This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Green Mountain Coffee Roasters, Inc. Reports Fourth Quarter And Fiscal Year 2012 Results

Stocks in this article: GMCR

These and other forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by external factors such as damage to our reputation or brand name, business interruptions due to natural disasters or similar unexpected events, actions of competitors, customer relationships and financial condition, the ability to achieve expected cost savings and margin improvements, the successful acquisition and integration of new businesses, fluctuations in the cost and availability of raw and packaging materials, changes in regulatory requirements, and global economic conditions generally which would include the availability of financing, interest, inflation rates and investment return on retirement plan assets, as well as foreign currency fluctuations, risks associated with our information technology systems, the threat of data breaches or cyber-attacks, and other risks described in the Company’s filings with the Securities and Exchange Commission.

Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

GMCR-C

           
 
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Balance Sheets
(Dollars in thousands)
 
September 29, September 24,
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 58,289 $ 12,989
Restricted cash and cash equivalents 12,884 27,523
Receivables, less uncollectible accounts and return allowances
of $34,517 and $21,407 at September 29, 2012 and
September 24, 2011, respectively 363,771 310,321
Inventories 768,437 672,248
Income taxes receivable 32,943 18,258
Other current assets 35,019 28,072
Deferred income taxes, net 51,613 36,231
Current assets held for sale   -   25,885  
Total current assets 1,322,956 1,131,527
 
Fixed assets, net 944,296 579,219
Intangibles, net 498,352 529,494
Goodwill 808,076 789,305
Other long-term assets 42,109 47,759
Long-term assets held for sale   -   120,583  
 
Total assets $ 3,615,789 $ 3,197,887  
 
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 6,691 $ 6,664
Current portion of capital lease and financing obligations 3,057 5
Accounts payable 279,577 265,511
Accrued compensation costs 38,458 43,260
Accrued expenses 132,992 92,120
Income tax payable 29,322 9,617
Deferred income taxes, net 245 243
Other current liabilities 29,645 34,613
Current liabilities related to assets held for sale   -   19,341  
Total current liabilities 519,987 471,374
 
Long-term debt, less current portion 466,984 575,969
Capital lease and financing obligations, less current portion 54,794 -
Deferred income taxes, net 270,348 189,637
Other long-term liabilities 32,544 27,184
Long-term liabilities related to assets held for sale - 474
 
Commitments and contingencies
 
Redeemable noncontrolling interests 9,904 21,034
 
Stockholders' equity:

Preferred stock, $0.10 par value: Authorized - 1,000,000 shares;

No shares issued or outstanding

- -

Common stock, $0.10 par value: Authorized - 500,000,000 shares;

Issued and outstanding - 152,680,855 and 154,466,463 shares at September 29, 2012 and September 24, 2011, respectively

15,268 15,447
Additional paid-in capital 1,464,560 1,499,616
Retained earnings 771,200 411,727
Accumulated other comprehensive income (loss)   10,200   (14,575 )
Total stockholders' equity   2,261,228   1,912,215  
 
Total liabilities and stockholders' equity $ 3,615,789 $ 3,197,887  
 
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except per share data)
             
Fourteen Thirteen Fifty-three Fifty-two
weeks ended weeks ended weeks ended weeks ended
September 29, September 24, September 29, September 24,
2012 2011 2012 2011
Net sales $ 946,736 $ 711,883 $ 3,859,198 $ 2,650,899
Cost of sales   630,290     457,793     2,589,799     1,746,274  
Gross profit 316,446 254,090 1,269,399 904,625
 
Selling and operating expenses 111,048 95,150 481,493 348,696
General and administrative expenses   61,661     52,228     219,010     187,016  
Operating income 143,737 106,712 568,896 368,913
 
Other income (expense), net 230 (285 ) 1,819 648
Gain (loss) on financial instruments, net (4,731 ) 5,574 (4,945 ) (6,245 )
Gain (loss) on foreign currency, net 5,812 (7,555 ) 7,043 (2,912 )
Gain on sale of subsidiary - - 26,311 -
Interest expense   (4,321 )   (5,097 )   (22,983 )   (57,657 )
Income before income taxes 140,727 99,349 576,141 302,747
 
Income tax expense   (48,692 )   (23,528 )   (212,641 )   (101,699 )
Net Income $ 92,035 $ 75,821 $ 363,500 $ 201,048
 
Net income attributable to noncontrolling interests   148     452     872     1,547  
 
Net income attributable to GMCR $ 91,887   $ 75,369   $ 362,628   $ 199,501  
 
 
Basic income per share:
Basic weighted average shares outstanding 154,557,765 153,837,445 154,933,948 146,214,860
Net income per common share - basic $ 0.59 $ 0.49 $ 2.34 $ 1.36
 
Diluted income per share:
Diluted weighted average shares outstanding 158,094,806 159,207,852 159,075,646 152,142,434
Net income per common share - diluted $ 0.58 $ 0.47 $ 2.28 $ 1.31
 
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Cash Flows
(Dollars in thousands)
           
Fifty-three Fifty-two
weeks ended weeks ended
September 29, September 24,
2012 2011
Cash flows from operating activities:
Net income $ 363,500 $ 201,048
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 135,656 72,297
Amortization of intangibles 45,991 41,339
Amortization deferred financing fees 6,050 6,158
Loss on extinguishment of debt - 19,732
Unrealized (gain) loss of foreign currency (6,557 ) 1,041
Loss on disposal of fixed assets 2,517 884
Gain on sale of subsidiary, excluding transaction costs (28,914 ) -
Provision for doubtful accounts 3,197 2,584
Provision for sales returns 107,436 64,457
Unrealized loss on financial instruments, net 6,310 3,292
Tax benefit from exercise of non-qualified options and disqualified dispositions of incentive stock options (1,006 ) (6,142 )
Excess tax benefits from equity-based compensation plans (12,070 ) (67,813 )
Deferred income taxes 60,856 (8,828 )
Deferred compensation and stock compensation 18,079 10,575
Other 334 -
Changes in assets and liabilities, net of effects of acquisition:
Receivables (159,317 ) (157,329 )
Inventories (92,862 ) (375,709 )
Income tax receivable/payable, net 16,457 63,487
Other current assets (6,900 ) (715 )
Other long-term assets, net (469 ) (11,454 )
Accounts payable (17,668 ) 106,202
Accrued compensation costs (4,908 ) 2,233
Accrued expenses 39,701 25,600
Other current liabilities (2,718 ) (3,118 )
Other long-term liabilities   5,090     10,964  
Net cash provided by operating activities 477,785 785
 
Cash flows from investing activities:
Change in restricted cash (2,875 ) 2,074
Acquisition of LJVH Holdings, Inc. (Van Houtte), net of cash acquired - (907,835 )
Proceeds from sale of subsidiary, net of cash transferred 137,733 -
Capital expenditures for fixed assets (401,121 ) (283,444 )
Other investing activities   618     1,533  
Net cash used in investing activities (265,645 ) (1,187,672 )
 
Cash flows from financing activities:
Net change in revolving line of credit (108,727 ) 333,835
Proceeds from issuance of common stock under compensation plans 12,092 17,328
Proceeds from issuance of common stock for private placement - 291,096
Proceeds from issuance of common stock in public equity offering - 673,048
Financing costs in connection with public equity offering - (25,685 )
Repurchase of common stock (76,470 ) -
Excess tax benefits from equity-based compensation plans 12,070 67,813
Payments on capital lease and financing obligations (7,558 ) (8 )
Proceeds from borrowings of long-term debt - 796,375
Deferred financing fees - (46,009 )
Repayment of long-term debt (7,814 ) (906,885 )
Other financing activities   3,283     (1,063 )
Net cash (used in) provided by financing activities (173,124 ) 1,199,845
 
Change in cash balances included in current assets held for sale 5,160 (5,160 )
 
Effect of exchange rate changes on cash and cash equivalents 1,124 790
 
Net increase in cash and cash equivalents 45,300 8,588
Cash and cash equivalents at beginning of period   12,989     4,401  
Cash and cash equivalents at end of period $ 58,289   $ 12,989  
 
Supplemental disclosures of cash flow information:
Cash paid for interest $ 20,783 $ 33,452
Cash paid for income taxes $ 136,407 $ 58,182
Fixed asset purchases included in accounts payable and not disbursed at the end of each period $ 56,127 $ 25,737
Noncash financing and investing activities:
Fixed assets acquired under capital lease and financing obligations $ 66,531 $ -
 
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands, except per share data)
         

Fourteen

Thirteen

weeks ended

weeks ended

September 29, September 24,
2012 2011
 
Operating income $ 143,737 $ 106,712
Expenses related to SEC inquiry (1) 1,858 675
Amortization of identifiable intangibles (2)   11,495   11,752  
Non-GAAP operating income $ 157,090 $ 119,139  
 
 

Fourteen

Thirteen

weeks ended

weeks ended

September 29, September 24,
2012 2011
 
Net income attributable to GMCR $ 91,887 $ 75,369
After tax:
Expenses related to SEC inquiry (1) 1,184 453
Amortization of identifiable intangibles (2) 7,897 7,829
Net operating and capital loss carryforwards (3)   -   (8,376 )
Non-GAAP net income $ 100,968 $ 75,275  
 
 

Fourteen

Thirteen

weeks ended

weeks ended

September 29, September 24,
2012 2011
 
Diluted income per share $ 0.58 $ 0.47
After tax:
Expenses related to SEC inquiry (1) 0.01 0.00
Amortization of identifiable intangibles (2) 0.05 0.05
Net operating and capital loss carryforwards (3)   -   (0.05 )
Non-GAAP net income per share $ 0.64 $ 0.47  

(1) Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(3) 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 were 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.

 
GREEN MOUNTAIN COFFEE ROASTERS, INC.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands, except per share data)
   

Fifty-three weeks ended September 29, 2012

Fifty-two weeks ended September 24, 2011

Operating income $ 568,896 $ 368,913
Acquisition-related expenses (1) - 10,573
Expenses related to SEC inquiry (2) 6,669 7,868
Amortization of identifiable intangibles (3)   45,991     41,339  
Non-GAAP operating income $ 621,556   $ 428,693  
 
 

Fifty-three weeks ended September 29, 2012

Fifty-two weeks ended September 24, 2011

Net income attributable to GMCR $ 362,628 $ 199,501
After tax:
Acquisition-related expenses (7) - 14,524
Expenses related to SEC inquiry (2) 4,073 4,895
Amortization of identifiable intangibles (3) 31,555 27,343
Loss on extinguishment of debt (4) - 11,027
Net operating and capital loss carryforwards (5) (8,376 )
Gain on sale of subsidiary (6)   (16,685 )   -  
Non-GAAP net income $ 381,571   $ 248,914  
 
 

Fifty-three weeks ended September 29, 2012

Fifty-two weeks ended September 24, 2011

Diluted income per share $ 2.28 $ 1.31
After tax:
Acquisition-related expenses (7) - 0.10
Expenses related to SEC inquiry (2) 0.03 0.03
Amortization of identifiable intangibles (3) 0.20 0.18
Loss on extinguishment of debt (4) - 0.07
Net operating and capital loss carryforwards (5) - (0.06 )
Gain on sale of subsidiary (6)   (0.10 )   -  
Non-GAAP net income per share $ 2.40   * $ 1.64   *
 
*Does not sum due to rounding.
 

(1) Represents direct acquisition-related expenses classified as general and administrative expense.(2) Represents legal and accounting expenses related to the SEC inquiry and pending litigation classified as general and administrative expense.(3) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.(4) 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) 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 were 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) Represents the gain recognized on the sale of Filterfresh, net of income taxes of $9.6 million. The income taxes of $9.6 million include the tax benefit resulting from the release of the valuation allowance in fiscal 2011.(7) 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).

5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,066.84 +36.63 0.20%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs