YoCream International Announces Record Second Quarter Results With Sales Up Over 11%

Jun 21, 2010, 06:00 ET from YoCream International, Inc.

PORTLAND, Ore., June 21 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler of frozen desserts and beverages, today reported the financial results for the second quarter ended April 30, 2010.

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Sales for the three months ended April 30, 2010 increased 11.3% to $14,062,000.  Sales for the six months increased 9.4% to $23,276,000.

Net income for the second quarter was $1,735,000 compared with $1,840,000, and net income for the six months was $2,637,000 compared with $2,795,000 for the same periods in 2009. While the costs of certain dairy ingredients have increased, the Company has chosen not to raise prices at this time in recognition of the general state of the economy.

Sales of the Company's core frozen yogurt business grew 52.1% in the second quarter following 30.9% in the first quarter.  Frozen yogurt establishments continue to open across the nation, and the Company is seeing frozen yogurt introductions as secondary menu items in establishments like delis and sandwich shops. Expanded availability of frozen yogurt is enthusiastically accepted by consumers wanting to enjoy healthy probiotic frozen desserts on a more regular basis. While the tarter profile frozen yogurts, like Original Tart™ (available in 7 flavors) and EuroTart™ are popular with many consumers, the sweeter profile frozen yogurts are still the leading sellers. Nonfat and premium sweet flavors, like Georgia Peach and Red Velvet Cake are being enjoyed by consumers that might have traditionally favored ice cream or frozen custard.

The Company is further enthused as attendance at its YoCream University (Yo - U™), an intensive two day course on starting and operating a frozen yogurt business, has helped many new operators open their establishments. To meet the demand of entrepreneurs wanting to attend Yo-U™, the class size was increased earlier this year and has continued to be conducted at capacity with waiting lists each month.

YoCream's complete quarterly report and management's discussion and analysis is posted at www.yocream.com and www.pinksheets.com.

YoCream International, Inc. is a world leader in the frozen yogurt industry. Since 1977, YoCream has pioneered the innovation, production and marketing of frozen yogurt and fruit-based frozen desserts and beverages. The Company operates a state-of-the-art production facility in Portland, Oregon, to manufacture its "true" frozen yogurt, which contains the real yogurt that is fermented and cultured on site daily. The Company offers over 110 flavors of frozen yogurt, ice cream, frozen custard, sorbet, smoothies, frozen carbonated beverages, slushes and frozen drink mixes. In addition to the YoCream brand, the Company also provides other branded flavors such as Hershey's™ (e.g. Hershey's™ Kisses™, Reese's™, York™, Jolly Rancher™, Twizzlers™, Bubble Yum™) and Rockstar™ under exclusive licenses. YoCream's end-user customers number in the thousands and include marquee convenience stores, quality quick service restaurants, warehouse stores, prestigious eating establishments, large grocery chains, frozen yogurt shops, colleges, military and government foodservice locations, international restaurants and neighborhood stores involving over 250 specialty and full line distributors in the supply chain.

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 strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.

YOCREAM INTERNATIONAL, INC.

STATEMENTS OF INCOME

(Unaudited)

Three Months Ended

Six Months Ended

April 30,

April 30,

2010

2009

2010

2009

Sales

$  14,061,607

$  12,626,710

$  23,276,072

$  21,268,610

Cost of goods sold

7,700,774

6,384,630

12,839,919

11,267,978

   Gross profit

6,360,833

6,242,080

10,436,153

10,000,632

Operating costs and expenses

   Distribution expenses

1,591,863

1,149,728

2,663,984

1,950,911

   Selling, and marketing expenses

1,058,771

908,014

1,796,012

1,602,222

   General and administrative expenses

822,628

960,954

1,589,550

1,651,467

   Income from operations

2,887,571

3,223,384

4,386,607

4,796,032

Other income (expenses)

   Interest income

5,586

7,559

13,121

16,754

   Interest expense

(100,272)

(119,112)

(206,753)

(232,388)

   Restricted stock compensation

-

(280,500)

-

(280,500)

   Income before income taxes

2,792,885

2,831,331

4,192,975

4,299,898

Income tax provision

(1,057,600)

(991,000)

(1,556,000)

(1,505,000)

   Net income

$    1,735,285

$    1,840,331

$    2,636,975

$    2,794,898

Earnings per common share – basic

$0.67

$0.80

$1.01

$1.22

Earnings per common share – diluted

$0.67

$0.76

$1.01

$1.16

Shares used in basic earnings per share

2,607,898

2,305,418

2,607,898

2,283,814

Shares used in diluted earnings per share

2,607,898

2,426,484

2,607,898

2,415,553

YOCREAM INTERNATIONAL, INC

BALANCE SHEETS

April 30,

October 31,

2010

2009

(Unaudited)

(Audited)

                           ASSETS

 Current assets

   Cash and cash equivalents

$    6,264,973

$  12,118,067

   Accounts receivable, net

5,151,177

2,542,618

   Inventories

6,368,415

5,151,899

   Income tax receivable

-

100,248

   Other current assets

712,228

569,775

   Deferred tax assets

243,775

243,775

       Total current assets

18,740,568

20,726,382

 Fixed assets, net

14,594,681

14,712,748

 Intangible and other long-term assets, net

1,304,730

1,196,655

 Deferred tax assets

294,900

309,500

$  34,934,879

$  36,945,285

       LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities

   Note payable – line of credit

$               -

$               -

   Current portion of long-term debt

520,414

647,873

   Accounts payable

4,183,273

3,440,694

   Income tax payable

613,402

-

   Other accrued liabilities

293,164

761,085

       Total current liabilities

5,610,253

4,849,652

 Long-term debt, less current portion

7,085,972

7,378,449

 Deferred tax liabilities

2,163,975

2,144,975

 Other liabilities

159,905

145,250

       Total liabilities

15,020,105

14,518,326

 Shareholders' equity

   Preferred stock, no par value, none issued or outstanding

-

-

   Common stock, no par value, 30,000,000 shares authorized, 2,607,898 issued and outstanding as of April 2010 and October 2009

7,750,865

7,750,865

   Retained earnings

12,636,809

15,172,494

   Accumulated other comprehensive income

(472,900)

(496,400)

       Total shareholders' equity

19,914,774

22,426,959

$  34,934,879

$  36,945,285

YOCREAM INTERNATIONAL, INC.

STATEMENTS OF CASH FLOWS

For the six months ended April 30, 2010 and 2009

(Unaudited)

2010

2009

Cash flows from operating activities

 Net income

$    2,636,975

$    2,794,898

 Adjustments to reconcile net income to net cash provided by operating activities

     Depreciation and amortization

541,634

497,559

     Deferred income taxes

19,000

105,400

     Change in assets and liabilities

       Accounts receivable

(2,608,559)

(601,306)

       Inventories

(1,216,516)

(2,063,220)

       Other assets

(250,528)

(66,983)

       Accounts payable

923,253

505,496

       Income taxes payable

713,650

(1,284,300)

       Restricted stock compensation

-

280,500

       Other accrued liabilities

(453,266)

(147,067)

            Net cash provided by operating activities

305,643

20,977

Cash flows from investing activities

 Proceeds from sale and leaseback of equipment

-

438,753

 Expenditures for fixed assets

(604,241)

(1,615,837)

            Net cash used in investing activities

(604,241)

(1,177,084)

Cash flows from financing activities

 Principal payments on long-term debt

(381,836)

(357,223)

 Excess tax benefits of restricted stock

-

253,100

 Cash dividend payment

(5,172,660)

-

          Net cash used in financing activities

(5,554,496)

(104,123)

          Net decrease in cash and cash equivalents

(5,853,094)

(1,260,230)

Cash and cash equivalents, beginning of period

12,118,067

7,169,393

Cash and cash equivalents, end of period

$    6,264,973

$    5,909,163

SOURCE YoCream International, Inc.



RELATED LINKS

http://www.yocream.com