Previous Statements by CBOU
» Caribou Coffee Company, Inc. Q1 2010 Earnings Call Transcript
» Caribou Coffee Company, Inc. Q2 2008 Earnings Call Transcript
» Caribou Coffee Company Q4 2007 Earnings Call Transcript
We refer you to Caribou Coffee's recent filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition. Specifically, these risks and uncertainties are described in our most recent annual report on Form 10-K which is on filed with the SEC.On today’s call we will also discuss some non-GAAP financial measures as we talk about the company’s performance. These will include financial terms such as EBITDA and pro forma net income. While these are non-GAAP measures, management believe they are useful tools in evaluating the company’s performance. Reconciliations of these non-GAAP measures to the GAAP measures we consider most comparable can be found in today’s press release, which is also available on our website in the Investor section. With that, I would now like to turn the call over to Mike Tattersfield, our CEO. Mike Tattersfield Thank you, Mike, and good afternoon, everyone joining us on today’s call. Tim and I will walk through some highlights of our second quarter’s performance, as well as update you on our outlook for the reminder of 2012. We’ll then open up the call for any questions you may have. We are confident in our multi-channel branded coffee company’s strategy and believe that we are still on the early innings of that growth strategy. On our last call we communicated the shift in our topline growth trajectory, due to one component of our growth strategy, specifically our licensing business with Green Mountain Coffee Roasters. In light of those revised estimates, our second quarter results were very much in line with our expectation, and in someway slightly better. Consolidated net sales of $81.1 million, were up approximately 1% compared to the same quarter last year. This was a result of 3.3% in our retail coffeehouses channel, including 2.8% comparable coffeehouses sales growth, 6% growth in our franchise segment and an 8% decline in our commercial business.
In terms of profitability, we were pleased to have held net income steady compared to the pro forma net income of the prior year period in the face of coffee commodity cost pressure and a lower contribution from the Keurig single-serve platform.With that, I’d now like to walk you through the key quarterly highlights and then we’ll turn our attention to the financial details, as well as updated guidance for the remainder of the year. Comparable coffeehouse sales of 2.8% were solemnly in line with our projection and in fact, the second quarter marked the 11th consecutive period of positive comparable coffeehouse sales for Keurig. Once again, our ability to innovate and prove, and expand our product offering, help sustain our comp sales momentum and the introduction of our new sparkling juices and cheese with especially timely in view of the unusually hot weather. In particular, these distinct and refreshing products provide a nice comp lift to our historically lower volume afternoon daypart, and provide yet another example of our building block approach to growing comparable coffeehouse sales and improving average unit volumes. And while we appreciate that we have often given more air time to hire food initiative drive comparable coffeehouse sales, it is clear that beverage innovation has and will be vital to increasing AUV’s as well. Turning to food, our primary 2012 initiative is to reenergize and expand our bakery taste, given the operational complexity of our breakfast and lunch sandwich roll out over the past 24 months, we have not previously have the opportunity to readdress what is our largest food category. From a forward-looking standpoint, our innovation pipeline will continue to provide benefits to the second half of the year, as we launch some interesting line extensions to our breakfast sandwich platform, with item such as baked and [grilled] sandwiches, as well as all natural sauces egg and cheese biscuit. Read the rest of this transcript for free on seekingalpha.com