GMCR Reports 50 Percent EPS Growth In Second Quarter 2013

Green Mountain Coffee Roasters, Inc., (GMCR) announced its second quarter fiscal year 2013 results for the 13 weeks and 26 weeks ended March 30, 2013.

GMCR reports second quarter fiscal 2013 generally accepted accounting principles (GAAP) earnings per share (EPS) of $0.87 and Non-GAAP EPS of $0.93 representing growth of 50 percent and 45 percent respectively over the prior year period. Revenue increased 14 percent over the prior year period. The company recorded free cash flow of $202 million in the quarter, $456 million for the first half of fiscal 2013.

The company raised its fiscal 2013 non-GAAP EPS estimates to $3.05 to $3.15, a growth rate of 27 percent to 31 percent or 31 percent to 35 percent, excluding the 53rd week of fiscal 2012. The company increased estimated free cash flow to $300 million to $400 million. The company also targets fiscal year 2013 net sales growth of 11 percent to 14 percent above fiscal 2012, or 14 percent to 17 percent excluding the 53rd week of fiscal 2012.

"Our fiscal second quarter results demonstrate the leverage inherent in our business model," said Brian P. Kelley, GMCR's president and CEO in a prepared statement. "Specifically, strong sales of our single serve packs drove 14 percent revenue growth and 45 percent non-GAAP earnings per share growth in the quarter."

"Our industry-leading single serve business — made up of single serve packs, Keurig® brewers and accessories — grew a healthy 16 percent in our second fiscal quarter contributing to strong earnings growth and significant free cash flow generation," continued Kelley. "We expect the Keurig® brewer installed base in U.S. households to grow between 25 percent to 30 percent in fiscal 2013 with volume of our single serve packs growing proportionately with the anticipated brewer installed base."

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