Green Mountain Coffee Roasters, Inc. Reports Strong Growth for Fiscal 2007 Fourth Quarter and Full Year
Thursday, November 15, 2007 7:00:03 AM ET Green Mountain Coffee Roasters, Inc., (GMCR ) today
announced its fiscal 2007 and fiscal fourth quarter results for the
thirteen weeks ended September 29, 2007, reporting strong sales and
earnings growth.
Net sales for the fourth quarter of fiscal 2007 totaled $93.0
million as compared to $66.9 million reported in the fourth quarter of
fiscal 2006, representing an increase of 39% year over year.
Net income for the fiscal fourth quarter of 2007 was $3.6 million
or $0.14 per diluted share, up 133% from $1.5 million or $0.06 per
diluted share in the fiscal fourth quarter of 2006.
For the fifty-two weeks ended September 29, 2007, the Company
recorded net sales of $341.7 million, up 52 % from $225.3 million for
the fifty-three weeks ended September 30, 2006. Net income for fiscal
2007 increased 52% to $12.8 million, or $0.52 per diluted share, as
compared to net income of $8.4 million, or $0.36 per diluted share for
the prior year. Fiscal 2007 includes a full year of consolidating the
financial results of Keurig as a wholly-owned subsidiary as compared
to fiscal 2006, which included fifteen weeks of Keurig’s financial
results as a wholly owned subsidiary following the close of the
acquisition on June 15, 2006. Please note that the fiscal year 2006
has an extra week as compared to fiscal year 2007.
Excluding the impact of non-cash expenses described below and
illustrated in the financial tables accompanying this press release,
non-GAAP net income totaled $15.7 million in the 52-week period ended
September 29, 2007, or $0.63 per share, up approximately 54% compared
to non-GAAP net income of $10.2 million or $0.43 per share, for the
53-week period ended September 30, 2006. A reconciliation of all GAAP
to non-GAAP financial measures is provided in the Company’s financial
tables accompanying this press release.
The items the Company is excluding from the non-GAAP results are:
1.) the pre-tax non-cash amortization expense related to the Keurig
intangibles of approximately $4.8 million or $0.12 per diluted share
in fiscal 2007, and $1.4 million or $0.03 per diluted share in fiscal
2006; and 2.) the recognition of an after-tax non-cash loss of
$963,000 or $0.04 per share as a result of its equity investment in
Keurig in fiscal 2006.
Lawrence J. Blanford, President and CEO, said, "I am very pleased
with the financial results we are reporting today and, in particular,
the strong top and bottom line growth we delivered to our
stockholders. Our Keurig subsidiary has enabled us to even further
accelerate the sales and profit growth of the Company due to the
leadership position of Keurig in the single-cup brewing industry for
the home and office environments. Also, we grew shipments of our Fair
Trade Certified(TM) and Fair Trade Certified organic lines, including
Newman’s Own(R) Organics, by 12% in fiscal 2007. Fair Trade Certified
and Fair Trade Certified organic coffees now represent over 28% of our
roasted coffee volume. I believe that our balanced approach to social
responsibility, combined with our continued focus on building our
business to expand the reach of our brands, is contributing
meaningfully to our success. Going forward, we will continue to look
at the drivers of single-cup brewing, the synergy with our traditional
Green Mountain Coffee business, and ways to even further enhance the
value creation opportunity of our enterprise."
Fiscal 2007 Fourth Quarter Financial Review
Net Sales
-- Net sales for the Green Mountain Coffee segment for the fourth
quarter of fiscal 2007 were $61.2 million, prior to the
elimination of inter-company sales, up 20% from $51.1 million
reported in the fourth quarter of fiscal 2006. Dollar sales
growth was strongest in the channels that benefit from sales
of the Keurig single-cup brewing system including office
coffee service (OCS), reseller, and consumer direct channels.
Green Mountain Coffee K-Cup(R) shipments of coffee, tea and
hot cocoa increased 50% over the prior period. Coffee pounds
shipped by channel are shown in the table accompanying this
press release.
-- Net sales of Keurig, prior to the elimination of inter-company
sales, included in the Company’s fourth quarter of fiscal 2007
were $42.6 million, up 97% from net sales of $21.6 million in
the fourth fiscal quarter of 2006. This increase in sales was
primarily due to higher brewer and K-Cup sales and royalty
income from the sales of K-Cups. Further detail on shipments
of Keurig brewers and K-Cups is provided in the chart
accompanying this press release.
-- As part of the consolidation, $6.9 million of inter-company
Keurig sales and $3.9 million of inter-company Green Mountain
Coffee Roasters segment sales were eliminated.
Costs, Margins and Income
-- Cost of sales increased to 64.7% of total net sales compared
to 62.4% for the corresponding quarter last year. The increase
over last year is due to the significant increase in sales of
Keurig At Home single-cup brewers (which have lower gross
margins than our other commercial brewer products), variations
in sales mix (mostly related to the higher percentage of sales
of K-Cups, which have a lower gross margin than our other
coffee products), higher commodity costs and higher
manufacturing costs due to the opening of a new K-Cup
packaging facility in Essex, Vermont during this quarter.
-- Selling, general and administrative (S,G&A) expenses improved
as a percentage of net sales to 27.3% from 31.0% in the prior
year quarter. This improvement in S,G&A margin was the result
of leveraging selling and organizational resources on a higher
sales base, most notably in the Keurig segment.
-- Pre-tax non-cash stock compensation was $1,356,000 in the
fourth fiscal quarter of 2007, up from $472,000 in the prior
year period. The increase is primarily due to employee stock
options assumed by the Company in its acquisition of Keurig.
-- The Company’s operating income was $7.5 million in the fourth
quarter of fiscal 2007, as compared to $4.4 million reported
in the fourth quarter of fiscal 2006, and, as a percentage of
net sales, 8.0%, and 6.6%, respectively. Excluding the
non-cash amortization expenses related to the identifiable
intangibles of approximately $1.2 million in each period, the
Company’s operating margin was 9.3% in the fourth quarter of
fiscal 2007, as compared to 8.4% in the prior period. The
improvement in operating income margin this quarter is mostly
due to the success of the Keurig single-cup brewing system and
the strong sales and earnings growth derived from K-Cups.
-- Interest expense declined by $515,000 this past quarter to
$1.3 million from $1.8 million in the prior year fourth
quarter due to lower debt balances.
-- Income before taxes for the fourth quarter of fiscal 2007 was
$6.1 million as compared to $2.6 million reported in the
fourth quarter of fiscal 2006.
-- The tax rate was 41.3% as compared to 40.6% in the prior year
quarter.
-- Net income for the fourth quarter of fiscal 2007 was $3.6
million or 3.8% of net sales as compared to $1.5 million or
2.3% of net sales in the corresponding quarter last year.
Business Outlook and Other Forward-Looking Information
Company Estimates for Fiscal Year 2008:
-- Total consolidated net sales growth of 35% to 40% primarily
due to anticipated strong sales of Keurig Single-Cup Brewers
and K-Cups in the office coffee channel, consumer direct,
reseller and supermarket channels.
-- An operating margin in the range of 8.0% to 9.0%, including
$4.8 million or $0.11 per diluted share for non-cash
amortization expenses related to the identifiable intangibles.
-- Interest expense of $6.5 million to $7.5 million.
-- A tax rate of 42.0% as compared to 40.5% in fiscal 2007.
-- Growth in net income and EPS at a similar rate to slightly
higher rate of growth than our guidance for top line growth of
35% to 40%. Fully diluted GAAP earnings per share in the range
of $0.70 to $0.75 per share, including the non-cash
amortization expenses related to the identifiable intangibles
mentioned above. Non-GAAP EPS in the range of $0.81 to $0.86
per share.
Company Estimates Relating to Balance Sheet and Cash Flow:
-- Capital expenditures for fiscal 2008 in the range of $28 to
$32 million.
-- Depreciation and amortization expenses in the range of $17.5
to $18.5 million including the $4.8 million for amortization
of identifiable intangibles.
Company Estimates for First Quarter Fiscal Year 2008:
-- Total consolidated net sales growth of 40% to 50% primarily
due to anticipated strong sales of Keurig Single-Cup Brewers
and K-Cups in the office coffee channel, consumer direct and
reseller channels.
-- An operating margin in the range of 5.0% to 6.0% including
non-cash amortization expenses for identifiable intangibles of
approximately $1.2 million or $0.03 per share. The Company
anticipates higher selling and marketing expenses as a
percentage of net sales during the first quarter of fiscal
2008 as compared to the same quarter last year due to
increased marketing programs expected to facilitate increased
sales of Keurig single-cup At Home brewers this holiday
season.
-- Fully diluted GAAP earnings per share in the range of $0.10 to
$0.14 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.
Use of Non-GAAP Financial Measures
In 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 non-cash gains or losses from the Company’s
equity investment in Keurig prior to the acquisition. 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.
In this press release, the Company presents its results for the fiscal
2007 fourth quarter and full year and the comparable prior periods on
a GAAP and non-GAAP basis with line item reconciliation.
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 10:30 AM ET and will be available via live webcast on the
Company’s website at www.GreenMountainCoffee.com 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 1415047 from 1:30 PM ET on November
15th through 1:30 PM ET on Monday, November 19, 2007.
Green Mountain Coffee Roasters, Inc. (GMCR ) is recognized
as a leader in the specialty coffee industry for its award-winning
coffees and successful business practices. The Company sells more than
100 high-quality selections, including Fair Trade Certified(TM) and
organic coffees under the Green Mountain Coffee Roasters(R) and
Newman’s Own(R) Organics brands through its wholesale, direct mail,
and e-commerce operations (www.GreenMountainCoffee.com). Keurig, a
pioneer and leading manufacturer of gourmet single-cup brewing system,
offers its brewers, and K-Cups(R) from a variety of roasters, through
wholesale, resellers and directly to consumers, while Green Mountain
Coffee Roasters licenses, manufactures and sells its coffee as well as
hot cocoa and tea K-Cups(R) for use in Keurig brewers. Green Mountain
Coffee Roasters has been ranked No. 1 on the list of "100 Best
Corporate Citizens," for the past two years, and has been recognized
repeatedly by Forbes, FORTUNE Small Business, and the Society of Human
Resource Management as an innovative, high-growth, socially
responsible company.
Certain 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 retail sales of consumer sentiment
regarding the health of the economy, business conditions in the coffee
industry and food industry in general, fluctuations in availability
and cost of high-quality green coffee, the unknown impact of any price
increases on net sales, competition, the unknown impact of management
changes, Keurig’s ability to continue to grow and build profits 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, the Company’s
success in efficiently expanding operations and capacity to meet
growth, variances from sales mix and growth rate, 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.
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except per share data)
Thirteen Thirteen Fifty-two Fifty-three
weeks ended weeks ended weeks ended weeks ended
9/29/07 9/30/06 9/29/07 9/30/06
Net sales $ 93,015 $ 66,875 $ 341,651 $ 225,323
Cost of sales 60,199 41,724 210,530 143,289
------------ ------------ ------------ ------------
Gross profit 32,816 25,151 131,121 82,034
Selling and
operating
expenses 17,186 14,350 72,641 46,808
General and
administrative
expenses 8,165 6,380 30,781 17,112
------------ ------------ ------------ ------------
Operating
income 7,465 4,421 27,699 18,114
Other income
(expense) (83) (24) 54 202
Interest expense (1,301) (1,816) (6,176) (2,261)
------------ ------------ ------------ ------------
Income before
income taxes 6,081 2,581 21,577 16,055
Income tax expense (2,510) (1,047) (8,734) (6,649)
------------ ------------ ------------ ------------
Income before
earnings
related to
investment in
Keurig,
Incorporated 3,571 1,534 12,843 9,406
Earnings (loss)
related to
investment in
Keurig,
Incorporated, net
of tax - - - (963)
------------ ------------ ------------ ------------
Net income $ 3,571 $ 1,534 $ 12,843 $ 8,443
======== ======== ======== ========
Basic income
per share:
Weighted
average shares
outstanding 23,464,129 22,631,184 23,250,431 22,516,701
Net income $ 0.15 $ 0.07 $ 0.55 $ 0.37
Diluted income
per share:
Weighted
average shares
outstanding 25,267,680 23,811,057 24,773,373 23,727,348
Net income $ 0.14 $ 0.06 $ 0.52 $ 0.36
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Balance Sheets
(Dollars in thousands)
September 29, September 30,
2007 2006
Assets
Current assets:
Cash and cash equivalents $2,818 $1,066
Restricted cash and cash equivalents 354 208
Receivables, less allowances of $1,600
and $1,021 at September 29, 2007, and
September 30, 2006, respectively 39,373 30,071
Inventories 38,909 31,796
Other current assets 2,811 2,816
Income tax receivable - 618
Deferred income taxes, net 3,558 1,384
-------------- --------------
Total current assets 87,823 67,959
Fixed assets, net 65,692 48,811
Intangibles, net 34,208 39,019
Goodwill 73,840 75,305
Other long-term assets 2,964 2,912
-------------- --------------
Total assets $264,527 $234,006
======= =======
Liabilities and Stockholders’
Equity
Current liabilities:
Current portion of long-term debt $63 $97
Accounts payable 37,778 23,124
Accrued compensation costs 7,027 6,736
Accrued expenses 9,866 7,978
Income tax payable 1,443 -
Other short-term liabilities 871 874
-------------- --------------
Total current liabilities 57,048 38,809
-------------- --------------
Long-term revolving line of credit 90,000 102,800
-------------- --------------
Long-term debt 50 71
-------------- --------------
Deferred income taxes 18,330 17,386
-------------- --------------
Commitments and contingencies
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 - 60,000,000 shares; Issued
- 24,697,008 at September 29, 2007 and
24,044,407 shares at September 30,
2006, respectively 2,470 2,404
Additional paid-in capital 45,704 34,545
Retained earnings 58,981 46,138
Accumulated other comprehensive (loss) (512) (548)
ESOP unallocated shares, at cost -
29,310 shares (208) (263)
Treasury shares, at cost - 1,157,554
shares (7,336) (7,336)
-------------- --------------
Total stockholders’ equity 99,099 74,940
-------------- --------------
Total liabilities and
stockholders’ equity $264,527 $234,006
======= =======
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Consolidated Statements of Operations- Non-GAAP basis
(in thousands except per share amounts)
-------------------------------------------------
Thirteen weeks ended September 29, 2007
-------------------------------------------------
Loss
Amortization related to
of investment
Identifiable in Keurig,
GAAP Intangibles Inc. Non-GAAP
Net Sales $93,015 $- $- $93,015
Cost of Sales 60,199 - - 60,199
Gross Profit 32,816 - - 32,816
Selling and
operating expenses 17,186 - - 17,186
General and
administrative
expenses 8,165 (1,203) - 6,962
Operating Income 7,465 1,203 - 8,668
Other income (83) - - (83)
Interest expense (1,301) - - (1,301)
Income before
income taxes 6,081 1,203 - 7,284
Income tax expense (2,510) (496) - (3,006)
Income before loss
related to
investment in
Keurig, Inc., net
of tax 3,571 707 - 4,278
Loss related to
investment in
Keurig,
Incorporated, net
of tax benefit - - - -
Net Income $3,571 $707 $- $4,278
=========== ============= =========== ===========
Basic income per
share:
Weighted average
shares outstanding 23,464,129 23,464,129 23,464,129 23,464,129
Net Income $0.15 $0.03 $- $0.18
Diluted income per
share:
Weighted average
shares outstanding 25,267,680 25,267,680 25,267,680 25,267,680
Net income $0.14 $0.03 $- $0.17
-------------------------------------------------
Fifty-two weeks ended September 29, 2007
-------------------------------------------------
Loss
related
Amortization to
of investment
Identifiable in Keurig,
GAAP Intangibles Inc. Non-GAAP
Net Sales $341,651 $- $- $341,651
Cost of Sales 210,530 - - 210,530
Gross Profit 131,121 - - 131,121
Selling and
operating expenses 72,641 - - 72,641
General and
administrative
expenses 30,781 (4,812) - 25,969
Operating Income 27,699 4,812 - 32,511
Other income 54 - - 54
Interest expense (6,176) - - (6,176)
Income before
income taxes 21,577 4,812 - 26,389
Income tax expense (8,734) (1,947) - (10,681)
Income before loss
related to
investment in
Keurig, Inc., net
of tax 12,843 2,865 - 15,708
Loss related to
investment in
Keurig,
Incorporated, net
of tax benefit - - - -
Net Income $12,843 $2,865 $- $15,708
=========== ============= =========== ===========
Basic income per
share:
Weighted average
shares outstanding 23,250,431 23,250,431 23,250,431 23,250,431
Net Income $0.55 $0.12 $- $0.68
Diluted income per
share:
Weighted average
shares outstanding 24,773,373 24,773,373 24,773,373 24,773,373
Net income $0.52 $0.12 $- $0.63
-------------------------------------------------
Thirteen weeks ended September 30, 2006
-------------------------------------------------
Loss
related
Amortization to
of investment
Identifiable in Keurig,
GAAP Intangibles Inc. Non-GAAP
Net Sales $66,875 $- $- $66,875
Cost of Sales 41,724 - - 41,724
Gross Profit 25,151 - - 25,151
Selling and
operating expenses 14,350 - - 14,350
General and
administrative
expenses 6,380 (1,203) - 5,177
Operating Income 4,421 1,203 - 5,624
Other income (24) - - (24)
Interest expense (1,816) - - (1,816)
Income before
income taxes 2,581 1,203 - 3,784
Income tax expense (1,047) (492) - (1,539)
Income before loss
related to
investment in
Keurig, Inc., net
of tax 1,534 711 - 2,245
Loss related to
investment in
Keurig,
Incorporated, net
of tax benefit - - - -
Net Income $1,534 $711 $- $2,245
=========== ============= =========== ===========
Basic income per
share:
Weighted average
shares outstanding 22,631,184 22,631,184 22,631,184 22,631,184
Net Income $0.07 $0.03 $- $0.10
Diluted income per
share:
Weighted average
shares outstanding 23,811,057 23,811,057 23,811,057 23,811,057
Net income $0.06 $0.03 $- $0.09
------------------------------------------------
Fifty-three weeks ended September 30, 2006
------------------------------------------------
Loss
related
Amortization to
of investment
Identifiable in Keurig,
GAAP Intangibles Inc. Non-GAAP
Net Sales $225,323 $- $- $225,323
Cost of Sales 143,289 - - 143,289
Gross Profit 82,034 - - 82,034
Selling and operating
expenses 46,808 - - 46,808
General and
administrative
expenses 17,112 (1,402) - 15,710
Operating Income 18,114 1,402 - 19,516
Other income 202 - - 202
Interest expense (2,261) - - (2,261)
Income before
income taxes 16,055 1,402 - 17,457
Income tax expense (6,649) (581) - (7,230)
Income before loss
related to
investment in
Keurig, Inc., net
of tax 9,406 821 - 10,227
Loss related to
investment in
Keurig,
Incorporated, net of
tax benefit (963) - 963 -
Net Income $8,443 $821 $963 $10,227
=========== ============ =========== ===========
Basic income per
share:
Weighted average
shares outstanding 22,516,701 22,516,701 22,516,701 22,516,701
Net Income $0.37 $0.04 $0.04 $0.45
Diluted income per
share:
Weighted average
shares outstanding 23,727,348 23,727,348 23,727,348 23,727,348
Net income $0.36 $0.03 $0.04 $0.43
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Total Coffee Pounds Shipped by Stand-Alone Green Mountain Coffee
(Unaudited Pounds in Thousands)
Q4 13 Q4 13
CHANNEL wks. wks. Q4 Y/Y Q4% Y/Y
ended ended lb. lb.
9/29/07 9/30/06 Change Change
----------------------------------------------------------------------
Supermarkets 1,664 1,480 184 12.4%
----------------------------------------------------------------------
Resellers 317 170 147 86.5%
----------------------------------------------------------------------
Convenience Stores 1,458 1,599 (141) (8.8)%
----------------------------------------------------------------------
Office Coffee Srvs 1,772 1,430 342 23.9%
----------------------------------------------------------------------
Food Service 1,441 1,358 83 6.1%
----------------------------------------------------------------------
Consumer Direct 303 218 85 39.0%
----------------------------------------------------------------------
Totals 6,955 6,255 700 11.2%
----------------------------------------------------------------------
Q4YTD 52 Q4YTD 53 Q4YTD Q4YTD %
CHANNEL wks. wks. Y/Y Y/Y
ended ended lb. lb.
9/29/07 9/30/06 Change Change
----------------------------------------------------------------------
Supermarkets 6,412 6,258 154 2.5%
----------------------------------------------------------------------
Resellers 1,043 561 482 85.9%
----------------------------------------------------------------------
Convenience Stores 5,640 5,863 (223) (3.8)%
----------------------------------------------------------------------
Office Coffee Srvs 7,080 5,947 1,133 19.1%
----------------------------------------------------------------------
Food Service 5,429 4,964 465 9.4%
----------------------------------------------------------------------
Consumer Direct 1,214 896 318 35.5%
----------------------------------------------------------------------
Totals 26,818 24,489 2,329 9.5%
----------------------------------------------------------------------
Note: 2006 was a 53-week fiscal year while 2007 is a 52-week
fiscal year.
Note: Certain prior year customer channel classifications were
reclassified to conform to current year classifications.
Note: The Resellers channel includes shipments of Green Mountain
Coffee manufactured products to Keurig Inc. and other resellers for
sales to either the retail channel such as department stores or sales
via internet websites
Company-wide Keurig brewer and K-Cup shipments
(Unaudited data and in thousands)
Q4 13 Q4 13
wks wks
ended ended Q4 Y/Y Q4 % Y/Y
9/29/07 9/30/06 Increase Increase
----------------------------------------------------------------------
At Home Brewers (Consumer) 159 83 76 92%
----------------------------------------------------------------------
Away from Home Brewers
(Commercial) 20 7 13 186%
----------------------------------------------------------------------
Total Keurig brewers shipped (2) 179 90 89 99%
----------------------------------------------------------------------
Total K-Cups shipped (system-
wide) (3) 168,421 115,473 52,948 46%
----------------------------------------------------------------------
Total K-Cups sold by GMCR (4) 95,355 63,431 31,924 50%
----------------------------------------------------------------------
FY06
FY07 53
52 wks wks(1) FY07 %
ended ended FY07 Y/Y Y/Y
9/29/07 9/30/06 Increase Increase
----------------------------------------------------------------------
At Home Brewers (Consumer) 422 219 203 93%
----------------------------------------------------------------------
Away from Home Brewers
(Commercial) 57 28 29 104%
----------------------------------------------------------------------
Total Keurig brewers shipped (2) 479 247 232 94%
----------------------------------------------------------------------
Total K-Cups shipped (system-
wide) (3) 638,298 448,880 189,418 42%
----------------------------------------------------------------------
Total K-Cups sold by GMCR (4) 359,056 255,412 103,644 41%
----------------------------------------------------------------------
(1) 2006 was a 53-week fiscal year while 2007 was a 52-week year.
(2) Total Keurig brewers shipped means brewers shipped by Keurig to
customers in the U.S./Canada. Cumulative brewers shipped life to
date to customers in the U.S./Canada as of 9/29/07 is 953,000
units with 182,000 for Away from Home brewers and 771,000 for At
Home brewers.
(3) Total K-Cups shipped (system-wide) means K-Cup shipments by all
Keurig licensed roasters to customers in the U.S./Canada. These
shipments form the basis upon which royalties are calculated by
licensees for payments to Keurig. Cumulative K-Cups shipped life
to date was 2,058 million as of 9/29/07.
(4) Total K-Cups sold by GMCR are under the brands Green Mountain
Coffee, Newman’s Own Organics coffee and Celestial Seasonings
Teas.
SOURCE: Green Mountain Coffee Roasters, Inc.
Green Mountain Coffee Roasters, Inc.
Frances G. Rathke, 802-244-5621, x.2300
CFO
