Peet's Coffee & Tea, Inc. Reports Steady Revenue In Fourth Quarter

Operating expenses as a percentage of net revenue decreased to 30.9 percent for the 13 weeks ended Jan. 2, 2011, from 32.6 percent for the corresponding period of fiscal 2009, primarily due to the store closure costs in fiscal 2009 and leverage of retail overhead costs.

Transaction income in 2009 includes the $8.5 million break-up fee received for the termination of a definitive agreement for Peet's to acquire Diedrich Coffee, net of $4.2 million of costs incurred related to the transaction.

Litigation related expenses of $2.8 million in 2009 includes costs incurred related to the settlement of a wage and hour class action lawsuit that was filed in July 2008 against the company.

General and administrative expenses increased to $7.3 million for the 13 weeks ended Jan. 2, 2011, compared to $7.0 million for the corresponding period of fiscal 2009 primarily due to higher payroll and marketing costs, partially offset by the costs of the 53rd week of operations in 2009.

Depreciation and amortization expenses decreased to $3.9 million for the 13 weeks ended Jan. 2, 2011, compared to $4.0 million for the corresponding 14-week period of fiscal 2009.

The company ended 2010 with cash and cash equivalents plus investments of $49 million, compared to $48 million at year end 2009.