YoCream International Announces Record Second Quarter Results: YTD Sales Up
34.7%; Operating Income Up 339%; Net Income Up 711%
PORTLAND, Ore., May 28 /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, 2008. To view the full results, please visit http://www.yocream.com.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b)
It was a record second quarter with sales up 41.9%, and sales for the six
months ended April 30, 2008 up 34.7% compared to the same period of 2007.
Copacking sales were purposefully limited in order to operationally meet the
explosive growth of the Company's proprietary products. The breakdown of sales
by category was as follows:
6 months % 6 months % Dollar %
Category 2008 Total 2007 Total Change Change
Frozen Desserts $9,985,000 69.0% $6,303,000 58.6% $3,682,000 58.4%
Frozen Beverages 4,338,000 30.0% 3,944,000 36.7% 394,000 10.0%
Co-packing 155,000 1.0% 502,000 4.7% (347,000)
Total $14,478,000 100.0% $10,749,000 100.0% $3,729,000 34.7%
For the six months ended April 30, gross profit margins were 41.1% in 2008
compared with 38.9% in 2007; income from operations was $1,803,000 for 2008, a
339% increase over the same period in 2007; net income was $1,009,000, or
$0.44 per share, compared with $124,000 or $0.06 per share for the same period
last year.
"This was an outstanding quarter for YoCream in both sales and earnings,"
observed Matt Hanna, Director of Administration. "Income from operations and
net income benefited from sales volume increases and the effects of
management's intense efforts to create operating efficiencies. We were even
successful in reducing freight as a percentage of sales in this period of
escalating fuel costs! It's gratifying to report the strongest second quarter
revenue and earnings growth in YoCream's history. Opportunities at hand are
indicative of the continuance of this positive trend."
YoCream sales reached record levels as a result of consistently dynamic
growth from both frozen desserts and frozen beverages. The sales increase of
58.4% in frozen desserts was lead by the Company's core frozen yogurt products
and significantly exceeded industry growth. 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.
"YoCream continues to expand its frozen yogurt market share with strong
results in both sweet-profile frozen yogurt and tart-profile frozen yogurt,"
stated Suzanne Gardner, Director of Marketing. "We anticipate solid sales
throughout the year based on the performance of current products and the
introduction of new items." EuroTart(TM) frozen yogurt was introduced in the
second quarter to complement the Company's popular Original Tart(TM) frozen
yogurt, and a new Fruitquake(TM) flavoring system for Tart and plain frozen
yogurt was promoted. "YoCream will introduce six new flavors of frozen yogurt
with well-known national flavor brands in the third quarter," continued
Gardner. "A subcategory with new flavors will be added to YoCream's successful
frozen beverage line this summer as well."
The second quarter of 2008 represents the eighth consecutive quarter of
double digit sales growth for YoCream. Total YTD foodservice sales, exclusive
of club and co-packing business are up approximately 75.9%. "This impressive
performance includes expansion within existing accounts as well as new
business development," remarked Tyler Bargas, Director of Sales. "We've made
considerable progress on a number of strategic initiatives and this growth
provides momentum into the next fiscal year." Sales of a frozen yogurt
smoothie base developed for a major fast food restaurant chain began a
nationwide roll out in the second quarter. "Escalating volumes for this
account are expected to have a significant and positive impact on continuing
operations," stated Bargas. "The Company also has a contract in place to
produce a frozen beverage product for another large corporation in fiscal
2009."
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(TM) 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. 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 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.
Terry Lusetti, Investor Relations of YoCream International, Inc.,
+1-503-256-3754
