Hot! Green Mountain Coffee Roasters

WATERBURY, Vt. (BUSINESS WIRE)

Net sales with $885.1 million, upwards 37% above net sale gross sales of $647.7 thousand from the year-ago quarter

GAAP EPS involving $0.58 as opposed to be able to second one fourth financial year or so 2011 GAAP EPS with $0.44; non-GAAP EPS with $0.64 raises 33% above $0.48 while in the year-ago quarter

GAAP managing profits of $149.6 million when compared to next quarter financial season 2011 GAAP operating cash flow of $119.6 million; non-GAAP performing earnings with $162.3 million improves 22% within the year-ago quarter

GAAP net income with $93.0 million in comparison with second 1 / 4 fiscal season 2011 GAAP net sale income with $65.4 million; non-GAAP online earnings with $101.7 million grows 42% covering the year-ago quarter

Thirteen months endedMarch 24,March 26,20122011Single Serve Packs buck 655.0 $ 411.8 dollar 243.2 59 nought per cent Brewers in addition to Accessories 140.2 116.2 24.0 21 % Other Products along with Royalties 89.9 119.7 (29.8 ) (25 )% Total Net Sales money 885.1 dollar 647.7 dollar 237.4 37 %

Approximately 90% of consolidated second quarter financial year 2012 net sales were from sales regarding Keurig Single Cup Brewers, single serve packs, as well as Keurig -related accessories, while using remainder of net sale income consisting mostly of sales associated with bagged coffee along with product sales from the actual workplace java providers business.

The raise within single serve bunch sales was influenced by way of a 47 fraction stage enhance with profits volume along with a 12 percentage stage improve with K-Cup wrap net sale amount realization because of price grows executed in the course of financial 2011 to offset larger green coffee beans along with enter costs.

The second financial quarter s net gross sales bundled nominal early revenue associated with innovative Vue systems plus Vue packs. Net sales of Vue systems and also Vue packs aren't expected to possibly be stuff within the Company verts 2012 financial year.

GMCR sold 1.4 million Keurig Single Cup Brewers through the minute fraction of fiscal year 2012. This coffee machine shipment range won't are the reason for client returns.

We estimation that that blend regarding coffee machine shipments coming from GMCR and also it has the qualified lovers led to shipments of 1.5 million Keurig Single Cup Brewers from the second fraction connected with financial 12 months 2012.

Other merchandise in addition to royalties dropped year-over-year largely consequently belonging to the selling belonging to the Filterfresh enterprise throughout October 2011.

In the second fraction with fiscal 2012, major margin dropped that will 35.4% through 37.5% from the before year period.

The downfall with yucky perimeter with the prior year or so fraction largely ended up being with the following:

Approximately 290 base details on account of that mix off under-utilization regarding our latest production base subsequently of lower-than-expected K-Cup wrap demand from customers plus the resulting projects to reduce K-Cup group inventories which together, elevated ordinary work and also expense expenses each K-Cup pack.

Approximately 170 base factors due to larger green coffee beans costs.

Approximately a hundred and fifty groundwork factors because of some sort of higher put in writing connected with complete supplement in addition to anticipated obsolescence connected with nutrition materials inventory thanks to lower-than-anticipated gross sales of seasonal plus certain coffee products.

Approximately 50 foundation tips maximize around warrantee price covering the past year district which in turn had benefited from a innovative application which diminished presentation materials on warranty-related brewers.

Partially offsetting the downfall inside major margin in comparison with the earlier year or so appeared to be a great rough 390 groundwork points enhance as a result of online price realization coming from price tag increases consumed fiscal 2011 to countered better efficient coffee along with other input costs, including a ninety days basis things benefit as a result of a new recovery underneath a contract that has a store for several maker extended warranty indemnification.

GAAP performing margin regarding 16.9% connected with internet sales inside next quarter of monetary year or so 2012 lowered through 18.5% with the earlier year span subsequently belonging to the lessen gross margin.

Non-GAAP operating margin, which often excludes $1.1 zillion around costs associated with the SEC question plus pending litigation, as well as $11.6 trillion throughout amortization associated with identifiable intangibles associated with this Company ersus acquisitions, was 18.3% associated with net revenue from the second 1 / 4 connected with fiscal year 2012 when compared with 20.6% inside preceding year period.

The Company s successful cash flow duty rate was 36.0% with the minute 1 / 4 involving financial year 2012 along with a 35.5% effective levy rate to the past season period.

Diluted weighted average futures outstanding while involving that ending of the second quarter of monetary year or so 2012 enhanced for you to 159.4 thousand from 147.6 trillion from the past year period.

Cash plus cash equivalents increased to $146.0 million with March 24, 2012 from $33.7 thousand at March 26, 2011.

Accounts receivable greater 33% to help $300.7 million with March 24, 2012, from $226.8 trillion from March 26, 2011, highlighting continuing profits growth.

Inventories were $602.1 million at March 24, 2012 when compared to $300.8 million at March 26, 2011. The year-over-year increase is usually comprised of:

a $159.7 million, or your 188% maximize in raw materials such as from an raise throughout natural coffee amount including a 24% normal eco-friendly caffeine price increase;

a $141.6 million, or maybe 66% raise with done goods supply with about 54% of the actual maximize due to Keurig brewers on hand.

Debt unpaid decreased to $441.2 trillion with March 24, 2012 out of $1,059.7 zillion at March 26, 2011 as being a result with paying off the Company s turning credit rating facility. Proceeds on the public providing and concurrent individual situation for you to Luigi Lavazza S.p.A. upon May 11, 2011 along with on the selling associated with Filterfresh inside October 2011 were used to reduce the Company ersus brilliant unsecured debt obligations.

Total world wide web gross sales from the range of $3.8 million to $4.0 billion, as well as net development of 45% that will 50%, from $2.7 million in fiscal year 2011.

Fiscal season 2012 non-GAAP profits for every diluted share in a very array of $2.40 to help $2.50 every diluted share, removing from the total any kind of acquisition-related transaction expenses; lawful as well as accounting costs relevant into the SEC question plus the Company azines awaiting litigation; amortization of identifiable intangibles regarding this Company ersus acquisitions; and also virtually any gain through the sale of the Filterfresh business.

Capital monthly dues inside range connected with $525 thousand to be able to $575 million.

Net sales inside the product range involving $861 million for you to $897 zillion or world wide web revenue development regarding 20% to help 25%, from $717.2 trillion with third 1 / 4 with financial year 2011.

Fully diluted non-GAAP cash flow every share within the range of $0.48 to $0.53 per talk about excluding any acquisition-related purchase expenses; suitable and accounting expenses associated that will this SEC issue as well as Company azines pending litigation; as well as amortization with familiar intangibles in connection with your Company s acquisitions.

Unaudited Consolidated Statements of Operations(Dollars inside hundreds apart from for each share data)ThirteenThirteenweeks endedweeks endedMarch 24,March 26,20122011Net profits $ 885,052 $ 647,658 Cost associated with sales 572,014 404,803 Gross gain 313,038 242,855 Selling plus managing expenses 111,105 79,745 General in addition to admin expenses 52,340 43,499 Operating revenue 149,593 119,611 Other earnings (expense), net 669 1,078 Loss with fiscal instruments, net (2,112 ) (5,959 ) Gain about foreign currency, net sale 3,613 4,045 Interest price (6,042 ) (16,672 ) Income before cash flow taxations 145,721 102,103 Income levy charge (52,458 ) (36,295 ) Net Income $ 93,263 $ 65,808 Net salary attributable to noncontrolling passions 232 436 Net income owing to GMCR money 93,031 $ 65,372 Basic income each share: Basic weighted average explains to you outstanding 155,049,294 141,784,994 Net profits for each frequent share - standard dollar 0.60 buck 0.46 Diluted salary per share: Diluted weighted typical shares brilliant 159,374,545 147,558,595 Net income each typical discuss - diluted dollar 0.58 $ 0.44 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements connected with Operations(Dollars in thousands with the exception per reveal data)Twenty-sixTwenty-sixweeks endedweeks endedMarch 24,March 26,20122011Net product sales dollar 2,043,268 buck 1,221,806 Cost of profits 1,393,626 835,351 Gross benefit 649,642 386,455 Selling along with managing bills 252,463 158,034 General and administrative charges 101,748 85,530 Operating salary 295,431 142,891 Other earnings (expense), online 1,360 1,166 Loss with economical instruments, internet (3,246 ) (12,301 ) Gain on overseas currency, internet 6,299 5,624 Gain on sale associated with subsidiary 26,311 - Interest cost (12,505 ) (22,730 ) Income ahead of earnings taxes 313,650 114,650 Income tax cost (115,705 ) (46,393 ) Net Income $ 197,945 buck 68,257 Net salary attributable to noncontrolling likes and dislikes 500 473 Net profits attributable in order to GMCR $ 197,445 buck 67,784 Basic income per share: Basic weighted average stock shares exceptional 154,876,465 141,579,543 Net revenue for each common promote - fundamental dollar 1.27 buck 0.48 Diluted income per share: Diluted weighted regular stock shares outstanding 159,368,142 147,310,364 Net earnings every typical write about - diluted buck 1.24 buck 0.46 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Balance Sheets(Dollars within thousands)March 24,September 24,20122011AssetsCurrent assets: Cash plus cash equivalents $ 146,003 $ 12,989 Restricted funds and income equivalents 9,202 27,523 300,713 310,321 Inventories 602,121 672,248 Income taxations receivable 2,576 18,258 Other recent property 45,856 28,072 Deferred revenue taxes, net 46,251 36,231 Current possessions stored on sale - 25,885 1,152,722 1,131,527 Fixed assets, net sale 793,293 579,219 Intangibles, world wide web 516,491 529,494 Goodwill 801,690 789,305 Other long-term possessions 45,011 47,759 Long-term resources used on the market - 120,583 Total features buck 3,309,207 $ 3,197,887Liabilities along with Stockholders' EquityCurrent liabilities: Current fraction regarding long-term credit card debt $ 9,742 dollar 6,669 Accounts payable 246,899 265,511 Accrued settlement costs 36,796 43,260 Accrued expenditures 120,436 92,120 Income taxes payable 48,012 9,617 Deferred income taxes, net - 243 Other current liabilities 27,181 34,613 - 19,341 Total present-day liabilities 489,066 471,374 Long-term debt 431,471 575,969 Deferred revenue taxes, net 211,013 189,637 Other long-term liabilities 18,229 27,184 Long-term liabilities linked to assets held on the market - 474 Commitments in addition to contingencies Redeemable noncontrolling interests 11,252 21,034 Stockholders' equity: No shares issued or maybe exceptional - - Common stock, $0.10 par value: Authorized - 500,000,000 shares; 15,521 15,447 Additional paid-in funds 1,522,283 1,499,616 Retained net income 609,307 411,727 Accumulated different comprehensive salary (loss) 1,065 (14,575 ) Total stockholders' money 2,148,176 1,912,215 Total debts and stockholders' fairness $ 3,309,207 buck 3,197,887 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Cash Flows(Dollars within thousands)Twenty-sixTwenty-sixweeks endedweeks endedMarch 24,March 26,20122011Cash runs out of working activities: Net salary $ 197,945 buck 68,257 Depreciation 55,822 30,991 Amortization connected with intangibles 23,021 17,793 Amortization deferred funding expenses 3,025 2,620 Loss upon extinguishment of bill - 2,555 Unrealized acquire connected with foreign exchange (4,547 ) (5,207 ) Loss (gain) on fingertips involving preset characteristics 1,265 (75 ) Gain available involving subsidiary, removing from the total purchase costs (28,914 ) - Provision to get hopeless provides 1,656 872 Provision for sales dividends 67,402 39,316 Unrealized decline on personal instruments, online 3,580 9,087 Tax enjoy exercising of non-qualified choices and disqualified dispositions connected with motivation stock options selections your five 6 Excess levy features out of equity-based pay out strategies (11,172 ) (5,838 ) Deferred revenue fees 8,325 2,862 Deferred pay out in addition to stock compensation 9,336 4,633 Changes in assets as well as liabilities, world wide web of effects with acquisition: Receivables (55,546 ) (45,723 ) Inventories 72,671 (889 ) Income levy receivable/payable, net 65,050 2,562 Other current property (17,871 ) (4,700 ) Other long-term assets, world wide web (436 ) (11,300 ) Accounts payable (38,424 ) 8,690 Accrued compensation expenditures (6,402 ) (8,487 ) Accrued expenditures 27,352 8,128 Other latest liabilities (2,878 ) (2,173 ) Other long-term liabilities (109 ) 11,401 Net cash provided by managing things to do 370,156 125,381 Cash runs from dealing activities: Change inside restricted dollars 665 150 Proceeds from notes receivable 229 103 Acquisition with LJVH Holdings, Inc. (Van Houtte), net sale regarding income acquired - (907,835 ) Proceeds from selling regarding subsidiary, net connected with money transported 137,733 - Capital expenses pertaining to fixed features (204,556 ) (99,040 ) Proceeds coming from disposal associated with preset assets 215 280 Other investing activities - (158 ) Net dollars included in dealing pursuits (65,714 ) (1,006,500 ) Cash moves from schooling activities: Net alter with turning line of credit (182,814 ) 257,923 Proceeds from issuance involving typical investment underneath compensation plans 2,228 4,784 Proceeds from issuance of widespread stock options for private place - 249,524 Cash distributions to be able to redeemable noncontrolling likes and dislikes shareholders (149 ) (386 ) Excess taxes rewards from equity-based reimbursement plans 11,172 5,838 Principal installments below money lease obligations (3,148 ) (5 ) Proceeds from borrowings of long-term unsecured debt - 794,500 Deferred university charges - (41,628 ) Repayment regarding long-term bill (4,552 ) (354,773 ) Net dollars (used in) provided by financing things to do (177,263 ) 915,777 Change within cash neutralizes contained in recent property presented intended for good discounts 5,160 (6,510 ) Effect involving trade amount adjustments upon cash as well as cash equivalents 675 1,188 Net enhance inside income plus cash equivalents 133,014 29,336 Cash and income equivalents at starting point regarding interval 12,989 4,401 Cash and also cash equivalents at conclusion of period buck 146,003 buck 33,737 Supplemental disclosures of income information: buck 44,672 buck 11,051 Non dollars financing and also investment activities: Fixed Assets obtained within capital lease obligations/vendor sounds $ 44,174 $ -GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to be able to Non-GAAP Reconciliation(Dollars throughout thousands, with the exception of per talk about data)Operating income $ 149,593 $ 119,611 Acquisition-related bills (1) - 1,905 Expenses in connection with SEC question (2) 1,146 405 Amortization of identifiable intangibles (3) 11,568 11,658 Non-GAAP operating earnings money 162,307 $ 133,579 Net income owing to GMCR $ 93,031 dollar 65,372 After tax: Acquisition-related bills (1) - (1,858 ) Expenses linked to SEC inquiry (2) 713 249 Amortization connected with identifiable intangibles (3) 7,933 7,763 Non-GAAP internet income $ 101,677 money 71,526 Diluted salary per share money 0.58 $ 0.44 After tax: Acquisition-related charges (1) buck - buck (0.01 ) Expenses in connection with SEC question (2) dollar 0.00 $ 0.00 Amortization regarding familiar intangibles (3) money 0.05 buck 0.05 Non-GAAP net revenue per promote money 0.64 * dollar 0.48 * Does definitely not value thanks to rounding. (1) Represents direct acquisition-related bills connected with $1.9 million ($1.2 trillion after-tax). In addition, the actual Company identified your tax advantage of $3.0 trillion related to the particular reversal connected with particular nondeductible acquisition-related expenses sustained through the Company s next quarter with fiscal 2010 and beyond and also the initial district of fiscal 2011 which were deemed deductible in accordance with tax polices introduced within the second district with fiscal 2011. This taxes gain ended up being changed to get purposes of your non-GAAP table. (2) Represents legal as well as accounting fees associated with the SEC request and unresolved litigation categorised because normal in addition to administrative expense. (3) Represents the amortization associated with intangibles based on this Company ersus acquisitions categorised as common and admin expense.GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to help Non-GAAP Reconciliation(Dollars around thousands, besides for every share data)Operating income buck 295,431 money 142,891 Acquisition-related costs (1) - 10,573 Expenses related to SEC request (2) 1,815 6,394 Amortization associated with recognizable intangibles (3) 23,021 17,793 Non-GAAP operating earnings $ 320,267 $ 177,651 Net income owing to GMCR $ 197,445 $ 67,784 After tax: Acquisition-related expenses (1) - 14,524 Expenses linked to SEC question (2) 1,130 3,929 Amortization regarding identifiable intangibles (3) 15,782 11,655 Gain available involving subsidiary (4) (16,685 ) - Non-GAAP net revenue money 197,672 $ 97,892 Diluted cash flow for each share money 1.24 $ 0.46 After tax: Acquisition-related expenses (1) money - buck 0.10 Expenses in connection with SEC questions (2) dollar 0.01 $ 0.03 Amortization of recognizable intangibles (3) buck 0.10 $ 0.08 Gain available associated with subsidiary (4) $ (0.10 ) buck - Non-GAAP net earnings every discuss money 1.24 * money 0.66 * * Does not payment as a result of rounding. (1) Represents one on one acquisition-related expenditures involving $10.6 million ($9.8 million after-tax); your write-off involving deferred schooling charges during fresh debt financing involving $2.6 trillion ($1.6 million after-tax); and the foreign currency impression connected with hedging raise the risk associated with the Canadian dollar invest in tariff of this Van Houtte acquisition connected with $5.3 zillion ($4.0 zillion after-tax). In addition, this Company accepted a $2.1 million taxes price related to the reversal of nondeductible acquisition-related expenses incurred through the Company azines fourth fraction of monetary the year 2010 along with a $3.0 zillion taxes help associated with the actual reversal connected with selected nondeductible acquisition-related charges incurred in the Company verts fourth district associated with fiscal 2010 as well as the primary one fourth with fiscal 2011 that were considered deductible in respect together with tax laws passed within the second one fourth of fiscal 2011. This combined duty affect had been corrected for uses of your non-GAAP table. (2) Represents appropriate plus accounting charges linked to this SEC inquiry in addition to pending litigation categorised as common and also administrative expense. (3) Represents the actual amortization of intangibles in connection with the particular Company s acquisitions categorised as general as well as administrative expense. (4) Represents your gain acknowledged around the selling associated with Filterfresh, net involving cash flow taxes with $9.6 million.