YOCREAM International Sales Up 65 Percent, Net Income Gains 28 Percent In Record Second Quarter
PR Newswire - June 02, 1999 08:17
Operating Income Doubles to $451,824
PORTLAND, Ore., June 2 /PRNewswire/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, today announced 65 percent higher sales and a 28 percent increase in net income for the second quarter ended April 30, 1999.
Sales of $3.7 million rose from $2.2 million in the 1998 second quarter, fueled by increasing sales of the company's smoothie products in the existing customer base and the addition of new customers. Operating income increased 102 percent to $451,824 from $223,888 reflecting the higher sales and lower expenses as a percentage of sales. Net income improved to $308,151, or $0.13 per share, from $240,442, or $0.10 per share, a year ago after providing for income taxes in the 1999 quarter. The same 1998 quarter was positively affected by a tax benefit.
"We are experiencing another strong year at all levels of the company's operations," said John Hanna, chief executive officer of YOCREAM International. "The higher sales and earnings for the second quarter follow a 35 percent jump in sales and improved profitability in the first quarter."
Hanna attributed the upward sales trend to the growing acceptance of YOCREAM's smoothie products and recent sales penetration into the convenience store market for its soft-serve frozen yogurt.
"During the quarter, a major customer increased its use of our smoothie product by offering it in several new store locations," he pointed out. "In addition, sales under a contract to supply soft-serve frozen yogurt to Maverik Country Stores for its 178 convenience stores in Utah, Idaho, Montana, Wyoming, Arizona, Colorado and Nevada ramped up from the first quarter."
The company also introduced its first smoothie bottled drink for direct consumer purchase in April through 176 Wal-Mart stores. "We're pleased with the initial customer response and are working with Wal-Mart to add a variety of flavors and sizes," Hanna said. "And there is interest from other retail operators for this bottled smoothie."
For the six months ended April 30, 1999, sales of $5.8 million were up 52 percent from $3.8 million in the comparable 1998 period. Operating income soared 179 percent to $542,583 from $194,569 as selling, general and administrative expenses declined as a percentage of sales. Net income improved 92 percent to $357,666, or $0.15 per share, from $186,014, or $0.08 per share despite an income tax provision of $140,000 in the 1999 period compared to a tax benefit of $50,000 in the same 1998 period.
In other developments during the quarter, the company changed its name to YOCREAM International, Inc. from International Yogurt, Inc. following shareholder approval in March. The new name better represents the company's broader product line and more closely associates the company with the YOCREAM(R) brand which has grown in recognition.
YOCREAM International, Inc. makes, markets and sells frozen desserts, snacks and smoothies throughout the United States and in several foreign countries. For the fiscal year ended October 31, 1998, the company reported sales of $10.2 million, up 18 percent from the prior year.
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, regulatory and factors affecting the company's operations, pricing, products and service. For a more complete discussion of the risks associated with forward-looking information, refer to the Risk Factors contained in the company's Form 10-K filed with the Securities and Exchange Commission on February 1, 1999.
Visit the company's web site at www.yocream.com!
YOCREAM INTERNATIONAL, INC. Income Statement
Three Months Ended Six Months Ended
April 30 April 30
1999 1998 1999 1998
Sales $3,650,515 $2,218,294 $5,828,381 $3,832,229
Cost of sales 2,460,895 1,418,753 3,988,248 2,537,667
Gross profit 1,189,620 799,541 1,840,133 1,294,562
Selling, general,
administrative expenses 737,796 575,653 1,297,550 1,099,993
Income from operations 451,824 223,888 542,583 194,569
Other income (expense) (22,673) (33,446) (44,917) (58,555)
Income before
income taxes 429,151 190,442 497,666 136,014
Income tax (provision)
benefit (121,000) 50,000 (140,000) 50,000
Net income $308,151 $240,442 $357,666 $186,014
Earnings per common share
Basic $.13 $.11 $.15 $.08
Diluted $.13 $.10 $.15 $.08
Shares used in per
share calculation
Basic 2,318,349 2,261,422 2,318,629 2,256,786
Diluted 2,372,761 2,334,309 2,378,609 2,293,960
SOURCE YOCREAM International, Inc.
/CONTACT: Terry Lusetti, Investor Relations of YOCREAM International,
Inc., 503-256-3754; or Dolores Chenoweth of in.ves'com, 503-469-0338, for
YOCREAM/
/Web site: yocream.com
(YOCM) |
