Green Mountain Coffee Roasters, Inc. Reports Very Strong Growth for Fiscal 2008 Fourth Quarter and Full Year – Robust Earnings Driven by Success of Keurig(r) Brewers and K-Cup Demand- Fourth Quarter EPS up 96% over Prior Year- 2008 Fiscal Year EPS up 68%WATERBURY, Vt.–(BUSINESS WIRE)November 12, 2008 –Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) has announced its fiscal 2008 and fiscal fourth quarter results for the thirteen weeks ended September 27, 2008, reporting strong sales and even stronger earnings growth. During the fourth quarter of fiscal 2008, 273 million K-Cup portion packs were shipped system-wide by all Keurig licensed roasters, up 62% over the year-ago quarter.Net sales for the fourth quarter of fiscal 2008 totaled $134.8 million as compared to $93.0 million reported in the fourth quarter of fiscal 2007, representing an increase of 45% year over year.Net income for the fiscal fourth quarter of 2008 increased 99% to $7.1 million or $0.28 per diluted share, from $3.6 million or $0.14 per diluted share in the fiscal fourth quarter of 2007.For the fifty-two weeks ended September 27, 2008, the Company recorded net sales of $500.3 million, up 46% from $341.7 million for the year ended September 29, 2007. Net income for fiscal 2008 increased 74% to $22.3 million, or $0.87 per diluted share, as compared to net income of $12.8 million, or $0.52 per diluted share for the prior year.Excluding the impact of the non-cash amortization expense related to the Keurig intangibles of approximately $4.8 million (pre-tax) or $0.11 per diluted share in both fiscal 2008 and 2007, non-GAAP net income totaled $25.2 million in fiscal 2008 compared to non-GAAP net income of $15.7 million for the comparable year-ago period.Lawrence J. Blanford, President and CEO, said, “I am thrilled with our employees’ ability to execute and innovate, building for the future and delivering the strong financial results we are reporting today. Some people feel that coffee is a basic need in all economic times, yet still in today’s business environment, I am proud of the strong top and bottom line growth we have delivered to our stockholders. With our proprietary Keurig Single-Cup Brewing system, we are truly turning opportunity into success, driving sales growth and profitability. Looking forward, our great coffee, our long history of success in focusing on innovation, our passion for socially responsible initiatives, and the opportunities presented by single-cup brewing create very exciting prospects for our Company in terms of brand expansion, continued growth, and helping make the world a better place.”Fiscal 2008 Fourth Quarter Financial ReviewNet Sales* For the Green Mountain Coffee segment, net sales for the fourth quarter of fiscal 2008 were up 38% to $84.5 million, prior to the elimination of inter-company sales, as compared to $61.2 million reported in the fourth quarter of fiscal 2007. Dollar sales growth was strongest in the channels that benefit from sales of the Keurig K-Cup portion packs including reseller, office coffee service (OCS), consumer direct and supermarket channels. Coffee, tea and hot cocoa pounds shipped increased 12% this quarter over the prior period. As previously announced, the Company increased prices in May 2008 by 8 to 12 percent on average across business channels and package types for coffee products sold by its Green Mountain Coffee division because of rising green coffee costs and increases in prices of other raw materials, and higher energy and transportation costs. The net impact of the price increase in the fourth quarter of fiscal 2008 was an increase in net sales of approximately 10% over the prior year period.* For the Keurig segment, net sales (prior to the elimination of inter-company sales) included in the Company’s fourth quarter of fiscal 2008 were $74.6 million, up 75% from net sales of $42.6 million in the fourth fiscal quarter of 2007. This increase in sales was primarily due to higher K-Cup and brewer sales and royalty income from the sales of K-Cups. Keurig announced a royalty rate increase of a penny on all system-wide K-Cup portion packs that went into effect on August 1st. This increase contributed to an approximate 4% increase in Keurig segment’s fourth quarter net sales over the prior year. Further detail on shipments of Keurig brewers and K-Cup portion packs is provided in the chart accompanying this press release.* As part of the consolidation, $11.4 million of inter-company Keurig segment sales and $12.8 million of inter-company Green Mountain Coffee segment sales were eliminated in the fourth quarter of fiscal 2008.Costs, Margins and Income* Consolidated cost of sales increased a little less than 100 basis points to 65.6% of total net sales compared to 64.7% for the corresponding quarter last year. The increase over last year primarily is due to the significant increase in sales of Keurig At Home Single-Cup Brewers where these brewers are sold at approximately cost (no gross margin) as part of the Company’s strategy to increase the installed base of Keurig brewers. In addition, higher green coffee and other commodity costs contributed to the increase in cost of sales as compared to the year ago fourth quarter. Partially offsetting the increase in cost of sales was the $0.01 increase in the K-Cup royalty rate paid by all Keurig licensed roasters effective August 1, 2008.* More than offsetting the decline in gross margin, selling, general and administrative (S,G& A) expenses improved as a percentage of net sales by 250 basis points to 24.8% from 27.3% in the prior year quarter. This improvement was the result of leveraging selling and organizational resources on a higher sales base. Additionally, included in this quarter’s S,G& A are approximately $1,000,000 in litigation expenses related to the patent infringement suit filed against Kraft which was recently settled, as detailed below.* The Company’s operating income was $13.0 million in the fourth quarter of fiscal 2008, as compared to $7.5 million reported in the prior year period, and improved as a percentage of net sales to 9.6% from 8.0%.* Interest expense was $1.3 million in the fourth fiscal quarter of 2008 and 2007.* Income before taxes for the fourth quarter of fiscal 2008 increased 92% to $11.7 million as compared to $6.1 million reported in the fourth quarter of fiscal 2007.* The Company’s tax rate was 39.2% as compared to 41.3% in the prior year quarter. The difference primarily was due to foreign tax credits associated with royalties earned on K-Cup portion packs from the Canadian licensed roasters for fiscal 2008.* Net income for the fourth quarter of fiscal 2008 was $7.1 million or 5.3% of net sales as compared to $3.6 million or 3.8% of net sales in the corresponding quarter last year.Balance Sheet Highlights* Inventories increased as planned by 119% to $85.3 million at September 27, 2008 from $38.9 million at September 29, 2007 in order to meet expected strong holiday sales of At Home Single-Cup Keurig brewers and K-Cups. The Company anticipates selling more than double the amount of At Home Single-Cup Keurig brewers and K-Cups during this holiday season in retail stores. In addition, the product line of At Home brewers has expanded to include the new “Keurig Mini” and other models contributing to the build in inventories.* Long-term debt increased to $123.5 million at 9/27/08 from $90 million at 9/29/07 primarily to fund capital expenditures of $48 million in fiscal 2008. Annual cash from operations funded the Company’s working capital needs in fiscal 2008.Subsequent EventAs previously announced on October 23, 2008, the Company’s Keurig subsidiary entered into a Settlement and License Agreement to settle its patent litigation with Kraft Foods Inc., Kraft Foods Global, Inc., and Tassimo Corporation (collectively “Kraft”). Pursuant to the terms of the Settlement and License Agreement, Kraft paid to Keurig, after the fourth quarter ended, a lump sum of $17,000,000 and Keurig granted to Kraft and its affiliates a limited, non-exclusive, perpetual, worldwide, fully paid up license of Keurig’s United States Patents Numbered 6,607,762 (the “762 Patent”) and 7,377,162 (the “162 Patent”), and United States and foreign counterpart patents connected to the 762 Patent or 162 Patent, for use in connection with the manufacture, distribution and sale of beverage brewing machines and certain beverage filter cartridges. This settlement will be recorded in the Company’s first quarter of fiscal 2009 as a non-recurring item in operating income of $17 million and will be taxed at the annual effective tax rate. Upon receipt of this lump sum payment at the end of October, the Company used the majority of these funds to pay down debt outstanding under its existing credit facility.Business Outlook and Other Forward-Looking InformationCompany Estimates for Fiscal Year 2009:* Total consolidated net sales growth of 40% to 45%.* Total K-Cup portion packs shipped system-wide by all Keurig licensed roasters to increase in the range of 50% to 60%.* An operating margin in the range of 8.5% to 9.3%, including $4.8 million or $0.11 per diluted share for non-cash amortization expenses related to the identifiable intangibles, and excluding the pre-tax $17 million Kraft patent litigation settlement.* Interest expense of $7.5 million to $8.5 million excluding any additional interest expense associated with financing the Tully’s acquisition.* A tax rate of 41.0% as compared to 38.9% in fiscal 2008.* Fully diluted GAAP earnings per share in the range of $1.58 to $1.68 per share, including the pre-tax $17 million or $0.38 per diluted share Kraft patent litigation settlement, and including the non-cash amortization expenses related to the identifiable intangibles mentioned above of $4.8 million or approximately $0.11 per share. Excluding the Kraft litigation settlement, fully diluted non-GAAP EPS in the range of $1.20 to $1.30 per share.* As previously announced on September 15, 2008, the Company executed an Asset Purchase Agreement to acquire the Tully’s coffee brand and wholesale business from Tully’s Coffee Corporation for a cash purchase price of $40.3 million, subject to adjustment at closing. The Company intends to finance the purchase through its existing $225 million senior revolving credit facility and has received consent from the lenders under its existing revolving credit agreement. This transaction is subject to customary closing conditions, including approval by Tully’s shareholders, and is expected to close in the next few months. The Company anticipates the acquisition will be neutral to modestly accretive to its earnings per share for the first twelve months of ownership following the closing of the transaction, and accretive thereafter.Company Estimates Relating to Balance Sheet and Cash Flow:* Capital expenditures for fiscal 2009 in the range of $50 to $57 million.* Depreciation and amortization expenses in the range of $22 to $24 million including $4.8 million for amortization of identifiable intangibles.Company Estimates for First Quarter Fiscal Year 2009:* Total consolidated net sales growth of 45% to 55%.* An operating margin in the range of 3.7% to 4.4% including non-cash amortization expenses for identifiable intangibles of approximately $1.2 million or $0.03 per share, and excluding the pre-tax $17 million patent litigation settlement. The Company anticipates selling and marketing expenses as a percentage of net sales during the first quarter of fiscal 2009 to be about the same as a year ago. Operating margins are expected to be less than a year ago due to the planned increase in net sales of At Home Single-Serve Keurig brewers with no contribution to gross margins.* Fully diluted GAAP earnings per share in the range of $0.48 to $0.52 per share, including the non-cash amortization expenses related to the identifiable intangibles that are estimated to reduce EPS by approximately $0.03 per share, and including the pre-tax $17 million or $0.38 per diluted share patent litigation settlement. Excluding the Kraft litigation settlement, fully diluted non-GAAP EPS in the range of $0.10 to $0.14 per share.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 and information regarding non-cash related items such as amortization of identifiable intangibles related to the Keurig acquisition completed on June 15, 2006 and also excludes one time operating income related to the Company’s Kraft litigation. These amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with greater 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.Green Mountain Coffee Roasters, Inc. will be discussing these financial results and future prospects with analysts and investors in a conference call available via the internet. The call will take place today at 5:00 PM ET and will be available, with accompanying slides, via live webcast on the Company’s website at www.GreenMountainCoffee.com(link is external) and other major portals. The Company archives the latest conference call on the Investor Services section of its website for a period of time. A replay of the conference call also will be available by telephone at 719-457-0820, confirmation code 2846968 from 9:00 PM ET on November 12th through 9:00 PM ET on Sunday, November 16th, 2008.GMCR routinely posts information that may be of importance to investors in the Investor Services section of its website, including 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 investor alerts, individuals can receive news directly from GMCR, via e-mail, as it is released.About Green Mountain Coffee Roasters, Inc.Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is recognized as a leader in the specialty coffee industry for its award-winning coffees, innovative brewing technology and socially and environmentally responsible business practices. GMCR manages its operations through two wholly owned business segments: Green Mountain Coffee and Keurig. Its Green Mountain Coffee division sells more than 100 high-quality coffee selections, including Fair Trade Certified(tm) organic coffees, under the Green Mountain Coffee(r) and Newman’s Own(r) Organics brands through its wholesale, direct mail and e-commerce operations (www.GreenMountainCoffee.com(link is external)). Green Mountain Coffee also produces its coffee as well as hot cocoa and tea in K-Cup(r) portion packs for Keurig(r) Single-Cup Brewers. Keurig, Incorporated is a pioneer and leading manufacturer of gourmet single-cup coffee brewing systems for offices, homes and hotel rooms. Keurig markets its patented brewers and K-Cup(r) portion packs through office distributors, retail and direct channels (www.Keurig.com(link is external)). K-Cup(r) portion packs are produced by a variety of licensed roasters including Green Mountain Coffee. Green Mountain Coffee Roasters, Inc. has been recognized repeatedly by CRO Magazine, Forbes and SustainableBusiness.com as a good corporate citizen and an innovative, high-growth company.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. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially. 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 receiving required approvals for the acquisition of Tully’s wholesale business and then in efficiently and effectively integrating Tully’s wholesale operations and capacity into its Green Mountain Coffee segment, 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 unknown impact of management changes, Keurig’s ability to continue to grow and build profits with its roaster partners in the office and at home markets, the impact of the loss of one or more major customers for Green Mountain Coffee or reduction in the volume of purchases by one or more major customers, delays in the timing of adding new locations with existing customers, Green Mountain Coffee’s level of success in continuing to attract new customers, sales mix variances, weather and special or unusual events, 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 press release. The Company does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.
Supreme Court hears DNA testing arguments Supreme Court hears DNA testing arguments Mark D. Killian Managing EditorTrying to reconcile a proposed criminal procedural rule on DNA testing for inmates with a recent state law, the Supreme Court heard oral arguments August 28. A majority of the debate centered around whether the law — which allows only those tried and found guilty to seek exoneration or a sentence reduction through DNA evidence — should also be applied to inmates who plead guilty or nolo contendere. Those representing public defender groups also objected to a provision in both the proposed rule and statute that allows prisoners to seek a DNA evidence review only two years after they are convicted or after new testing procedures are developed. Eighteenth Circuit Judge O.H. Eaton, Jr., chair of the Bar’s Criminal Procedures Rules Committee — which drafted the proposed rule — said the problem with the state law, Ch. 2001-97 (SB 366), is that it only affects those who were found guilty and not those who entered a plea. He said that has implications for the court’s habeas corpus powers. While not appearing at oral argument, House Speaker Tom Feeney, R-Oviedo, did file a brief with the court stating that the proposed rule’s expansion of “substantive grounds” authorizing DNA testing for those who plead guilty or no contest “would violate the separation of powers provision of the Florida Constitution.” “To the extent that the rule and SB 366 authorizes defendants to seek DNA testing in cases where their opportunity to seek DNA testing under existing law has already passed, the granting of additional rights to these same defendants enabling them to pursue those claims which would otherwise be barred is substantive in nature and cannot be reasonably construed to be procedural,” Feeney said. “Likewise, the use of DNA evidence to mitigate lawful sentences is a legislative creation of a new substantive right. The legislature therefore is not limiting a matter of procedure, and is well within its rights to ‘limit’ substantive rights that they, and they alone, have the authority to create.” Judge Eaton, however, said the constitution gives the court the right to issue habeas corpus writs and the legislature “has no business trying to curtail that right.” “There have been arguments that claim that what this rule does is to try to expand the statute, and I suggest that expansion vs. curtailment is where we ought to be talking,” Eaton told the justices. “What the statute does is curtail this court’s right to issue writs of habeas corpus. This rule does not expand that right; the rule simply states it.” Robert Willis, a former chair of the Criminal Procedures Rules Committee and an assistant public defender from Ft. Lauderdale, said to limit the DNA testing remedy only to cases where a trial has occurred, may have an “inhibiting impact” on future plea negotiations. “What would I advise my client to do in the future?” Willis asked. “I’d say, ‘You’d better go to trial because if science comes along with a remedy, I would not be able to make use of it.’” Justice Leander Shaw, however, asked if the court had the authority to extend the pool of those who could use the law. “The position of the rules committee from the beginning was that under the habeas corpus powers of this court it could address this issue, and that basically the rule that would be adopted would be stating the habeas corpus powers of this court,” Willis said. “We went back and used the statute as the starting point, but we fundamentally believed that all of these cases should be included.” Barry Scheck, a DNA expert and director of the Innocence Project in New York, said there have been 94 postconviction DNA exonerations in the U.S., including 11 persons who were on death row, two of whom were in Florida – Frank Lee Smith and Jerry Frank Townsend. “Given the way the proposed rule is structured, neither of these individuals would have had the opportunity to get relief because of the two-year time limit,” Scheck said, adding that because of the guilty-plea provision, Townsend, who has an IQ of 50, would have been denied an opportunity to get the DNA test. Townsend spent 22 years on death row after pleading guilty to murder before DNA testing recently cleared him. Scheck also said there are others across the nation who have pled guilty in order to avoid the death penalty, who have since been exonerated by DNA tests. Chief Justice Charles Wells asked if other states have time-limited DNA rules. Scheck said 22 states now have postconviction DNA statutes, and 16 of those have no time limits whatsoever. “We’ve done most of the postconviction DNA tests in the United States, and nine years of experience has shown. . . by the time someone tries to find a transcript, the police reports, the lab reports, to make an application under the statute to show a DNA test would raise a reasonable portability they were wrongly convicted and sentenced, certainly two years have passed,” Scheck said. “The average time period in our cases approached three to four years for us to get an application out.” Buddy Jacobs, general counsel of the Florida Prosecuting Attorneys Association, opposed calls to open the DNA testing to those who plead guilty, saying the same argument was already raised and rejected by the legislature. He also said those who plead guilty do so under oath and the state takes those pleas seriously. “On behalf of the state attorneys, we submit to you that the pool should not be expanded,” Jacobs said. “We think it makes our system, at best, disingenuous, and it is a thing that has been debated by the legislature, and we hope you do not expand that.” But Justice Shaw asked that if the state’s “bottom-line policy” is that innocent people should not be kept in jail, why shouldn’t a person who has entered a nolo plea “under pressure and are in fact innocent and can be proven innocent by DNA” be excepted? “Doesn’t that go against our policy, our principle, justice, and everything else?” Shaw asked. Jacobs said lawyers have a duty not to allow innocent people to plead guilty, and judges have a duty not to accept guilty pleas in “cases like that.” Carolyn Snurkowski of the Attorney General’s office said allowing those who plead their case to seek exoneration through DNA evidence would bring into question the validity of guilty pleas in this state “if, in fact, you are ascertaining that a large number of individuals are in fact innocent, and they have pled guilty or nolo contendere.” “If you really look at the notion of nolo contendere, the individual is not saying ‘I’m guilty.’ He is saying, ‘I cannot prove I’m innocent,’ and in that sense we have always accepted the notion that nolo contendere pleas are based on a number of reasons, and we don’t question the defendant with regard to why he is in fact engaging in that,” Snurkowski said. “That is not to say the state is standing up here before the court and suggesting anyone who is innocent should be incarcerated.” Other differences between the proposed rule and the statute include: • Subdivision (c)(7) provides for FDLE (or its designee) to conduct the testing, but also authorizes the trial court, upon a showing of good cause, to order testing by another laboratory or agency. The rules committee was of the opinion that the trial court has that inherent authority and that there may be cases in which testing by FDLE would be suspect. Additionally, in non-indigent cases, private counsel may prefer testing to be done by an independent laboratory. The committee said that provision also satisfies legislative concern that FDLE may not be able to absorb the number of cases expected by that agency. • The proposed rule, in subdivision (d)(B)(2), provides that a motion for postconviction relief based solely on the results of court-ordered DNA testing may not be subject to the time limitations in Fla. R. Crim. P. 3.850-3.851 and may not be considered a “successive motion.” The legislation does not contain a similar provision. • The proposed rule contains a provision that tolls the time for filing a notice of appeal if a motion for rehearing is filed. The legislation does not contain a similar provision. September 15, 2001 Managing Editor Regular News read more
Rodrigues says he wants lawmakers to be prepared in case one of the two proposed constitutional amendments gets on the ballot and wins approval by voters in 2020. Rodrigues is term-limited, but the Legislature would have to pass a bill setting up parameters for a newly legal marijuana industry, just as it has for medical marijuana.READ MORE: https://www.orlandosentinel.com/news/florida-marijuana/os-ne-house-legal-marijuana-florida-oregon-20191105-5thqbahtnzditmqpfzwbwm6v6q-story.htmlKeep up with family issues in NZ. Receive our weekly emails direct to your Inbox. The House Health and Human Services Committee heard testimony from Chris Gibson, a narcotics officer in Oregon, where marijuana was legalized in 2015. The presentation was the latest in a string of speakers planned by committee chairman Ray Rodrigues, R-Estero. Recreational marijuana has brought trouble to Oregon, a law officer said Tuesday, as Florida lawmakers prepared to deal with the chance that Sunshine State voters could legalize pot next year. Gibson stopped short of calling marijuana legalization a “gateway” to other drugs, as Rep. Mel Ponder, R-Destin, suggested, but said, “we have seen reported drug use in Oregon increase across the board … we’re seeing users that are using everything all together.” Orlando Sentinel 5 November 2019Family First Comment: “He listed a litany of problems that followed, including an increase in positive drug tests in the workforce, legal marijuana being siphoned into the black markets of other states and a spike in the use of other, still illegal drugs.”Don’t believe the Green Party hype #saynopetodope A Harvard medical school professor spoke of the medical dangers of marijuana last month, and Rodrigues says he plans to have other law enforcement officials from Colorado, another state where marijuana is legal. He listed a litany of problems that followed, including an increase in positive drug tests in the workforce, legal marijuana being siphoned into the black markets of other states and a spike in the use of other, still illegal drugs. read more
AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to MoreAddThisALPENA, Mich. — The Alpena Public Schools have finalized a series of unique ways to allow students and family members to celebrate and commemorate the Alpena High School Class of 2020. The events include a special billboard recognition of every AHS graduate on the digital M-32 screen, a senior salute on the scoreboard at Wildcat Stadium, a virtual commencement ceremony, and a drive-thru diploma pick up.Each event listed is tentative based upon any future changes to state health guidelines.May 13-May 31: Senior Photo Recognition on M-32 BillboardBeginning May 13, slides will begin to rotate on the digital billboard on M-32 in front of McDonald’s. The slides will rotate by alphabet on opposite days, beginning with A-L on May 13 and M-Z on May 14 Each slide will have four studentsMay 29: Senior Friday Night Salute (7pm-9pm) The lights will be on at Wildcat Stadium to salute the class of 2020. The Senior Graduation slideshow will be scrolling on the scoreboard and APS will be broadcasting on Facebook Live. The gates will be closed to the parking lot and visitors are asked not to attempt to gather in the surrounding areas to the Stadium to respect Social DistancingMay 31: Virtual Commencement Ceremony at 1:30 pm via Zoom. WBKB will carry the Zoom feed on its FOX station.Streaming locations will be announced if a student does not have internet service at home.June 13: Drive-Thru Diploma Pick-Up at Park Family Field at Wildcat StadiumStudents will drive through the stadium on the track to get their Diploma and Diploma cover.For more information, contact Alpena High School Principal Thomas Berriman at email@example.com. AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to MoreAddThisContinue ReadingPrevious State of Michigan to participate in federal work share programNext APS seeking to hire AmeriCorps reading interventionists read more