6-K 1 a35799.txt COMPANY: COOLBRANDS INTERNATIONAL INC. 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the period ended July 15, 2003 Coolbrands International Inc. (formerly Yogen Fruz World-Wide Incorporated) (Translation of registrant's name into English) 8300 Woodbine Avenue, Markham, Ontario Canada L3R 9Y7 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F x ----------- ----------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No x ------ ---- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- ------------ Materials relating to Registrant and filed pursuant to this Form 6-K include a press release concerning Coolbrands' Third Quarterly Report for the period ending May 31, 2003, together with Consolidated Balance Sheets as at May 31, 2003 (unaudited) and August 31, 2002, Consolidated Statements of Earnings and Summary Financial Data Consolidated (unaudited) each for the nine months ended May 31, 2003 and 2002 and the three months ended May 31, 2003 and 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COOLBRANDS INTERNATIONAL INC. Date July 17, 2003 By /s/ Aaron Serruya ----------------- ------------------------------------- Name: Aaron Serruya Title: Executive Vice-President NEWS FROM: COOLBRANDS INTERNATIONAL, INC. 8300 Woodbine Avenue, 5th Floor Contact: Michael Serruya Markham, Ontario, Canada, L3R 9Y7 Telephone: (905) 479-8762 FOR IMMEDIATE RELEASE: July 15, 2003 ------------------------------------ COOLBRANDS INTERNATIONAL INC. REPORTS THIRD QUARTER RESULTS - 11th CONSECUTIVE QUARTER OF INCREASED REVENUES AND EARNINGS CoolBrands International Inc. (TSX: COB.A) announced today that net earnings for the quarter ended May 31, 2003 were $8,957,000 ($0.17 net earnings per share basic and diluted) as compared with net earnings of $6,826,000 ($0.14 basic and $0.13 diluted earnings per share) for the same quarter last year, an increase of $2,131,000 or 31.2%. Earnings before income taxes were $14,258,000 as compared with $10,433,000 for the same quarter last year, an increase of $3,825,000, or 36.7%. EBITDA for the third quarter increased to $15,827,000 from $11,904,000 during the same quarter last year, an increase of $3,923,000, or 33%. Revenues increased by $13,919,000, or 20.5%, to $81,908,000 as compared with $67,989,000 for the same quarter of fiscal 2002. The increase in revenues was primarily due to increased prepackaged consumer products sales. Operating results for the quarter reflect an increase in gross profit dollars of $1,625,000, primarily due to the increase in sales. Gross profit margin as a percentage of sales declined to 42.9% as compared with 48.4% for the same quarter last year, primarily due to temporary higher product costs and freight expenses on certain products. The Company began manufacturing the affected products at a lower cost facility at the beginning of the fourth quarter which should result in the gross profit margin increasing to historical levels in the fourth quarter. Selling, general and administrative expenses decreased by $460,000, and declined to 28.1% as a percentage of revenues as compared with 34% of revenues for the third quarter of 2002. Commenting on the results, David J. Stein, President and Co-Chief Executive Officer of CoolBrands International Inc. stated "CoolBrands' consumer products business continued to flourish during the third quarter, with strong sales growth despite extremely adverse weather conditions that negatively impacted overall sales in the frozen snack segment. Sales trends have remained very positive versus last year for the first 6 weeks in the fourth quarter, reflecting robust internal growth in our core consumer products segment.") On July 7, 2003 the Company acquired the Dreamery'r' ice cream and Whole Fruit'TM' sorbet brands from Dreyer's Grand Ice Cream, as well as the rights to the license for the Godiva'r' ice cream brand, which was assigned by Dreyer's, including inventories related to these brands, and substantially the entire Haagen-Dazs ice cream distribution system in the U.S. from Nestle, including distribution assets in the States of Washington, Oregon, Florida, California, Pennsylvania, New Jersey, Utah, Minnesota, Georgia, Maryland, and the District of Columbia. The Company paid approximately CND$13.5 million in cash. CoolBrands International Inc. Consolidated Balance Sheets As at May 31, 2003 and August 31, 2002 -------------------------------------------------------------------------------
(in thousands of dollars) May 31, August 31, 2003 2002 (Unaudited) $ $ Assets Current Assets: Cash and short term investments 37,962 47,086 Receivables 41,265 43,001 Receivables - affiliates 5,749 3,792 Inventories 34,249 25,361 Prepaid expenses 9,818 6,752 Asset held for sale 3,432 Future income taxes 2,416 2,415 -------------------------- Total current assets 131,459 131,839 Future income taxes 3,070 3,433 Property, plant and equipment 18,551 19,710 License agreements 11,098 13,438 Intangible and other assets 6,792 7,332 Goodwill 99,011 107,910 -------------------------- 269,981 283,662 ========================== Liabilities and Shareholders' Equity Current Liabilities: Accounts payable 27,177 24,399 Payables - affiliates 2,295 978 Accrued liabilities 29,432 32,880 Income taxes payable 952 7,347 Future income taxes 3,581 2,566 Revolving loan 2,742 Current maturities of long-term debt 4,325 6,315 -------------------------- Total current liabilities 70,504 74,485 Long-term debt 19,431 29,279 Other liabilities 4,400 5,240 Future income taxes 3,716 3,950 -------------------------- Total liabilities 98,051 112,954 -------------------------- Capital stock 122,298 122,378 Cumulative translation adjustment (9,881) 5,685 Retained earnings 59,513 42,645 -------------------------- Total shareholders' equity 171,930 170,708 -------------------------- 269,981 283,662 ==========================
CoolBrands International Inc. Consolidated Statements of Earnings ------------------------------------------------------------------------------- (Unaudited) (in thousands of dollars, except share data)
For the Nine Months For the Three Months Ended Ended May 31 May 31 2003 2002 2003 2002 Revenues: Sales 197,356 151,656 78,978 66,617 Franchising and licensing revenues: Royalty income 2,034 2,123 721 734 Franchise and license fees 1,446 862 352 378 Consumer products 436 396 241 Net rental and other income 1,987 820 1,616 260 ------------------------------------------------------ Total revenues 203,259 155,857 81,908 67,989 ------------------------------------------------------ Operating expenses: Cost of goods sold 117,016 86,246 45,114 34,378 Selling, general and administrative expenses 57,843 49,740 22,163 22,623 Interest expense 1,451 1,964 373 555 ------------------------------------------------------ Total operating expenses 176,310 137,950 67,650 57,556 ------------------------------------------------------ Earnings before income taxes 26,949 17,907 14,258 10,433 Provision for income taxes 10,081 6,024 5,301 3,607 ------------------------------------------------------ Net earnings 16,868 11,883 8,957 6,826 ====================================================== Earnings per share: Basic 0.33 0.25 0.17 0.14 ------------------------------------------------------ Diluted 0.32 0.24 0.17 0.13 ====================================================== Weighted average shares outstanding: Shares used in per share calculation - basic 51,740 46,834 51,757 48,658 Shares used in per share calculation - diluted 53,492 49,284 53,946 51,599
CoolBrands International Inc. Summary Financial Data (in thousands of dollars, except share data):
Nine Months Ended Three Months Ended May 31, May 31, 2003 2002 2003 2002 ---- ---- ---- ---- $ $ $ $ Revenues 203,259 155,857 81,908 67,989 Earnings before income taxes 26,949 17,907 14,258 10,433 Provision for income taxes 10,081 6,024 5,301 3,607 -------------------------------------------------------- Net earnings 16,868 11,883 8,957 6,826 ======================================================== Basic earnings per share: 0.33 0.25 0.17 0.14 Diluted earnings per share: 0.32 0.24 0.17 0.13 EBITDA 32,126 22,781 15,827 11,904 Depreciation and amortization 3,726 2,910 1,196 916 Interest expense 1,451 1,964 373 555 Weighted average number of shares outstanding: Shares used in per share calculation - basic 51,740 46,834 51,757 48,658 Shares used in per share calculation - diluted 53,492 49,284 53,946 51,599
CoolBrands markets Eskimo Pie'r', Chipwich'r' and Fruit-A-Freeze'r' branded frozen novelties and frozen dessert products. Eskimo Pie'r' created the frozen novelty industry in 1921 when its founder, Christian K. Nelson, invented the chocolate-coated ice cream bar. Today, more than 80 years later, Eskimo Pie'r' remains one of the best-known and most widely distributed of all frozen novelty brands. The Company also markets a broad range of frozen novelties and frozen dessert products under the Tropicana'r', Welch's'r', Weight Watchers'r' Smart Ones'r', Betty Crocker'r', Trix'r', Yoplait'r', Colombo'r' and Yoo Hoo'r' brand names pursuant to long-term licensing agreements. In addition, CoolBrands franchises and licenses frozen dessert outlets operated under a Family of Brands including Yogen Fruz'r', I Can't Believe It's Yogurt'r', Bresler's'r', Swensen's'r', Golden Swirl'r', Ice Cream Churn'r', and Java Coast'r' Fine Coffees, with company-owned, franchised and non-traditional partnership locations in approximately 80 countries around the world. Coolbrands' Foodservice Division is a leading manufacturer and supplier of premium soft serve ice cream, frozen yogurt, custard and smoothies to the foodservice industry. The Company also manufactures and sells a full line of quality flavors, chocolate coatings, fudge sauces, powders for chocolate milk, egg nog bases and other ingredients and flexible packaging products for use in private label dairy products in addition to the Company's brands. As a part of our investor relations activities, the Company is speaking to certain institutional investors. A copy of the information that is being made to these investors is available at the investor relations section on the Company's website: www.yogenfruz.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Information in this release relating to the Company's future plans and performance are "forward looking statements" and, as such, involve certain risks and uncertainties that could cause actual results to vary materially. Potential risks and uncertainties include, but are not limited to: (1) the highly competitive nature of the frozen dessert market and the level of consumer interest in the Company's products, (2) product costing, (3) the weather, (4) the performance of management, including management's ability to implement its plans as contemplated, (5) the Company's relationships with its customers, franchisees, licensees and licensors, and (6) government regulation. STATEMENT OF DIFFERENCES The trademark symbol shall be expressed as.................................'TM' The registered trademark symbol shall be expressed as.......................'r'