Green Mountain Coffee Roasters (GMCR)

Success of Keurig single-cup brewing system drives strong sales growth

WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced its fiscal 2008 first quarter results for the thirteen weeks ended December 29, 2007.

Net sales for the first quarter of fiscal 2008 were up 52% to $126.4 million as compared to $83.3 million reported in the first quarter of fiscal 2007. Driving this growth during the first quarter of fiscal 2008, approximately 322,000 Keurig brewers were shipped, up 166% from the 121,000 Keurig brewers shipped during the first quarter of fiscal 2007, and the Green Mountain Coffee segment shipped over 130 million K-Cups, which was 60% more than the year-ago quarter.

Net income for the fiscal first quarter of 2008 was $2.9 million or $0.12 per diluted share, up 20% from $2.4 million or $0.10 per diluted share in the fiscal first quarter of 2007.

Excluding the impact of the non-cash amortization expense related to the Keurig intangibles of approximately $1.2 million (pre-tax) in each of the first quarters of fiscal 2008 and 2007, non-GAAP net income totaled $3.6 million in the first fiscal quarter of 2008 compared to non-GAAP net income of $3.2 million for the comparable year-ago period.

Lawrence J. Blanford, President and CEO, said, “We are off to a very strong start for fiscal year 2008 with our first quarter results. The robust growth rate of Keurig brewer sales during the holiday season of 2007 not only contributed meaningfully to our growth this past quarter, but also has potential for compelling benefits going forward, as we anticipate it will drive continued strong sales of K-Cups to support the increased installed base of brewers in consumers’ homes and away from home. At the same time, our success is built on the foundation of a long-standing commitment to social and environmental responsibility. I believe this socially conscious commitment, combined with our entrepreneurial approach to building our business to expand the reach of our brands, is a powerful business model for success, even in a tough economy. Going forward, we will continue to leverage the single-cup brewing opportunity, and its synergy with our traditional business, to further enhance the value creation opportunity of our enterprise.”

Fiscal 2008 First Quarter Financial Review