PORTLAND, Ore., Sept. 9 /PRNewswire-FirstCall/ -- YoCream
International, Inc. (Pink Sheets: YOCM), a manufacturer and
wholesaler of frozen desserts and beverages, today reported the
financial results for the third quarter ended July 31, 2010.
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Sales for the three months ended July 31,
2010 increased 15.6% to $18,445,000. Sales for the nine months
increased 12.1% to $41,721,000. Net
income increased 25% to $2,141,000
for the quarter and increased 6% to $4,778,000 for the nine month period.
Sales of the Company's core frozen yogurt business grew 50.2% in
the third quarter following 52.1% and 30.9% in the second and first
quarters, respectively.
"Our conviction remains that the notable growth of our core
frozen yogurt products will continue as evidenced by performance,"
stated Tyler Bargas, YoCream
Director of Sales. "We ardently pursue business with independent
shops, regional chains and other foodservice establishments through
education and solution-based consulting."
Matt Hanna, YoCream Senior
Director, commented that, while the Company is enjoying greater
earnings from increased sales, gross profit margins have decreased.
The margin decrease is mainly due to higher ingredient costs. "The
Company is currently experiencing a softening of certain ingredient
costs," stated Hanna. "Management is monitoring this decrease in
costs, with the intention of delaying any price increases until
absolutely necessary. We believe this to be a responsible position
in recognition of the general state of the economy and the
thousands of businesses we support through core product
supply."
"Consumers are more interested than ever in the quality and
health benefits of the foods they are consuming," stated
Suzanne Gardner, YoCream Director of
Marketing. "They are making better-for-you choices like real nonfat
frozen yogurt with high live and active probiotic yogurt cultures.
This demand is the basis for the sustainable success of the frozen
yogurt establishments that are opening around the country and the
world."
YoCream International, Inc. is a world leader in the frozen
yogurt industry. Since 1977, YoCream has pioneered the innovation,
production and marketing of frozen yogurt and fruit-based frozen
desserts and beverages. The Company operates a state-of-the-art
production facility in Portland,
Oregon, to manufacture its "true" frozen yogurt, which
contains the real yogurt that is fermented and cultured on site
daily. The Company offers over 110 flavors of frozen yogurt, ice
cream, frozen custard, sorbet, smoothies, frozen carbonated
beverages, slushes and frozen drink mixes. In addition to the
YoCream brand, the Company also provides other branded flavors such
as Hershey's™ (e.g. Hershey's™ Kisses™, Reese's™, York™, Jolly
Rancher™, Twizzlers™, Bubble Yum™) and Rockstar™ under exclusive
licenses. YoCream's end-user customers number in the thousands and
include marquee convenience stores, quality quick service
restaurants, warehouse stores, prestigious eating establishments,
large grocery chains, frozen yogurt shops, colleges, military and
government foodservice locations, international restaurants and
neighborhood stores involving over 250 specialty and full line
distributors in the supply chain. YoCream is currently selling its
frozen yogurt products in 17 foreign countries.
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 strategic alliances and other economic,
competitive, governmental, and regulatory factors affecting the
Company's operations, pricing, products and service.
|
YOCREAM INTERNATIONAL,
INC.
STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$ 18,444,986
|
|
$ 15,955,206
|
|
$ 41,721,058
|
|
$ 37,223,816
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
10,656,598
|
|
8,750,096
|
|
23,496,517
|
|
20,018,074
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
7,788,388
|
|
7,205,110
|
|
18,224,541
|
|
17,205,742
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
|
Distribution expenses
|
2,205,980
|
|
1,541,357
|
|
4,869,964
|
|
3,492,268
|
|
|
Selling, and marketing
expenses
|
1,214,705
|
|
1,018,234
|
|
3,010,717
|
|
2,620,456
|
|
|
General and administrative
expenses
|
871,207
|
|
1,212,140
|
|
2,460,757
|
|
2,863,607
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
3,496,496
|
|
3,433,379
|
|
7,883,103
|
|
8,229,411
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Interest income
|
4,433
|
|
5,217
|
|
17,554
|
|
21,971
|
|
|
Interest expense
|
(97,641)
|
|
(141,304)
|
|
(304,394)
|
|
(373,692)
|
|
|
Restricted stock
compensation
|
-
|
|
(671,700)
|
|
-
|
|
(952,200)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
3,403,288
|
|
2,625,592
|
|
7,596,263
|
|
6,925,490
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
(1,262,000)
|
|
(918,900)
|
|
(2,818,000)
|
|
(2,423,900)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
2,141,288
|
|
$
1,706,692
|
|
$
4,778,263
|
|
$
4,501,590
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share –
basic
|
$0.82
|
|
$0.65
|
|
$1.83
|
|
$1.88
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share –
diluted
|
$0.82
|
|
$0.65
|
|
$1.83
|
|
$1.81
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in basic earnings
per share
|
2,607,898
|
|
2,607,898
|
|
2,607,898
|
|
2,391,842
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted earnings
per share
|
2,607,898
|
|
2,607,898
|
|
2,607,898
|
|
2,479,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOCREAM INTERNATIONAL,
INC
BALANCE SHEETS
|
|
|
July 31,
|
|
October 31,
|
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
8,498,292
|
|
$ 12,118,067
|
|
|
Accounts receivable,
net
|
5,801,770
|
|
2,542,618
|
|
|
Inventories
|
6,221,778
|
|
5,151,899
|
|
|
Income tax receivable
|
-
|
|
100,248
|
|
|
Other current assets
|
608,245
|
|
569,775
|
|
|
Deferred tax assets
|
243,775
|
|
243,775
|
|
|
|
|
|
|
|
Total current assets
|
21,373,860
|
|
20,726,382
|
|
|
|
|
|
|
|
Fixed assets, net
|
14,401,817
|
|
14,712,748
|
|
|
Intangible and other long-term
assets, net
|
1,283,078
|
|
1,196,655
|
|
|
Deferred tax assets
|
374,200
|
|
309,500
|
|
|
|
|
|
|
|
$ 37,432,955
|
|
$ 36,945,285
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Note payable – line of
credit
|
$
-
|
|
$
-
|
|
|
Current portion of long-term
debt
|
388,318
|
|
647,873
|
|
|
Accounts payable
|
4,675,301
|
|
3,440,694
|
|
|
Income tax payable
|
468,278
|
|
-
|
|
|
Other accrued
liabilities
|
535,430
|
|
761,085
|
|
|
|
|
|
|
|
Total current
liabilities
|
6,067,327
|
|
4,849,652
|
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
7,292,091
|
|
7,378,449
|
|
|
Deferred tax
liabilities
|
2,144,975
|
|
2,144,975
|
|
|
Other liabilities
|
-
|
|
145,250
|
|
|
|
|
|
|
|
Total liabilities
|
15,504,393
|
|
14,518,326
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
Preferred stock, no par value,
none issued or outstanding
|
-
|
|
-
|
|
|
Common stock, no par value,
30,000,000 shares authorized, 2,607,898 issued and outstanding as
of July 2010 and October 2009
|
7,750,865
|
|
7,750,865
|
|
|
Retained earnings
|
14,778,097
|
|
15,172,494
|
|
|
Accumulated other comprehensive
income
|
(600,400)
|
|
(496,400)
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
21,928,562
|
|
22,426,959
|
|
|
|
|
|
|
|
$ 37,432,955
|
|
$ 36,945,285
|
|
|
|
|
|
|
|
|
YOCREAM INTERNATIONAL,
INC.
STATEMENTS OF CASH
FLOWS
For the nine months ended July
31, 2010 and 2009
(Unaudited)
|
|
|
2010
|
|
2009
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
Net income
|
$
4,778,263
|
|
$
4,501,590
|
|
|
Adjustments to reconcile net
income to net cash provided by operating activities
|
|
|
|
|
|
Depreciation and
amortization
|
825,604
|
|
763,623
|
|
|
Deferred income taxes
|
-
|
|
170,400
|
|
|
Change in assets and
liabilities
|
|
|
|
|
|
Accounts receivable
|
(3,259,152)
|
|
(1,343,486)
|
|
|
Inventories
|
(1,069,879)
|
|
(1,967,856)
|
|
|
Other assets
|
(124,893)
|
|
(160,045)
|
|
|
Accounts payable
|
1,415,281
|
|
(412,515)
|
|
|
Income taxes payable
|
568,526
|
|
(973,361)
|
|
|
Restricted stock
compensation
|
-
|
|
952,200
|
|
|
Other accrued
liabilities
|
(370,905)
|
|
368,080
|
|
|
Net cash
provided by operating activities
|
2,762,845
|
|
1,934,630
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Proceeds from sale and leaseback
of equipment
|
-
|
|
438,753
|
|
|
Expenditures for fixed
assets
|
(695,347)
|
|
(2,868,322)
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(695,347)
|
|
(2,429,569)
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Principal payments on long-term
debt
|
(514,613)
|
|
(487,113)
|
|
|
Excess tax benefits of
restricted stock
|
-
|
|
744,130
|
|
|
Cash dividend payment
|
(5,172,660)
|
|
-
|
|
|
|
|
|
|
|
Net cash
provided by (used) in financing activities
|
(5,687,273)
|
|
257,187
|
|
|
Net decrease
in cash and cash equivalents
|
(3,619,775)
|
|
(237,752)
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
12,118,067
|
|
7,169,393
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
8,498,292
|
|
$
6,931,641
|
|
|
|
|
|
|
|
SOURCE YoCream International, Inc.
Copyright t. 9 PR Newswire