MINNEAPOLIS--(BUSINESS WIRE)--Aug. 6, 2012--
Caribou Coffee Company, Inc. (NASDAQ:CBOU), the second largest
company-owned premium coffeehouse operator in the United States based on
the number of coffeehouses, today reported financial results for the
second quarter of 2012 (thirteen weeks ended July 1, 2012). The Company
also adjusted its fiscal 2012 outlook.
HIGHLIGHTS FOR THE SECOND QUARTER OF 2012 INCLUDE:
-
Comparable coffeehouse store sales increased 2.8%
-
Net income attributable to Caribou Coffee Company, Inc. was $2.8
million, or $0.13 per diluted share compared to $4.4 million, or $0.21
per diluted share, in the second quarter of 2011. The year-ago period
was impacted by a tax benefit related to the reversal of a portion of
our tax valuation allowance. Non-GAAP pro forma net income
attributable to Caribou Coffee Company, Inc. in the second quarter of
2011 was $2.7 million, or $0.13 per diluted share (see non-GAAP
reconciliation at the end of this release).
Speaking on behalf of the Company, Michael Tattersfield, the Company’s
President and Chief Executive Officer commented, “We were pleased to
have held pro forma net income steady compared to the prior year period
in the face of coffee commodity cost pressure and a lower contribution
from the Keurig single-serve platform. Growth in comparable coffeehouse
sales has also now been extended to eleven consecutive quarters and
benefited from our continued focus on product innovation. In addition we
also reached a new franchise milestone of 100 international coffeehouses
further demonstrating the extensive popularity of Caribou Coffee outside
of the US.”
Tattersfield concluded, “Although our updated projections for
Caribou-branded K-cups have led us to adjust our full year outlook, we
view the dynamics affecting our single-serve business as temporary
challenges and remain committed to strengthening our Green Mountain
relationship. More importantly, the diversification afforded to us
through our multi-channel model provides us numerous levers to achieve
sustainable growth in sales and profitability over the long-term.”
SECOND QUARTER 2012 RESULTS
Net sales for the quarter of $81.1 million increased $0.8 million, or
1.1%, from $80.3 million in the comparable quarter of 2011.
-
Coffeehouse sales were $62.0 million in the second quarter of 2012, an
increase of 3.3% compared to $60.0 million in the second quarter of
2011. Growth was driven by a 2.8% increase in comparable coffeehouse
sales, primarily due to increased beverage sales.
-
Commercial sales were $15.5 million in the second quarter of 2012, a
decrease of 7.9% compared to $16.8 million in the second quarter of
2011. This change was driven by a decrease in sales of blended coffee
into the Keurig single-serve platform and related royalties, partially
offset by increased sales to new and existing customers in the
Company’s grocery and foodservice channels.
-
Franchise sales were $3.6 million in the second quarter of 2012, an
increase of 6.0% compared to $3.4 million in the second quarter of
2011. Growth in product sales and royalties from 188 franchise
locations, a net increase of 41 locations from the prior year, drove
the increase in franchise sales versus last year.
Cost of sales and related occupancy costs in the second quarter of 2012
were $39.8 million, an increase of $1.9 million, or 5.0%, compared to
the second quarter of 2011, and were driven by significantly higher
coffee commodity costs. As a percentage of revenue, cost of sales and
related occupancy costs were 49.1% in the second quarter of 2012 versus
47.2% in the same period of the prior year. The increase as a percentage
of sales was due to higher coffee commodity costs versus the prior year.
Operating expenses in the second quarter of 2012 were $26.4 million, a
decrease of $0.4 million, or 1.6%, compared to $26.8 million in the
second quarter of 2011. The decrease in operating expenses was driven by
lower labor costs that were partially offset by higher fees for debit
card transactions due to recent legislation changes. As a percentage of
revenue, operating costs were 32.5%, compared to 33.4% in the same
period of the prior year. The decrease as a percentage of sales is the
result of leverage gained on fixed costs within the Company’s business
channels.
General and administrative expenses decreased $0.6 million, or 7.0%, to
$7.6 million in the second quarter of 2012, from $8.1 million in the
second quarter of 2011. As a percentage of total net sales, general and
administrative expenses decreased to 9.3% in the second quarter of 2012
from 10.1% in the second quarter of 2011, as the Company leveraged fixed
costs on higher sales.
Depreciation and amortization decreased $0.3 million to $2.5 million
during the second quarter of 2012 due to a lower depreciable asset base.
Tax expense was $2.0 million in the second quarter of 2012 compared to a
tax expense of less than $0.1 million in the second quarter of 2011. The
tax benefit in 2011 related to the reversal of a portion of the
Company’s valuation allowance against accumulated net operating losses
and other deferred tax assets and the corresponding recognition of those
deferred tax assets on the Company’s balance sheet.
The Company’s net income attributable to Caribou Coffee Company, Inc. in
the second quarter of 2012 was $2.8 million, or $0.13 per diluted share,
compared to $4.4 million, or $0.21 per diluted share, in the same period
in 2011. When adjusting for the reversal of the valuation allowance on
the Company’s deferred tax assets, the Company’s non-GAAP pro forma net
income attributable to Caribou Coffee Company, Inc. in the second
quarter of 2011 was $2.7 million, or $0.13 per diluted share (see
non-GAAP reconciliation at the end of this release).
FISCAL YEAR 2012 OUTLOOK
-
Net sales flat compared with 2011.
-
Net coffeehouse unit growth of 60 to 70, of which approximately 15
will be Company-owned coffeehouse openings.
-
Diluted earnings per share of $0.43 to $0.46.
The change in the Company’s outlook is primarily attributable to the
expectation of lower sales related to its Green Mountain relationship,
which is driven by continued channel shifting, the short-term impact of
new price tiers in the category, as well as the loss of a significant
account in the club business. While these factors have created shifts to
the near term, Caribou remains confident in its long-term growth
prospects in the single-serve marketplace.
CONFERENCE CALL
The Company will host a conference call on August 6, 2012, at 4:30 p.m.
(Eastern Time) to discuss these results. Hosting the call will be Mike
Tattersfield, Chief Executive Officer, and Tim Hennessy, Chief Financial
Officer.
Listeners may also access the call by dialing (877) 741-4251 or (719)
325-4853 for international callers. A replay of the call will be
available until Monday, August 13, 2012, by dialing (877) 870-5176 or
(858) 384-5517 for international callers; the password is 1634554.
The conference call will also be webcast and can be accessed from the
Investor Relations section of the Caribou Coffee website at www.cariboucoffee.com.
ABOUT THE COMPANY
Founded in 1992, Caribou Coffee Company is one of the leading branded
coffee companies in the United States, with a compelling multi-channel
approach to their customers. Based on the number of coffeehouses,
Caribou Coffee is the second largest company-operated premium
coffeehouse operator in the United States. As of July 1, 2012, the
Company had 596 coffeehouses, including 188 franchised locations, in
22 states, the District of Columbia and ten international markets. The
Company’s coffeehouses aspire to be the community place loved by guests
who are provided an extraordinary experience that makes their day
better. Caribou Coffee provides the highest quality handcrafted
beverages, foods and coffee lifestyle items with a unique blend of
expertise, fun and authentic human connection in a comfortable and
welcoming coffeehouse environment. In addition, Caribou Coffee’s unique
coffees are available within grocery stores, mass merchandisers, club
stores, office coffee and foodservice providers, hotels, entertainment
venues and e-commerce channels. Caribou Coffee is a proud recipient of
the Rainforest Alliance Corporate Green Globe Award and is committed to
operating practices that promote sustainability and environmental
protection. For more information, visit the Caribou Coffee web site at www.cariboucoffee.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this release, and other written or oral statements
made by or on behalf of Caribou Coffee contain forward-looking
statements concerning Caribou Coffee’s expected financial performance,
as well as Caribou Coffee’s strategic and operational plans. Risks and
uncertainties may cause actual results to differ materially from the
results predicted, and reported results should not be considered as an
indication of future performance. The potential risks and uncertainties
include, among others, our ability to develop and maintain our brand;
our ability to maintain or expand our commercial business, including
maintaining our relationship with Keurig; our ability to locate superior
sites and increase the density of our coffeehouses; Caribou Coffee’s
ability to compete with new or existing competitors; the implementation
and results of Caribou Coffee’s ongoing strategic and cost initiatives;
the fluctuations in cost and availability of our raw ingredients; the
demand by customers for Caribou Coffee’s premium products; acceptance by
customers of new products and services; dependence on third parties for
supplies, services, and distribution; dependence on key personnel;
failure to manage growth and diversification; risks related to Caribou
Coffee’s international franchise operations; Caribou Coffee’s ability to
protect its intellectual property and the value of its brands; and
general economic conditions and changes in economic conditions. All
information set forth in this press release and its attachments is as of
August 3, 2012. Caribou Coffee does not intend, and undertakes no duty,
to update this information to reflect subsequent events or
circumstances; however, Caribou Coffee may update its business outlook
or any portion thereof at any time in its discretion. More information
about potential factors that could affect the Company’s business and
financial results is included under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in the Company’s Annual Report on Form 10-K for the year
ended January 1, 2012, which is on file with the SEC and available on
the SEC’s website at www.sec.gov.
Additional information will also be set forth in those sections in any
future filings we may make with the SEC under Sections 13(a), 13(c), 14
or 15(d) of the Exchange Act.
|
CARIBOU COFFEE COMPANY, INC. AND AFFILIATES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
July 1,
|
|
July 3,
|
|
July 1,
|
|
July 3,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(In thousands, except for per share amounts)
|
|
|
|
(Unaudited)
|
|
Coffeehouse sales
|
|
$
|
62,008
|
|
|
$
|
60,032
|
|
|
$
|
121,745
|
|
|
$
|
117,643
|
|
|
Commercial and franchise sales
|
|
|
19,117
|
|
|
|
20,238
|
|
|
|
39,921
|
|
|
|
34,902
|
|
|
Total net sales
|
|
|
81,125
|
|
|
|
80,270
|
|
|
|
161,666
|
|
|
|
152,545
|
|
|
Cost of sales and related occupancy costs
|
|
|
39,809
|
|
|
|
37,923
|
|
|
|
81,861
|
|
|
|
71,159
|
|
|
Operating expenses
|
|
|
26,387
|
|
|
|
26,811
|
|
|
|
52,980
|
|
|
|
52,221
|
|
|
Depreciation and amortization
|
|
|
2,467
|
|
|
|
2,768
|
|
|
|
4,972
|
|
|
|
5,704
|
|
|
General and administrative expenses
|
|
|
7,572
|
|
|
|
8,142
|
|
|
|
14,848
|
|
|
|
15,940
|
|
|
Operating income
|
|
|
4,890
|
|
|
|
4,626
|
|
|
|
7,005
|
|
|
|
7,521
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
12
|
|
|
|
7
|
|
|
|
24
|
|
|
|
12
|
|
|
Interest expense
|
|
|
(20
|
)
|
|
|
(58
|
)
|
|
|
(41
|
)
|
|
|
(114
|
)
|
|
Income before provision for (benefit from) income taxes
|
|
|
4,882
|
|
|
|
4,575
|
|
|
|
6,988
|
|
|
|
7,419
|
|
|
Provision for (benefit from) income taxes
|
|
|
2,030
|
|
|
|
47
|
|
|
|
2,857
|
|
|
|
(21,287
|
)
|
|
Net income
|
|
|
2,852
|
|
|
|
4,528
|
|
|
|
4,131
|
|
|
|
28,706
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
93
|
|
|
|
103
|
|
|
|
131
|
|
|
|
210
|
|
|
Net income attributable to Caribou Coffee Company, Inc.
|
|
$
|
2,759
|
|
|
$
|
4,425
|
|
|
$
|
4,000
|
|
|
$
|
28,496
|
|
|
Basic net income attributable to Caribou Coffee Company, Inc. common
shareholders per share
|
|
$
|
0.14
|
|
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
1.43
|
|
|
Diluted net income attributable to Caribou Coffee Company, Inc.
common shareholders per share
|
|
$
|
0.13
|
|
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
$
|
1.38
|
|
|
Basic weighted average number of shares outstanding
|
|
|
20,347
|
|
|
|
19,995
|
|
|
|
20,446
|
|
|
|
19,925
|
|
|
Diluted weighted average number of shares outstanding
|
|
|
20,914
|
|
|
|
20,670
|
|
|
|
21,104
|
|
|
|
20,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARIBOU COFFEE COMPANY, INC. AND AFFILIATES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
July 1,
|
|
January 1,
|
|
|
|
2012
|
|
2012
|
|
|
|
In thousands, except per share amounts
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
36,902
|
|
|
$
|
44,495
|
|
|
Accounts receivable, net
|
|
|
7,543
|
|
|
|
14,646
|
|
|
Other receivables, net
|
|
|
1,712
|
|
|
|
1,743
|
|
|
Inventories
|
|
|
35,192
|
|
|
|
22,965
|
|
|
Deferred tax assets - current
|
|
|
4,238
|
|
|
|
6,766
|
|
|
Prepaid expenses and other current assets
|
|
|
1,386
|
|
|
|
1,514
|
|
|
Total current assets
|
|
|
86,973
|
|
|
|
92,129
|
|
|
Property and equipment, net of accumulated depreciation and
amortization
|
|
|
35,531
|
|
|
|
36,965
|
|
|
Deferred tax assets – non-current
|
|
|
15,624
|
|
|
|
13,947
|
|
|
Other assets
|
|
|
300
|
|
|
|
323
|
|
|
Total assets
|
|
$
|
138,428
|
|
|
$
|
143,364
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
14,561
|
|
|
$
|
10,480
|
|
|
Accrued compensation
|
|
|
3,047
|
|
|
|
6,272
|
|
|
Accrued expenses
|
|
|
9,169
|
|
|
|
8,502
|
|
|
Deferred revenue
|
|
|
6,246
|
|
|
|
8,591
|
|
|
Total current liabilities
|
|
|
33,023
|
|
|
|
33,845
|
|
|
|
|
|
|
|
|
Asset retirement liability
|
|
|
1,237
|
|
|
|
1,248
|
|
|
Deferred rent liability
|
|
|
4,514
|
|
|
|
5,132
|
|
|
Deferred revenue
|
|
|
1,863
|
|
|
|
1,883
|
|
|
Total long term liabilities
|
|
|
7,614
|
|
|
|
8,263
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Caribou Coffee Company, Inc. Shareholders’ equity:
|
|
|
|
|
|
Preferred stock, par value $.01, 20,000 shares authorized; no shares
issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, par value $.01, 200,000 shares authorized; 20,325 and
20,848 shares issued and outstanding at July 1, 2012 and January 1,
2012, respectively
|
|
|
203
|
|
|
|
208
|
|
|
Additional paid-in capital
|
|
|
125,540
|
|
|
|
132,643
|
|
|
Accumulated comprehensive loss
|
|
|
(379
|
)
|
|
|
—
|
|
|
Accumulated deficit
|
|
|
(27,718
|
)
|
|
|
(31,718
|
)
|
|
Total Caribou Coffee Company, Inc. shareholders’ equity
|
|
|
97,646
|
|
|
|
101,133
|
|
|
Noncontrolling interest
|
|
|
145
|
|
|
|
123
|
|
|
Total equity
|
|
|
97,791
|
|
|
|
101,256
|
|
|
Total liabilities and equity
|
|
$
|
138,428
|
|
|
$
|
143,364
|
|
|
|
|
|
|
|
|
|
|
|
|
Coffeehouse Openings and Closings
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
July 1,
|
|
July 3,
|
|
July 1,
|
|
July 3,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(In thousands, except operating data)
|
|
Non-GAAP Metrics:
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$
|
7,788
|
|
|
7,776
|
|
|
$
|
12,897
|
|
|
13,999
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
Percentage change in comparable coffeehouse net sales(2)
|
|
|
2.8
|
%
|
|
4.6
|
%
|
|
|
2.6
|
%
|
|
4.5
|
%
|
|
Company-Owned:
|
|
|
|
|
|
|
|
|
|
Coffeehouses open at beginning of period
|
|
|
411
|
|
|
409
|
|
|
|
412
|
|
|
410
|
|
|
Coffeehouses opened during the period
|
|
|
1
|
|
|
—
|
|
|
|
1
|
|
|
—
|
|
|
Coffeehouses closed during the period
|
|
|
4
|
|
|
2
|
|
|
|
5
|
|
|
3
|
|
|
Coffeehouses open at end of period:
|
|
|
|
|
|
|
|
|
|
Total Company-Owned
|
|
|
408
|
|
|
407
|
|
|
|
408
|
|
|
407
|
|
|
Franchised:
|
|
|
|
|
|
|
|
|
|
Coffeehouses opened at beginning of period
|
|
|
174
|
|
|
135
|
|
|
|
169
|
|
|
131
|
|
|
Coffeehouses opened during the period
|
|
|
17
|
|
|
12
|
|
|
|
25
|
|
|
21
|
|
|
Coffeehouses closed during the period
|
|
|
3
|
|
|
—
|
|
|
|
6
|
|
|
5
|
|
|
Coffeehouses open at end of period:
|
|
|
|
|
|
|
|
|
|
Total Franchised
|
|
|
188
|
|
|
147
|
|
|
|
188
|
|
|
147
|
|
|
Total coffeehouses open at end of period
|
|
|
596
|
|
|
554
|
|
|
|
596
|
|
|
554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See reconciliation and discussion of non-GAAP measures which follow
at the end of this section.
|
|
|
|
|
|
(2)
|
|
Percentage change in comparable coffeehouse net sales compares the
net sales of coffeehouses during a fiscal period to the net sales
from the same coffeehouses for the equivalent period in the prior
year. A coffeehouse is included in this calculation beginning in its
thirteenth full fiscal month of operations. A closed coffeehouse is
included in the calculation for each full month that the coffeehouse
was open in both fiscal periods. Franchised coffeehouses are not
included in the comparable coffeehouse net sales calculations.
|
|
|
|
|
NON-GAAP FINANCIAL INFORMATION
(Unaudited, in thousands,
except per share data)
The following reconciliations and non-GAAP financial information are
provided to assist the reader with understanding the financial impact of
the 2011 reversal of the valuation allowance against accumulated net
operating losses and other deferred tax assets on the Company’s net
income attributable to Caribou Coffee Company, Inc. and earnings per
share when comparing current thirteen week period and twenty-six week
period results to the Company’s 2011 results.
|
|
|
Thirteen Weeks
|
|
|
Twenty-Six Weeks
|
|
|
|
Ended July 3, 2011
|
|
|
Ended July 3, 2011
|
|
|
|
Thousands
|
|
Diluted EPS
|
|
|
Thousands
|
|
Diluted EPS
|
|
Net income attributable to Caribou Coffee Company, Inc. as reported
|
|
$
|
4,425
|
|
$
|
0.21
|
|
|
$
|
28,496
|
|
$
|
1.38
|
|
Provision for income taxes (1)
|
|
|
47
|
|
|
0.00
|
|
|
|
21,287
|
|
|
1.03
|
|
Non-GAAP pro-forma pre-tax income attributable to Caribou Coffee
Company, Inc.
|
|
|
4,472
|
|
|
0.21
|
|
|
|
7,209
|
|
|
0.35
|
|
Pro forma tax expense at 40% effective tax rate (2)
|
|
|
1,789
|
|
|
0.08
|
|
|
|
2,884
|
|
|
0.14
|
|
Non-GAAP pro forma net income attributable to Caribou Coffee
Company, Inc.
|
|
$
|
2,683
|
|
$
|
0.13
|
|
|
$
|
4,325
|
|
$
|
0.21
|
|
Diluted weighted average number of shares outstanding
|
|
|
20,670
|
|
|
20,670
|
|
|
|
20,605
|
|
|
20,605
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Relates to the tax benefit from the reversal of an accounting
reserve against tax net operating loss carryforwards and other
deferred tax assets.
|
|
|
|
(2)
|
|
Pro forma effective tax rate for illustrative purposes. Actual
results could differ.
|
|
|
|
|
|
EBITDA RECONCILIATION
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
July 1,
|
|
July 3,
|
|
July 1,
|
|
July 3,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(Thousands)
|
|
Net income attributable to Caribou Coffee Company, Inc.
|
|
$
|
2,759
|
|
|
$
|
4,425
|
|
|
$
|
4,000
|
|
|
$
|
28,496
|
|
|
Interest expense
|
|
|
20
|
|
|
|
58
|
|
|
|
41
|
|
|
|
114
|
|
|
Interest income
|
|
|
(12
|
)
|
|
|
(7
|
)
|
|
|
(24
|
)
|
|
|
(12
|
)
|
|
Depreciation and amortization(1)
|
|
|
2,991
|
|
|
|
3,253
|
|
|
|
6,023
|
|
|
|
6,688
|
|
|
Provision for (benefit from) income taxes
|
|
|
2,030
|
|
|
|
47
|
|
|
|
2,857
|
|
|
|
(21,287
|
)
|
|
EBITDA
|
|
$
|
7,788
|
|
|
$
|
7,776
|
|
|
$
|
12,897
|
|
|
$
|
13,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
(1)
|
|
Includes depreciation and amortization associated with the
headquarters and roasting facility that are categorized as general
and administrative expenses and cost of sales and related occupancy
costs on the statement of operations.
|
|
|
|
|
EBITDA is equal to net income excluding: (a) interest expense; (b)
interest income; (c) depreciation and amortization; and (d) income taxes.
Management believes EBITDA is useful to investors in evaluating the
Company’s operating performance for the following reason:
• Coffeehouse leases are generally short-term and Caribou must
depreciate all of the cost associated with those leases on a
straight-line basis over the initial lease term excluding renewal
options (unless such renewal periods are reasonably assured at the
inception of the lease). The Company opened a net 202 company-operated
coffeehouses from the beginning of fiscal 2003 through the end of the
second quarter of fiscal 2012. As a result, management believes
depreciation expense is disproportionately large when compared to the
sales from a significant percentage of the coffeehouses that are in
their initial years of operations. Also, many of the assets being
depreciated have actual useful lives that exceed the initial lease term
excluding renewal options. Consequently, management believes that
adjusting for depreciation and amortization is useful for evaluating the
operating performance of the coffeehouses. Furthermore, the Company
recorded a significant tax benefit in the first quarter of fiscal 2011
related to the reversal of a valuation allowance against accumulated net
operating losses and other deferred tax assets. Consequently, management
believes that adjusting for the impact of income taxes is useful in
evaluating the overall performance of the Company.
Management uses EBITDA:
• As a measurement of operating performance because it assists
management in comparing its operating performance on a consistent basis
as it removes the impact of items not directly resulting from
coffeehouse operations;
• For planning purposes, including the preparation of our
internal annual operating budget; and
• To evaluate the Company’s capacity to incur and service debt,
fund capital expenditures and expand the business.
EBITDA as calculated by Caribou Coffee is not necessarily comparable to
similarly titled measures used by other companies. In addition, EBITDA:
(a) does not represent net income or cash flows from operating
activities as defined by GAAP; (b) is not necessarily indicative of cash
available to fund cash flow needs; and (c) should not be considered an
alternative to net income, operating income, cash flows from operating
activities or Caribou Coffee’s other financial information as determined
under GAAP.
Source: Caribou Coffee Company, Inc.
Investor Relations:
Raphael Gross, 203-682-8253
ir@cariboucoffee.com
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