Caribou Coffee Company, Inc. (NASDAQ:CBOU), the second largest
company-owned gourmet coffeehouse operator in the United States
based on the number of coffeehouses, today reported financial
results for the fourth quarter and fiscal 2009 (period ended
January 3, 2010). Fiscal year 2009 includes 53 weeks and the
Company’s fourth quarter includes 14 weeks compared to 52 weeks and
13 weeks, respectively for 2008.
HIGHLIGHTS FOR THE FOURTH QUARTER OF 2009:
- Net sales increased 12.4%
compared to the fourth quarter of 2008. On a comparative 13-week
basis, net sales increased 4.8% compared to the fourth quarter of
2008.
- Comparable coffeehouse store
sales for the quarter were up 0.2% compared to the same period in
the prior year.
- Commercial sales for the quarter
increased 76.6% compared to the fourth quarter of 2008. On a
comparative 13-week basis, commercial sales increased 64.3%
compared to the prior year quarter.
- Net income was $3.0 million in
the quarter compared to $1.3 million in the fourth quarter of
2008.
- Earnings per diluted share were
$0.15 for the fourth quarter compared to $0.07 per share in the
fourth quarter of 2008.
HIGHLIGHTS FOR FISCAL 2009:
- Net sales increased 3.4% to
$262.5 million in fiscal 2009 compared to $253.9 million in fiscal
2008.
- Net income was $5.1 million
compared to a loss of $16.3 million in fiscal 2008.
- Earnings per diluted share were
$0.26 compared to a loss of $0.84 in fiscal 2008.
Speaking on behalf of the Company, Michael Tattersfield, the
Company’s President and CEO commented, “This quarter concludes a
successful year of positive revenue and earnings growth for Caribou
Coffee. These results highlight our strategy to diversify and
strengthen our business model by expanding beyond our retail
coffeehouse business into a multi-channel branded coffee company.
With a successful growth strategy in place, strong cash flow and
secure financial position, we are confident in our ability to
deliver shareholder value for our investors and rewarding
experiences for our team members and customers.”
FOURTH QUARTER 2009 RESULTS
Net sales increased $8.4 million, or 12.4%, to $76.5 million for
the quarter ended January 3, 2010 from $68.0 million for the
quarter ended December 28, 2008. When calculated on a comparative
13-week basis, consolidated sales increased 4.8% compared to the
fourth quarter of 2008.
- Coffeehouse sales were $64.6
million in the fourth quarter 2009 compared to $60.5 million in the
fourth quarter of 2008, an increase of 6.8%. Comparable coffeehouse
sales in the fourth quarter of 2009 were up 0.2% compared to the
same period in fiscal 2008.
- Commercial sales were $9.6
million in the fourth quarter of 2009 compared to $5.4 million in
the fourth quarter of 2008, an increase of 76.6% as a result of
higher sales to existing and new customers. When calculated on a
comparative 13-week basis, commercial sales increased 64.3%
compared to the fourth quarter of 2008.
- Franchise sales were $2.3
million in the fourth quarter of 2009 compared to $2.1 million in
the fourth quarter of 2008. When calculated on a comparative
13-week basis, franchise sales were flat compared to the fourth
quarter of 2008.
Cost of sales and related occupancy costs in the fourth quarter
of 2009 was $34.4 million. As a percentage of sales, cost of sales
and related occupancy costs were 45.1% in the fourth quarter of
2009 compared to 43.2% in the fourth quarter of 2008. This increase
is due to an overall mix change with a higher percentage of sales
coming from our commercial segment.
Operating expenses in the fourth quarter of 2009 were $28.0
million. As a percentage of revenue, operating costs were 36.6%, up
from 36.0% in the same period of the prior year. This increase was
the result of higher investments being made in product innovation,
marketing and brand building initiatives.
General and administrative expenses were $7.4 million during the
fourth quarter of 2009. As a percentage of sales, general and
administrative expenses were 9.7% in the fourth quarter of 2009
compared to 11.7% in the fourth quarter of 2008. The decrease is
the result of lowering the cost structure while leveraging across
the higher sales volumes.
EBITDA was $6.8 million during the fourth quarter of 2009,
compared to EBITDA of $6.1 million during the same period in 2008,
an improvement of 10.8%. The year-over-year EBITDA increase was
primarily due to improved performance within our retail
coffeehouses and continued growth in the commercial and franchise
segments. (EBITDA is a non-GAAP measure. See EBITDA reconciliation
at the end of this release).
Depreciation and amortization decreased $0.8 million, or 20.0%,
to $3.3 million during the fourth quarter of 2009, from $4.2
million during the same period in the prior year. This was due to a
lower depreciable asset base resulting from reduced capital
spending in the current year.
The net income attributable to Caribou Coffee Company for the
fourth quarter of 2009 was $3.0 million or $0.15 per diluted share
compared to a net income of $1.3 million or $0.07 per share for the
same period in 2008. The additional week in the period accounted
for approximately $0.02 per share in 2009. The company ended the
quarter with $23.6 million in cash and cash equivalents and no long
term debt. The company recently entered into a new $25 million
credit facility, which includes a $15 million commitment with an
option to increase the commitment by another $10 million under
terms to be mutually agreed.
STOCK BUYBACK PROGRAM
The Company’s Board of Directors has authorized a stock buyback
program. The current authorization is to repurchase up to $10
million of its outstanding ordinary shares. Stock purchases can be
made from time to time in open market transactions depending upon
market conditions. The company anticipates funding the repurchase
of shares with available cash on hand.
CONFERENCE CALL
Caribou Coffee will host a conference call on February 24, 2010
at 4:30 p.m. (Eastern Time) to discuss these results. Hosting the
call will be Mike Tattersfield, Chief Executive Officer, and Tim
Hennessy, 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. The dial in
number is 1-877-795-3648 or 1-719-325-4921 for international calls.
Confirmation number is 9044558. If you are unable to join the call,
a replay will be available beginning at 7:30 p.m. (Eastern Time) on
February 24, 2010 through 11:59 p.m. on March 3, 2010 and can be
accessed by dialing 1-888-203-1112 or international callers
1-719-457-0820 and enter pin number 9044558. In addition, the
webcast will be archived on the Company’s website.
About Caribou Coffee
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 January 3, 2010, Caribou Coffee had
535 coffeehouses, which includes 122 franchised and licensed
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
stores, grocery stores, mass merchandisers, office coffee
providers, airlines, hotels, sports and entertainment venues,
college campuses and online customers. 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
January 3,
December 28,
January 3,
December 28,
2010 (14
weeks)
2008 (13
weeks)
2010 (53
weeks)
2008 (52
weeks)
(In thousands, except for per share amounts)
(Unaudited)
Coffeehouse sales $ 64,587 $ 60,474 $ 227,224 $ 229,092 Commercial
and franchise sales
11,879
7,575 35,315
24,807 Net sales 76,466 68,049 262,539 253,899
Cost of sales and related occupancy costs 34,448 29,423 115,886
109,632 Operating expenses 28,013 24,528 99,498 100,309 Opening
expenses 4 32 24 230 Depreciation and amortization 3,326 4,154
14,102 24,928 General and administrative expenses 7,437 7,962
27,145 29,145 Closing expense and disposal of assets
164 589
343 5,113 Operating
income (loss) 3,074 1,361 5,541 (15,458 ) Other income (expense):
Interest income 9 2 26 25 Interest expense
(72
) (95 )
(261 ) (810
) Income (loss) before provision for income taxes
3,011 1,268 5,306 (16,243 ) Provision (benefit) for income taxes
(64 ) 22
(246 )
36 Net income (loss) 3,075 1,246 5,552 (16,279
) Less: Net income attributable to noncontrolling interest
105 (16 )
414 63 Net
Income (loss) attributable to Caribou Coffee Company, Inc.
$ 2,970 $
1,262 $ 5,138
$ (16,342 ) Basic net income
(loss) attributable to Caribou Coffee Company, Inc. common
shareholders per share
$ 0.15
$ 0.07 $
0.26 $ (0.84
) Diluted net income (loss) attributable to Caribou
Coffee Company, Inc. common shareholders per share
$
0.15 $ 0.07
$ 0.26 $
(0.84 ) Basic weighted average number of
shares outstanding
19,513
19,371 19,443
19,371 Diluted weighted average number of
shares outstanding
20,350
19,371 20,000
19,371
CARIBOU COFFEE COMPANY, INC.
AND AFFILIATES
(A Majority Owned Subsidiary of
Caribou Holding Company Limited)
CONDENSED CONSOLIDATED BALANCE
SHEETS
January 3,
2010
December 28,
2008
In thousands, except per share amounts
(Unaudited)
ASSETS Current assets: Cash and cash equivalents $ 23,578 $
11,060 Accounts receivable (net of allowance for doubtful accounts
of $3 and $72 at January 3, 2010 and December 28, 2008,
respectively) 5,887 5,311 Other receivables (net of allowance for
doubtful accounts of $128 and $76 at January 3, 2010 and December
28, 2008, respectively) 1,268 916 Income tax receivable 193 60
Inventories 13,278 10,218 Prepaid expenses and other current assets
1,546 881
Total current assets 45,750 28,446 Property and equipment, net of
accumulated depreciation and amortization 47,135 60,312 Restricted
cash 605 327 Other assets
237
487 Total assets
$
93,727 $ 89,572
LIABILITIES AND SHAREHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 9,042 $ 8,229 Accrued compensation
6,296 6,241 Accrued expenses 7,563 8,317 Deferred revenue
8,747 9,473 Total
current liabilities 31,648 32,260 Asset retirement liability
1,120 1,035 Deferred rent liability 7,955 9,245 Deferred revenue
2,072 2,538 Income tax liability
156
486 Total long term liabilities 11,303
13,304 Equity: Caribou Coffee Company, Inc. Shareholders’
equity: Preferred stock, par value $.01, 20,000 shares authorized;
no shares issued and outstanding — — Common stock, par value $.01,
200,000 shares authorized; 19,814 and 19,371 shares issued and
outstanding at January 3, 2010 and December 28, 2008, respectively
198 194 Additional paid-in capital 126,770 125,222 Accumulated
comprehensive loss (7 ) — Accumulated deficit
(76,341 ) (81,479 )
Total Caribou Coffee Company, Inc. shareholders’ equity 50,620
43,937 Noncontrolling interest
156
71 Total equity
50,776 44,008 Total
liabilities and equity
$ 93,727
$ 89,572
Coffeehouse Openings and
Closings
December 28,
January 3,
December 28,
January 3, 2010
2008 (13
2010 (53
2008 (52
(14 weeks)
weeks)
weeks)
weeks)
Comparable Coffeehouse Sales(Company-Owned)(1) 0.2%(2) (5.1%)
(2.3%)(2) (3.5%)
COFFEEHOUSE COUNT Company-Owned:
Coffeehouses open at beginning of period 413 415 414 434
Coffeehouses opened during the period 0 0 0 7 Coffeehouses closed
during the period 0 (1) 1 (27) Total
Company-Owned at period end 413 414 413 414 Franchised:
Coffeehouses open at beginning of period 112 80 97 52 Coffeehouses
opened during the period 10 17 28 45 Coffeehouses closed during the
period 1 0 3 0 Total Franchised at period end
121 97 122 97
TOTAL COFFEEHOUSES AT PERIOD
END 534 511 535 511
(1) Percentage change in comparable coffeehouse net sales
compares the net sales of coffeehouses during a fiscal period to
the net sales from the same coffeehouses for the equivalent period
in the prior year. A coffeehouse is included in this calculation
beginning in its thirteenth full fiscal month of operations. A
closed coffeehouse is included in the calculation for each full
month that the coffeehouse was open in both fiscal periods.
Franchised coffeehouses are not included in the comparable
coffeehouse net sales calculations.
(2) Percentage change in comparable coffeehouse sales is based
on an equal week comparison for the 14 weeks and 53 weeks ended
January 3, 2010.
NON-GAAP FINANCIAL INFORMATION
(Unaudited, in thousands, except
per share data)
The following reconciliation and
non-GAAP financial information are provided to assist the reader
with understanding the financial impact of the previously discussed
extra week during the year. Management believes this information is
relevant because the nature and magnitude of the extra week which
will not reflect our on-going operating performance.
Quarter ended January 3, 2010
Year ended January 3, 2010 As reported
53rd weekimpact
Non-GAAPexcluding53rd week
As reported
53rd weekimpact
Non-GAAPexcluding 53rdweek
Coffeehouse sales $ 64,587 $ 4,300 $ 60,287 $ 227,224
$ 4,300 $ 222,924 Commercial and franchise sales
11,879 830
11,049 35,315
830 34,485 Net sales 76,466 5,130
71,336 262,539 5,130 257,409 Net income 2,970 450 2,520 5,138 450
4,688 Basic and Diluted EPS $ 0.15 $ 0.02 $ 0.13 $ 0.26 $ 0.02 $
0.24
EBITDA RECONCILIATION
The following is a reconciliation
of the Company’s net income/(loss) to EBITDA.
January 3, 2010(14 weeks)
December 28,2008 (13
weeks)
January 3, 2010(53 weeks)
December 28,2008 (52 weeks)
(In thousands) Net Income (loss) attributable to Caribou
Coffee Company, Inc. $ 2,970 $ 1,262 $ 5,138 $ (16,342 ) Interest
expense 72 95 261 810 Interest income (9 ) (2 ) (26 ) (25 )
Depreciation and amortization(1) 3,820 4,752 16,180 27,138
(Benefit) provision for income taxes
(64
) 21
(246
) 36 EBITDA $
6,789
$
6,128 $
21,307
$
11,617
(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 reason:
• Coffeehouse leases are generally short-term (5-10
years) and Caribou 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). The Company
opened a net 210 company-operated coffeehouses from the beginning
of fiscal 2003 through the end of the fourth quarter of fiscal
2009. As a result, management believes 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. Consequently, management believes
that adjusting for depreciation and amortization is useful for
evaluating the operating performance of the coffeehouses.
Management uses EBITDA:
• As a measurement of operating performance because it
assists management in comparing its operating performance on a
consistent basis as it removes the impact of items not directly
resulting from coffeehouse operations;
• For planning purposes, including the preparation of our
internal annual operating budget;
• To establish targets for certain management
compensation matters; and
• To evaluate the Company’s 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 cash flow needs;
and (c) should not be considered an alternative to net income,
operating income, cash flows from operating activities or Caribou
Coffee’s other financial information as determined under GAAP.
Caribou Coffee Company, Inc. (MM) (NASDAQ:CBOU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Caribou Coffee Company, Inc. (MM) (NASDAQ:CBOU)
Historical Stock Chart
From Sep 2023 to Sep 2024