PORTLAND, Ore., March 13 /PRNewswire-FirstCall/ --
YoCream International, Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler
of frozen desserts and beverages, today reported the financial results for the
first quarter ended January 31, 2008. To view the full results,
please visit:
Sales for the three months endedJanuary 31, 2008 increased 23.3%
to $5,136,000 , and represented the seventh consecutive quarter of
double digit growth. The breakdown of sales by category was as follows:
The 37.3% increase in frozen dessert sales in the first quarter of 2008 primarily came from the Company's core frozen yogurt products. Strong sales of YoCream's flagship traditional sweeter-profile frozen yogurt have been complemented by increased demand for its creamy, sweet and tangy Original Tart(TM) frozen yogurt that was reintroduced in the second quarter of 2007. The Company completed development of a second tart frozen yogurt branded EuroTart(TM) during the first quarter of 2008. "This product has a lighter, frostier texture than Original Tart(TM) and a flavor profile more closely resembling the powdered products that are popular in certain markets," stated Suzanne Gardner, Director of Marketing. "We sampled EuroTart(TM) through one of our large customers and received very positive feedback and suggestions for a slight modification to the flavor. These changes were made and we anticipate incremental tart frozen yogurt sales this summer from YoCream EuroTart(TM)."
The heightened public awareness of probiotics and the related benefits of yogurt continue to drive interest in cultured dairy products and desserts. In February, the International Dairy Foods Association (IDFA) opened its Ice Cream Technology Conference with the session, Frozen Yogurt: the "It" Dessert of 2008! John Hanna, YoCream CEO, spoke about frozen yogurt manufacturing practices and the importance of a standard of identity for frozen yogurt to include high live and active culture counts. YoCream's frozen yogurt products are manufactured with a proprietary process that maintains high probiotic culture counts, distinguishing them from a number of competitive brands. The National Yogurt Association (NYA) has approved YoCream products to carry the Live and Active Culture (LAC) seal. Dan Kim, CEO of Red Mango, addressed the IDFA conference on consumer demand for frozen yogurt. YoCream is the exclusive manufacturer for Red Mango's proprietary natural yogurt formula in the U.S.
"In the first quarter of 2008, we began sales of a nonfat frozen yogurt smoothie base that we developed for a major fast food restaurant chain," stated Tyler Bargas, Director of Sales. "The nationwide roll out of this product is expected to begin in the second quarter of this fiscal year."
The 9.4% increase in the frozen beverage category in the first quarter of 2008 primarily related to sales of Jolly Rancher(R) Frozen Beverage to major chains and convenience stores throughout the nation. New frozen beverage flavors were developed and introduced for the 2008 summer season including Twizzers(TM) Strawberry, Bubble Yum(TM) Cotton Candy and Jolly Rancher(TM) Cinnamon Fire. In the first quarter of 2008, a new Jolly Rancher(TM) Tropical Tremor(TM) Fruit Punch flavor was completed. "We expect sales of these products as well as Jarritos(TM) frozen beverages to seasonally intensify in the months ahead," noted Bargas.
Co-packing sales were higher in the first quarter of 2007 because the Company was producing a yogurt and fruit smoothie retail product for a major food products company. Sales of this product were discontinued later in 2007. The Company is presently producing a coffee product for a California-based coffee company selling to the convenience store market and is considering other co-packing opportunities on a selective basis.
Gross profit for the first quarter of 2008 increased 15.1% to $2,019,000. As a percentage of sales, gross profit margins for the quarter were 39.3% compared to 42.1% in 2007. Over the past twelve months gross profit margins have been impacted by an increase in ingredient costs, mainly dairy products. As a result, management implemented a price increase in December 2007 and expects margins to stabilize in subsequent quarters.
Income from operations for the first quarter of 2008 increased 256% to $285,000 from $80,000 for the same period in 2007. As a percentage of sales, income from operations in 2008 increased to 5.5% compared with 1.9% in 2007. The increase was due to the increase in sales and the reduction in operating costs and expenses as a percent of sales. The Company expects the positive sales trend to continue as a result of the increased demand for soft serve frozen yogurt, rollout of the Company's recently acquired business with a major fast food restaurant chain, new product introductions and continued intense sales activity.
Net income increased for the first quarter of 2008 to $100,000 or $.04 per share, compared with $1,000 for the same period in 2007. The increase was primarily due to the increase in income from operations. Management was pleased with the first quarter results and expects a strong year. The first quarter comes during the winter, and is the Company's slowest quarter.
Earnings before interest, taxes, and depreciation (EBITDA) for the first quarter of fiscal 2008 increased 97.3% to $516,000, compared with $262,000 for the same period in 2007.
YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces, markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream and frozen custard mixes under the YoCream brand. YoCream's frozen beverage product lines include Fruitquake Frozen Drinks and Smoothies for blender, bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble Yum(TM), Twizzlers(TM), and Jarritos(TM) Frozen Beverages for frozen carbonated and uncarbonated machine dispensing. The Company also co-packs similar products for other companies. Due to the nature of these products, sales are subject to seasonal fluctuations, with the summer months normally being the busiest season. The introduction and roll out of new products has tended to level the seasonal fluctuations.
This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in co-packing relationships and strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.
SOURCE YoCream International, Inc.
Sales for the three months ended
The 37.3% increase in frozen dessert sales in the first quarter of 2008 primarily came from the Company's core frozen yogurt products. Strong sales of YoCream's flagship traditional sweeter-profile frozen yogurt have been complemented by increased demand for its creamy, sweet and tangy Original Tart(TM) frozen yogurt that was reintroduced in the second quarter of 2007. The Company completed development of a second tart frozen yogurt branded EuroTart(TM) during the first quarter of 2008. "This product has a lighter, frostier texture than Original Tart(TM) and a flavor profile more closely resembling the powdered products that are popular in certain markets," stated Suzanne Gardner, Director of Marketing. "We sampled EuroTart(TM) through one of our large customers and received very positive feedback and suggestions for a slight modification to the flavor. These changes were made and we anticipate incremental tart frozen yogurt sales this summer from YoCream EuroTart(TM)."
The heightened public awareness of probiotics and the related benefits of yogurt continue to drive interest in cultured dairy products and desserts. In February, the International Dairy Foods Association (IDFA) opened its Ice Cream Technology Conference with the session, Frozen Yogurt: the "It" Dessert of 2008! John Hanna, YoCream CEO, spoke about frozen yogurt manufacturing practices and the importance of a standard of identity for frozen yogurt to include high live and active culture counts. YoCream's frozen yogurt products are manufactured with a proprietary process that maintains high probiotic culture counts, distinguishing them from a number of competitive brands. The National Yogurt Association (NYA) has approved YoCream products to carry the Live and Active Culture (LAC) seal. Dan Kim, CEO of Red Mango, addressed the IDFA conference on consumer demand for frozen yogurt. YoCream is the exclusive manufacturer for Red Mango's proprietary natural yogurt formula in the U.S.
"In the first quarter of 2008, we began sales of a nonfat frozen yogurt smoothie base that we developed for a major fast food restaurant chain," stated Tyler Bargas, Director of Sales. "The nationwide roll out of this product is expected to begin in the second quarter of this fiscal year."
The 9.4% increase in the frozen beverage category in the first quarter of 2008 primarily related to sales of Jolly Rancher(R) Frozen Beverage to major chains and convenience stores throughout the nation. New frozen beverage flavors were developed and introduced for the 2008 summer season including Twizzers(TM) Strawberry, Bubble Yum(TM) Cotton Candy and Jolly Rancher(TM) Cinnamon Fire. In the first quarter of 2008, a new Jolly Rancher(TM) Tropical Tremor(TM) Fruit Punch flavor was completed. "We expect sales of these products as well as Jarritos(TM) frozen beverages to seasonally intensify in the months ahead," noted Bargas.
Co-packing sales were higher in the first quarter of 2007 because the Company was producing a yogurt and fruit smoothie retail product for a major food products company. Sales of this product were discontinued later in 2007. The Company is presently producing a coffee product for a California-based coffee company selling to the convenience store market and is considering other co-packing opportunities on a selective basis.
Gross profit for the first quarter of 2008 increased 15.1% to $2,019,000. As a percentage of sales, gross profit margins for the quarter were 39.3% compared to 42.1% in 2007. Over the past twelve months gross profit margins have been impacted by an increase in ingredient costs, mainly dairy products. As a result, management implemented a price increase in December 2007 and expects margins to stabilize in subsequent quarters.
Income from operations for the first quarter of 2008 increased 256% to $285,000 from $80,000 for the same period in 2007. As a percentage of sales, income from operations in 2008 increased to 5.5% compared with 1.9% in 2007. The increase was due to the increase in sales and the reduction in operating costs and expenses as a percent of sales. The Company expects the positive sales trend to continue as a result of the increased demand for soft serve frozen yogurt, rollout of the Company's recently acquired business with a major fast food restaurant chain, new product introductions and continued intense sales activity.
Net income increased for the first quarter of 2008 to $100,000 or $.04 per share, compared with $1,000 for the same period in 2007. The increase was primarily due to the increase in income from operations. Management was pleased with the first quarter results and expects a strong year. The first quarter comes during the winter, and is the Company's slowest quarter.
Earnings before interest, taxes, and depreciation (EBITDA) for the first quarter of fiscal 2008 increased 97.3% to $516,000, compared with $262,000 for the same period in 2007.
YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces, markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream and frozen custard mixes under the YoCream brand. YoCream's frozen beverage product lines include Fruitquake Frozen Drinks and Smoothies for blender, bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble Yum(TM), Twizzlers(TM), and Jarritos(TM) Frozen Beverages for frozen carbonated and uncarbonated machine dispensing. The Company also co-packs similar products for other companies. Due to the nature of these products, sales are subject to seasonal fluctuations, with the summer months normally being the busiest season. The introduction and roll out of new products has tended to level the seasonal fluctuations.
This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in co-packing relationships and strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.
SOURCE YoCream International, Inc.
