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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 11, 2004
1-12340
(Commission File Number)
GREEN MOUNTAIN COFFEE ROASTERS, INC.
(Exact name of
registrant as specified in its charter)
Delaware 03-0339228
(Jurisdiction of
Incorporation) (IRS Employer Identification Number)
33 Coffee Lane, Waterbury, Vermont 05676
(Address of
registrant's principal executive office)
(802) 244-5621
(Registrant's telephone number)
Item 2.02 Results of Operations and Financial Condition
On November 11, 2004, the Company issued a press release announcing its fourth quarter and full fiscal year results for the period ending September 25, 2004. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information furnished in Item 2.02, including the Exhibits attached hereto, shall not be deemed "filed" for any purpose, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, regardless of any general incorporation language in any such filing.
Item 9.01. Financial statements and Exhibits
(c) Exhibits
99.1 Press Release of Green Mountain Coffee Roasters, Inc. (the "Company") dated November 11, 2004 regarding Fourth Quarter and Full Year 2004 Results.
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.
GREEN MOUNTAIN COFFEE ROASTERS, INC.
By:/s/ Frances G. Rathke
Frances G. Rathke
Chief
Financial Officer
Date: November 11, 2004
EXHIBIT INDEX
99.1 |
Press Release dated November 11, 2004 |
Contact: Frances G. Rathke, CFO
Tel: (802) 244-5621
Green Mountain Coffee Roasters Reports Fiscal 2004
Fourth Quarter and Fiscal Year 2004 Results
-- Q4 Net Income Growth of 43.6% on Net Sales Growth of 15.4% --
- -- FY'04 Net Income Growth of 24.9% on Net Sales Growth of 17.7%--
WATERBURY, VT (November 11, 2004) -- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced results for the Company's fourth quarter and fiscal year ended September 25, 2004.
Net sales for the fourth quarter ended September 25, 2004 increased 15.4% to $31.8 million, up from $27.5 million in the fourth quarter of 2003. Total coffee pounds shipped increased 11.8% to 4.2 million pounds. Net income for the fourth quarter increased 43.6% to $2.0 million, or $0.27 per diluted share, compared to $1.4 million, or $0.19 per diluted share for the fourth quarter of 2003.
For the fiscal year, Green Mountain Coffee grew sales 17.7% to $137.4 million. Total coffee pounds shipped were up 13.9% to 17.7 million pounds for the year. Net income for the year increased $1.6 million or 24.9% to $7.8 million. The Company reported diluted earnings per share of $1.06, compared to $0.86 in fiscal 2003.
Robert P. Stiller, Chairman, President and Chief Executive Officer, said "Green Mountain Coffee's fourth quarter provided a strong finish to a strong year. We delivered healthy sales growth and even better earnings growth this past fiscal year. Our entrepreneurial approach to expanding new venues for a superior coffee experience, with the Keurig® Single-Cup Brewer, contributed meaningfully to our success this past year. The expansion of our certified Fair Trade and Organic lines of coffee also were important, further confirming our belief that our commitment to corporate social responsibility is a clear advantage in a very competitive market, and that it enhances our financial performance. I want to take this opportunity to thank our many loyal and enthusiastic employees, customers, partners, the millions of Green Mountain Coffee consumers, and everyone else who has shared our passion for 'doing well by doing good,' making our success possible."
Fourth Quarter Financial Review
Channel and Other Sales Growth Highlights:
Margins, Expenses, and Analysis of After-Tax Income:
Fiscal 2004 Results:
Valuation of Keurig Investment:
Business Outlook and Other Forward-Looking Information
Fiscal Year 2005:
Fiscal First Quarter 2005:
Balance Sheet and Cash Flow:
There will be further discussion of the financial results released today and these future expectations on Company's webcast conference call later this morning.
Green Mountain Coffee Roasters, Inc. is a leader in the specialty coffee industry and offers over 100 coffee selections including estate, certified organic, Fair Trade, signature blends, and flavored coffees that it sells under the Green Mountain Coffee Roastersâ and Newman's Ownâ Organics brands. While the majority of Green Mountain Coffee's revenue is derived from its wholesale operations, the Company also operates a direct mail business and an e-commerce website GreenMountainCoffee.com from its Waterbury, Vermont headquarters. Each year the Company contributes at least five percent of its pre-tax profits to support socially responsible initiatives. Based on its performance, Green Mountain Coffee Roasters has been recognized for the past five years as one of Forbes Magazine's "200 Best Small Companies," for the past two years in the top ten on Business Ethics magazine's list of "100 Best Corporate Citizens," and in 2004 as one of the Society of Human Resource Management's "Best Medium Sized Companies to Work for in America."
Keurig, Incorporated ("Keurig") manufactures brewing equipment that allows users to brew high-quality specialty coffee one cup at a time. Green Mountain Coffee has 42% equity ownership of Keurig. In addition, Green Mountain Coffee is the largest of four roasters licensed to distribute the K-Cups® that are used with Keurig® Single-Cup Brewers. The Company sells K-Cups to businesses through its OCS channel, and to home users through its consumer direct channel.
Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, fluctuations in availability and cost of high-quality green coffee, competition,
business conditions in the coffee industry and food industry in general, the impact of the loss of one or more major customers or reduction in the volume of purchases by one or more major customers, delays in the timing of adding new locations with existing customers, Green Mountain Coffee's level of success in continuing to attract new customers, variances from sales mix and growth rate, weather and special or unusual events, delays in installing the material handling equipment in the recently-completed distribution and warehouse facility, as well as other risks as described more fully in the Company's filings with the Securities and Exchange Commission. In addition, the Company has an equity investment in Keurig, Incorporated, a small private company. Keurig, Incorporated can have significant quarterly operating income fluctuations and its results can differ materially from expectations set forth in forward-looking statements, which could also effect its valuation. Keurig is currently operating at a loss. Further, there is uncertainty around Keurig's marketing expenditures for the launch of the Keurig Single-Cup Brewer for the home and results could vary materially depending on Keurig, Incorporated's success in entering the home brewer market and its ability to secure adequate financing to support this launch. Forward-looking statements reflect management's analysis as of the date of this press release. The Company does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.Green Mountain Coffee Roasters will be discussing these financial results and future prospects with analysts and investors in a conference call available via the Internet. The call will take place today, November 11, 2004, at 10:30 a.m. ET and will be available via live webcast on the Company's website at GreenMountainCoffee.com and on Street Events at StreetEvents.com as well as AOL, Yahoo and other major portals.
The Company archives the latest conference call on the Investor Services section of its website for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, confirmation number 878985, from 1:30 p.m. ET on November 11th through midnight on Monday, November 15, 2004.
- tables follow -
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Consolidated Statements of Operations
(Dollars in thousands except per share data)
Twelve weeks ended 9/25/04 |
Twelve weeks ended 9/27/03 |
Fiscal year ended 9/25/04 |
Fiscal year ended 9/27/03 |
|
Net sales |
$ 31,754 |
$ 27,505 |
$ 137,444 |
$ 116,727 |
Cost of sales |
19,560 |
16,588 |
83,360 |
67,716 |
Gross profit |
12,194 |
10,917 |
54,084 |
49,011 |
Selling and operating expenses |
6,266 |
6,090 |
29,738 |
27,649 |
General and administrative expenses |
2,088 |
1,543 |
9,493 |
8,241 |
Operating income |
3,840 |
3,284 |
14,853 |
13,121 |
Other income |
24 |
(58) |
61 |
56 |
Interest expense |
(92) |
(93) |
(282) |
(539) |
Income before income taxes |
3,772 |
3,133 |
14,632 |
12,638 |
Income tax expense |
(1,442) |
(1,300) |
(5,731) |
(5,245) |
Income before equity in net earnings of Keurig, Incorporated |
2,330 |
1,833 |
8,901 |
7,393 |
Equity in net earnings of Keurig, Incorporated |
(325) |
(437) |
(1,076) |
(1,127) |
Net income |
$ 2,005 |
$ 1,396 |
$ 7,825 |
$ 6,266 |
===== |
===== |
====== |
====== |
|
Basic income per share: |
||||
Weighted average shares outstanding |
7,029,628 |
6,935,679 |
7,004,605 |
6,859,709 |
Net income |
$ 0.29 |
$ 0.20 |
$ 1.12 |
$ 0.91 |
Diluted income per share: |
||||
Weighted average shares outstanding |
7,412,698 |
7,355,448 |
7,409,426 |
7,259,805 |
Net income |
$ 0.27 |
$ 0.19 |
$ 1.06 |
$ 0.86 |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
September 25, 2004 |
September 27, 2003 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$4,514 |
$ 502 |
|
Receivables, less allowances of $481 and $439 at September 25, 2004, and September 27, 2003, respectively |
13,776 |
12,708 |
|
Inventories |
9,580 |
7,465 |
|
Other current assets |
983 |
905 |
|
Income taxes receivable |
- |
276 |
|
Deferred income taxes, net |
616 |
756 |
|
Total current assets |
29,469 |
22,612 |
|
Fixed assets, net |
36,502 |
22,313 |
|
Investment in Keurig, Incorporated |
12,288 |
13,364 |
|
Goodwill and other intangibles |
1,446 |
1,446 |
|
Other long-term assets |
311 |
255 |
|
$80,016 |
$ 59,990 |
||
======= |
======= |
||
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Current portion of long-term debt |
$ 3,259 |
$ 3,123 |
|
Accounts payable |
8,382 |
6,352 |
|
Accrued compensation costs |
2,737 |
2,056 |
|
Accrued expenses |
3,028 |
1,823 |
|
Income tax payable |
23 |
- |
|
Total current liabilities |
17,429 |
13,354 |
|
Long-term debt |
14,039 |
8,558 |
|
Long-term line of credit |
- |
350 |
|
Deferred income taxes |
3,816 |
2,460 |
|
Other long-term liabilities |
317 |
120 |
|
Commitments and contingencies |
|||
Stockholders' equity: |
|||
Common stock, $0.10 par value: Authorized - 20,000,000 shares; Issued - 8,260,261 and 8,156,491 shares at September 25, 2004 and September 27, 2003, respectively |
826 |
816 |
|
Additional paid-in capital |
22,884 |
21,669 |
|
Retained earnings |
28,739 |
20,914 |
|
Accumulated other comprehensive (loss) |
(130) |
(69) |
|
ESOP unallocated shares, at cost - 21,060 and 31,181 shares at September 25, 2004 and September 27, 2003, respectively |
(568) |
(846) |
|
Treasury shares, at cost - 1,157,554 shares |
(7,336) |
(7,336) |
|
Total stockholders' equity |
44,415 |
35,148 |
|
$80,016 |
$ 59,990 |
||
|
======= |
======= |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
Years ended |
|||||
September 25, 2004 |
September 27, 2003 |
||||
Cash flows from operating activities: |
|||||
Net income |
$7,825 |
$ 6,266 |
|||
Adjustments to reconcile net income to net |
|||||
Depreciation and amortization |
4,674 |
4,848 |
|||
(Gain) loss on disposal of fixed assets |
(89) |
(54) |
|||
Provision for doubtful accounts |
253 |
397 |
|||
Change in fair value of interest rate swap |
197 |
120 |
|||
Change in fair value of futures derivatives |
(124) |
(11) |
|||
Change in accumulated other comprehensive income |
(61) |
(57) |
|||
Tax benefit from exercise of non-qualified stock options |
301 |
591 |
|||
Tax benefit from allocation of ESOP shares |
28 |
26 |
|||
Equity in loss of Keurig, Incorporated |
1,076 |
1,127 |
|||
Deferred income taxes |
1,496 |
1,603 |
|||
Deferred compensation and stock compensation |
46 |
53 |
|||
Changes in assets and liabilities: |
|||||
Receivables |
(1,321) |
(3,973) |
|||
Inventories |
(2,115) |
(1,589) |
|||
Other current assets |
44 |
(116) |
|||
Income taxes payable (receivable) |
299 |
252 |
|||
Other long-term assets |
(56) |
(29) |
|||
Accounts payable |
2,030 |
81 |
|||
Accrued compensation costs |
881 |
1,225 |
|||
Accrued expenses |
1,205 |
562 |
|||
Net cash provided by operating activities |
16,589 |
11,322 |
|||
Cash flows from investing activities: |
|||||
Expenditures for fixed assets |
(19,262) |
(6,855) |
|||
Proceeds from disposals of fixed assets |
488 |
601 |
|||
Net cash used for investing activities |
(18,774) |
(6,254) |
|||
Cash flows from financing activities: |
|||||
Proceeds from issuance of common stock |
930 |
1,291 |
|||
Purchase of treasury shares |
- |
(286) |
|||
Proceeds from issuance of long-term debt |
9,010 |
90 |
|||
Repayment of long-term debt |
(3,393) |
(3,681) |
|||
Repayment of revolving line of credit |
(350) |
(2,780) |
|||
Net cash provided by (used for) financing activities |
6,197 |
(5,366) |
|||
Net increase (decrease) in cash and cash equivalents |
4,012 |
(298) |
|||
Cash and cash equivalents at beginning of year |
502 |
800 |
|||
Cash and cash equivalents at end of year |
$4,514 |
$502 |
|||
==== |
==== |
- More -
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Total Company Coffee Pounds Shipped by Sales Channel
(Unaudited Pounds in Thousands)
Channel |
Q4 12 wks. ended 9/25/04 |
Q4 12 wks. ended 9/27/03 |
Q4 Y/Y lb. Increase |
Q4 % Y/Y lb. Increase |
Q4 52 wks. ended 9/25/04 |
Q4 52 wks. ended 9/27/03 |
Q4 YTD Y/Y lb. Increase |
Q4 YTD % Y/Y lb. Increase |
Supermarkets |
1,333 |
1,199 |
134 |
11.2% |
5,706 |
4,864 |
842 |
17.3% |
Convenience Stores |
1,138 |
1,071 |
67 |
6.3% |
4,848 |
4,590 |
258 |
5.6% |
Office Coffee Service Distributors |
963 |
788 |
175 |
22.2% |
4,130 |
3,397 |
733 |
21.6% |
Food Service |
599 |
566 |
33 |
5.8% |
2,504 |
2,268 |
236 |
10.4% |
Consumer Direct |
130 |
98 |
32 |
32.7% |
546 |
450 |
96 |
21.3% |
Totals |
4,163 |
3,722 |
441 |
11.8% |
17,734 |
15,569 |
2,165 |
13.9% |
Note: Certain prior year customer channel classifications were reclassified to conform to current year classifications.
Total Company Coffee Pounds Shipped by Geographic Region
(Unaudited Pounds in Thousand)
Region |
Q4 12 wks. ended 9/25/04 |
Q4 12 wks. ended 9/27/03 |
Q4 Y/Y lb. Increase |
Q4 % |
Q4 52 wks. ended 9/25/04 |
Q4 YTD 52 wks. ended 9/27/03 |
Q4 YTD Y/Y lb. Increase |
Q4 YTD % Y/Y lb. Increase |
New England |
1,801 |
1,719 |
82 |
4.8% |
7,678 |
7,291 |
387 |
5.3% |
Mid-Atlantic |
1,211 |
1,086 |
125 |
11.5% |
5,396 |
4,702 |
694 |
14.8% |
South |
684 |
501 |
183 |
36.5% |
2,783 |
2,045 |
738 |
36.1% |
Midwest |
198 |
154 |
44 |
28.6% |
793 |
616 |
177 |
28.7% |
West |
240 |
238 |
2 |
0.8% |
938 |
809 |
129 |
16.0% |
International |
29 |
24 |
5 |
20.8% |
146 |
106 |
40 |
37.7% |
Totals |
4,163 |
3,722 |
441 |
11.8% |
17,734 |
15,569 |
2,165 |
13.9% |
Note: Certain prior year regional classifications were reclassified to conform to current year classifications.
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