EX-99.1 2 exhibit_991.htm Exhibit 99.1

Contact: Frances G. Rathke, CFO
 Tel: (802) 244-5621, x.1300

 

Green Mountain Coffee Roasters Reports Fiscal 2007
Second Quarter Results

- The success of the Keurig single-cup brewing system and K-Cups
drive strong sales and earnings growth -

WATERBURY, VT (May 3, 2007) -- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced its fiscal second quarter results for the thirteen weeks ended March 31, 2007, reporting strong sales and earnings growth.

The Company changed its quarterly calendar in fiscal 2007 to report four thirteen-week quarters ending on the last Saturday in September (which is the same year-end as in prior years). The prior quarterly calendar was 16 weeks for the first quarter, and twelve weeks for the second, third and fourth quarters except in the years with the additional 53rd week.

Throughout this press release, fiscal quarter 2007 financial results are compared both to reported 2006 financial results and to 2006 financial results adjusted to present the results of the comparable thirteen week period. The adjusted 2006 financial results are used for comparative purposes and are referred to as the "as-adjusted prior period." A reconciliation of the fiscal second quarter 2006 and year-to-date 2006 consolidated statement of operations as reported for the twelve weeks and twenty-eight weeks ended April 8, 2006 and the as-adjusted, and thus comparable, fiscal second quarter 2006 and year-to-date 2006 presented on a thirteen weeks and twenty-six weeks basis which would have ended on March 25, 2006 is provided in the Company's financial tables accompanying this press release and will be provided as a footnote in the Company's fiscal second quarter 2007 SEC filing. In addition, a reconciliation of all GAAP to non-GAAP financial measures is provided in the Company's financial tables accompanying this press release.

Net sales for the second quarter of fiscal 2007 totaled $82.9 million as compared to $46.8 million reported in the second quarter of fiscal 2006. Net sales for the second quarter of fiscal 2007 increased 66.8% over net sales for the as-adjusted prior period. Included in Green Mountain Coffee's net sales of the fiscal second quarter of 2007 is approximately $26.1 million of Keurig, Inc.'s (Keurig) net sales, after elimination of inter-company sales. The Company acquired Keurig in June of 2006.

Net income for the fiscal second quarter of 2007 was $3.1 million or $0.38 per diluted share, compared to the reported fiscal second quarter of 2006 net income of $2.0 million or $0.25 per diluted share. Net income increased by 99.6% over the as-adjusted prior period, which was $1.6 million, or $0.20 per diluted share. Excluding the impact of the non-cash items described below, non-GAAP net income grew approximately 107% in the fiscal second quarter totaling $4.4 million, or $0.54 per share, compared to non-GAAP net income of $2.1 million or $0.27 per share, for the as-adjusted prior period. The non-cash items were: 1.) Pre-tax non-cash stock-based compensation charges of $1,004,000 or approximately $0.07 per diluted share in the fiscal second quarter of 2007 as compared to $391,000 or approximately $0.03 per diluted share in the as-adjusted prior period; 2.) As part of the purchase price accounting for the acquisition of Keurig, the fiscal second quarter 2007 results include pre-tax non-cash amortization expense related to the identifiable intangibles of approximately $1.2 million or $0.08 per diluted share; and 3.) The Company's net income in the fiscal second quarter of 2006 includes recognition of an after-tax non-cash loss of $336,000 or $0.04 per share as a result of its equity investment in Keurig.

Robert P. Stiller, Chairman of the Board, said, "Looking forward, our acquisition of Keurig is contributing meaningfully to our overall growth and prospects. The Keurig single cup brewing system differentiates us from other coffee companies because of its patent protection and because it is an elegant, cost-effective solution to serve many types of consumers. It continues to drive strong sales growth in the office coffee service channel, and has quickly risen to #1 in dollar sales for coffeemakers in the single cup category at retail, as measured by the market research firm NPD Group for the first calendar quarter of 2007. We intend to leverage our Keurig single cup system with our fabulous coffee and multi-channel geographic penetration model, to expand in both existing and new markets and continue building shareholder value."

Stiller concluded, "It was another quarter of robust growth and achievement for Green Mountain Coffee, as we continued to deliver strong sales and earnings growth. I am particularly pleased because I believe our performance confirms that we are on the right path to grow our business through sustainable relationships where we can all win - financially and in making a positive difference in the world."

Fiscal 2007 Second Quarter Ended March 31, 2007 Financial Review

Green Mountain Coffee Roasters Stand-Alone Highlights:

  • Net sales for the second quarter of fiscal 2007 were $59.3 million as compared to $46.8 million reported in the second quarter of fiscal 2006. Net sales for the second quarter of fiscal 2007 increased 19.2% over net sales of $49.7 million during the as-adjusted prior period. Dollar sales growth was strongest in the consumer direct, office coffee service (OCS), and food service channels. Green Mountain K-Cup® shipments of coffee and tea increased 43% over the as-adjusted prior period.
  • The consumer direct channel grew 72% in coffee pounds shipped. The majority of this growth was related to the sales of K-Cups® to consumers for use with Keurig® Single-Cup Brewers, as well as K-Cup sales to Keurig, for their developing retail and consumer channels.
  • The 28% increase in the OCS channel continues to demonstrate the appeal and success of the Keurig single-cup brewing system.
  • The food service channel increased 18% in coffee pounds shipped with the majority of this increase driven by continued strong sales to McDonald's restaurants in New England and Albany, New York, as well as to other existing customers.
  • In the convenience store channel, coffee pounds shipped increased 7%. This increase primarily relates to fluctuations in quarterly inventory replenishment to McLane Company, the distributor to Exxon Mobil Corporation convenience stores.
  • The supermarket channel coffee pounds shipped decreased 4% with increased coffee pounds from new customer acquisitions being minimal and not fully offsetting certain declines in some other supermarket customers due to increased competition in the specialty coffee category in this channel.
  • The Company experienced a 14% gain in shipments of certified Fair Trade and organic coffees, including co-branded Newman's Own® Organics coffees. Certified Fair Trade and organic coffees represented 26% of total Company volume.
  • Gross profit margin was 33.7% of sales as compared to 36.0% in the second quarter of fiscal 2006. Gross profit margin was 35.3% in the as-adjusted prior period. The decline in the second quarter 2007 margin was due primarily to variations in sales mix.
  • Selling, general and administrative (S,G&A) expenses were 27.1% of sales as compared to 27.6% in the second quarter of fiscal 2006. The S,G&A margin was 28.7% in the as-adjusted prior period. This improvement in S,G&A margin was the result of leveraging selling and organizational resources on a higher sales base.
  • Operating income for the second quarter of fiscal 2007 was $3.9 million as compared to $3.9 million reported in the second quarter of fiscal 2006. Operating income for the second quarter of fiscal 2007 increased 20.0% over operating income in the as-adjusted prior period, which was $3.3 million. The GMCR segment stand-alone operating margin was 6.6% for the second quarter of 2007 and in the as-adjusted prior period. Excluding the $725,000 stock compensation charge in the second quarter of 2007 and the comparable $391,000 stock compensation charge in the as-adjusted prior period, the stand-alone operating margin was 7.8% as compared to 7.4% in the as-adjusted prior period.

Keurig, a wholly owned subsidiary, Stand-Alone Highlights:

  • Prior to the elimination of inter-company sales, net sales of Keurig included in the Company's second quarter of fiscal 2007 were $32.1 million, an increase of 81% over the prior year period when Keurig's financial results were not consolidated into the Company's financial results. The increase in sales was primarily due to higher brewer and K-Cup sales and royalty income from the sales of K-Cups. Further detail on shipments of Keurig brewers and K-Cups is provided in the chart accompanying this press release.
  • As part of the consolidation, $6.0 million of inter-company Keurig sales and $2.5 million of inter-company Green Mountain Coffee Roasters stand-alone sales were eliminated.
  • Net income before income taxes was $4.3 million after inter-company eliminations and before the impact of the interest expense and amortization expense described below. For the fiscal second quarter of 2007, the net impact of Keurig was to increase the consolidated income before tax of the Company by approximately $1.5 million.

Keurig Purchase Price Accounting Highlights included in the Company's financial results for the fiscal second quarter of 2007:

  • Green Mountain Coffee financed the cash portion of the purchase price of Keurig through a five-year $125 million syndicated revolving credit facility led by Bank of America. The interest expense associated with the acquisition increased the Company's total interest expense by approximately $1.6 million for the quarter.
  • In the second quarter of fiscal 2007, the pre-tax non-cash amortization expense related to the identifiable intangibles was approximately $1.2 million.
  • As part of the purchase price, Green Mountain Coffee assumed the outstanding unvested options of the Keurig employees at June 15, 2006 and issued an inducement grant. The aggregate expense associated with these stock options is estimated at a total of $4.7 million which will be recognized over the next four years with a greater percentage of the expense in the first two years. For the second quarter of fiscal 2007, stock option expense associated with the Keurig options was $279,000.

Business Outlook and Other Forward-Looking Information

Company Estimates for Fiscal Year 2007:

  • Total consolidated net sales growth of 40% to 50% including a range of 17% to 20% for Green Mountain Coffee without giving effect to Keurig sales as a result of the acquisition primarily due to anticipated strong double-digit sales in the office coffee channel and significant growth in the consumer direct channel. Fiscal 2007 will be 52 weeks as compared to 53 weeks in fiscal 2006.
  • An operating margin in the range of 8.5% to 9.0% including consolidated non-cash charges of approximately $4.2 million for stock option compensation and $4.8 million for non-cash amortization expense related to the purchase price accounting allocation to certain intangibles.
  • Interest expense of $6.5 to $7.5 million.
  • A tax rate of 42.0% as compared to 41.4% in fiscal 2006.
  • Fully diluted GAAP earnings per share in the range of $1.55 to $1.61 per share, including the non-cash stock compensation expenses and amortization expenses related to the identifiable intangibles, which are estimated to reduce EPS by approximately $0.62 per share ($0.29 per share for stock compensation expense and $0.33 per share for amortization expense). This compares to fully diluted fiscal 2006 GAAP EPS of $1.07. For comparison purposes, excluding the impact of these non-cash expenses, non-GAAP EPS is estimated to be in the range of $2.17 to $2.23 in fiscal 2007 as compared to non-GAAP EPS of $1.45 per share in fiscal 2006.

Company Estimates for the Third Quarter Fiscal 2007 to end on June 30, 2007:

  • Please note that the prior year's fiscal calendar had twelve weeks in the third quarter whereas there will be thirteen weeks for the third quarter of fiscal 2007.
  • Consolidated net sales in the range of $82 million to $86 million with Green Mountain Coffee's stand-alone net sales for the third thirteen weeks of fiscal 2007 in the range of $60 million to $64 million.
  • An operating margin in the range of 8.6% to 9.1% including a non-cash charge of approximately $1.2 million or $0.08 per share for stock option compensation and non-cash amortization expenses for identifiable intangibles of approximately $1.2 million or $0.08 per share.
  • Fully diluted earnings per share in the range of $0.39 to $0.44 per share, including the non-cash stock compensation expenses and amortization expenses related to the identifiable intangibles, which are estimated to reduce EPS by approximately $0.16 per share.

Company Estimates Relating to Balance Sheet and Cash Flow:

  • Capital expenditures for fiscal 2007 in the range of $23 to $26 million.
  • Depreciation and amortization expenses in the range of $15.3 to $16.3 million including the $4.8 million for amortization of identifiable intangibles.

Company Outlook for Fiscal Year 2008:

  • A sales and earnings growth rate in the range of 20% to 30%.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude certain charges or credits and information regarding non-cash related items such as stock-based compensation, amortization of identifiable intangibles related to the Keurig acquisition completed on June 15, 2006 and non-cash gains or losses from the Company's equity investment in Keurig prior to the acquisition. In addition, as a result of the Company's change in its fiscal quarters in fiscal 2007, the Company is providing quarter-to-quarter comparisons on an as-adjusted basis for comparative purposes. These amounts are not in accordance with, or an alternative to, GAAP. The Company's management believes that these measures provide investors with greater transparency by helping illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Manage-ment uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. In this press release, the Company presents its results for the second quarter of fiscal 2007 and year-to-date results for the first twenty-six weeks of fiscal 2007 and the comparable prior period on a GAAP and Non-GAAP basis with line item reconciliation.

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, at 10:30 AM ET and will be available via live webcast on the Company's website at www.GreenMountainCoffee.com 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 code 2190348 from 1:30 PM ET on May 3rd through midnight on Monday, May 7, 2007.

Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is recognized as a leader in the specialty coffee industry for its award-winning coffees and successful business practices. The Company sells over 100 high quality selections, including Fair Trade Certified™ and organic coffees under the Green Mountain Coffee Roasters® and Newman's Own® Organics brands. While the majority of the Company's revenue is derived from its wholesale, direct mail, and e-commerce operations (www.GreenMountainCoffee.com), it also owns Keurig, Incorporated, a pioneer and leading manufacturer of gourmet single-cup brewing systems. Keurig markets premium single-cup (K-Cup) coffee brewing systems for the office and the home while the Company licenses, manufactures and sells Green Mountain coffee and tea K-Cups® for offices, homes and other venues. Green Mountain Coffee Roasters was recently ranked No. 1 on the Business Ethics list of "100 Best Corporate Citizens," and has been recognized repeatedly by Forbes, Fortune Small Business, and the Society of Human Resource Management as an innovative, high-growth, socially responsible company.

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, the unknown impact of any price increases on net sales, competition, business conditions in the coffee industry and food industry in general, the unknown impact of management changes, Keurig Inc.'s ability to continue to grow and build profits in the office and at home markets, the impact of the loss of one or more major customers for Green Mountain Coffee 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, the Company's success in efficiently expanding operations and capacity to meet growth, 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. 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.

- tables follow -

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except per share data)
 

Thirteen weeks ended 3/31/07

Twelve weeks ended 4/8/06

Twenty-six weeks ended 3/31/07

Twenty-eight weeks ended 4/8/06

Net sales

$        82,877 

$    46,779 

$        166,218 

$   110,646 

Cost of sales

     50,393 

     29,933 

     102,049 

        71,506 

     Gross profit

32,484 

16,846 

64,169 

39,140 

         

Selling and operating expenses

17,935 

9,912 

37,207 

23,240 

General and administrative expenses

        7,490 

       2,987 

       14,082 

          6,790 

     Operating income

7,059 

3,947 

12,880 

9,110 

         

Other income (expense)

37 

 101 

75 

172 

Interest expense

       (1,631)

        (39)

       (3,424)

             (123)

     Income before income taxes

5,465 

4,009 

9,531 

9,159 

         

Income tax expense

       (2,320)

     (1,699)

       (3,944)

        (3,871)

     Income before earnings related to investment in Keurig, Incorporated

3,145 

          2,310 

5,587 

          5,288 

Earnings (loss) related to investment in Keurig, Incorporated, net of tax

          -  

       (336)

          -  

       (334)

     Net income

$         3,145 

$     1,974 

$         5,587 

$     4,954 
 

=====

=====

======

======

     Basic income per share:

        

     Weighted average shares outstanding

7,727,546 

7,492,301 

7,689,502

7,482,811

     Net income

$           0.41 

$       0.26 

$        0.73

$        0.66
         

     Diluted income per share:

        

     Weighted average shares outstanding

8,206,598 

7,909,263 

8,141,649

7,893,795

     Net income

$           0.38 

$       0.25 

$ 0.69

$ 0.63

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Balance Sheets
(Dollars in thousands)

March 31,
2007     

September 30,
 2006     

          Assets

Current assets:

   Cash and cash equivalents

$233  

$1,066  

   Restricted cash and cash equivalents

115 

208 

   Receivables, less allowances of $1,273 and $1,021 at March 31, 2007, 
  and September 30, 2006, respectively

34,397 

30,071 

   Inventories

25,820 

31,796 

   Other current assets

3,273 

2,816 

   Income tax receivable

866 

618 

   Deferred income taxes, net

   1,829 

    1,384 

 Total current assets

66,533 

67,959 

Fixed assets, net

52,573 

48,811 

Intangibles, net

36,614 

39,019 

Goodwill

75,208 

75,305 

Other long-term assets

    3,340 

      2,912 

$234,268 

$234,006 

=======

=======

          Liabilities and Stockholders' Equity

Current liabilities:

   Current portion of long-term debt

$ 72 

$ 97 

   Accounts payable

21,229 

23,124 

   Accrued compensation costs

5,740 

6,736 

   Accrued expenses

8,358 

7,978 

   Other short-term liabilities

     758 

     874 

 Total current liabilities

36,157 

38,809 

Long-term revolving line of credit

91,700 

102,800 

Long-term debt

       40 

         71 

Deferred income taxes

19,988 

  17,386 

Commitments and contingencies

Stockholders' equity:

Preferred stock, $0.10 par value: Authorized - 1,000,000 shares;
No shares issued or outstanding

- 

- 

Common stock, $0.10 par value: Authorized - 60,000,000 shares; Issued - 8,924,647 and 8,786,505 shares at March 31, 2007 and September 26, 2006, respectively

893 

879 

Additional paid-in capital

41,794 

36,070 

Retained earnings

51,725 

46,138 

Accumulated other comprehensive (loss)

(430)

(548)

ESOP unallocated shares, at cost - 9,770 shares at March 31, 2007 and at September 30,2006

(263)

(263)

Treasury shares, at cost - 1,157,554 shares

 (7,336)

 (7,336)

Total stockholders' equity

86,383 

 74,940 

$234,268 

$234,006 

=======

=======

 

GREEN MOUNTAIN COFFEE ROASTERS, INC.

Unaudited Consolidated Statements of Operations and
Reconciliation of Reported Second Quarter 2006 to Adjusted Second Quarter 2006 Period

(in thousands except per share amounts)

Second Quarter 2006 Reconciliation

Second Quarter

Second Quarter

Plus:

Second Quarter

2007, As

2006, As

Adjustment

2006, As

Reported

Reported

for extra

Adjusted

(13 weeks)

(12 weeks)

1 week

(13 weeks)

Net Sales

$             82,877 

$ 46,779 

$2,922 

$ 49,701 

Cost of Sales

50,393 

29,933 

2,216 

32,149 

Gross Profit

32,484 

16,846 

706 

17,552 

Selling and operating expenses

17,935 

9,912 

1,254 

11,166 

General and administrative expenses

7,490 

2,987 

135 

3,122 

Operating Income

7,059 

3,947 

(683)

3,264 

Other income

37 

101 

1 

102 

Interest expense

(1,631)

(39)

(12)

(51)

Income before income taxes

5,465 

4,009 

(694)

3,315 

Income tax expense

(2,320)

(1,699)

295 

(1,404)

Income before earnings related to investment in Keurig, Inc., net of tax

3,145 

2,310 

(399)

1,911 

Earnings (loss) related to investment in Keurig, Inc., net of tax

- 

(336 

- 

(336)

Net Income

             $   3,145 

$ 1,974 

$ (399)

$ 1,575 

Net Income per share - basic

             $ 0.41 

$ 0.26 

$   (0.05)

$ 0.21 

Net income per share - diluted

$ 0.38 

$   0.25 

$ (0.05)

$      0.20 

GREEN MOUNTAIN COFFEE ROASTERS, INC.

Unaudited Consolidated Statements of Operations and
Reconciliation of Reported Second Quarter Year to Date 2006 to Adjusted Second Quarter Year to Date 2006 Period

(in thousands except per share amounts)

Second Quarter YTD 2006 Reconciliation

Second Quarter

Second Quarter

Less:

Second Quarter

YTD 2007, As

YTD 2006, As

Adjustment

YTD 2006, As

Reported

Reported

for extra

Adjusted

(26 weeks)

(28 weeks)

2 weeks

(26 weeks)

Net Sales

$            166,218 

$ 110,646 

$           (7,810)

$ 102,836 

Cost of Sales

102,049 

71,506 

(5,209)

66,297 

Gross Profit

64,169 

39,140 

(2,601)

36,539 

Selling and operating expenses

37,207 

23,240 

(1,286)

21,954 

General and administrative expenses

14,082 

6,790 

(470)

6,320 

Operating Income

12,880 

9,110 

(845)

8,265 

Other income

75 

172 

(17)

155 

Interest expense

(3,424)

(123)

23 

(100)

Income before income taxes

9,531 

9,159 

(839)

8,320 

Income tax expense

(3,944)

(3,871)

356 

(3,515)

Income before earnings related to investment in Keurig, Inc., net of tax

5,587 

5,288 

(483)

4,805 

Earnings (loss) related to investment in Keurig, Inc., net of tax

- 

(334)

- 

(334)

Net Income

    $   5,587 

$ 4,954 

$ (483)

$ 4,471 

Net Income per share - basic

                  $ 0.73 

$ 0.66 

$   (0.06)

$ 0.60 

Net income per share - diluted

   $   0.69 

$   0.63 

$ (0.06)

$      0.57 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Consolidated Statements of Operations- Non-GAAP basis
(in thousands except per share amounts)

Thirteen weeks ended March 31, 2007

GAAP

Stock-
Based
Compensation

Amortization
of Identifiable
Intangibles

Earnings related to investment in Keurig, Inc.

Non-GAAP

Net Sales

$82,877 

$-

$-

$-

$82,877 

Cost of Sales

50,393 

(118)

-

-

50,275

Gross Profit

32,484 

118 

-

-

32,602 

Selling and operating expenses

17,935 

(316)

-

-

17,619 

General and administrative expenses

7,490 

(570)

(1,203)

-

5,717 

Operating Income

7,059 

1,004 

1,203 

-

9,266 

Other income

37 

- 

-

-

37   

Interest expense

(1,631)

- 

-

-

(1,631)

Income before income taxes

5,465 

1,004 

1,203 

-

7,672 

Income tax expense

(2,320)

(426)

(510)

-

(3,256)

Income before earnings related to investment in Keurig, Inc., net of tax

3,145 

578 

693 

-

4,416 

Earnings related to investment in Keurig, Incorporated, net of tax benefit

-

- 

- 

-

-  

Net Income

$3,145

$578 

$693 

$-

$4,416 

Basic income per share:

          

Weighted average shares outstanding

7,727,546

7,727,546

7,727,546

7,727,546

7,727,546

Net Income

$0.41

$0.07

$0.09

$-

$0.57
           

Diluted income per share:

          

Weighted average shares outstanding

8,206,598

8,206,598

8,206,598

8,206,598

8,206,598

Net income

$0.38

$0.07

$0.08

$-

$0.54

 

Twenty-six weeks ended March 31, 2007

GAAP

Stock-
Based
Compensation

Amortization
of Identifiable
Intangibles

Earnings related to investment in Keurig, Inc.

Non-GAAP

Net Sales

$166,218 

$-

$-

$-

$166,218 

Cost of Sales

102,049 

(198)

-

-

101,851 

Gross Profit

64,169 

198 

-

-

64,367 

Selling and operating expenses

37,207 

(596)

-

-

36,611 

General and administrative expenses

14,082 

(954)

(2,406)

-

10,722 

Operating Income

12,880 

1,748 

2,406 

-

17,034 

Other income

75

- 

-

-

75

Interest expense

(3,424)

- 

-

-

(3,424)

Income before income taxes

9,531 

1,748 

2,406 

-

13,685 

Income tax expense

(3,944)

(723)

(990)

-

(5,657)

Income before earnings related to investment in Keurig, Inc., net of tax

5,587 

1,025 

1,416 

-

8,028 

Earnings related to investment in Keurig, Incorporated, net of tax benefit

- 

- 

-

-

-  

Net Income

$5,587

$1,025 

$1,416 

$-

$8,028 

Basic income per share:

          

Weighted average shares outstanding

7,689,502

7,689,502

7,689,502

7,689,502

7,689,502

Net Income

$0.73

$0.13

$0.18

$-

$1.04
           

Diluted income per share:

          

Weighted average shares outstanding

8,141,649

8,141,649

8,141,649

8,141,649

8,141,649

Net income

$0.69

$0.13

$0.18

$-

$0.99

 

As Adjusted Thirteen weeks ended March 25, 2006

GAAP

Stock-
Based
Compensation

Amortization
of Identifiable
Intangibles

Earnings related to investment in Keurig, Inc.

Non-GAAP

Net Sales

$49,701 

$-

$-

$-

$49,701 

Cost of Sales

32,149 

(53)

-

-

32,096 

Gross Profit

17,552 

53 

-

-

17,605 

Selling and operating expenses

11,166 

(104)

-

-

11,062 

General and administrative expenses

3,122 

(234)

-

-

2,888 

Operating Income

3,264 

391 

-

-

3,655 

Other income

102

- 

-

-

102 

Interest expense

(51)

- 

-

-

(51)

Income before income taxes

3,315 

391 

-

-

3,706 

Income tax expense

(1,404)

(166)

-

-

(1,570)

Income before earnings related to investment in Keurig, Inc., net of tax

1,911 

225 

-

-

2,136 

Earnings (loss) related to investment in Keurig, Incorporated, net of tax benefit

(336)

- 

-

336 

-  

Net Income

$1,575 

$225 

-

$336 

$2,136 

Basic income per share:

          

Weighted average shares outstanding

7,492,301

7,492,301

7,492,301

7,492,301

7,492,301

Net Income

$0.21

$0.03

$-

$0.04

$0.28
           

Diluted income per share:

          

Weighted average shares outstanding

7,909,263

7,909,263

7,909,263

7,909,263

7,909,263

Net income

$0.20

$0.03

$-

$0.04

$0.27

 

 

As Adjusted Twenty-six weeks ended March 25, 2006

GAAP

Stock-
Based
Compensation

Amortization
of Identifiable
Intangibles

Earnings related to investment in Keurig, Inc.

Non-GAAP

Net Sales

$102,836 

$-

$-

$-

$102,836 

Cost of Sales

66,297 

(104)

-

-

66,193 

Gross Profit

36,539 

104 

-

-

36,643 

Selling and operating expenses

21,954 

(214)

-

-

21,740 

General and administrative expenses

6,320 

(412)

-

-

5,908 

Operating Income

8,265 

730 

-

-

8,995 

Other income

155

- 

-

-

155 

Interest expense

(100)

- 

-

-

(100)

Income before income taxes

8,320 

730 

-

-

9,050 

Income tax expense

(3,515)

(309)

-

-

(3,824)

Income before earnings related to investment in Keurig, Inc., net of tax

4,805 

421 

-

-

5,226 

Earnings (loss) related to investment in Keurig, Incorporated, net of tax benefit

(334)

- 

-

334 

-  

Net Income

$4,471 

$421 

-

$334 

$5,226 

Basic income per share:

          

Weighted average shares outstanding

7,482,811

7,482,811

7,482,811

7,482,811

7,482,811

Net Income

$0.60

$0.06

$-

$0.04

$0.70
           

Diluted income per share:

          

Weighted average shares outstanding

7,893,795

7,893,795

7,893,795

7,893,795

7,893,795

Net income

$0.57

$0.05

$-

$0.04

$0.66

 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Total Coffee Pounds Shipped by Stand-Alone Green Mountain Coffee
(Unaudited Pounds in Thousands)

CHANNEL

Q2 13 wks. ended 3/31/07

Q2 13 wks. ended 3/25/06

Q2 Y/Y lb. Change

Q2 % Y/Y lb. Change

Q2YTD 26 wks. ended 3/31/07

Q2YTD 26 wks. ended 3/25/06

Q2YTD Y/Y lb. Change

Q2YTD % Y/Y lb. Change

Supermarkets

1,545

1,611

(66)

-4.1%

3,225

3,335

(110)

-3.3%

Convenience Stores

1,291

1,209

82

6.8%

2,747

2,770

(23)

-0.8%

Office Coffee Srvs

1,852

1,443

409

28.3%

3,545

2,913

632

21.7%

Food Service

1,248

1,055

193

18.3%

2,613

2,237

376

16.8%

Consumer Direct

532

309

223

72.2%

1,072

637

435

68.3%

Totals

6,468

5,627

841

14.9%

13,202

11,892

1,310

11.0%

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.

REGION

Q2 13 wks. ended 3/31/07

Q2 13 wks. ended 3/25/06

Q2 Y/Y lb. Change

Q2 % Y/Y lb. Change

Q2YTD 26 wks. ended 3/31/07

Q2YTD 26 wks. ended 3/25/06

Q2YTD Y/Y lb. Change

Q2YTD % Y/Y lb. Change

New England

2,928

2,564

364

14.2%

6,090

5,337

753

14.1%

Mid Atlantic

1,789

1,566

223

14.2%

3,594

3,283

311

9.5%

South

1,030

802

228

28.4%

2,097

1,812

285

15.7%

Midwest

318

299

19

6.4%

649

652

(3)

-0.5%

West

339

336

3

0.9%

646

669

(23)

-3.4%

International

64

60

4

6.7%

126

139

(13)

-9.4%

Totals

6,468

5,627

841

14.9%

13,202

11,892

1,310

11.0%

 

Data Related to Keurig, Inc., a wholly-owned subsidiary (1), and Green Mountain Coffee Roasters
(Unaudited data and in thousands)

 

Q2 13 wks ended 3/31/07

Q2 13 wks ended 4/1/06

Q2 Y/Y
Increase

Q2 % Y/Y Increase

FY07 26 wks ended 3/31/07

FY06 26 wks ended 4/1/06

FY07 Y/Y Increase

FY07 % Y/Y increase

Total Keurig brewers shipped (2)

84

45

39

87%

205

122

84

69%

Total K-Cups shipped (system-wide) (3)

166,315

116,776

49,539

42%

314,374

221,834

92,540

42%

Total K-Cups shipped by GMCR (4)

93,702

65,576

28,126

43%

176,485

126,697

49,788

39%
  1. The Company acquired Keurig, Inc. on June 15, 2006.
  2. Total Keurig brewers shipped means brewers shipped by Keurig to customers in the US/Canada. Cumulative brewers shipped life to date to customers in the US/Canada as of 3/31/07 is 678 thousand units.
  3. Total K-Cups shipped (system-wide) means K-Cup shipments by all Keurig licensed roasters to customers in the US/Canada. These shipments form the basis upon which royalties are calculated by licensees for payments to Keurig.
  4. Total K-Cups shipped by GMCR are under the brands Green Mountain Coffee, Newman's Own Organics coffee and Celestial Seasonings tea.

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