Caribou Coffee Announces Preliminary 2Q 2006 Revenue, Comparable Coffeehouse Sales and Domestic Coffeehouse Licensing Strategy
July 10 2006 - 3:23PM
Business Wire
Caribou Coffee Company, Inc. (Nasdaq:CBOU), the second largest
company-owned gourmet coffeehouse operator in terms of
coffeehouses, today announced that total revenue for thirteen weeks
ended July 2, 2006 increased 18 percent over the same period in the
prior year. For the twenty-six week period ended July 2, 2006 total
revenue rose 21 percent over the same period in the prior year.
Comparable Coffeehouse Sales Comparable coffeehouse net sales were
down 4 percent for the thirteen weeks ended July 2, 2006 compared
with the same thirteen weeks in the prior year. During the period
the Company faced difficult comparable coffeehouse sales as the
Company was up against strong comparable coffeehouse sales in the
prior year. Caribou Coffee noted that both monthly comparable
coffeehouse sales and customer counts improved sequentially each
month throughout the quarter. For the twenty-six week period ended
July 2, 2006 comparable coffeehouse sales declined 2 percent as
compared with the same twenty-six week period in the prior year.
Licensed stores are not included in the comparable coffeehouse net
sales calculations. Other Sales Preliminary "Other Sales", which
consist of sales to commercial customers, licensees, mail order and
Internet sales, increased 120 percent in the thirteen weeks ended
July 2, 2006 to $2.4 million. This increase was primarily driven by
sales to mass merchandisers. For the twenty-six week period ended
July 2, 2006 "Other Sales" were 138 percent higher than the same
period in the prior year. Coffeehouse Openings For the thirteen
weeks ended July 2, 2006 thirteen company-owned coffeehouses and 6
licensed coffeehouses opened. -0- *T Select Operating Data
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13 Weeks 13 Weeks 26 Weeks 26 Weeks 7/2/2006 7/3/2005 7/2/2006
7/3/2005 -------------------------------------- Comparable
coffeehouse sales (company-owned) -4% 8% -2% 9% COFFEEHOUSE COUNT
Company-owned: Coffeehouses open at beginning of period 394 314 386
304 Coffeehouses opened during the period 13 13 23 23 Coffeehouses
closed during the period 2 2 4 2 Coffeehouses open at end of
period: Total company-owned 405 325 405 325 Licensed: Coffeehouses
open at beginning of period 8 3 9 2 Coffeehouses opened during the
period 6 0 7 1 Coffeehouses closed during the period 3 0 5 0
Coffeehouses open at end of period: Total licensed 11 3 11 3 TOTAL
COFFEEHOUSES AT PERIOD END 416 328 416 328
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*T Domestic Licenses Coffeehouse Strategy The Company plans to file
a Uniform Franchise Offer Circular (UFOC) during fiscal third
quarter 2006. Michael Coles, Caribou's Chief Executive Officer
commented, "We are excited about the expansion opportunities
presented to Caribou through the U.S. coffeehouse licensing
program. We plan to aggressively grow the business and we see
domestic licensing as a means to capitalize on the large growth
potential in the U.S. Added, Mr. Coles, "Licensing coffeehouses
will enable us to expand beyond our existing geographical footprint
more efficiently than we could by opening only company-owned
stores." The current plan is to seek well-qualified, area
developers who have the necessary financial resources and local
market expertise to successfully open and operate Caribou
coffeehouses in new U.S. markets. 2006 OUTLOOK In view of the new
domestic coffeehouse license strategy, Caribou Coffee is revising
its coffeehouse opening plans. For fiscal 2006, Caribou Coffee
anticipates 80 to 90 new coffeehouse openings, of which 60 to 65
will be company-owned locations. The Company anticipates updating
its financial guidance for fiscal year 2006 with the release of
second quarter results on or about August 3, 2006. At that time the
Company anticipates providing updated guidance on EPS and EBITDA,
as well as comparable coffeehouse sales expectations. ABOUT THE
COMPANY Caribou Coffee Company, Inc., founded in 1992 and
headquartered in Minneapolis, Minnesota, is the second largest
company-owned gourmet coffeehouse operator in the United States
based on the number of coffeehouses. As of July 2, 2006, Caribou
Coffee had 416 coffeehouses, including 11 licensed locations.
Caribou Coffee's coffeehouses are located in 16 states and the
District of Columbia. Caribou Coffee offers its customers
high-quality gourmet coffee and espresso-based beverages, as well
as specialty teas, baked goods, whole bean coffee, branded
merchandise and related products. In addition, Caribou Coffee sells
products to club stores, grocery stores, mass merchandisers, office
coffee providers, airlines, hotels, sports and entertainment
venues, college campuses and other commercial customers. In
addition, Caribou Coffee licenses third parties to use the Caribou
Coffee brand on quality food and merchandise items. Caribou Coffee
focuses on creating a unique experience for customers through a
combination of high-quality products, a comfortable and welcoming
coffeehouse environment and customer service. Forward-Looking
Statements Certain statements in this release, and other written or
oral statements made by or on behalf of Caribou Coffee are
"forward-looking statements" within the meaning of the federal
securities laws. Statements regarding future events and
developments and our future performance, as well as management's
current expectations, beliefs, plans, estimates or projections
relating to the future, are forward-looking statements within the
meaning of these laws. These forward-looking statements are subject
to a number of risks and uncertainties. Among the important factors
that could cause actual results to differ materially from those
indicated by such forward-looking statements are: fluctuations in
quarterly and annual results, incurrence of net losses, adverse
effects of management focusing on implementation of a growth
strategy, failure to develop and maintain the Caribou Coffee brand
and other factors disclosed in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to update any forward-looking statements in order to
reflect events or circumstances that may arise after the date of
this release.
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