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Proc-Type: 2001,MIC-CLEAR
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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): February 17, 2005
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 February 17, 2005, the Company issued a press release announcing its first quarter results for the period ending January 15, 2005. 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 February 17,2005 regarding First Quarter 2005 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: February 17, 2005
EXHIBIT INDEX
99.1 |
Press Release dated February 17, 2005 |
Contact: Frances G. Rathke, CFO
Tel: (802) 244-5621 X 1300
Green Mountain Coffee Roasters Reports Fiscal 2005
First Quarter Results
WATERBURY, VT (February 17, 2005) -- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced its fiscal first quarter results for the sixteen-week period ended January 15, 2005.
Net sales for the first quarter ended January 15, 2005, increased 16.3% to $50.4 million, up from $43.3 million in the first quarter of 2004. Total coffee pounds shipped increased 13.4% to 6.3 million pounds. Net income for the first quarter decreased 7.4% to $2.4 million, or $0.32 per diluted share, compared to $2.6 million, or $0.35 per diluted share for the first quarter of 2004. The Company's net income includes recognition of a non-cash loss of $469,000 (or $0.06 per share) as a result of its equity investment in Keurig, Incorporated in the first quarter of 2005, of which approximately $0.04 relates to the accounting for the accretion of the estimated redemption value of Keurig, Incorporated's preferred stock.
Robert P. Stiller, Chairman, President and Chief Executive Officer, said "I am pleased with our continued double-digit sales growth. I look forward to improving our operating margin in the next two quarters as we reduce our start-up costs associated with our new distribution facility and the additional K-Cup® manufacturing capacity. It is gratifying that these expansion initiatives have been driven by the strong growth in our business, most notably with the K-Cup market opportunity. We are engaged in key programs to reduce some of the new costs as quickly as possible, and return the Company to a greater level of profitability."
Stiller continued, "We had strong, multi-channel growth throughout the United States as our brand gained strength outside our traditional New England market. Our sales have been propelled by our strategic investment and focus on K-Cups and the Keurig® Single-Cup Brewing system as well as on our Fair Trade and organic product lines. It is great to see the success of our K-Cup sales and introduction of the new Keurig B50 brewer for the home and the continued strong sales of the Keurig B100 brewer for the small office channel. It is also rewarding to see that Fair Trade Certified™ coffee sales grew 62% this quarter to about 20% of our total coffee pounds shipped. This shows that consumers are aware of the high quality of Fair Trade coffee as well as the benefits Fair Trade brings to coffee farming families."
First Quarter Financial Review
Channel and Other Sales Growth Highlights:
Margins, Expenses, and Analysis of After-Tax Income:
Business Outlook and Other Forward-Looking Information
Fiscal Year 2005:
Fiscal Second 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 www.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, 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. Keurig is currently operating at a loss. 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 reg ular, 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, February 17, 2005, at 10:30 a.m. ET and will be available via live webcast on the Company's website at www.GreenMountainCoffee.com and on Street Events 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 7612584, from 1:30 p.m. ET on February 17th through midnight on Monday, February 21, 2005.
- tables follow -
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Consolidated Balance Sheets
(Dollars in thousands)
January 15, 2005 |
September 25, 2004 |
||
Unaudited |
|||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$6,534 |
$4,514 |
|
Receivables, less allowances of $494 and $481 at January 15, 2005 and September 25, 2004, respectively |
14,458 |
13,776 |
|
Inventories |
9,380 |
9,580 |
|
Other current assets |
1,513 |
983 |
|
Deferred income taxes, net |
598 |
616 |
|
Total current assets |
32,483 |
29,469 |
|
Fixed assets, net |
37,122 |
36,502 |
|
Investment in Keurig, Incorporated |
9,807 |
10,604 |
|
Goodwill and other intangibles |
1,446 |
1,446 |
|
Other long-term assets |
299 |
311 |
|
$81,157 |
$78,332 |
||
======= |
======= |
||
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Current portion of long-term debt |
$ 3,611 |
$ 3,259 |
|
Accounts payable |
9,079 |
8,382 |
|
Accrued compensation costs |
2,581 |
2,737 |
|
Accrued expenses |
3,648 |
3,028 |
|
Other short-term liabilities |
102 |
317 |
|
Income tax payable |
659 |
23 |
|
Total current liabilities |
19,680 |
17,746 |
|
Long-term debt |
11,800 |
14,039 |
|
Deferred income taxes |
2,277 |
2,132 |
|
Commitments and contingencies |
|||
Stockholders' equity: |
|||
Common stock, $0.10 par value: Authorized - 20,000,000 shares; Issued - 8,300,933 and 8,260,261 shares at January 15, 2005 and September 25, 2004, respectively |
830 |
826 |
|
Additional paid-in capital |
23,325 |
22,884 |
|
Retained earnings |
31,145 |
28,739 |
|
Accumulated other comprehensive income (loss) |
4 |
(130) |
|
ESOP unallocated shares, at cost - 21,060 shares |
(568) |
(568) |
|
Treasury shares, at cost - 1,157,554 shares |
(7,336) |
(7,336) |
|
Total stockholders' equity |
47,400 |
44,415 |
|
$81,157 |
$78,332 |
||
|
======= |
======= |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except per share data)
Sixteen weeks ended |
|||
January 15, |
January 17, |
||
Net sales |
$ 50,357 |
$ 43,285 |
|
Cost of sales |
32,534 |
26,008 |
|
Gross profit |
17,823 |
17,277 |
|
Selling and operating expenses |
10,101 |
9,430 |
|
General and administrative expenses |
2,845 |
2,710 |
|
Operating income |
4,877 |
5,137 |
|
Other income |
164 |
21 |
|
Interest expense |
(231) |
(107) |
|
Income before income taxes |
4,810 |
5,051 |
|
Income tax expense |
(1,935) |
(2,121) |
|
Income before equity in net earnings of Keurig, Incorporated |
2,875 |
2,930 |
|
Equity in net earnings of Keurig, Incorporated |
(469) |
(331) |
|
Net income |
$ 2,406 |
$ 2,599 |
|
==== |
===== |
||
Basic income per share: |
|||
Weighted average shares outstanding |
7,101,989 |
6,978,601 |
|
Net income |
$ 0.34 |
$ 0.37 |
|
Diluted income per share: |
|||
Weighted average shares outstanding |
7,536,706 |
7,410,917 |
|
Net income |
$ 0.32 |
$ 0.35 |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Cash Flows
(Dollars in thousands)
Sixteen weeks ended |
|||
January 15, |
January 17, 2004 |
||
Cash flows from operating activities: |
|||
Net income |
$ 2,406 |
$ 2,599 |
|
Adjustments to reconcile net income to net cash |
|||
Depreciation and amortization |
1,778 |
1,368 |
|
(Gain) on disposal of fixed assets |
(146) |
(12) |
|
Provision for doubtful accounts |
69 |
409 |
|
Change in fair value of interest rate swap |
(215) |
(21) |
|
Change in fair value of futures derivatives |
122 |
(54) |
|
Change in accumulated other comprehensive income |
134 |
49 |
|
Tax benefit from exercise of non-qualified options |
189 |
90 |
|
Equity in loss of Keurig, Incorporated |
797 |
331 |
|
Deferred income taxes |
163 |
118 |
|
Deferred compensation and stock compensation |
39 |
26 |
|
Changes in assets and liabilities: |
|||
Receivables |
(751) |
(1,066) |
|
Inventories |
200 |
(490) |
|
Income tax payable |
636 |
1,563 |
|
Other current assets |
(652) |
(248) |
|
Other long-term assets, net |
12 |
9 |
|
Accounts payable |
697 |
1,419 |
|
Accrued compensation costs |
(156) |
(104) |
|
Accrued expenses |
620 |
518 |
|
Net cash provided by operating activities |
5,942 |
6,504 |
|
Cash flows from investing activities: |
|||
Capital expenditures for fixed assets |
(2,680) |
(4,584) |
|
Proceeds from disposals of fixed assets |
428 |
93 |
|
Net cash used for investing activities |
(2,252) |
(4,491) |
|
Cash flows from financing activities: |
|||
Proceeds from issuance of common stock |
217 |
104 |
|
Repayment of long-term debt |
(1,887) |
(1,878) |
|
Net change in revolving line of credit |
- |
(350) |
|
Net cash used for financing activities |
(1,670) |
(2,124) |
|
Net increase (decrease) in cash and cash equivalents |
2,020 |
(111) |
|
Cash and cash equivalents at beginning of period |
4,514 |
502 |
|
Cash and cash equivalents at end of period |
$ 6,534 |
$ 391 |
|
==== |
==== |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Total Company Coffee Pounds Shipped by Sales Channel
(Unaudited Pounds in Thousands)
Channel |
Q1 16 wks. ended 1/15/05 |
Q1 16 wks. ended 1/17/04 |
Q1 Y/Y lb. Increase |
Q1 % Y/Y lb. Increase |
Supermarkets |
1,954 |
1,798 |
156 |
8.7% |
Convenience Stores |
1,682 |
1,574 |
108 |
6.9% |
Office Coffee Service Distributors |
1,466 |
1,195 |
271 |
22.7% |
Food Service |
964 |
802 |
162 |
20.2% |
Consumer Direct |
233 |
187 |
46 |
24.6% |
Totals |
6,299 |
5,556 |
743 |
13.4% |
Note: Certain prior year customer channel classifications were reclassified to conform to current year classifications.
Note: The pounds shipped number in the Consumer Direct channel, includes shipments made to Keurig, Inc. for sales to the retail channel.
Total Company Coffee Pounds Shipped by Geographic Region
(Unaudited Pounds in Thousands)
Region |
Q1 16 wks. ended 1/15/05 |
Q1 16 wks. ended 1/17/04 |
Q1 Y/Y lb. Increase |
Q1 % Y/Y lb. Increase |
New England |
2,589 |
2,423 |
166 |
6.9% |
Mid-Atlantic |
1,913 |
1,694 |
219 |
12.9% |
South |
1,078 |
861 |
217 |
25.2% |
Midwest |
317 |
240 |
77 |
32.1% |
West |
354 |
283 |
71 |
25.1% |
International |
48 |
55 |
(7) |
(12.7)% |
Totals |
6,299 |
5,556 |
743 |
13.4% |
Note: Certain prior year regional classifications were reclassified to conform to current year classifications.
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