenses
Distribution expenses 1,555,880 1,202,864 3,371,380 2,672,995
Selling, and marketing
expenses 936,965 796,840 2,184,003 2,100,474
General and
administrative expenses 680,099 548,718 1,759,979 1,546,212
Income from operations 3,297,334 924,134 5,100,126 1,334,995
Other income (expenses)
Interest income 2,088 - 3,382 14,516
Interest expense (123,189) (144,127) (393,483) (373,803)
Restricted stock
compensation (196,900) (37,400) (196,900) (37,400)
Other (net) - 2,000 - 2,188
Income before income
taxes 2,979,333 744,607 4,513,125 940,496
Income tax provision 1,055,000 243,600 1,579,500 315,100
Net income $1,924,333 $501,007 $2,933,625 $625,396
Earnings per common
share - basic $0.87 $0.24 $1.34 $0.30
Earnings per common
share - diluted $0.82 $0.23 $1.27 $0.29
Shares used in basic
earnings per share 2,214,445 2,099,341 2,187,886 2,096,948
Shares used in diluted
earnings per share 2,345,829 2,156,396 2,307,341 2,142,833
YOCREAM INTERNATIONAL, INC
BALANCE SHEETS
July 31, October 31,
2008 2007
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $2,601,429 $70,701
Accounts receivable, net 3,327,791 1,562,955
Inventories 3,908,603 3,748,525
Other current assets 539,542 388,931
Deferred tax assets 172,708 172,708
Total current assets 10,550,073 5,943,820
Fixed assets, net 15,228,186 15,005,641
Intangible and other long-term assets, net 997,059 1,035,022
Deferred tax assets 172,800 101,100
$26,948,118 $22,085,583
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Note payable - line of credit $- $634,475
Current portion of long-term debt 573,413 569,588
Accounts payable 2,960,737 1,616,467
Income tax payable 1,296,266 125,882
Other accrued liabilities 499,654 473,633
Total current liabilities 5,330,070 3,420,045
Long-term debt, less current portion 7,824,459 7,996,013
Deferred tax liabilities 1,184,908 1,184,908
Other liabilities 114,434 100,895
Total liabilities 14,453,871 12,701,861
Shareholders' equity
Preferred stock, no par value, none issued
or outstanding - -
Common stock, no par value, 30,000,000
shares authorized, 2,219,356 and 2,174,606
issued and outstanding at July 31, 2008
and October 31, 2007, respectively 6,521,765 6,426,965
Unearned compensation - restricted stock (1,838,100) (2,035,000)
Retained earnings 8,087,682 5,154,057
Accumulated other comprehensive income (277,100) (162,300)
Total shareholders' equity 12,494,247 9,383,722
$26,948,118 $22,085,583
YOCREAM INTERNATIONAL, INC.
STATEMENTS OF CASH FLOWS
For the nine months ended July 31, 2008 and 2007
(Unaudited)
2008 2007
Cash flows from operating activities
Net income $2,933,625 $625,396
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization 714,386 630,263
Deferred income taxes - 18,900
Change in assets and liabilities
Accounts receivable (1,764,836) (620,589)
Inventories (160,078) (144,812)
Other assets (112,648) (170,049)
Accounts payable 1,344,270 114,856
Income taxes receivable and payable 1,170,384 205,775
Restricted stock compensation 196,900 37,400
Other accrued liabilities 39,560 (21,051)
Net cash provided by operating
activities 4,361,563 676,089
Cash flows from investing activities
Expenditures for fixed assets (1,026,931) (3,266,637)
Net cash used in investing
activities (1,026,931) (3,266,637)
Cash flows from financing activities
Proceeds from (payments on) line of credit (634,475) 483,128
Proceeds from long-term debt 90,000 -
Proceeds from development related grant 90,000 -
Proceeds from finance lease line - 139,393
Proceeds from exercise of stock options 23,150 -
Principal payments on long-term debt (444,229) (319,571)
Repurchase of common stock (46,250) -
Excess tax benefits of options and
restricted stock 117,900 -
Net cash provided by (used in)
financing activities (803,904) 302,950
Net increase (decrease) in cash
and cash equivalents 2,530,728 (2,287,598)
Cash and cash equivalents, beginning of period 70,701 2,386,645
Cash and cash equivalents, end of period $2,601,429 $99,047
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Source: YoCream International, Inc.
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