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YF.A 1999-01-29 (provided courtesy of ISDN Wire Service.)
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YOGEN FRUZ WORLD-WIDE INCORPORATED REPORTS RECORD
REVENUES FOR FIRST QUARTER
TORONTO, ON--
Yogen Fruz World-Wide Incorporated (TSE: YF.A) announced today
record revenues for the first quarter of fiscal 1999, which ended
November 30, 1998. Revenues in the first quarter more than
doubled to $22,799,000 for the quarter ended November 30, 1998,
as compared to $10,441,000 for the quarter ended November 30,
1997.
Net earnings for the first quarter of fiscal 1999, were $306,000
as compared with $1,701,000 for the same period last year. The
Company's results were adversely impacted by the cost of
butterfat, which during the quarter ended November 30, 1998,
reached all time high price levels and a $250,000 foreign
exchange loss during the quarter. Net earnings for the quarter
ended November 30, 1998 were also adversely affected by a
decrease in franchising income and fees which were $842,000 for
the period ending November 30, 1998, as compared to $1,407,000
for the period ended November 30, 1997, due to signing fewer
international Master Franchise Agreements and by the seasonality
of the business acquired in connection with the Integrated Brands
acquisition.
Product sales increased to $18,615,000 for the period ending
November 30, 1998, as compared to $5,436,000 for the period
ending November 30, 1997, primarily due to the acquisition of
Integrated Brands. "The acquisition of Integrated Brands has been
of major significance to the Company," said Michael Serruya,
Yogen Fruz Co-President and Co-CEO. "The acquisition of
Integrated Brands has enhanced Yogen Fruz' long-term revenues and
earnings growth prospects by providing major new channels of
distribution and new product lines to supermarkets, taking
advantage of Integrated's right to manufacture, market and
distribute frozen desserts under such notable trademarks as
Tropicana(r) and Betty Crocker(r), among many others."
Shareholders' equity increased to $136,951,000 as of November 30,
1998 as compared to $71,363,000 as of November 30, 1997. In
addition, as of November 30, 1998, the Company owned shares of
Eskimo Pie Corporation, at an aggregate of US$446,000, and
subsequently the Company acquired additional shares of Eskimo Pie
Corporation, at an aggregate of US$7,177,000. As of January 29,
1999, the Company owned approximately 17% of the outstanding
shares of Eskimo Pie Corporation. The Company reported cash
holdings and short-term investments of over $41,000,000 for the
period ended November 30, 1998.
The Company also announced today that it was recently named by
Entrepreneur magazine to the Number One position in the 20th
Annual Franchise 500 ranking of top North American franchises.
The magazine's ranking is based on a formula, including financial
strength and stability, growth rate and size of the system. Yogen
Fruz was ranked ahead of McDonald's, Subway's and Wendy's, which
finished 2nd, 3rd and 4th respectively. In addition, Yogen Fruz
also finished first in the magazine's ranking of the fastest
growing franchises in North America and first in the frozen
yogurt category.
Summary Financial Data:
Three Months Ended
November 30,
1998 1997
---- ----
Revenues 22,799,000 10,441,000
Earnings Before Taxes 118,000 1,885,000
Income Taxes (recoverable) (188,000) 184,000
Net Earnings 306,000 1,701,000
Weighted Average
Number of Shares Outstanding 45,793,000 35,072,000
Earnings Per Share
- Basic $0.01 $0.05
- Fully Diluted $0.01 $0.05
As of November 30, 1998, Yogen Fruz has approximately 4,900
locations, through company owned, franchised and non-traditional
partnership locations in 82 countries. The Company operates a
Family of Brands including Yogen Fruz, I Can't Believe It's
Yogurt, Bresler's Ice Cream and Premium Frozen Yogurt, Swensen's
Ice Cream, Steve's Ice Cream, Golden Swirl, Paradise, Ice Cream
Churn and Java Coast Fine Coffees. The Company also directly, and
through its subsidiary Integrated Brands, markets, sells and
distributes Tropicana frozen fruit juice bars and frozen dessert
products, as well as a variety of frozen novelties and frozen
dessert products under the Betty Crocker, Trix, Yoplait, Colombo,
Lucky Charms and Yoo Hoo brand names, pursuant to long-term
license agreements.
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For further information, contact:
Michael Serruya/Richard E. Smith
Co-Chairman, Co-President and Co-CEO
Yogen Fruz World-Wide Incorporated
Tel: 905-479-8762/516-737-9700
Fax: 905-479-5235/516-737-9792 |
