This excerpt taken from the GMCR 8-K filed Aug 3, 2006.
Third quarter sales up 26.5% over prior year --
WATERBURY, VT (August 3, 2006) -- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced its fiscal third quarter consolidated results for the twelve-week period ended July 1, 2006. Net sales increased 26.5% to $47.8 million from $37.8 million in the fiscal third quarter of 2005. Included in Green Mountain Coffee's fiscal third quarter 2006 net sales is approximately $1.9 million of Keurig, Inc.'s (Keurig) net sales after the closing of the acquisition on June 15, 2006. Keurig markets premium single-cup (K-Cup) coffee brewing systems for the office and the home while the Company licenses, manufactures and sells Green Mountain coffee and tea K-Cups® for offices, homes and other venues.
Gross profit for the consolidated entity in the fiscal third quarter of 2006 increased approximately 29.6%, to $17.7 million from $13.7 million. Net income for the fiscal third quarter of 2006 was $2.0 million or $0.25 per diluted share, compared to net income of $2.2 million, or $0.28 per diluted share, for the year ago period. Stock-based compensation charges associated with the Company's adoption of FAS 123R at the beginning of fiscal year 2006 were $555,000 in the fiscal third quarter. The Company's net income includes recognition of a non-cash loss in the fiscal third quarter of 2006 of $629,000 or $0.08 per share as a result of its equity investment in Keurig prior to the closing of the acquisition of all of the remaining outstanding shares of Keurig on June 15, 2006. This loss compares to the Company's recognition of a non-cash loss of $160,000 or $0.02 per share as a result of its equity investment in Keurig in the fiscal third quarter of 2005. In addition, as part of the purchase price accounting for the acquisition of Keurig, the fiscal third quarter 2006 includes amortization expense related to the identifiable intangibles and inventory step up adjustments of approximately $250,000 or $.02 per share.
Robert P. Stiller, Chairman, President and Chief Executive Officer, said, "I am pleased with our performance this past quarter. We delivered good sales growth across channels and improved our operating efficiencies, bringing growth to the bottom line. One of the most exciting steps we took this past quarter was to acquire Keurig. We are thrilled to have successfully completed this acquisition, which combines two strong brands. I also believe that our balanced approach to social responsibility is contributing meaningfully to our success."
Third Quarter Financial Review
Green Mountain Coffee Roasters Stand-Alone Highlights:
Keurig (as a wholly owned subsidiary) Stand-Alone Highlights for the last two weeks of the fiscal third quarter:
Keurig Inc. Purchase Price Accounting Highlights included in the Company's financial results for the fiscal third quarter of 2006:
Business Outlook and Other Forward-Looking Information
Company Estimates for Fourth Quarter Fiscal 2006:
Company Estimates for Fiscal Year 2006:
Company Estimates Relating to Balance Sheet and Cash Flow:
Company Estimates for Fiscal 2007:
Green Mountain Coffee Roasters will be discussing these financial results and future prospects with analysts and investors in a conference call available via the internet. The call will take place today, August 3, 2006, at 10:30 AM ET and will be available via live webcast on the Company's website at www.GreenMountainCoffee.com and other major portals.
The Company archives the latest conference call on the Investor Services section of its website for a period of time. A replay of the conference call also will be available by telephone at 719-457-0820, confirmation code 3047006 from 1:30 PM ET on August 3rd through midnight on Monday, August 7th, 2006.
Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is recognized as a leader in the specialty coffee industry for its award-winning coffees and successful business practices. The Company sells over 100 high quality selections, including Fair Trade Certified™ and organic coffees under the Green Mountain Coffee Roasters® and Newman's Own® Organics brands. While the majority of the Company's revenue is derived from its wholesale, direct mail, and e-commerce operations (www.GreenMountainCoffee.com), it also owns Keurig, Incorporated, a pioneer and leading manufacturer of gourmet single-cup brewing systems. Green Mountain Coffee Roasters was recently ranked No. 1 on the Business Ethics list of "100 Best Corporate Citizens," and has been recognized repeatedly by Forbes, Fortune Small Business, and the Society of Human Resource Management as an innovative, high-growth, socially responsible company.
Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, fluctuations in availability and cost of high-quality green coffee, the unknown impact of any price increases on net sales, competition, business conditions in the coffee industry and food industry in general, Keurig Inc.'s ability to continue to grow and build profits in the office and at home markets, the impact of the loss of one or more major customers for Green Mountain Coffee or reduction in the volume of purchases by one or more major customers, delays in the timing of adding new locations with existing customers, Green Mountain Coffee's level of success in continuing to attract new customers, the Company's success in efficiently expanding operations and capacity to meet growth, variances from sales mix and growth rate, weather and special or unusual events, as well as other risks as described more fully in the Company's filings with the Securities and Exchange Commission. Forward-looking statements reflect management's analysis as of the date of this press release. The Company does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.
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