Green Mountain Coffee Roasters, Inc. (GMCR), a leader in specialty coffee and coffeemakers, announced its fiscal 2011 third quarter results for the thirteen weeks ended June 25, 2011.
Net sales for the third quarter of fiscal 2011 increased 127 percent to $717.2 million as compared to $316.6 million for the third quarter of fiscal 2010. Under Generally Accepted Accounting Principles (GAAP), net income for the third quarter of fiscal 2011 totaled $56.3 million, or $0.37 per diluted share, representing an increase of 206 percent as compared to GAAP net income of $18.4 million, or $0.13 per diluted share, for the third quarter of fiscal 2010.
The company's non-GAAP net income for the third quarter of fiscal 2011 increased 167 percent to $75.7 million, from non-GAAP net income of $28.3 million in the third quarter of fiscal 2010. Third quarter fiscal 2011 non-GAAP net income excludes pre-tax items of $11.8 million in amortization of identifiable intangibles related to the company's acquisitions, $17.1 million in loss on extinguishment of debt, and $0.8 million in legal and accounting expenses related to the SEC inquiry and pending litigation. Third quarter fiscal 2010 non-GAAP net income excludes pre-tax items of $4.0 million in non-deductible acquisition-related expenses for the Diedrich acquisition and $4.3 million in amortization of identifiable intangibles related to the Company's prior acquisitions.
On the same basis of presentation, GMCR's non-GAAP earnings per diluted share increased 140 percent to $0.49 in the third quarter of fiscal 2011 from $0.21 in the third quarter of fiscal 2010.
"In addition to continued strong consumer adoption of the Keurig® Single-Cup Brewing system, we believe our third quarter benefitted from our first-ever significant spring advertising and brand support programs, designed to raise awareness of the Keurig single-cup brewing system and of our Brew Over Ice™ teas and coffees, perfect for the summer months," said Lawrence J. Blanford, GMCR's president and CEO in a prepared statement.
The Keurig® Single-Cup Brewing system brews a perfect cup of coffee, tea, hot cocoa or iced beverage in under one minute at the touch of a button.
"Keurig brewing is truly changing the way North America brews and enjoys coffee at home and in the workplace," said Blanford. "We have seen awareness of the Keurig single-cup brewing system grow faster and more broadly than we could have imagined just a few years ago. As we head into preparation for Holiday 2011 and planning for our 2012 fiscal year, we are both excited and humbled by the opportunity we see ahead for our company, our employees and our valued business partners."
Blanford concluded, "It is particularly rewarding to think that with our growth, the resources we're able to allocate to socially and environmentally focused initiatives grows as well, amplifying the positive change GMCR and its employees continue to bring about in our local communities and in communities around the world."
Approximately 82 percent of consolidated net sales in the third quarter were from the Keurig brewing system and its recurring portion pack sales, including Keurig-related accessory sales with the remainder of total sales consisting primarily of sales of bagged coffee and revenue from our office coffee services business.
Net sales from portion packs totaled $485.4 million in the quarter, up 136 percent, or $279.7 million, over the same period in 2010.
Net sales from Keurig brewers and accessories totaled $105.4 million in the quarter, up 66 percent, or $42.0 million, from the prior year period.
Supporting continued growth in portion pack demand, GMCR sold 1.1 million Keurig brewers during the third quarter of fiscal 2011. This brewer shipment number does not account for consumer returns to retailers. The company estimates that GMCR brewer shipments represented approximately 92 percent of total brewers shipped with Keurig technology in the period.