Net sales for the third quarter of fiscal 2010 increased 64% to $311.5m as compared to $190.5m reported in the third quarter of fiscal 2009. According to Generally Accepted Accounting Principles (GAAP), net income for the third quarter of fiscal 2010 totalled $18.6m, or $0.13 per fully diluted share.
Excluding transaction-related expenses incurred in the quarter, and the resulting tax effect of reversing the tax benefit associated with previously incurred acquisition-related expenses, the company’s non-GAAP net income for the third quarter of fiscal 2010 was $25.8m, or $0.19 per diluted share, representing an increase of 82% from $14.1m, or $0.12 per diluted share, in the third quarter of fiscal 2009.
The company completed its acquisition of Diedrich Coffee on 11 May 2010 for $35 per share of common stock in a transaction with a total value of approximately $300m. The recent Financial Accounting Standards Board (FASB) pronouncement on business combinations, effective in fiscal 2010 for the company, requires acquisition-related costs be expensed rather than capitalised.
The company’s fiscal third quarter GAAP net income is inclusive of approximately $4.0m of non-deductible expenses associated with the Diedrich acquisition incurred during the fiscal third quarter. In accordance with the FASB pronouncement, because the Diedrich acquisition closed during the fiscal third quarter, this quarter’s GAAP net income also reflects the tax effect of reversing the tax benefit of $3.2m associated with the $8.1m of acquisition-related costs for the Diedrich acquisition recorded during the first and second quarters of fiscal 2010.
During fiscal 2010’s third quarter, 683m K-Cup portion packs were shipped system-wide by all Keurig licensed roasters, representing an increase of 72% over the year-ago quarter. Supporting continued growth in K-Cup demand, there were 846,000 system brewers with Keurig-branded brewing technology shipped during the third quarter of fiscal 2010 compared to 444,000 shipped during the third quarter of fiscal 2009.
The company completed a three-for-one stock split during the third quarter, effected in the form of a stock dividend. Shareholders of record at the close of business on 10 May 2010 received two additional shares of common stock for every one share of common stock held on that date.
Lawrence J Blanford, GMCR’s president and CEO, said: “In our fiscal third quarter, through the strong efforts of all our employees, we delivered excellent results on our key financial performance metrics including revenue, gross margin, operating margin and net income. We have now achieved 11 consecutive quarters of better than 40% net sales growth. For the first nine months of fiscal 2010, we’ve produced net sales growth of 70% and non-GAAP earnings per share growth of 89% over the same period for fiscal year 2009.
“Continued execution of our strategic business initiatives, including most recently our acquisition of Diedrich, is driving GMCR’s growth and enabling us to advance adoption and awareness of our growing portfolio of compelling brands. We believe the inherent strength of our business model, combined with our passionate employees, the strong support of our business partners and our fervent belief that we can transform the way the world views business are key drivers behind our growth and success.”
Source: Green Mountain Coffee Roasters
© FoodBev Media Ltd 2024