IRVINE, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Diedrich Coffee,
Inc. (NASDAQ:DDRX) today announced operating results for its fiscal
quarter ended September 19, 2007. For the quarter, the Company
reported a net loss of $270,000, or a net loss of $0.05 per share,
compared to a net loss of $1,646,000, or a net loss of $0.31 per
share, for the first quarter of the prior fiscal year. Results for
the fiscal quarter ended September 19, 2007 include an after tax
gain of $767,000, or $0.14 per share, from escrow proceeds received
from the sale of the majority of the Company's Diedrich Coffee and
Coffee People company-operated locations, which was completed in
the prior fiscal year. Continuing Operations As previously
announced, the Company closed the majority of its Diedrich Coffee
and Coffee People company-operated locations in fiscal 2007 and
continues to focus on strengthening the wholesale business and
related distribution channels including franchise locations. In
fiscal year 2007, the Company accounted for its Diedrich Coffee and
Coffee People company-operated retail operations as Discontinued
Operations. The Company continues to own and operate the wholesale,
Gloria Jean's retail and Gloria Jean's domestic franchise
businesses that together comprise Continuing Operations. The
Company retained the Diedrich Coffee and Coffee People brands for
its wholesale and franchise operations. Net loss for the first
quarter ended September 19, 2007 from continuing operations was
$1,037,000, or a net loss of $0.19 per share, compares to a net
loss of $1,220,000, or a net loss of $0.23 per share, for the first
quarter of the prior fiscal year. Included in the current year loss
was a charge for $236,000 in closed store reserves compared to the
prior year period of $70,000. Revenue Total revenue increased by
$1,328,000, or 19.4%, to $8,160,000 for the first quarter of fiscal
year 2008 as compared with total revenue of $6,832,000 in the same
period of the prior year. With respect to the components of total
revenue, wholesale revenue increased $1,344,000, up 26.3%,
franchise revenue decreased $139,000, down 18.1%, and retail sales
increased $123,000, up 13.0%. Wholesale revenue from sales to
office coffee distributors ("OCS") and foodservice customers rose
sharply for the quarter while roasted coffee sales to franchise
locations decreased marginally. For the first quarter of fiscal
year 2008, wholesale sales to OCS and foodservice customers
increased $1,450,000, or 35.7%, from the prior year quarter, with
Keurig "K-cup" sales increasing 46.6% from the prior year quarter.
Wholesale sales to franchise locations decreased $106,000, or
10.0%, for the first quarter of fiscal year 2008. Franchise revenue
decreased by $139,000 for the first quarter of fiscal year 2008,
primarily due to lower royalties and franchise store fees related
to the Gloria Jean's franchise system. Since the beginning of
fiscal 2007, the domestic franchise store count for all three
brands decreased by a net of nine locations (15 stores were opened,
25 were closed and a net of one company store was transferred to a
franchisee). Comparable store sales for the first quarter of fiscal
year 2008 for Gloria Jean's franchise locations decreased 5.9%.
Retail sales for the first quarter of fiscal year 2008 increased
$123,000. This increase was primarily due to an increase in same
store sales of 5.9% for the remaining company operated Diedrich
stores as compared to the prior year and was partially offset by a
decrease in same store sales for the company operated Gloria Jean's
stores of 7.4%. E-commerce related sales increased $85,000, or
41.7%, during the first quarter compared to the first quarter of
the prior fiscal year. Costs and Expenses Cost of sales and related
occupancy costs for the first quarter of fiscal year 2008 increased
$1,695,000, or 39.6%, to $5,972,000 from $4,277,000 in the prior
year period. Wholesale cost of goods sold increased over the prior
year period as a percentage of wholesale revenues from 73.9% to
80.6% for the current quarter due primarily to the higher
percentage of higher cost Keurig business in the current year as
compared to the prior year period. Occupancy costs for the first
quarter of fiscal year 2008 increased $203,000 to $360,000 from
$157,000 in the prior year period due primarily to an increase in
closed store reserves related to Gloria Jean's franchised
locations. Operating expenses increased $311,000, or 16.2%, to
$2,232,000 from $1,921,000 and decreased as a percentage of total
revenue to 27.4% in the first quarter of fiscal year 2008 from
28.1% in the first quarter of the prior year. The increase in
operating expenses was due primarily to an increase in allowances
for doubtful accounts and salaries, promotion and other selling
costs related to the wholesale business. For the first quarter of
fiscal year 2008, general and administrative expenses decreased
$217,000 to $1,455,000 from $1,672,000 and decreased as a
percentage of total revenues to 17.8% in the current year quarter
from 24.5% in the first quarter of last year. The decrease was
primarily a result of lower costs associated with management
incentive compensation, salaries, and outside services. This
decrease was partially offset by an increase in legal fees expense.
Discontinued Operations / Gain on Sale The Company accounts for its
Diedrich Coffee and Coffee People company- operated retail
operations that were sold or closed in fiscal 2007 as Discontinued
Operations. The Company's retail sales will be limited to its
e-commerce web stores and will continue to operate a limited number
of Gloria Jean's retail locations primarily for use as franchise
training stores. The Company continues to own and operate the
Gloria Jean's domestic franchise and wholesale businesses that
together comprise Continuing Operations. For more information,
please refer to the Form 10-K for the fiscal year ended June 27,
2007. The net gain for the first quarter of fiscal year 2008
relating to Discontinued Operations was $767,000, or $0.14 per
share, compared to a loss of $426,000, or a net loss of $0.08 per
share, in the same period of the prior year. The first quarter 2008
gain is from the escrow proceeds received from the sale of the
majority of the Company's Diedrich Coffee and Coffee People
company-operated locations, which was completed in the prior fiscal
year. About Diedrich Coffee With headquarters in Irvine, California
Diedrich Coffee specializes in sourcing, roasting and selling the
world's highest quality coffees. The Company's three brands are
Diedrich Coffee, Gloria Jean's Coffees and Coffee People. Diedrich
Coffee sells its coffees through more than 800 wholesale accounts
including office coffee service distributors, restaurants and
specialty retailers, and via the Company's web stores. As of
September 19, 2007, the Company's 146 retail outlets, the majority
of which are franchised, are located in 30 states. For more
information about Diedrich Coffee, call 800/354-5282, or visit the
Company's web sites at http://www.diedrich.com/,
http://www.gloriajeans.com/, or http://www.coffeepeople.com/.
Forward Looking Statements Statements in this news release that
relate to future plans, financial results or projections, events or
performance are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and fall
under the safe harbor. Actual results and financial position could
differ materially from those anticipated in the forward-looking
statements as a result of a number of factors, including, but not
limited to, the financial and operating performance of the
Company's wholesale operations, the Company's ability to maintain
profitability over time, the successful execution of the Company's
growth strategies, franchisee's adherence to the Company's
practices, policies and procedures, the impact of competition, the
availability of working capital, and other risks and uncertainties
described in detail under "Risk Factors and Trends Affecting
Diedrich Coffee and its Business" in the Company's annual report on
Form 10-K for the fiscal year ended June 27, 2007. Information
Contact: Sean McCarthy Chief Financial Officer (949) 260-6734
DIEDRICH COFFEE, INC. SELECTED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION (UNAUDITED) (in thousands, except per share amounts)
OPERATIONS DATA: Twelve Weeks Twelve Weeks Ended Ended September
19, September 20, 2007 2006 Net revenue: Wholesale revenue $ 6,464
$ 5,120 Franchise revenue 629 768 Retail sales 1,067 944 Total
revenue 8,160 6,832 Costs and expenses: Cost of sales and related
occupancy costs 5,972 4,277 Operating expenses 2,232 1,921
Depreciation and amortization 252 259 General and administrative
expenses 1,455 1,672 Gain on asset disposals (1) (12) Total costs
and expenses 9,910 8,117 Operating loss from continuing operations
(1,750) (1,285) Interest expense (11) (26) Interest and other
income, net 184 91 Loss from continuing operations before income
tax benefit (1,577) (1,220) Income tax benefit 540 -- Loss from
continuing operations (1,037) (1,220) Income (loss) from
discontinued operations, net 767 (426) Net loss $ (270) $(1,646)
Basic and diluted net income (loss) per share: Loss from continuing
operations $ (0.19) $ (0.23) Income (loss) from discontinued
operations, net $ 0.14 $ (0.08) Net loss $ (0.05) $ (0.31) Weighted
average and equivalent shares outstanding: Basic and diluted 5,448
5,308 BALANCE SHEET AND RETAIL UNIT COUNT DATA (in thousands,
except store counts) September 19, June 27, 2007 2007 (Unaudited)
Cash $ 4,606 $ 6,873 Accounts receivable, net 4,040 4,069
Inventories 4,380 4,323 Other assets 18,928 18,068 Total assets $
31,954 $ 33,333 Accounts payable $ 2,626 $ 3,814 All other current
liabilities 5,491 5,683 Other liabilities 1,148 684 Stockholders'
equity 22,689 23,152 Total liabilities and stockholders' equity $
31,954 $ 33,333 Total retail units (company and franchise, all
brands) 146 153 DATASOURCE: Diedrich Coffee, Inc. CONTACT: Sean
McCarthy, Chief Financial Officer of Diedrich Coffee, Inc.,
+1-949-260-6734 Web site: http://www.diedrich.com/
http://www.gloriajeans.com/ http://www.coffeepeople.com/
Copyright
Diedrich Coffee (MM) (NASDAQ:DDRX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Diedrich Coffee (MM) (NASDAQ:DDRX)
Historical Stock Chart
From Jul 2023 to Jul 2024