Caribou Coffee Co., Inc. Reports 1.9 Percent Net Sales Gain In Fourth Quarter

Caribou Coffee Co., Inc., the second largest company-owned premium coffeehouse operator in the U.S. based on the number of coffeehouses, today reported financial results for the fourth quarter and fiscal year 2010 (periods ended Jan. 2, 2011) and confirmed fiscal 2011 guidance. The company's fiscal year 2010 and fourth quarter included 52 weeks and 13 weeks, respectively, while the fiscal year 2009 and fourth quarter included 53 weeks and 14 weeks, respectively.

In the fourth quarter, net sales increased 1.9 percent compared to the fourth quarter of 2009. On a comparative 13-week basis, net sales increased 9.2 percent compared to the prior year quarter.

Comparable coffeehouse store sales increased 3.5 percent compared to the fourth quarter of 2009.

Commercial sales increased 36.8 percent compared to the fourth quarter of 2009. On a comparative 13-week basis, commercial sales increased 47.0 percent compared to the prior year quarter.

Net income was $4.3 million, or $0.21 in earnings per diluted share, compared to $3.0 million, or $0.15 in earnings per diluted share, in the fourth quarter of 2009. The additional week in the fourth quarter of 2009 accounted for $0.5 million in net income and $0.02 in earnings per diluted share.
For fiscal 2010, net sales increased 8.2 percent to $284.0 million compared to $262.5 million in fiscal year 2009. On a comparative 52-week basis, net sales increased 10.3 percent compared to 2009.

Comparable coffeehouse store sales increased 4.5 percent compared to the prior year.

Commercial sales increased 52.3 percent compared to fiscal year 2009. On a comparative 52-week basis, commercial sales increased 56.1 percent compared to the prior year.

Net income was $9.4 million, or $0.46 in earnings per diluted share, compared to $5.1 million, or $0.26 in earnings per diluted share in the fiscal year 2009. The company incurred $0.5 million or $0.02 in earnings per diluted share, in non-recurring costs related to a follow-on offering of shares held by the company's largest shareholder. The additional week in the fiscal year 2009 accounted for $0.5 million in net income and $0.02 in earnings per diluted share.

Speaking on behalf of the company, Michael Tattersfield, the company's president and CEO, said in a prepared statement, "Our fourth quarter marked the conclusion of a very successful year at Caribou Coffee. We have never been in a stronger position, both strategically and financially, than we are today. We have diversified and strengthened our brand and business model business by becoming a true multi-channel branded coffee company. We are poised to grow within each of our business channels and we will continue to provide the meaningful experiences our guest's love, while enhancing returns for our shareholders."

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