Caribou Coffee Company, Inc. (Nasdaq:CBOU), the second largest
U.S.-based company-owned gourmet coffeehouse operator based on the
number of coffeehouses, today reported financial results for fourth
quarter 2007 (thirteen weeks ended December 30, 2007). HIGHLIGHTS
FOR THE FOURTH QUARTER OF 2007 INCLUDE: Comparable Coffeehouse Net
Sales were flat (0%) �Other Sales� increased 84.4% compared to the
fourth quarter of 2006 Rosalyn (Roz) Mallet, the Company�s CEO
commented, �Continued progress was made on several key initiatives
during the final quarter, when we delivered solid results despite
widespread weakness in consumer spending.� Added Ms. Mallet,
�Growing our non-coffeehouse sales is also an important component
of Caribou�s long-term strategy and we are particularly pleased
with the strong growth we experienced in non-coffeehouse sales.�
Ms. Mallet further commented, �We took some difficult but necessary
actions in 2007 that will position Caribou Coffee for future growth
and improve profitability.� FOURTH QUARTER 2007 RESULTS Total net
sales increased $3.5 million, or 5.2%, to $70.2 million for the
quarter ended December 30, 2007, from $66.7 million for the quarter
ended December 31, 2006. This increase is primarily attributable to
the increase in other sales to existing and new commercial
customers and franchise fees, royalties and product sales to
franchisees which collectively increased $2.5 million or 84.4% to
$5.5 million during the fourth quarter 2007 from $3.0 million
during fourth quarter 2006. Comparable coffeehouse net sales were
flat (0%) for the thirteen weeks ended December 30, 2007, when
compared with the same period in the prior year. Franchised
coffeehouses are not included in the comparable coffeehouse net
sales calculations. General and administrative expenses increased
$4.9 million, or 71.5%, to $11.7 million during the thirteen weeks
ended December 30, 2007, from $6.8 million during the thirteen
weeks ended December 31, 2006. The increase was driven by severance
costs associated with the Company�s former CEO, litigation
settlement costs and management consulting services. Store closing
expense and disposal of assets increased $3.0 million to $3.1
million during fourth quarter 2007, from $0.1 million during fourth
quarter 2006. The increase in closing expense and disposal of
assets is primarily attributable to asset write-off and lease
termination costs associated with the closing of 9 underperforming
company-owned coffeehouses during the thirteen weeks ended December
30, 2007. One company-owned coffeehouse was closed during the
thirteen weeks ended December 31, 2006. Reported EBITDA loss was
($1.4) million during the thirteen weeks ended December 30, 2007,
compared to positive EBITDA of $4.9 million during the thirteen
weeks ended December 31, 2006. Year on year EBITDA was impacted by
closing expense and disposal of assets of $3.1 million and
severance costs associated with the Company�s former CEO and
litigation settlement costs of $3.0. (EBITDA is a non-GAAP measure.
See EBITDA reconciliation at the end of this release). Depreciation
and amortization increased $6.9 million, or 111.7%, to $13.0
million during the thirteen weeks ended December 30, 2007, from
$6.1 million during the thirteen weeks ended December 31, 2006.
This increase was due to accelerated depreciation associated with
coffeehouse asset impairments during the thirteen weeks ended
December 30, 2007, and a full year�s depreciation on coffeehouses
opened in 2006. Coffeehouse depreciation and amortization includes
$7.9 million in accelerated depreciation associated with
coffeehouse asset impairments during the thirteen weeks ended
December 30, 2007 as compared to $0.6 million during the thirteen
weeks ended December 31, 2006. The Company�s net loss for fourth
quarter 2007, was $15.1 million or ($0.78) per share compared to a
net loss of $2.0 million or ($0.10) per share for the same period
in 2006. The increase in the net loss is attributable to closing
expense and disposal of assets costs associated with the closure of
nine coffeehouses, higher depreciation from impaired company-owned
coffeehouses, and higher G&A expense. 2008 OUTLOOK For fiscal
2008 Caribou Coffee is projecting the following: 5 � 10
company-owned coffeehouse openings 30 � 40 franchise coffeehouse
openings Coffeehouse closings and closing expenses consistent with
fiscal 2007 Capital Expenditures of $10 million - $12 million
CONFERENCE CALL Caribou Coffee will host a conference call,
Thursday, February 14, 2008, at 4:30 p.m. (Eastern Time) to discuss
these results. Hosting the call will be Rosalyn (Roz) Mallet, Chief
Executive Officer, and Kaye O�Leary, Chief Financial Officer. The
call will be webcast and can be accessed from the Company's website
at www.cariboucoffee.com. The webcast link is in the Investor
Relations section accessed through the About Us section. The dial
in number is 1-888-256-9128 or 1-913-981-5554 for international
calls. Confirmation number is 3010841. If you are unable to join
the call, a replay will be available beginning at 7:30 p.m.
(Eastern Time) on February 14, 2008 through 11:59 p.m. on February
21, 2008 and can be accessed by dialing 1-888-203-1112 or
international callers 1-719-457-0820 and enter pin number 3010841.
In addition, the webcast will be archived on the Company�s website.
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 December 30, 2007,
Caribou Coffee had 484 coffeehouses, including 52 franchised
locations. 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
coffeehouses, grocery coffeehouses, 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 a unique style of customer service. For
more information, visit the Caribou Coffee web site at
www.cariboucoffee.com. 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.
CARIBOU COFFEE COMPANY, INC. AND AFFILIATES (A Majority Owned
Subsidiary of Caribou Holding Company Limited) � CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS � � Thirteen Weeks Ended �
Fifty-Two Weeks Ended � December 30, 2007 � December 31, 2006
December 30, 2007 � December 31, 2006 (Unaudited) (Unaudited)
(Unaudited) Coffeehouse sales $ 64,648,306 $ 63,725,097 $
240,267,521 $ 225,649,269 Other sales � 5,505,114 � � 2,984,992 � �
16,566,587 � � 10,579,467 � Total net sales 70,153,420 66,710,089
256,834,108 236,228,736 Cost of sales and related occupancy costs
29,568,280 27,900,113 108,358,009 98,655,629 Operating expenses
27,424,971 27,170,155 107,061,316 97,319,754 Opening expenses
217,522 492,021 502,246 1,737,637 Depreciation and amortization
13,004,547 6,141,867 32,150,440 21,548,195 General and
administrative expenses 11,714,596 6,829,827 32,323,623 25,943,045
Closing expense and disposal of assets � 3,106,616 � � 148,225 � �
6,839,199 � � 510,461 � Operating loss (14,883,112 ) (1,972,119 )
(30,400,725 ) (9,485,985 ) Other income (expense): Other income �
263,698 � 1,059,936 Interest income 48,150 30,474 181,151 553,767
Interest expense � (150,552 ) � (216,661 ) � (576,281 ) � (695,323
) Loss before provision (benefit) for income taxes and minority
interest (14,985,514 ) (1,894,608 ) (30,795,855 ) (8,567,605 )
Provision (Benefit) for income taxes � 30,634 � � 56,399 � �
(296,931 ) � 313,327 � Loss before minority interest (15,016,148 )
(1,951,007 ) (30,498,924 ) (8,880,932 ) Minority interest � 42,517
� � 48,072 � � 164,367 � � 178,158 � Net loss $ (15,058,665 ) $
(1,999,079 ) $ (30,663,291 ) $ (9,059,090 ) Basic and diluted net
loss per share $ (0.78 ) $ (0.10 ) $ (1.59 ) $ (0.47 ) Basic and
diluted weighted average number of shares outstanding � 19,370,590
� � 19,286,425 � � 19,333,200 � � 19,281,740 � CARIBOU COFFEE
COMPANY, INC. AND AFFILIATES (A Majority Owned Subsidiary of
Caribou Holding Company Limited) � CONDENSED CONSOLIDATED BALANCE
SHEETS � � December 30, 2007 � December 31, 2006 (Unaudited) ASSETS
Current assets: Cash and cash equivalents $ 9,886,427 $ 14,752,269
Accounts receivable (net of allowance for doubtful accounts of
$7,989 and $12,693 at December 30, 2007 and December 31, 2006,
respectively) 3,116,864 1,663,139 Other receivables 1,544,281
1,769,256 Income tax receivables 149,304 � Inventories 10,228,527
10,294,493 Prepaid expenses and other current assets � 1,690,668 �
� 1,339,596 � Total current assets 26,616,071 29,818,753 Property
and equipment, net of accumulated depreciation and amortization
83,798,120 104,754,885 Notes receivable 32,296 48,413 Restricted
cash 410,831 286,005 Other assets � 982,334 � � 1,399,542 � Total
assets $ 111,839,652 � $ 136,307,598 � LIABILITIES AND
SHAREHOLDERS� EQUITY � Current liabilities: Accounts payable $
9,650,326 $ 9,681,879 Accrued compensation 7,863,445 5,676,449
Accrued expenses 9,318,442 7,518,379 Deferred revenue � 9,987,724 �
� 9,002,588 � Total current liabilities 36,819,937 31,879,295 �
Asset retirement liability 989,490 872,184 Deferred rent liability
11,271,186 11,733,473 Deferred revenue 2,853,500 2,919,000 Income
tax liability 473,064 342,108 Minority interests in affiliates �
144,176 � � 159,050 � Total long term liabilities 15,731,416
16,025,815 Shareholders� equity: Preferred stock, par value $.01,
20,000,000 shares authorized; no shares issued and outstanding � �
Common stock, par value $.01, 200,000,000 shares authorized;
19,370,590 and 19,286,425 shares issued and outstanding at December
30, 2007 and December 31, 2006, respectively 193,706 192,864
Additional paid-in capital 124,231,862 122,153,502 Accumulated
deficit � (65,137,269 ) � (33,943,878 ) Total shareholders� equity
� 59,288,299 � � 88,402,488 � Total liabilities and shareholders�
equity $ 111,839,652 � $ 136,307,598 � EBITDA RECONCILIATION � The
following is a reconciliation of the Company�s net loss to EBITDA.
� � Thirteen Weeks Ended � Fifty-Two Weeks Ended December 30, 2007
� December 31, 2006 December 30, 2007 � December 31, 2006 (In
thousands) (Unaudited) Net loss $ (15,059 ) $ (1,999 ) $ (30,663 )
$ (9,059 ) Interest expense 151 217 576 695 Interest income (48 )
(30 ) (181 ) (554 ) Depreciation and amortization(1) 13,549 6,646
34,362 23,645 Provision (Benefit)for income taxes � 31 � � 56 � �
(297 ) � 313 � EBITDA $ (1,376 ) $ 4,890 � $ 3,797 � $ 15,040 � (1)
Includes depreciation and amortization associated with the
headquarters and roasting facility that are categorized as general
and administrative expenses and cost of sales and related occupancy
costs on the statement of operations. EBITDA is equal to net income
(loss) excluding: (a) interest expense; (b) interest income; (c)
depreciation and amortization; and (d) income taxes. Management
believes EBITDA is useful to investors in evaluating the Company�s
operating performance for the following reasons: Coffeehouse leases
are generally short-term (5-10 years) and the Company must
depreciate all of the cost associated with those leases on a
straight-line basis over the initial lease term excluding renewal
options (unless such renewal periods are reasonably assured at the
inception of the lease). Caribou Coffee has opened a net 247
Company-owned coffeehouses from the beginning of fiscal 2002
through fiscal year end 2007. As a result, management believes that
the depreciation expense is disproportionately large when compared
to the sales from a significant percentage of the coffeehouses that
are in their initial years of operations. Also, many of the assets
being depreciated have actual useful lives that exceed the initial
lease term excluding renewal options. Additionally, depreciation
and amortization is impacted by accelerated depreciation from asset
impairments. Consequently, management believes that adjusting for
depreciation and amortization is useful for evaluating the
operating performance of the Company. Additionally, Management uses
EBITDA: As measurements of operating performance because it assists
them in comparing the operating performance on a consistent basis
as it removes the impact of items not directly resulting from the
coffeehouse operations; For planning purposes, including the
preparation of an internal annual operating budget; To establish
targets for certain management compensation matters; and To
evaluate capacity to incur and service debt, fund capital
expenditures and expand the business. EBITDA as calculated by
Caribou Coffee is not necessarily comparable to similarly titled
measures used by other companies. In addition, EBITDA: (a) does not
represent net income or cash flows from operating activities as
defined by GAAP; (b) is not necessarily indicative of cash
available to fund the Company�s cash flow needs; and (c) should not
be considered alternative to net income, operating income, cash
flows from operating activities or other financial information as
determined under GAAP.
Caribou Coffee Company, Inc. (MM) (NASDAQ:CBOU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Caribou Coffee Company, Inc. (MM) (NASDAQ:CBOU)
Historical Stock Chart
From Jul 2023 to Jul 2024