EMERYVILLE, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Peet's Coffee
& Tea, Inc. (NASDAQ:PEET) today announced results for its third
quarter 2007 ended September 30, 2007. (Logo:
http://www.newscom.com/cgi-bin/prnh/20070606/AQW139LOGO) In this
release, the Company: -- Reports net revenue of $60.9 million, an
increase of 19.6% versus last year; -- Reports diluted earnings per
share of $0.13, an increase of 30% versus last year; -- Announces
that it has exceeded its goal of 1,000 new grocery outlets this
year, with more than 1,300 stores added through October; and --
Reaffirms diluted earnings per share expectations for the full year
of $0.65 to $0.67, excluding expenses related to the stock option
review and related lawsuits. For the 13 weeks ended September 30,
2007, net revenue increased 19.6% to $60.9 million from $50.9
million for the corresponding period of fiscal 2006. Reported net
income for the quarter was $1.8 million or $0.13 per diluted share,
compared to $1.5 million or $0.10 per diluted share last year.
"Despite a more challenging retail environment this year that
continued in the quarter, we made great progress," said Patrick
O'Dea, president and chief executive officer of Peet's Coffee &
Tea, Inc. "I am particularly encouraged by the results of our
grocery expansion, as well as efforts throughout the Company to
reduce unnecessary costs that have enabled us to offset some
commodity-related cost increases." Financial and Operating Summary
Retail net revenue increased 20.7% to $41.5 million for the 13
weeks ended September 30, 2007, from $34.4 million for the
corresponding period of fiscal 2006. The increase was primarily
attributable to new retail stores opened in the last 12 months and
growth in existing stores. The Company opened seven new retail
locations in the quarter. Specialty net revenue increased 17.5% to
$19.4 million, compared to $16.5 million for the corresponding
quarter last year. Within the specialty business, grocery grew
23.3%, food service and office sales were up 17.6% and the home
delivery business registered 5.0% growth compared to the same
period last year. Cost of sales and related occupancy costs
increased to 47.9% of total net revenue compared to 47.3% for the
corresponding quarter last year. The increase over last year is due
to higher milk and green coffee costs and higher manufacturing
costs due to the opening of the new roasting plant earlier this
year, partially offset by a retail price increase in November 2006.
Operating expenses as a percent of net revenue decreased slightly
to 35.5% of total net revenue compared to 35.7% for the
corresponding quarter last year. The favorable impact of retail
pricing increases and lapping the closure cost of company operated
kiosks in Larry's Markets last year was partially offset by higher
retail operating expenses due to new stores. General and
administrative expenses increased to $4.9 million compared to $4.6
million for the same period last year primarily due to additional
headcount and other investments to support Peet's growth.
Depreciation and amortization expenses increased to $2.6 million
compared to $2.2 million for the corresponding quarter last year.
The increase was primarily due to the opening of 33 new retail
stores in the last 12 months. The Company ended the quarter with
cash and cash equivalents plus marketable securities of $23.0
million. Fiscal 2008 Outlook Looking ahead, Peet's introduced the
following fiscal 2008 guidance: -- Total net revenue is expected to
grow 17 to 20%; -- Diluted earnings per share is expected to be in
the $0.77 to $0.82 range; -- The Company is planning to increase
grocery distribution by expanding its direct store delivery system
into 15-20 new markets; and -- The Company is planning to open
about 30 new retail locations. Peet's Coffee & Tea, Inc. Q3
2007 Conference Call The Company will report its third quarter 2007
earnings results via conference call on Thursday, November 1, 2007.
The teleconference call will begin at 2:00 p.m. PT/5:00 p.m. ET.
The teleconference can be accessed by calling 1-800-581-5838, using
access code 7954069. The call will be simultaneously webcast on
Peet's website at http://www.peets.com/. A replay of the
teleconference will be available at 5:00 p.m. PT/8:00 p.m. ET
through 8:59 p.m. PT/11:59 p.m. ET on Sunday, Nov. 11, 2007, at
1-888-203-1112 or 1-719-457-0820, using access code 7954069. It
will also be archived at http://investor.peets.com/medialist.cfm
through Nov. 1, 2008, at 8:59 p.m. PT/11:59 ET. ABOUT PEET'S COFFEE
& TEA, INC. Peet's Coffee & Tea, Inc., (PEET), the premier
specialty coffee and tea company in the U.S., is dedicated to
artisan roasting, distributing and marketing the highest quality
coffee available to coffee lovers throughout the United States.
Founded in 1966 in Berkeley, Calif., Peet's is committed to
strategically growing its business while maintaining its unique
culture and focus on quality and customer satisfaction. For more
information about Peet's Coffee & Tea, Inc. visit
http://www.peets.com/. This press release contains statements that
are not based on historical fact and are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward looking statements include
statements relating to 2007 earnings per share expectations and
2008 sales growth, earnings per share, grocery distribution and new
retail store opening expectations. Forward-looking statements are
based on management's beliefs as well as assumptions made by and
information currently available to management, including financial
and operational information, the Company's stock price volatility,
and current competitive conditions. As a result, these statements
are subject to various risks and uncertainties. The Company's
actual results could differ materially from those set forth in
forward-looking statements depending on a variety of factors
including, but not limited to, the Company's ability to implement
its business strategy, attract and retain customers, and obtain and
expand its market presence in new geographic regions; the impact of
the Company's stock price volatility on the valuation of
stock-based compensation under SFAS 123(R); the availability and
cost of high quality Arabica coffee beans; consumers' tastes and
preferences; and competition in its market as well as other risk
factors as described more fully in the Company's filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2006. These factors may
not be exhaustive. The Company operates in a continually changing
business environment, and new risks emerge from time to time. Any
forward-looking statements speak only as of the date of this press
release. PEET'S COFFEE & TEA, INC. CONSOLIDATED STATEMENTS OF
INCOME (Unaudited, in thousands, except per share amounts) Thirteen
weeks ended Thirty-nine weeks ended September 30, October 1,
September 30, October 1, 2007 2006 2007 2006 Retail stores $41,450
$34,350 $121,436 $101,331 Specialty sales 19,410 16,523 57,040
48,938 Net revenue 60,860 50,873 178,476 150,269 Cost of sales and
related occupancy expenses 29,142 24,081 84,706 69,988 Operating
expenses 21,593 18,142 62,772 52,829 General and administrative
expenses 4,928 4,594 16,228 14,006 Depreciation and amortization
expenses 2,619 2,215 7,935 6,292 Total costs and expenses from
operations 58,282 49,032 171,641 143,115 Income from operations
2,578 1,841 6,835 7,154 Interest income 284 589 1,172 1,968 Income
before income taxes 2,862 2,430 8,007 9,122 Income tax provision
1,026 951 2,953 3,483 Net income $1,836 $1,479 $5,054 $5,639 Net
income per share: Basic $0.13 $0.11 $0.37 $0.41 Diluted $0.13 $0.10
$0.36 $0.39 Shares used in calculation of net income per share:
Basic 13,816 13,670 13,664 13,801 Diluted 14,168 14,316 14,057
14,484 PEET'S COFFEE & TEA, INC. CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share amounts) September 30,
December 31, 2007 2006 ASSETS Current assets Cash and cash
equivalents $2,061 $7,692 Short-term marketable securities 10,809
19,511 Accounts receivable, net 7,488 6,838 Inventories 28,356
19,533 Deferred income taxes - current 2,078 1,888 Prepaid expenses
and other 7,849 3,852 Total current assets 58,641 59,314 Long-term
marketable securities 10,127 5,989 Property and equipment, net
97,792 82,447 Deferred income taxes - non current 1,311 1,315 Other
assets, net 3,827 3,940 Total assets $171,698 $153,005 LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and
other accrued liabilities $14,174 $11,046 Accrued compensation and
benefits 7,206 6,389 Deferred revenue 3,697 4,625 Total current
liabilities 25,077 22,060 Deferred lease credits and other
long-term liabilities 4,900 3,506 Total liabilities 29,977 25,566
Shareholders' equity Common stock, no par value; authorized
50,000,000 shares; issued and outstanding: 13,870,000 and
13,516,000 shares 102,413 93,246 Accumulated other comprehensive
loss, net of tax 46 (15) Retained earnings 39,262 34,208 Total
shareholders' equity 141,721 127,439 Total liabilities and
shareholders' equity $171,698 $153,005 Stock-based Compensation
Expense The following table illustrates the details of stock-based
compensation recognized under SFAS 123R reported in the
consolidated statements of income (unaudited, in thousands, except
per share amounts). 13 weeks ended 39 weeks ended September 30,
October 1, September 30, October 1, 2007 2006 2007 2006 Cost of
sales and related occupancy expenses $60 $122 $174 $419 Operating
expenses 246 381 725 1,130 General and administrative expenses 365
603 1,217 1,808 Total 671 1,106 2,116 3,357 Tax impact (273) (451)
(862) (1,370) Stock-based compensation, net of tax $398 $655 $1,254
$1,987 Impact on diluted net income per share $0.03 $0.05 $0.09
$0.14 Presentation and Reconciliation of Non-GAAP Financial
Measures The following table reconciles non-GAAP net income per
share and net income, excluding the after tax costs associated with
the Company's stock option review and restatement, to GAAP net
income per share and net income. The Company is presenting these
non-GAAP financial measures to illustrate the effect on net income
and net income per share if the Company had not incurred the costs
of the review of its stock option granting practices. The Company
uses such non-GAAP financial measures to analyze and compare the
performance of its core business. Non-GAAP financial information is
not prepared under a comprehensive set of accounting rules and
should be considered supplemental to, and not a substitute for or
superior to, financial measures calculated in accordance with GAAP
(unaudited, in thousands, except per share amounts). Peet's Coffee
& Tea, Inc. Reconciliation of Net Income excluding
Investigation Fees (Unaudited, in thousands, except per share data)
13 weeks ended 39 weeks ended September 30, October 1, September
30, October 1, 2007 2006 2007 2006 Net income, as reported $1,836
$1,479 $5,054 $5,639 Stock option review professional fees 188 -
1,228 - Income tax benefit (67) - (453) - Net income, excluding
fees $1,957 $1,479 $5,829 $5,639 After tax impact of review
professional fees $121 - $775 - Diluted net income per share: Net
income, as reported $0.13 $0.10 $0.36 $0.39 Stock option review
professional fees 0.01 - 0.09 - Income tax benefit - - (0.03) -
Diluted net income, excluding fees * $0.14 $0.10 $0.41 $0.39 After
tax impact of review professional fees* $0.01 - $0.06 - * per share
data may not sum due to rounding
http://www.newscom.com/cgi-bin/prnh/20070606/AQW139LOGO
http://photoarchive.ap.org/ DATASOURCE: Peet's Coffee & Tea,
Inc. CONTACT: Patsy Barich of Double-Forte, +1-415-848-8104, ; or
Susie Phillips of Peet's Coffee & Tea, Inc., +1-510-594-2196,
Web site: http://www.peets.com/
Copyright
Peets Coffee & Tea, Inc. (MM) (NASDAQ:PEET)
Historical Stock Chart
From Jun 2024 to Jul 2024
Peets Coffee & Tea, Inc. (MM) (NASDAQ:PEET)
Historical Stock Chart
From Jul 2023 to Jul 2024