Green Mountain Coffee 2011 earnings more than double

first_imgBasic income per share: – 2010 Change in restricted cash – $199,501 $27.6Information Systems Technology 1,131,527 $2,650,899 9,617 Source: Green Mountain Coffee Roasters, Inc. November 9, 2011 – – 348,696 Thirteen weeks ended September 24, 2011 212%Royalties Cash and cash equivalents$12,989 $ Increase (decrease) 526 $373.1 (116,653)Income tax receivable, net 24,236 Expenses related to SEC inquiry and pending litigation (2) 8,788 40%Other Products September 25, $138.9 27,184 310,321 1,746,274 $869.6 Receivables, less uncollectible accounts and return allowances – – 672,248 $62.0 2011 $1.3 $26,991 (375,709) Q4 2011 335,504 Fifty-two 17,328 Cash flows from investing activities: (1,630)Total stockholders’ equity$1,912,215 104%Brewers and Accessories 5,191 September 24, (8) Common stock, $0.10 par value: Authorized – 200,000,000 shares; GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations September 25, – 81.8 disqualified dispositions of incentive stock options 1.0 (6,142) Other current assets (66)%Total Net Sales $711.9 Interest expense Loss on extinguishment of debt (4)$0.07 63,487 $41,676 244.4 243 Fifty-two 36,231 904,625 $- % Increase (decrease)K-Cup® Portion Packs Diluted income per share$1.31 Acquisition-related expenses (1) 785 132,210,938 1,199,845 Expenses related to SEC inquiry and pending litigation (2)$0.03 49,279 Non-GAAP operating income$119,139 92,579 Current liabilities related to assets held for sale 9,961 Cash distributions to redeemable noncontrolling interests shareholders Intangibles, net 18,906 (1) Amortization of identifiable intangibles (3)$0.05 Net income attributable to GMCR$75,369 Current assets: 95,150 19,732 Fifty-two (126,205)Proceeds from disposal of fixed assets Current assets held for sale (12,715) weeks ended $834.4 186,418 After tax: 10,575 Net income per common share – basic$0.49 $1,356.8 Income tax expense Operating income Accrued expenses 41,676 Retained earnings Net operating and capital loss carryforwards (4)$(0.05) 44,105 Change in cash balances included in short-term assets held for sale Net cash used in investing activities Description 85 Gain (loss) on financial instruments, net 5,574 113,446 (6,245) 411,727 610 $226.0 Amortization of identifiable intangibles (3) 425,758 – – 2010 (57,657) 169.6 99,349 $1.36 Amortization of intangibles 120.3 (715) (283,444) $79,506 (101,699) – $26,991 Deferred income taxes, net (46,009) Cash flows from financing activities: Stockholders’ equity: – 1,547 $4,401 (237,410)Cash and cash equivalents at beginning of period $ Increase (decrease) Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(3) September 25, 2010, respectively Fixed asset purchases included in accounts payable 144%Royalties September 24, 100,568 82.2 131,529,412 After tax: (63)%Total Net Sales$2,650.9 Unrealized loss of foreign currency 675 Diluted income per share: (533,435) 159,207,852 – 59%Other Products 137,834,123 Thirteen weeks ended September 25, 2010 Proceeds from issuance of common stock for private placement $19,009 $79,506 September 25, Thirteen Cash paid for income taxes$58,182 1,645 2010Assets $42,313 8.2 Fifty-two weeks ended September 24, 2011 Restricted cash and cash equivalents Commitments and contingencies Represents direct acquisition-related expenses classified as general and administrative expense.(2) 4,895 of $21,407 and $14,056 at September 24, 2011 and 573 GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations 172,200 Represents the write-off of debt issuance costs and original issue discount, net of tax, primarily associated with the extinguishment of the Term B loan under the Credit Agreement.(5) $25.4 weeks ended $8.0Coffee Processing (primarily roasting & grinding equipment) GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Operations(Dollars in thousands except per share data) 5,350 11,752 302,747 $0.60 Proceeds from issuance of common stock under compensation plans September 24, After tax: $27.6 41,339 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Cash Flows(Dollars in thousands) – Additional paid-in capital The 2011 fiscal year reflects direct acquisition-related expenses of $10.6 million ($8.9 million after-tax); the write-off of deferred financing expenses of $2.6 million ($1.6 million after-tax) on our Former Credit Facility in conjunction with the new financing secured for the Van Houtte acquisition; and the foreign exchange impact of hedging the risk associated with the Canadian dollar purchase price of the Van Houtte acquisition of $5.3 million ($4.0 million after-tax). The 2010 fiscal year represents direct acquisition-related expenses of $18.9 million ($16.8 million after-tax). Direct acquisition-related expenses incurred prior to the closing of the acquisition are tax affected. Generally, upon the close of the acquisition, the direct acquisition-related expenses are nondeductible. Fixed assets, net Noncash investing activity: Amortization of identifiable intangibles (3) 258,923 529,494 220,005 (8,376) 10,573 673,048 – 2010K-Cup® Portion Pack Packaging (354)Loss on foreign currency, net – Amortization deferred financing fees 19,341 $475.5 Supplemental disclosures of cash flow information: 14,973 Total current assets (2,297) – Non-GAAP operating income$428,693 265,511 – 452 GREEN MOUNTAIN COFFEE ROASTERS, INC. 120,583 931,017 Loss on extinguishment of debt (4) $- 139,220 Represents direct acquisition-related expenses classified as general and administrative expense.(2) 92,120 Deferred income taxes, net 193.9 140,000 – 34,613 (52) 355 Proceeds from issuance of common stock for public equity offering – 189,637 General and administrative expenses 238,055 Green Mountain Coffee Roasters, Inc., (GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffeemakers, today announced its full year and fiscal 2011 fourth quarter results for the thirteen and fifty-two weeks ended September 24, 2011. Earnings more than doubled for the year and revenues increased 95 percent. Those numbers, however, were below analysts’ expectations, especially on the revenue side, and GMCR’s stock fell in after-hours trading nearly 30 percent to $48.11 as of 4:32 pm. http://finance.yahoo.com/q?s=GMCR(link is external)Performance HighlightsFiscal 2011Net sales of $2,650.9 million, up 95% over fiscal 2010GAAP EPS of $1.31 increases 126% over fiscal 2010; non-GAAP EPS of $1.64 increases 113% over a year agoGAAP operating income of $368.9 million increases 166% over fiscal 2010; non-GAAP operating income of $428.7 million improves 148% over a year agoGAAP net income of $199.5 million increases 151% over 2010; non-GAAP net income of $248.9 million up 135% over 2010Fourth Quarter Fiscal 2011Net sales of $711.9 million, up 91% over the same period in fiscal 2010GAAP EPS of $0.47 increases 135% over fourth quarter fiscal 2010; non-GAAP EPS of $0.47 increases 96% over the year ago quarterGAAP operating income of $106.7 million increases 156% over fourth quarter fiscal 2010; non-GAAP operating income of $119.1 million improves 128% over the year ago quarterGAAP net income of $75.4 million increases 179% over Q4’10; non-GAAP net income of $75.3 million increases 126% over Q4’10″With 95% annual revenue growth over last year the business continues to demonstrate extraordinary momentum as a result of broad consumer adoption of the Keurig® Single Cup Brewing system,” said Lawrence J. Blanford , president and CEO of GMCR. “We are seeing continued evidence of strong consumer demand for both brewers and portion packs from our customers and from third party sources that track consumer purchases such as NPD Group and SymphonyIRI Group, Inc. For instance, NPD reports Keurig® Single Cup Brewer unit sales increased 56% in our fiscal 2011 fourth quarter from the same period last year. As an indication of what we believe will be strong holiday consumer demand, for the month of September alone, NPD reports Keurig brewer unit sales are up 73% from the same month in 2010.””Our fiscal fourth quarter revenue growth of 91% was strong. This was off of our estimates as a result of a number of factors including changes in wholesale customer ordering patterns in our grocery and club channels despite steady consumer point-of-sale demand in those channels,” continued Blanford.Blanford concluded, “While like most consumer products companies we are watchful of broader consumer sentiment going into the holidays, we remain confident in the Company’s growth potential and comfortable reiterating our estimate for fiscal year 2012 non-GAAP earnings per diluted share in a range of $2.55 to $2.65.”Fiscal 2011 Financial ReviewNet Sales (in millions) Preferred stock, $0.10 par value: Authorized – 1,000,000 shares; (7,555) (53,703)Net Income$75,821 – (102,297)Inventories 38.5 Loss on extinguishment of debt 298,322 Acquisition-related expenses (1) Loss on disposal of fixed assets Net income attributable to noncontrolling interests $33,312 Redeemable noncontrolling interests $0.58 Amortization of identifiable intangibles (3) (23,528) 575,969 $6,486 Operating income$368,913 – $1,356,775 Issued and outstanding – 154,466,463 and 132,823,585 shares at September 24, 2011 and September 25, 2010, respectively 15,447 2011 Accounts payable (1,339)Repayment of long-term debt $52,169 (67,813) 2011 32.9 $- 474 138,256,219 – 5,017 Long-term liabilities related to assets held for sale (5,294)Income before income taxes Current liabilities: Q4 2010 2,074center_img weeks ended 5,191 5,476 187,016 2010Cash flows from operating activities: 29,484 Non-GAAP net income per share$0.47 Expenses related to SEC inquiry and pending litigation (2)$- provided by operating activities: Depreciation 368,913 Net income$201,048 Inventories 67,813 1,376 6,158 4,401 91%Approximately 83% of consolidated net sales in the fourth quarter were from the Keurig® Single Cup Brewing system and its recurring portion pack sales, including Keurig-related accessory sales, with the remainder of total sales consisting primarily of sales of bagged coffee and revenue from the office coffee services business.The increase in K-Cup® portion pack net sales is driven by a 52 percentage point increase in K-Cup® portion pack sales volume, a 29 percentage point increase in K-Cup® portion pack net price realization due to price increases implemented during fiscal 2011 to offset higher green coffee and other input costs, and a 10 percentage point increase in K-Cup® portion pack net sales due to the acquisition of Van Houtte.GMCR sold 1.3 million Keurig® Single Cup Brewers during the fourth quarter of fiscal 2011. This brewer shipment number does not account for consumer returns to retailers. We estimate that GMCR brewer shipments represented approximately 92% of total brewers shipped with Keurig technology in the period.Royalty revenue declined from the fourth quarter of 2010 due to the acquisition of Van Houtte, which previously paid royalties to GMCR as a third party licensed roaster.Revenue from the Canadian business unit segment, which includes the acquisition of Van Houtte completed on December 17, 2010, contributed approximately $100.4 million to net sales in the fourth quarter of fiscal 2011.Fourth quarter fiscal 2011 gross margin was 35.7% of total net sales compared to 30.4% for the corresponding quarter in fiscal 2010. The elements of the gross margin improvement are primarily:The impact of price increases on K-Cup® portion packs during the fourth quarter of fiscal 2011 improved gross margin by approximately 710 basis points.The benefit from the K-Cup® portion pack price increases was offset by higher green coffee costs in the fourth quarter of fiscal 2011 as compared to the prior year quarter, which decreased the Company’s gross margin by approximately 860 basis points.Gross margin also increased due to a shift in the Company’s sales mix.Net sales from Keurig® Single Cup Brewers and related accessories were lower as a percentage of total Company net sales in the fourth quarter of fiscal 2011 as compared to the fourth quarter of fiscal 2010.The Company sells the majority of Keurig® Single Cup Brewers approximately at cost, or sometimes at a loss when factoring in the incremental costs related to sales, including fulfillment charges, returns and warranty expenses.In the fourth quarter of fiscal 2011, the decrease in Keurig® Single Cup Brewer and accessories net sales as a percentage of total net sales improved the Company’s gross margin by approximately 250 basis points over the fourth quarter of fiscal 2010.The Company’s effective income tax rate was 23.7% for the fourth quarter of fiscal 2011 compared to a 32.0% effective tax rate for the fourth quarter of fiscal 2010. The difference is primarily attributable to the release of valuation allowances related to a $17.7 million capital loss carryforward and a $5.4 million net operating loss carryforward in the fourth quarter of fiscal 2011. In addition, in the fourth quarter of fiscal 2011 as compared to the fourth quarter of fiscal 2010, the Company had a larger percentage of foreign-based sales in Canada, which has a lower corporate tax rate.Diluted weighted average shares outstanding increased 15% to 159.2 million in the fourth quarter of fiscal 2011 from 138.3 million in the fourth quarter of fiscal 2010 primarily due to the issuance of approximately 8.6 million shares of common stock to Luigi Lavazza S.p.A (“Lavazza”) on September 28, 2010 and approximately 10.1 million shares on May 11, 2011 from a public offering and concurrent private placement to Lavazza pursuant to its preemptive rights.Business Outlook and Other Forward-Looking InformationCompany Estimates for First Quarter Fiscal Year 2012The Company is providing initial estimates for its first quarter of fiscal 2012:Fiscal first quarter consolidated net sales growth of 85% to 90%.Fiscal first quarter fully diluted non-GAAP earnings per share in the range of $0.35 to $0.40 per share excluding any acquisition-related transaction expenses; legal and accounting expenses related to the SEC inquiry and the Company’s pending litigation; amortization of identifiable intangibles related to the Company’s acquisitions; and any gain from sale of the Filterfresh U.S.-based coffee services business.Company Estimates for Fiscal Year 2012The Company provided the following estimates for its fiscal year 2012:Total consolidated net sales growth of 60% to 65% from fiscal 2011.Fiscal 2012 non-GAAP earnings per diluted share in a range of $2.55 to $2.65 per diluted share, excluding any acquisition-related transaction expenses; legal and accounting expenses related to the SEC inquiry and the Company’s pending litigation; amortization of identifiable intangibles related to the Company’s acquisitions; and any gain from sale of the Filterfresh U.S.-based coffee services business.For fiscal 2012, we currently expect to invest between $630.0 million to $700.0 million in capital expenditures to support the Company’s future growth. We expect approximately $225.0 million will be spent to increase our portion pack packaging capacity related to our current Keurig® Single Cup Brewing platform, approximately $100.0 million will be spent for portion pack packaging capacity related to our next-generation Keurig® Single Cup Brewing platform, approximately $175.0 million will be spent to expand our physical plants, research and development facilities and office space, approximately $100 million will be spent for coffee processing equipment, and approximately $65.0 million will be spent for information technology infrastructure and systems.Use of Non-GAAP Financial MeasuresIn addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude certain charges or credits such as transaction expenses related to the Company’s acquisitions including the foreign exchange impact of hedging the risk associated with the Canadian dollar purchase price of the Van Houtte acquisition; any gain from sale of the Fitlerfresh U.S.-based coffee services business; legal and accounting expenses related to the SEC inquiry and pending litigation; non-cash related items such as amortization of identifiable intangibles and losses incurred on the extinguishment of debt; and the effect of net operating and capital loss carryforwards, each of which include adjustments to show the tax impact of excluding these items. These amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations” tables that accompany this document for a full reconciliation the Company’s GAAP to non-GAAP results.Conference Call and WebcastGreen Mountain Coffee Roasters, Inc. will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, November 9, 2011. Management’s prepared remarks on its quarterly results will be provided via a Current Report on Form 8-K and also posted under the events link in the Investor Relations section of the Company’s website at www.GMCR.com(link is external). As a result, the conference call will include only brief remarks by management followed by a question and answer session. The call along with accompanying slides is accessible via live webcast from the events link in the Investor Relations portion of the Company’s website at http://investor.gmcr.com/events.cfm(link is external). The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, Passcode 7944796 from 9:00 p.m. ET on November 9, 2011 through 9:00 p.m. ET on Sunday, November 13, 2011.About Green Mountain Coffee Roasters, Inc.As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig® Single Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in sustainably-grown coffee, and donating at least five percent of its pre-tax profits to social and environmental projects.GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company’s automatic email news release delivery, individuals can receive news directly from GMCR as it is released.Forward-Looking StatementsCertain statements contained herein are not based on historical fact and are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those stated here. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact on sales and profitability of consumer sentiment in this difficult economic environment, the Company’s success in efficiently expanding operations and capacity to meet growth, the Company’s success in efficiently and effectively integrating the Company’s acquisitions, the Company’s success in introducing and producing new product offerings, the ability of lenders to honor their commitments under the Company’s credit facility, competition and other business conditions in the coffee industry and food industry in general, fluctuations in availability and cost of high-quality green coffee, any other increases in costs including fuel, the Company’s ability to continue to grow and build profits in the At Home and Away from Home businesses, the Company experiencing product liability, product recall and higher than anticipated rates of warranty expense or sales returns associated with a product quality or safety issue, the extent to which the data security of the Company’s websites may be compromised, the impact of the loss of major customers for the Company or reduction in the volume of purchases by major customers, delays in the timing of adding new locations with existing customers, the Company’s level of success in continuing to attract new customers, sales mix variances, weather and special or unusual events, the impact of the inquiry initiated by the SEC and any related litigation or additional governmental investigative or enforcement proceedings, as well as other risks described more fully in the Company’s filings with the SEC. Forward-looking statements reflect management’s analysis as of the date of this release. The Company does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.GMCR-C 884 Acquisition-related expenses (1) $0.12 – 47,759 (11,454) (285) Net income attributable to GMCR$75,369 (Dollars in thousands) 25,600 2,584 Other long-term liabilities 386,416 64,457 40,139 Income taxes receivable 648 (188)Tax expense from exercise of non-qualified options and 115.1 Fifty-two weeks ended September 24, 2011 21,034 790 Amortization of identifiable intangibles (3) 16,773 Other income (expense), net 2011 (713)Excess tax benefits from equity-based compensation plans Amortization of identifiable intangibles (3)$0.18 Capital expenditures for fixed assets 1,499,616 43,260 Long-term assets held for sale Diluted income per share$0.47 (5,097) (1,063) Net operating and capital loss carryforwards (4) Non-GAAP net income per share$1.64 10,065 Other current liabilities Accumulated other comprehensive loss 41,007 27,665 (5,349)Accounts payable 106,202 Long-term debt Accrued compensation costs Purchases of short-term investments $1,294.1 Thirteen weeks ended September 24, 2011 14,973 $26,991 $699,245 (8,828) 39,706 $63.1Next Generation Portion Pack Packaging (3,118) Other long-term assets $13.0Manufacturing Facilities & Infrastructure Goodwill % Increase (decrease)K-Cup® Portion Packs$1,704.0 (1) Gross profit $- Net increase (decrease) in cash and cash equivalents 50,000 Net income per common share – diluted$0.47 Provision for sales returns (2,912) Acquisition of Timothy’s Coffee of the World Inc. – (1.9) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(4) Diluted weighted average shares outstanding (1,187,672) GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Balance Sheets(Dollars in thousands) 2,233 Net change in revolving line of credit 153,837,445 Other long-term liabilities 1,041 291,096 Thirteen weeks ended September 24, 2011 $1,370,574 Other investing activities (158) Net income attributable to GMCR$199,501 4,377 22.0 (1,918) and not disbursed at the end of each year$25,737 Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(4) 414.0 Changes in assets and liabilities, net of effects of acquisition: *$0.77 27,523 457,793 213,844 – Non-GAAP net income$75,275 Expenses related to SEC inquiry and pending litigation (2) Expenses related to SEC inquiry and pending litigation (2) (8,376) September 25, $0.24 – No shares issued or outstanding GREEN MOUNTAIN COFFEE ROASTERS, INC. 524.7 (Dollars in thousands) Acquisition-related expenses (6) 262,478 $1,370,574 499 (217)Proceeds from borrowings of long-term debt 91%Brewers and Accessories – 579,219 41,339 13,282 (906,885) 72,297 Non-GAAP net income$248,914 (8,500)Net cash provided by financing activities 23,405 (5,160) – Selling and operating expenses 26,997 – – 8,588 796,375 $0.20 241,811 Cash and cash equivalents at end of period$12,989 2011 Deferred financing fees Cash paid for interest$33,452 (10,692)Other long-term assets, net 2011 106,712 – weeks ended $20,261 14,590 Liabilities assumed in conjunction with acquisitions$- $1,533 $0.20 259,641 Deferred income taxes, net Unrealized (gain) loss on financial instruments, net $21.0Other 495,269 146,214,860 Current portion of long-term debt$6,669 3,292 Total liabilities and stockholders’ equity$3,197,887 7,868 8,110 $373,087 Excess tax benefits from equity-based compensation plans Other current assets 145,000 95%Approximately 84% of consolidated net sales in fiscal 2011 were from the Keurig® Single Cup Brewing system and its recurring portion pack sales, including Keurig-related accessory sales, with the remainder of total sales consisting primarily of sales of bagged coffee and revenue from the office coffee services business.The increase in K-Cup® portion pack net sales is driven by a 76 percentage point increase in K-Cup® portion pack sales volume, an 18 percentage point increase in K-Cup® portion pack net price realization due to price increases implemented during fiscal 2011 to offset higher green coffee and other input costs, and a 10 percentage point increase in K-Cup® portion pack net sales due to the acquisition of Van Houtte.Supporting continued growth in portion pack demand, GMCR sold 5.9 million Keurig® Single Cup Brewers during fiscal 2011. This brewer shipment number does not account for consumer returns to retailers. We estimate that GMCR brewer shipments represented approximately 91% of total brewers shipped with Keurig technology in the year.Royalty revenue declined from 2010 due to the acquisitions of Timothy’s, Diedrich and Van Houtte, all of which previously paid royalties to GMCR as third party licensed roasters.Revenue from the Canadian business unit segment, which includes the acquisition of Van Houtte completed on December 17, 2010, contributed approximately $321.4 million to net sales for the year.Gross profit for fiscal 2011 was $904.6 million, or 34.1% of net sales as compared to $425.8 million, or 31.4% of net sales, in fiscal 2010.The impact of price increases on K-Cup® portion packs during fiscal 2011 improved gross margin by approximately 400 basis points.The benefit from the K-Cup® portion pack price increases was offset by higher green coffee costs in fiscal 2011 as compared to fiscal 2010, which decreased the Company’s gross margin by approximately 330 basis points.Gross margin also increased due to a shift in the Company’s sales mix.Net sales from Keurig® Single Cup Brewers and related accessories were lower as a percentage of total Company net sales in fiscal 2011 as compared to fiscal 2010.The Company sells the majority of Keurig® Single Cup Brewers approximately at cost, or sometimes at a loss when factoring in the incremental costs related to sales, including fulfillment charges, returns and warranty expense.In fiscal 2011, the decrease in Keurig® Single Cup Brewer and accessories net sales as a percentage of total net sales improved the Company’s gross margin by approximately 230 basis points.The Company’s effective income tax rate was 33.6% for fiscal 2011 compared to a 40.3% effective tax rate for fiscal 2010. The difference is primarily attributable to the release of valuation allowances related to a $17.7 million capital loss carryforward and a $5.4 million net operating loss carryforward in the fourth quarter of fiscal 2011. In addition, in fiscal 2011 as compared to fiscal 2010, the Company had a larger percentage of foreign-based sales in Canada which has a lower corporate tax rate.Diluted weighted average shares outstanding increased 10% to 152.1 million in fiscal 2011 from 137.8 million in fiscal 2010 primarily due to the issuance of approximately 8.6 million shares of common stock to Luigi Lavazza S.p.A (“Lavazza”) on September 28, 2010 and approximately 10.1 million shares on May 11, 2011 from a public offering and concurrent private placement to Lavazza pursuant to its preemptive rights. The initial Lavazza sale raised $250.0 million and the May offering raised approximately $688.9 million after deducting underwriting discounts and commissions and offering expenses.The Company allocates at least 5% of its pre-tax profits to social and environmental programs. GMCR estimates that total resources allocated to social and environmental programs totaled approximately $15.2 million for fiscal 2011.Balance Sheet HighlightsAccounts receivable increased 80% year-over-year to $310.3 at September 24, 2011, from $172.2 million at September 25, 2010, reflecting continuing sales growth and the addition of Van Houtte-related accounts receivables.Inventories were $672.2 million at September 24, 2011 including $52.0 million of Van Houtte-related inventories. This compares to $262.5 million at September 25, 2010. The year-over-year increase is comprised of:a $136.5 million, or 295%, increase in raw materials most notably from an increase in green coffee volume and 65% average green coffee cost increase;a $273.3 million, or 126%, increase in finished goods inventory with approximately half of the increase due to K-Cup® portion packs on hand and the other half due to Keurig® Single Cup Brewers and accessories on hand.Debt outstanding increased to $582.6 million at September 24, 2011 from $354.5 million at September 25, 2010 as a result of an increase in the long-term revolver.On October 3, 2011, the Company completed the sale of the Filterfresh U.S.-based coffee services business portion of its Van Houtte acquisition to ARAMARK Refreshment Services, LLC for an aggregate cash purchase price of approximately $145.0 million. As of September 24, 2011, the business was classified as “assets held for sale” in the Company’s financial statements.Capital Expenditures+Following is a summary of the Company’s 2011 and 2010 capital expenditures (in millions): – $338.8 Thirteen weeks ended September 25, 2010 Fifty-two weeks ended September 25, 2010 23,488 152,142,434 10,964 (75)Proceeds from sale of short-term investments 2.9 $4,401 453 $290.3 Income tax payable Contributions to the ESOP Provision for doubtful accounts – 330.8 25,885 18,258 2010Net sales$711,883 Expenses related to SEC inquiry and pending litigation (2) $1.31 Liabilities and Stockholders’ Equity 3,437 weeks ended – 1,192 Adjustments to reconcile net income to net cash (used in) (1,830)Accrued expenses $105,806 Operating income$106,712 Receivables – (14,590)Deferred income taxes (154,208)Acquisition of Diedrich Coffee, Inc., net of cash acquired – (907,835) Acquisition-related expenses (1)$- 254,090 (6,931)Deferred compensation and stock compensation $0.02 Accrued compensation costs (157,329) Net cash provided by (used in) operating activities Total current liabilities Cost of sales 138,772 2,884 Represents the release of the valuation allowance against federal capital loss carryforwards which represents the estimate of the tax benefit for the amount of capital losses that will be utilized in the first quarter of fiscal 2012 on capital gains generated on the sale of Filterfresh and the utilization in fiscal 2011 of net operating loss carryforwards generated from the Filterfresh acquisition.(6) (14,575) 14,524 $0.58 Financing costs in connection with public equity offering (305,261)Acquisition of LJVH Holdings, Inc. (Van Houtte), net of cash acquired 471,374 1,934 $32.6 $172,651 Thirteen weeks ended September 25, 2010 $0.02 $249.5 $134.0+ Note: Capital expenditures do not include capital acquired in the Timothy’s, Diedrich or Van Houtte acquisitions.Fiscal 2011 Fourth Quarter Financial ReviewNet Sales (in millions) 1,788 – $0.20 $201,048 333,835 Basic weighted average shares outstanding Represents the release of the valuation allowance against federal capital loss carryforwards which represents the estimate of the tax benefit for the amount of capital losses that will be utilized in the first quarter of fiscal 2012 on capital gains generated on the sale of Filterfresh and the utilization in fiscal 2011 of net operating loss carryforwards generated from the Filterfresh acquisition. Total assets$3,197,887 27,343 Fifty-two weeks ended September 25, 2010 Fifty-two weeks ended September 24, 2011 11,027 $79,506 $- (25,685) After tax: 133,209 Thirteen – Fifty-two weeks ended September 25, 2010 Proceeds from notes receivable Net operating and capital loss carryforwards (5)$(0.06) 52,228 Acquisition-related expenses (6)$0.10 $138,772 7,829 weeks ended Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(3) $0.07 473,749 Net operating and capital loss carryforwards (5) Capital lease obligations 789,305 $3.8 28,072 * Does not add due to rounding. Other current liabilities 9,527 862 $79,506 Fifty-two (13.8) September 24, Effect of exchange rate changes on cash and cash equivalentslast_img read more

U.S. and Latin America Review Fight Against Trafficking in Weapons of Mass Destruction

first_imgBy Dialogo May 15, 2009 On Thursday military and defense experts from around the world concluded a three-day meeting in Miami in which they analyzed measures to combat illicit trafficking in weapons of mass destruction and their components, the U.S. Southern Command reports. The conference, organized by the U.S. Department of Defense and the Southern Command, brings together 34 countries. One of the topics of discussion was the traffic in weapons of mass destruction and related materials within the Americas. “Latin America, the Caribbean, and the United States share a common interest in preventing the proliferation of WMD in our hemisphere,” said Paul Trivelli, Foreign Policy Adviser to the Southern Command, who considers it essential for countries to coordinate their efforts in the prevention of trafficking in weapons and combating networks that profit from it. For his part, Gary Moore, who coordinates the monitoring of the proliferation of armaments and weapons of mass destruction at the White House, said that President Obama “has promised to pursue the peace and security of a world without nuclear weapons,” but that this goal cannot be achieved without international security initiatives to prevent the proliferation of weapons of mass destruction. Together with North American and Canadian experts, Latin American representatives of Argentina, Chile, El Salvador, Honduras, Panama, and Paraguay also took part of the event.last_img read more

Update on the latest sports

first_imgThe Jazz said he died from complications related to Parkinson’s disease and Lewy body dementia.Sloan spent 23 seasons coaching the Jazz. The team — with John Stockton and Karl Malone leading the way in many of those seasons — finished below .500 in only one of those years. Sloan won 1,221 games in his career, the fourth-highest total in NBA history.Utah went to the finals twice under Sloan, both times falling to Michael Jordan and the Chicago Bulls.Sloan entered the Hall of Fame in 2009. He spent 34 years in the employ of the Jazz organization, either as head coach, assistant, scout or senior basketball adviser.Sloan started as a scout, was promoted as an assistant under Frank Layden in 1984 and became the sixth coach in franchise history on Dec. 9, 1988, after Layden resigned. NFL-PACKERS-ADAMSPackers’ Montravius Adams faces marijuana, driving chargesELKO, Ga. (AP) — Green Bay Packers defensive lineman Montravius Adams was arrested in Georgia this week and charged with marijuana and driving offenses.He was stopped Tuesday on suspicion of driving with a suspended registration and no insurance, according to a Houston County Sheriff’s Office report. It was not immediately clear why police had such suspicions. The report said an officer detected a scent of marijuana, which was found in a search of the car.Adams faces misdemeanor charges of possession of less than an ounce of marijuana, driving with a suspended registration and driving without insurance. He was released from the Houston County Detention Center on $2,964 bond. Associated Press Share This StoryFacebookTwitteremailPrintLinkedinRedditNBA-OBIT-SLOANJazz great and Hall of Fame coach Jerry Sloan diesUNDATED (AP) — Jerry Sloan, the coach who took the Utah Jazz to the NBA Finals in 1997 and 1998 on his way to a spot in the Basketball Hall of Fame, died Friday. He was 78. Star college football recruit charged with attempted murderACCOKEEK, Md. (AP) — A high school football player designated as a star recruit for colleges by ESPN is accused of trying to kill his ex-girlfriend’s boyfriend.Luke Hill faces charges including attempted first-degree murder after allegedly firing gunshots that struck a home in Accokeek, Maryland, on Monday night, according to charging documents obtained by The Washington Post. The home is suburban Washington D.C.Hill, a defensive back who graduated from St. Frances Academy in Baltimore after withdrawing from St. John’s College High during his junior year, had committed to play at the University of Oregon, but Coach Mario Cristobal told The Oregonian that he was cut from their program this spring.Prince George’s County Police redacted the name of the target, but ESPN reported that it was Ishmael Leggett, Hill’s former classmate at St. John’s. Leggett, a 6-foot-4 guard who has committed to play basketball this fall at the University of Rhode Island, wouldn’t comment to the Post, but his next coach expressed relief that the gunshots missed. Adams was a 2017 third-round draft pick from Auburn. He had 19 tackles last year while playing in 14 games and making two starts. He finished with 26 tackles and 1 ½ sacks in 2018 while playing 16 games and making one start.VIRUS OUTBREAK-SPORTSNHL awaits players’ vote before discussing what comes nextUNDATED (AP) — The NHL is taking a major step toward formulating the remainder of their season. A person with knowledge of the situation tells The Associated Press the NHL Players’ Association’s executive board is voting on a 24-team playoff proposal as they return to play format. Results of the vote could be in as soon as Friday night.Under the proposal plan, the top four teams in each of the Eastern and Western Conferences would play each other for seeding while the remaining 16 teams face off in a best-of-five series play-in round to set the final 16. That would mean byes for Boston, Tampa Bay, Washington and Philadelphia in the East and defending champion St. Louis, Colorado, Vegas and Dallas in West. NFL-CATHOLIC BISHOP-TOM BRADYNew England bishop takes tongue-in-cheek shot at Tom BradyPROVIDENCE, R.I. (AP) — A Roman Catholic bishop in New England says not even a Hail Mary is going to help Tom Brady win a seventh Super Bowl championship now that he’s with the Tampa Bay Buccaneers.Diocese of Providence Bishop Thomas Tobin, in a tongue-in-cheek tweet Friday, took a swipe at the former Patriots quarterback while praising Brady’s former boss for raising more than $1 million for coronavirus relief by auctioning a Super Bowl ring.Tobin tweeted – “Bob Kraft is auctioning a Super Bowl ring for charity,” Tobin tweeted. “Very admirable indeed. But is it true that Tom Brady bid on it because he knows it’s the only way he’ll get another ring?” May 22, 2020 Even if the executive board votes to approve the format, the league and players union still need to negotiate other details, including health and safety protocols. But the format is a substantial piece of the return to play puzzle to award the Stanley Cup this season.In other developments related to the coronavirus pandemic:—The Arizona Diamondbacks have started individual workouts as baseball begins a measured return to play from the coronavirus pandemic. A small number of players worked out at Chase Field in downtown Phoenix and Salt River Fields, their spring training facility about 20 miles away in Scottsdale. The players were separated as much as possible to follow league-mandated guidelines, and the workouts were cleared by Major League Baseball.—The governing body for Texas public high school sports says it will allow on-campus summer strength and conditioning programs as the state gradually eases rules put in place to limit the spread of the coronavirus. The University Interscholastic League canceled its spring sports championships, which were interrupted just as the boys’ basketball tournament was getting started in March. Schools have been closed for about two months.—Milwaukee Bucks guard Pat Connaughton raised over $200,000 for COVID-19 relief during an 11-hour radiothon. Connaughton was on the air on 94.5 ESPN Milwaukee and 100.5 ESPN Madison throughout the day Thursday. He was joined on air at various times by Bucks teammates Giannis Antetokounmpo, Donte DiVincenzo and Kyle Korver as well as coach Mike Budenholzer, general manager Jon Horst and co-owner Marc Lasry. —Texas Gov. Greg Abbott says he thinks college football will return on schedule with some level of fans in the stands. Abbott has already issued new rules to allow youth sports leagues to resume in June and for some professional leagues to hold events without spectators. But the state rules have so far not touched college sports.—A group of Power Five coaches led by Michigan’s Erik Bakich is proposing a later start to the 2022 college baseball season. Under the proposal, there would be nine weeks of preseason practice instead of five, the regular season would run from the third week of March to the third week of June and the College World Series would wrap up the last week of July.—The Pittsburgh Steelers are holding back a portion of their ticket inventory for the 2020 season to be ready in case social distancing measures are required in stadiums this fall. Individual single game tickets went on sale Friday. Team spokesman Burt Lauten says the club withheld 50% of the allotment as a “proactive” measure should the NFL use social distancing guidelines.—The Southeastern Conference is allowing voluntary athletic activities to occur on each of its campuses starting June 8, at the discretion of each university. SEC officials noted the workouts would take place “under strict supervision of designated university personnel and safety guidelines developed by each institution.”The SEC had suspended all athletic activities through May 31 due to the pandemic.FOOTBALL RECRUIT-SHOOTING COLLEGE ADMISSIONS BRIBERYLoughlin, Giannulli plead in college scam, but fate is hazy“Full House” star Lori Loughlin and her fashion designer husband, Mossimo Giannulli, pleaded guilty Friday to paying half a million dollars to get their two daughters into the University of Southern California as part of a college admissions bribery scheme, but a judge has not decided whether he’ll accept the deals they made with prosecutors.The famous couple appeared on separate screens during their video hearing, both sitting with a lawyer, showing no emotion as the prosecutor detailed their crimes and making no comments other than to answer questions from federal judge Judge Nathaniel Gorton.Under their proposed deals, Loughlin, 55, hopes to spend two months in prison and Giannulli, 56, is seeking to serve five months. But the judge said he will decide whether to accept the deals after considering the presentencing report, a document that contains background on defendants and helps guide sentencing decisions. Update on the latest sports Brady won six championships in 20 seasons in New England before signing a free agent deal with Tampa Bay.Tobin proudly touts in his Twitter profile that he’s a Pittsburgh native. That prompted a couple of people to reply that Brady has a better chance at another ring than Steelers quarterback Ben Roethlisberger.,Tampa Bay Lightning advance to face Dallas Stars in Stanley Cup finals, beating New York Islanders 2-1 in OT in Game 6last_img read more