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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 15, 2007
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 15, 2007, the Company issued a press release announcing its fourth quarter and full fiscal year results for the period ending September 29, 2007. 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 15, 2007 regarding Fourth Quarter and Full Year 2007 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 15, 2007
EXHIBIT INDEX
99.1 |
Press Release dated November 15, 2007 |
Contact: Frances G. Rathke, CFO
Tel: (802) 244-5621 x 2300
Green Mountain Coffee Roasters, Inc. Reports Strong Growth for
Fiscal 2007 Fourth Quarter and Full Year
-- Fourth Quarter Sales up 39% and Net Income up 133% over prior year --
WATERBURY, VT (November 15, 2007) -- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced its fiscal 2007 and fiscal fourth quarter results for the thirteen weeks ended September 29, 2007, reporting strong sales and earnings growth.
Net sales for the fourth quarter of fiscal 2007 totaled $93.0 million as compared to $66.9 million reported in the fourth quarter of fiscal 2006, representing an increase of 39% year over year.
Net income for the fiscal fourth quarter of 2007 was $3.6 million or $0.14 per diluted share, up 133% from $1.5 million or $0.06 per diluted share in the fiscal fourth quarter of 2006.
For the fifty-two weeks ended September 29, 2007, the Company recorded net sales of $341.7 million, up 52 % from $225.3 million for the fifty-three weeks ended September 30, 2006. Net income for fiscal 2007 increased 52% to $12.8 million, or $0.52 per diluted share, as compared to net income of $8.4 million, or $0.36 per diluted share for the prior year. Fiscal 2007 includes a full year of consolidating the financial results of Keurig as a wholly-owned subsidiary as compared to fiscal 2006, which included fifteen weeks of Keurig's financial results as a wholly owned subsidiary following the close of the acquisition on June 15, 2006. Please note that the fiscal year 2006 has an extra week as compared to fiscal year 2007.
Excluding the impact of non-cash expenses described below and illustrated in the financial tables accompanying this press release, non-GAAP net income totaled $15.7 million in the 52-week period ended September 29, 2007, or $0.63 per share, up approximately 54% compared to non-GAAP net income of $10.2 million or $0.43 per share, for the 53-week period ended September 30, 2006. A reconciliation of all GAAP to non-GAAP financial measures is provided in the Company's financial tables accompanying this press release.
The items the Company is excluding from the non-GAAP results are: 1.) the pre-tax non-cash amortization expense related to the Keurig intangibles of approximately $4.8 million or $0.12 per diluted share in fiscal 2007, and $1.4 million or $0.03 per diluted share in fiscal 2006; and 2.) the recognition of an after-tax non-cash loss of $963,000 or $0.04 per share as a result of its equity investment in Keurig in fiscal 2006.
Lawrence J. Blanford, President and CEO, said, "I am very pleased with the financial results we are reporting today and, in particular, the strong top and bottom line growth we delivered to our stockholders. Our Keurig subsidiary has enabled us to even further accelerate the sales and profit growth of the Company due to the leadership position of Keurig in the single-cup brewing industry
for the home and office environments. Also, we grew shipments of our Fair Trade Certified™ and Fair Trade Certified organic lines, including Newman's Own® Organics, by 12% in fiscal 2007. Fair Trade Certified and Fair Trade Certified organic coffees now represent over 28% of our roasted coffee volume. I believe that our balanced approach to social responsibility, combined with our continued focus on building our business to expand the reach of our brands, is contributing meaningfully to our success. Going forward, we will continue to look at the drivers of single-cup brewing, the synergy with our traditional Green Mountain Coffee business, and ways to even further enhance the value creation opportunity of our enterprise."
Fiscal 2007 Fourth Quarter Financial Review
Net Sales
Costs, Margins and Income
Business Outlook and Other Forward-Looking Information
Company Estimates for Fiscal Year 2008:
Company Estimates Relating to Balance Sheet and Cash Flow:
Company Estimates for First Quarter Fiscal Year 2008:
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 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. 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. Management 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 fiscal 2007 fourth quarter and full year and the comparable prior periods on a GAAP and non-GAAP basis with line item reconciliation.
Green Mountain Coffee Roasters, Inc. 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 1415047 from 1:30 PM ET on November 15th through 1:30 PM ET on Monday, November 19, 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 more than 100 high-quality selections, including Fair Trade Certified™ and organic coffees under the Green Mountain Coffee Roasters® and Newman's Own® Organics brands through its wholesale, direct mail, and e-commerce operations (www.GreenMountainCoffee.com). Keurig, a pioneer and leading manufacturer of gourmet single-cup brewing system, offers its brewers, and K-Cups® from a variety of roasters, through wholesale, resellers and directly to consumers, while Green Mountain Coffee Roasters licenses, manufactures and sells its coffee as well as hot cocoa and tea K-Cups® for use in Keurig brewers. Green Mountain Coffee Roasters has been ranked No. 1 on the list of "100 Best Corporate Citizens," for the past two years, 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, the impact on retail sales of consumer sentiment regarding the health of the economy, business conditions in the coffee industry and food industry in general, fluctuations in availability and cost of high-quality green coffee, the unknown impact of any price increases on net sales, competition, the unknown impact of management changes, Keurig'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 ti ming 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 described more fully in the Company's filings with the SEC. 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 9/29/07 |
Thirteen weeks ended 9/30/06 |
Fifty-two weeks ended 9/29/07 |
Fifty-three weeks ended 9/30/06 |
|
Net sales |
$ 93,015 |
$ 66,875 |
$ 341,651 |
$ 225,323 |
Cost of sales |
60,199 |
41,724 |
210,530 |
143,289 |
Gross profit |
32,816 |
25,151 |
131,121 |
82,034 |
Selling and operating expenses |
17,186 |
14,350 |
72,641 |
46,808 |
General and administrative expenses |
8,165 |
6,380 |
30,781 |
17,112 |
Operating income |
7,465 |
4,421 |
27,699 |
18,114 |
Other income (expense) |
(83) |
(24) |
54 |
202 |
Interest expense |
(1,301) |
(1,816) |
(6,176) |
(2,261) |
Income before income taxes |
6,081 |
2,581 |
21,577 |
16,055 |
Income tax expense |
(2,510) |
(1,047) |
(8,734) |
(6,649) |
Income before earnings related to investment in Keurig, Incorporated |
3,571 |
1,534 |
12,843 |
9,406 |
Earnings (loss) related to investment in Keurig, Incorporated, net of tax |
- |
- |
- |
(963) |
Net income |
$ 3,571 |
$ 1,534 |
$ 12,843 |
$ 8,443 |
======== |
======== |
======== |
======== |
|
Basic income per share: |
||||
Weighted average shares outstanding |
23,464,129 |
22,631,184 |
23,250,431 |
22,516,701 |
Net income |
$ 0.15 |
$ 0.07 |
$0.55 |
$ 0.37 |
Diluted income per share: |
||||
Weighted average shares outstanding |
25,267,680 |
23,811,057 |
24,773,373 |
23,727,348 |
Net income |
$ 0.14 |
$ 0.06 |
$0.52 |
$ 0.36 |
|
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Balance Sheets
(Dollars in thousands)
September 29, |
September 30, |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$2,818 |
$1,066 |
|
Restricted cash and cash equivalents |
354 |
208 |
|
Receivables, less allowances of $1,600 and $1,021 at September 29, 2007, and September 30, 2006, respectively |
39,373 |
30,071 |
|
Inventories |
38,909 |
31,796 |
|
Other current assets |
2,811 |
2,816 |
|
Income tax receivable |
- |
618 |
|
Deferred income taxes, net |
3,558 |
1,384 |
|
Total current assets |
87,823 |
67,959 |
|
Fixed assets, net |
65,692 |
48,811 |
|
Intangibles, net |
34,208 |
39,019 |
|
Goodwill |
73,840 |
75,305 |
|
Other long-term assets |
2,964 |
2,912 |
|
Total assets |
$264,527 |
$234,006 |
|
======= |
======= |
||
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Current portion of long-term debt |
$63 |
$ 97 |
|
Accounts payable |
37,778 |
23,124 |
|
Accrued compensation costs |
7,027 |
6,736 |
|
Accrued expenses |
9,866 |
7,978 |
|
Income tax payable |
1,443 |
- |
|
Other short-term liabilities |
871 |
874 |
|
Total current liabilities |
57,048 |
38,809 |
|
Long-term revolving line of credit |
90,000 |
102,800 |
|
Long-term debt |
50 |
71 |
|
Deferred income taxes |
18,330 |
17,386 |
|
Commitments and contingencies |
|||
Stockholders' equity: |
|||
Preferred stock, $0.10 par value: Authorized - 1,000,000 shares; |
- |
- |
|
Common stock, $0.10 par value: Authorized - 60,000,000 shares; Issued - 24,697,008 at September 29, 2007 and 24,044,407 shares at September 30, 2006, respectively |
2,470 |
2,404 |
|
Additional paid-in capital |
45,704 |
34,545 |
|
Retained earnings |
58,981 |
46,138 |
|
Accumulated other comprehensive (loss) |
(512) |
(548) |
|
ESOP unallocated shares, at cost - 29,310 shares |
(208) |
(263) |
|
Treasury shares, at cost - 1,157,554 shares |
(7,336) |
(7,336) |
|
Total stockholders' equity |
99,099 |
74,940 |
|
Total liabilities and stockholders' equity |
$264,527 |
$234,006 |
|
|
======= |
======= |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Thirteen weeks ended September 29, 2007 |
||||||||
GAAP |
Amortization |
Loss related to investment in Keurig, Inc. |
Non-GAAP |
|||||
Net Sales |
$93,015 |
$- |
$- |
$93,015 |
||||
Cost of Sales |
60,199 |
- |
- |
60,199 |
||||
Gross Profit |
32,816 |
- |
- |
32,816 |
||||
Selling and operating expenses |
17,186 |
- |
- |
17,186 |
||||
General and administrative expenses |
8,165 |
(1,203) |
- |
6,962 |
||||
Operating Income |
7,465 |
1,203 |
- |
8,668 |
||||
Other income |
(83) |
- |
- |
(83) |
||||
Interest expense |
(1,301) |
- |
- |
(1,301) |
||||
Income before income taxes |
6,081 |
1,203 |
- |
7,284 |
||||
Income tax expense |
(2,510) |
(496) |
- |
(3,006) |
||||
Income before loss related to investment in Keurig, Inc., net of tax |
3,571 |
707 |
- |
4,278 |
||||
Loss related to investment in Keurig, Incorporated, net of tax benefit |
- |
- |
- |
- |
||||
Net Income |
$3,571 |
$707 |
$- |
$4,278 |
||||
Basic income per share: |
||||||||
Weighted average shares outstanding |
23,464,129 |
23,464,129 |
23,464,129 |
23,464,129 |
||||
Net Income |
$0.15 |
$0.03 |
$- |
$0.18 |
||||
Diluted income per share: |
||||||||
Weighted average shares outstanding |
25,267,680 |
25,267,680 |
25,267,680 |
25,267,680 |
||||
Net income |
$0.14 |
$0.03 |
$- |
$0.17 |
Fifty-two weeks ended September 29, 2007 |
||||||||
GAAP |
Amortization |
Loss related to investment in Keurig, Inc. |
Non-GAAP |
|||||
Net Sales |
$341,651 |
$- |
$- |
$341,651 |
||||
Cost of Sales |
210,530 |
- |
- |
210,530 |
||||
Gross Profit |
131,121 |
- |
- |
131,121 |
||||
Selling and operating expenses |
72,641 |
- |
- |
72,641 |
||||
General and administrative expenses |
30,781 |
(4,812) |
- |
25,969 |
||||
Operating Income |
27,699 |
4,812 |
- |
32,511 |
||||
Other income |
54 |
- |
- |
54 |
||||
Interest expense |
(6,176) |
- |
- |
(6,176) |
||||
Income before income taxes |
21,577 |
4,812 |
- |
26,389 |
||||
Income tax expense |
(8,734) |
(1,947) |
- |
(10,681) |
||||
Income before loss related to investment in Keurig, Inc., net of tax |
12,843 |
2,865 |
- |
15,708 |
||||
Loss related to investment in Keurig, Incorporated, net of tax benefit |
- |
- |
- |
- |
||||
Net Income |
$12,843 |
$2,865 |
$- |
$15,708 |
||||
Basic income per share: |
||||||||
Weighted average shares outstanding |
23,250,431 |
23,250,431 |
23,250,431 |
23,250,431 |
||||
Net Income |
$0.55 |
$0.12 |
$- |
$0.68 |
||||
Diluted income per share: |
||||||||
Weighted average shares outstanding |
24,773,373 |
24,773,373 |
24,773,373 |
24,773,373 |
||||
Net income |
$0.52 |
$0.12 |
$- |
$0.63 |
Thirteen weeks ended September 30, 2006 |
||||||||
GAAP |
Amortization |
Loss related to investment in Keurig, Inc. |
Non-GAAP |
|||||
Net Sales |
$66,875 |
$- |
$- |
$66,875 |
||||
Cost of Sales |
41,724 |
- |
- |
41,724 |
||||
Gross Profit |
25,151 |
- |
- |
25,151 |
||||
Selling and operating expenses |
14,350 |
- |
- |
14,350 |
||||
General and administrative expenses |
6,380 |
(1,203) |
- |
5,177 |
||||
Operating Income |
4,421 |
1,203 |
- |
5,624 |
||||
Other income |
(24) |
- |
- |
(24) |
||||
Interest expense |
(1,816) |
- |
- |
(1,816) |
||||
Income before income taxes |
2,581 |
1,203 |
- |
3,784 |
||||
Income tax expense |
(1,047) |
(492) |
- |
(1,539) |
||||
Income before loss related to investment in Keurig, Inc., net of tax |
1,534 |
711 |
- |
2,245 |
||||
Loss related to investment in Keurig, Incorporated, net of tax benefit |
- |
- |
- |
- |
||||
Net Income |
$1,534 |
$711 |
$- |
$2,245 |
||||
Basic income per share: |
||||||||
Weighted average shares outstanding |
22,631,184 |
22,631,184 |
22,631,184 |
22,631,184 |
||||
Net Income |
$0.07 |
$0.03 |
$- |
$0.10 |
||||
Diluted income per share: |
||||||||
Weighted average shares outstanding |
23,811,057 |
23,811,057 |
23,811,057 |
23,811,057 |
||||
Net income |
$0.06 |
$0.03 |
$- |
$0.09 |
Fifty-three weeks ended September 30, 2006 |
||||||||
GAAP |
Amortization |
Loss related to investment in Keurig, Inc. |
Non-GAAP |
|||||
Net Sales |
$225,323 |
$- |
$- |
$225,323 |
||||
Cost of Sales |
143,289 |
- |
- |
143,289 |
||||
Gross Profit |
82,034 |
- |
- |
82,034 |
||||
Selling and operating expenses |
46,808 |
- |
- |
46,808 |
||||
General and administrative expenses |
17,112 |
(1,402) |
- |
15,710 |
||||
Operating Income |
18,114 |
1,402 |
- |
19,516 |
||||
Other income |
202 |
- |
- |
202 |
||||
Interest expense |
(2,261) |
- |
- |
(2,261) |
||||
Income before income taxes |
16,055 |
1,402 |
- |
17,457 |
||||
Income tax expense |
(6,649) |
(581) |
- |
(7,230) |
||||
Income before loss related to investment in Keurig, Inc., net of tax |
9,406 |
821 |
- |
10,227 |
||||
Loss related to investment in Keurig, Incorporated, net of tax benefit |
(963) |
- |
963 |
- |
||||
Net Income |
$8,443 |
$821 |
$963 |
$10,227 |
||||
Basic income per share: |
||||||||
Weighted average shares outstanding |
22,516,701 |
22,516,701 |
22,516,701 |
22,516,701 |
||||
Net Income |
$0.37 |
$0.04 |
$0.04 |
$0.45 |
||||
Diluted income per share: |
||||||||
Weighted average shares outstanding |
23,727,348 |
23,727,348 |
23,727,348 |
23,727,348 |
||||
Net income |
$0.36 |
$0.03 |
$0.04 |
$0.43 |
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Total Coffee Pounds Shipped by Stand-Alone Green Mountain Coffee
CHANNEL |
Q4 13 wks. ended 9/29/07 |
Q4 13 wks. ended 9/30/06 |
Q4 Y/Y lb. Change |
Q4% Y/Y lb. Change |
Q4YTD 52 wks. ended 9/29/07 |
Q4YTD 53 wks. ended 9/30/06 |
Q4YTD Y/Y lb. Change |
Q4YTD % Y/Y lb. Change |
Supermarkets |
1,664 |
1,480 |
184 |
12.4 % |
6,412 |
6,258 |
154 |
2.5 % |
Resellers |
317 |
170 |
147 |
86.5 % |
1,043 |
561 |
482 |
85.9 % |
Convenience Stores |
1,458 |
1,599 |
(141) |
(8.8)% |
5,640 |
5,863 |
(223) |
(3.8)% |
Office Coffee Srvs |
1,772 |
1,430 |
342 |
23.9 % |
7,080 |
5,947 |
1,133 |
19.1 % |
Food Service |
1,441 |
1,358 |
83 |
6.1 % |
5,429 |
4,964 |
465 |
9.4 % |
Consumer Direct |
303 |
218 |
85 |
39.0 % |
1,214 |
896 |
318 |
35.5 % |
Totals |
6,955 |
6,255 |
700 |
11.2 % |
26,818 |
24,489 |
2,329 |
9.5 % |
Note: 2006 was a 53-week fiscal year while 2007 is a 52-week fiscal year.
Note: Certain prior year customer channel classifications were reclassified to conform to current year classifications.
Note: The Resellers channel includes shipments of Green Mountain Coffee manufactured products to Keurig Inc. and other resellers for sales to either the retail channel such as department stores or sales via internet websites
Company-wide Keurig brewer and K-Cup shipments
Q4 13 wks ended 9/29/07 |
Q4 13 wks ended 9/30/06 |
Q4 Y/Y Increase |
Q4 % Y/Y Increase |
FY07 |
FY06 |
FY07 Y/Y Increase |
FY07 % Y/Y Increase |
|
At Home Brewers (Consumer) |
159 |
83 |
76 |
92% |
422 |
219 |
203 |
93% |
Away from Home Brewers (Commercial) |
20 |
7 |
13 |
186% |
57 |
28 |
29 |
104% |
Total Keurig brewers shipped (2) |
179 |
90 |
89 |
99% |
479 |
247 |
232 |
94% |
Total K-Cups shipped (system-wide) (3) |
168,421 |
115,473 |
52,948 |
46% |
638,298 |
448,880 |
189,418 |
42% |
Total K-Cups sold by GMCR (4) |
95,355 |
63,431 |
31,924 |
50% |
359,056 |
255,412 |
103,644 |
41% |
(1)
2006 was a 53-week fiscal year while 2007 was a 52-week year.