YoCream continues to hit on all cylinders:
YoCream International Reports Continued Record Sales and Earnings
Press Release
Source: YoCream International, Inc.
On Thursday August 27, 2009, 6:00 am EDT
PORTLAND, Ore., Aug. 27 /PRNewswire-FirstCall/ -- YOCREAM International, Inc. (Pink Sheets: YOCM - News) is pleased to announce record results for its nine months ended July 31, 2009:
2009 2008 % Increase
---- ---- ----------
Sales $37,224,000 $29,631,000 25.6%
Income from Operations $8,229,000 $5,100,000 61.4%
Net Income $4,502,000 $2,934,000 53.4%
Earnings per Share $1.82 $1.27 43.3%
Sales for the third quarter ended July 31, 2009 increased 5.3% to $15,955,000, representing the thirteenth consecutive quarter of sales growth. Sales for the nine months increased 25.6% to $37,224,000 when compared to the same period of 2008.
"The single digit growth rate in the third quarter is not a negative," stated Tyler Bargas, Director of Sales. "The third quarter merely saw us catch up with last year's roll out of smoothie sales to a major national account. In fact, sales of our core frozen yogurt products are up 66% in the third quarter. We continue to work with large national accounts. Four more are in test with different products right now. So we expect steady growth ahead for our core products as well as surges in sales should the national accounts approve the products in test."
"New frozen yogurt stores, both independent and chains, continue to open at an accelerated pace throughout the nation," said Suzanne Gardner, Director of Marketing. "This is not a short term bubble of growth in the popularity of frozen yogurt. Consumer understanding of the health benefits of probiotics and the enjoyment of the yogurt experience has resulted in a long term shift toward frozen yogurt with live and active cultures as a preferred frozen dessert."
YoCream also announced that it has recently been awarded the Premier healthcare alliance sole source supplier contract for soft serve frozen yogurt, ice cream and custard. The Premier healthcare alliance represents more than 2,200 U.S. hospitals and 63,000-plus other healthcare sites, as well as a number of major universities. "We are proud that Premier has recognized our category leadership in quality and service with contract exclusivity," Bargas commented.
When asked about capacity to respond to additional surges in sales to large national accounts, Senior Director Matt Hanna reported that YoCream will complete $4 million in FY '09 plant infrastructure capital expansion. This will effectively double the capacity to pasteurize, culture, and package frozen yogurt mix. "We can now run in one shift what was taking us two shifts to produce," he stated. "We believe significant growth is coming and we are prepared to support our core business and new customers."
For the nine months ended July 31, gross profit margins were 46.2% in 2009 compared with 41.9% in 2008; a 38.6% increase to $17,206,000. Year to date income from operations increased 61.4% to $8.2 million versus $5.1 million a year ago.
Full quarterly report with management's discussion, analysis and footnotes will be posted by September 15, 2009 on the Company's website.
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YOCREAM INTERNATIONAL, INC.
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Sales $15,955,206 $15,152,365 $37,223,816 $29,630,827
Cost of goods
sold 8,750,096 8,682,087 20,018,074 17,215,339
--------- --------- ---------- ----------
Gross profit 7,205,110 6,470,278 17,205,742 12,415,488
Operating costs
and expenses
Distribution
expenses 1,541,357 1,555,880 3,492,268 3,371,380
Selling, and
marketing
expenses 1,018,234 936,965 2,620,456 2,184,003
General and
administrative
expenses 1,212,140 680,099 2,863,607 1,759,979
--------- ------- --------- ---------
Income from
operations 3,433,379 3,297,334 8,229,411 5,100,126
Other income (expenses)
Interest income 5,217 2,088 21,971 3,382
Interest expense (141,304) (123,189) (373,692) (393,483)
Restricted stock
compensation (671,700) (196,900) (952,200) (196,900)
-------- -------- -------- --------
Income before
income taxes 2,625,592 2,979,333 6,925,490 4,513,125
Income tax
provision 918,900 1,055,000 2,423,900 1,579,500
------- --------- --------- ---------
Net income $1,706,692 $1,924,333 $4,501,590 $2,933,625
========== ========== ========== ==========
Earnings per
common share -
basic $0.65 $0.87 $1.88 $1.34
===== ===== ===== =====
Earnings per
common share -
diluted $0.65 $0.82 $1.82 $1.27
===== ===== ===== =====
Shares used in
basic earnings
per share 2,607,898 2,214,445 2,391,842 2,187,886
========= ========= ========= =========
Shares used in
diluted earnings
per share 2,607,898 2,345,829 2,479,668 2,307,341
========= ========= ========= =========
YOCREAM INTERNATIONAL, INC.
BALANCE SHEETS
July 31, October 31,
2009 2008
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $6,931,641 $7,169,393
Accounts receivable, net 3,690,041 2,346,555
Inventories 5,582,082 3,614,226
Other current assets 556,336 346,722
Deferred tax assets 218,877 218,877
------- -------
Total current assets 16,978,977 13,695,773
Fixed assets, net 16,533,044 14,297,886
Intangible and other long-term
assets, net 1,058,721 1,108,290
Deferred tax assets 291,600 191,900
------- -------
$34,862,342 $29,293,849
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Note payable - line of credit $- $-
Current portion of long-term debt 609,009 616,155
Accounts payable 2,817,770 2,661,073
Income tax payable 841,245 1,778,606
Other accrued liabilities 1,182,873 833,459
--------- -------
Total current liabilities 5,450,897 5,889,293
Long-term debt, less current portion 7,499,778 7,720,045
Deferred tax liabilities 1,514,477 1,344,077
Other liabilities 138,042 119,376
------- -------
Total liabilities 14,603,194 15,072,791
---------- ----------
Shareholders' equity
Preferred stock, no par value, none
issued or outstanding - -
Common stock, no par value, 30,000,000
shares authorized, 2,607,898 and
2,262,210 issued and outstanding as
of July 2009 and October 2008 7,363,165 6,618,865
Unearned compensation - restricted
stock (671,630) (1,623,830)
Retained earnings 14,035,313 9,533,723
Accumulated other comprehensive income (467,700) (307,700)
--------- ---------
Total shareholders' equity 20,259,146 14,221,058
---------- ----------
$34,862,342 $29,293,849
=========== ===========
YOCREAM INTERNATIONAL, INC.
STATEMENTS OF CASH FLOWS
For the nine months ended July 31, 2009 and 2008
(Unaudited)
2009 2008
---- ----
Cash flows from operating activities
Net income $4,501,590 $2,933,625
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 763,623 714,386
Deferred income taxes 170,400 -
Change in assets and liabilities
Accounts receivable (1,343,486) (1,764,836)
Inventories (1,967,856) (160,078)
Other assets (160,045) (112,648)
Accounts payable (412,515) 1,344,270
Income taxes payable (937,361) 1,170,384
Restricted stock compensation 952,200 196,900
Other accrued liabilities 368,080 39,560
------- ------
Net cash provided by operating
activities 1,934,630 4,361,563
--------- ---------
Cash flows from investing activities
Proceeds from sale and leaseback of equipment 438,753 -
Expenditures for fixed assets (2,868,322) (1,026,931)
---------- -----------
Net cash used in investing activities (2,429,569) (1,026,931)
---------- -----------
Cash flows from financing activities
Payments on line of credit - (634,475)
Proceeds from long-term debt - 90,000
Proceeds from development grant - 90,000
Principal payments on long-term debt (487,113) (444,229)
Repurchase of common stock - (46,250)
Proceeds from exercise of stock options - 23,150
Excess tax benefits of restricted stock and
options 744,300 117,900
------- -------
Net cash provided by (used in)
financing activities 257,187 (803,904)
------- --------
Net increase (decrease) in cash and
cash equivalents (237,752) 2,530,728
Cash and cash equivalents, beginning of period 7,169,393 70,701
--------- ------
Cash and cash equivalents, end of period $6,931,641 $2,601,429
========== ==========
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