Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (12800)	3/8/2002 7:54:45 AM
From: Terry D	Read Replies (1) \| Respond to of 23153

Fourth quarter EPS of $0.14 beats consensus by $0.01 Fiscal 2003 earnings guidance is increased to $0.62 Winston-Salem, North Carolina - Krispy Kreme Doughnuts, Inc. today reported financial results for the fourth quarter and fiscal year ended February 3, 2002. The Company noted that the results for Fiscal Year 2002 reflect 53 weeks, an event that occurs every fifth year. As a result, the fourth quarter of Fiscal 2002 contained fourteen weeks. Fiscal 2001 and the fourth quarter of fiscal 2001 contained 52 weeks and 13 weeks, respectively. Systemwide sales, including sales of both company and franchise stores, increased 46.3% to $182.6 million in the fourth quarter, compared with $124.8 million in the fourth quarter of fiscal 2001. Sales were driven by an increase in company store sales of 31.9% to $75.4 million and an increase in franchise store sales of 58.4% to $107.2 million. On a comparable store basis, systemwide store sales for the comparable 13-week period versus a year ago were up 13.1% and company comparable store sales increased 10.7%. Total company revenues, which include sales from company stores, franchise operations, and Krispy Kreme Manufacturing and Distribution ("KKM&D"), rose 43.0% to $117.1 million in the fourth quarter, compared with $81.9 million in the fourth quarter of fiscal 2001. Sales from company stores increased 31.9% to $75.4 million; revenues from franchise operations were up 61.5% to $4.4 million; and KKM&D sales increased 69.3% to $37.3 million. Net income for the fourth quarter was $8.3 million, an increase of 94.2% compared with $4.3 million in the fourth quarter last year. Diluted earnings per share increased to $0.14 in the fourth quarter of fiscal 2002 from $0.08 per share in the prior year comparable period. The Company has made an estimate of the impact of the 14th week on earnings. It estimates the impact at approximately $0.01 per share. On this basis, a comparable 13-week fourth quarter fiscal 2002 earnings growth rate versus the same 13-weeks a year ago would be 73.3% rather than the 86.7% indicated by the unadjusted comparison. For the fiscal year ended February 3, 2002, systemwide sales increased 38.7% to $621.7 million from $448.1 million for the fiscal year ended January 28, 2001. This is a result of an increase in company store sales of 24.6% to $266.2 million and an increase in franchise store sales of 51.6% to $355.5 million. Total company revenues rose 31.1% to $394.4 million for the year compared with $300.7 million in the prior year. Sales from company stores increased 24.6% to $266.2 million; revenues from franchise operations were up 48.3% to $14.0 million; and KKM&D sales increased 47.1% to $114.1 million. Net income for the fiscal year was $26.4 million, an increase of 79.1% compared with $14.7 million a year ago. Diluted earnings per share increased to $0.45 for the year from $0.27 per share in the prior year. Commenting on the Company's financial performance, Scott Livengood, Chairman, President and CEO of Krispy Kreme Doughnuts, Inc. said, "The momentum generated by new store openings and growth across all sales channels combined with the potential benefits of our new coffee and expanded beverage program, our new hot doughnut technology and the Company's international growth prospects give me great confidence for this year and for years to come." During the quarter, 21 new Krispy Kreme stores were opened and one store was closed. New markets entered included Seattle, WA, Milwaukee, WI, Wichita, KS, Reno, NV, Norman, OK, and Toronto, Ontario in Canada while 11 markets gained additional locations, bringing the total number of stores at February 3, 2002 to 218. Three doughnut and coffee shops (stores featuring the new hot doughnut technology) were also opened during the quarter and are not included in store count. Since the end of the quarter, Krispy Kreme has opened one additional franchise store and closed two franchise stores. The Company also provided guidance for fiscal 2003. Total diluted earnings per share for fiscal 2003 is expected to be $0.62, above consensus by $0.01. The Company indicated quarterly earnings guidance as follows: Q1 - $0.14; Q2 - $0.14; Q3 - $0.16; Q4 - $0.18. Regarding comparable store sales, the Company anticipates an average of 10% for the year with first quarter expectations of systemwide comparable store sales of 10%. Additionally, the Company anticipates opening 59 new stores in 15 new markets. Finally, the Company indicated that it expects to sign at least two franchise agreements for development of international markets in fiscal 2003. The 64-year-old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. Krispy Kreme currently operates 217 stores in 33 states and Canada. Krispy Kreme can be found on the World Wide Web at krispykreme.com.