Jeffords Announces $2 Million in EDA Funding For High-Speed Internet Link in Northern Vermont WASHINGTON D.C. — U.S. Senator Jim Jeffords, I-Vt.,today announced that the U.S. Economic Development Administration willaward $2 million to support the North Link fiber optic network, a projectthat will connect six northern Vermont counties to high-speed Internetaccess. The counties include Caledonia; Essex; Franklin; Grand Isle;Lamoille and Orleans. The North Link project is the brainchild of the EconomicDevelopment Council of Northern Vermont (EDCNV), working with VermontElectric Coop. “Broadband access is so critical to our economy, and theNorth Link project will allow these counties to operate on a level playingfield wth more densely populated, urban areas. It is truly an innovativeand exciting opportunity for rural Vermont and its businesses,” saidJeffords. He is the ranking member of the Senate Environment and PublicWorks Commiteee, which oversees the EDA. “The Commerce Department is pleased to partner with thepeople of Vermont and set the stage for investment and innovation througheconomic development grants like these,” said U.S. Assistant Secretary ofCommerce for Economic Development David A. Sampson. “This broadbandproject will help businesses innovate, bringing high-skill, high-wage jobsto the region.” Connie Stanley Little, executive director of EconomicDevelopment Council of Northern Vermont, added, “Thanks to the assistanceof Senator Jeffords, the North Link project will be a critical componentin the creation of high-tech jobs and economic development opporunities.”The council is the sole EDA-designated district in Vermont. Currently the lack of broadband access is hurting theseregions of northern Vermont and forcing businesses to relocate to otherareas with high-speed access, according to the EDA. The project, whichwill link private sector, first responders, state offices, hospitals andeducational institutions, will cost an estimated $8.7 million. These fundsare expected to spur as much as $58 million in private sector investmentover five years, creating an estimated 510 new jobs and retaining morethan 2,000 existing jobs, according to the EDA.
WASHINGTON, Nov. 19 /PRNewswire-USNewswire/ — First Student workers in Vermont overwhelmingly voted to join the Teamsters Union in an election this week.In Brattleboro, Vermont First Student drivers voted 25-4 to join Teamsters Local 597. The 30-person unit sought to improve their medical benefits and wanted a stronger voice in the workplace.”We have a voice now,” said Noni Fournier, a Brattleboro bus driver. “We hope for respect, to be treated fairly.”The workers reached out to the union just 28 days prior to the election. Extremely motivated, they quickly signed a majority of authorization cards just one day after meeting with union officials. The Teamsters petitioned for an election on their behalf the same day. Negotiations for a first contract have already begun for the unit.”The level of improvement that our current First Student members have seen with their contracts will be repeated in Brattleboro,” said Dave Laughton, Secretary-Treasurer of Teamsters Joint Council 10. “Joint Council 10 continues to set the standard for organizing throughout New England. These brave men and women worked hard to become Teamsters and we intend on helping them achieve dignity, respect, proper working conditions, and a livable wage.”Drive Up Standards is a national campaign to improve safety, service and work standards in the private school bus and transit industry. Since the campaign began in 2006, more than 13,441 workers have become Teamsters in more than 100 elections to date.Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.SOURCE International Brotherhood of Teamsters
The Vermont Teddy Bear Company, a leading provider of direct-to-consumer gifts, today announced that John Gilbert, 52, has been named president and chief executive officer.John Gilbert most recently served as executive vice president and chief marketing officer for The TJX Companies, Inc., where he was responsible for marketing functions worldwide including brand management, advertising, and comprehensive consumer strategies. Mr. Gilbert has extensive experience in the consumer product industries, having held senior marketing positions with such companies as Dunkin’ Donuts, YUM ! Carlson Restaurants Worldwide, and PepsiCo, Inc.In his new role, Gilbert will manage the Company’s significant position in the direct-to-consumer gift market, including the flagship Vermont Teddy Bear brand as well as PajamaGram and Calyx Flowers.”At TJX, Dunkin’ Donuts, KFC, and Friday’s, John demonstrated that he is an expert at building great consumer product businesses and brands,” said Bob Crowley, chairman of Vermont Teddy Bear’s Board of Directors. “John is a natural choice to help lead Vermont Teddy Bear’s next chapter of growth and innovation.”Gilbert stated, “I am delighted to join The Vermont Teddy Bear Company with its great brand and position as a leader in the gift business. I look forward to working with the team in taking the company to its next level of growth. It is an exciting time for the Company and we have many opportunities to expand in all aspects of our business.”The Vermont Teddy Bear Company has been handcrafting Bears in Vermont for more than 25 years (www.VermontTeddyBear.com(link is external)). Along with its sister companies The PajamaGram Company (www.PajamaGram.com(link is external)) and Calyx Flowers (www.CalyxFlowers.com(link is external)), Vermont Teddy Bear has grown to become one of the most recognizable direct-to-consumer companies in the world.SHELBURNE, Vt., March 2 /PRNewswire/ –SOURCE The Vermont Teddy Bear Company
It would be easy to think of Williston-based Vermont Organics Reclamation as an agricultural business, since its first phase will be to improve the processing of manure. And manure will always be a major resource for their recycling of unused plant nutrients. But the project that Tim Camisa has been conceptualizing since 2001 and actively developing with partner Mike Rooney since 2005 seeks a more comprehensive change in the way Vermont maintains and grows its economy. It s a vision that VOR has pursued through five patents, four generations of processing equipment, three grant applications involving two agencies, and the arrival of a private equity backer.The futuristic part of their planning would involve the acquisition or extension of rail sidings in a variety of locations around the state, for the placement of collection cars that would then transport recyclable organic materials to a central facility they have begun to put together in St Albans. In brief, their analysis indicates that the state is thinking too much in terms of disposal for biological byproducts, instead of seeing them as a resource that could be the foundation for exports to other states, the importing of dollars, and the creation of much-needed jobs. For now, however, there is plenty of work to do helping dairy farms become cleaner and more profitable. If the only result were to end the phosphorus pollution that threatens to clog parts of Lake Champlain with mats of obnoxious and destructive algae, VOR will have scored a major success but that is only a byproduct, so to speak, of what they envision.On To M-ArrsVOR believes that, With a collaborative effort, everyone could have a vested interest in revolutionizing agriculture.Their own description of the alternative makes it clear how much research and development stands behind their methodology. Camisa studied mathematics at UVM, Rooney studied business, and both backgrounds show in a prospectus for farmers subtitled Turning waste into your gain. In the search for a non-chemical organic treatment, VOR identified the technology of electro-coagulation as well as a hybrid of techniques used in municipal wastewater treatment to be effective in processing dairy manure, begins an introductory section. Then, well aware that farmers want to know the practical details, it proceeds to the technical side. Manure is lifted out of the pit (note: this is in the demonstration phase; ultimately farms can acquire the equipment and handle this on a more frequent basis) and pumped to a static screen separator and screw press to accomplish liquid separation (so that) 85 percent of the phosphorus is separated into the liquid fraction. This liquid is then run through an electro-coagulator which coagulates the dissolved phosphorus into large particles which precipitate to the bottom of our hybrid atmospheric clarifier. The clarifier builds up a one-micron filter bed from the coagulated solids, and sludge is wasted from this filter bed containing three times the concentration of phosphorus. Not only does the process isolate phosphorus in sludge, it also eliminates a high percentage of bacteria and odor typically found in manure and creates stronger nutrient bonds less prone to runoff and volatilization.Another company statement sums up the results for client dairies: VOR s technology transforms the raw manure into sludge and solids readily suitable for fertilizer and virtually phosphorus free grey water for irrigation, wash down, or infiltration.Interviewed, Camisa said that today s dairy farms typically have so many cows for their size that the plants growing on the available land can t take up all the nutrients that the cows relatively inefficient processors of their feed do not utilize. Under state regulations, farms need to have nutrient management plans, and VOR will work with farmers using the plan method to determine how many pounds of excess phosphorus they are generating.Camisa said this kind of integration with water quality efforts is one reason that the Vermont Department of Agriculture has been working with them (something confirmed by Robert Achilles, an engineer who is their section chief for agricultural water quality). They have obtained one grant from that department for $25,000, and another federal-state grant of $175,000 through the Natural Resource Conservation Service, Camisa said, and have applied for more NRCS funding.VOR captures the excess nutrients, for its own recycling processes, rather than the waterways leading to Lake Champlain. No, Camisa said, they don t plan to set up a composting operation. To get the right bacterial activity, the ingredients need to be about 75 percent water and 25 percent solids. Unfortunately for the nutrient management side of the process, both nitrogen and phosphorus are water-soluble, and a good deal of both escapes, he said.As for the field application of manure, in Camisa s view it s a disposal method, not a fertilizing method, because cow manure is such a weak fertilizer; for instance, there are only six pounds of nitrogen in a ton of it. But nitrogen isn t the issue for lake water quality, he said, because the algae mats can get nitrogen from the air (nitrogen constitutes about 80 percent of the atmosphere) as well as from the water. In fact, he said, the mats will sink or float depending on the angle of the sun and which nitrogen source is easiest to access.The grant VOR now seeks, from the Natural Resources Conservation Service of the US Department of Agriculture (Vermont headquarters in Colchester, field personnel in four zones), would provide $583,000 of the estimated $1,167,000 cost of setting up a pilot project centered around improving the water quality of St Albans Bay. Franklin County is one of Vermont s foremost dairy regions, and Camisa said 138 farmsteads are within the 15-foot-deep bay s drainage basin.VOR wants to go to these farms and show them a physically measurable reduction in their phosphorus load, Camisa said. Besides demonstrating that their M-ARRS system (stands for Mobile Agricultural Resource Recovery System) can ease the pressures of meeting nutrient runoff regulations by removing about 11 percent of their manure containing 33 percent of their phosphorus, while providing the cows with usable bedding and the dairy with washdown-quality graywater, VOR hopes to make a visible difference in St. Albans Bay then go to the other compromised watersheds in Vermont, all of which VOR has already mapped out–and remove about 100 tons of phosphorus each year from the state s environment.For the individual farm, VOR can use the farm s soil tests and other data to do a field/crop analysis and calculate the P2O5 reduction requirement. The prospectus includes a sample spreadsheet showing the results of such an analysis for a 100-cow operation.Also, there is a M-ARRS Phosphorus Take Away Tool, which analyzes gallons of manure, pounds of phosphorus reduction, and gallons of sludge removal for annual, semi-annual, and quarterly VOR visits to the farm. For dairies with 600 cows or more, the numbers assume that the farm has purchased and installed ARRS equipment something Camisa said would repay itself in three to four years.The organic part of this certifiably organic, VOR hopes is that their way of removing the nutrients from the waste stream is electrical, not chemical, Camisa said. Wastewater treatment plants typically add chemicals, then have to send the resulting sludge out of state, where it is either landfilled or incinerated. (When VOR adapts its processes to wastewater treatment plant excesses, that will in a business completely separated from the present venture, Camisa said.)The solids that come out of the VOR treatment can be used as a soil amendment or a biofuel, but also are safe to use for cow bedding a big concern for dairy farmers now that competition for sawdust and shavings from pellet fuel mills has pushed the price of a tractor-trailer load of the stuff to about $2,500, he said.Recently, Monument Farms in Weybridge, which bottles milk and sells it as well as producing raw milk, decided to install a manure digester. Their main reason, they said, was not to save on electrical costs by joining the Cow Power initiative, but to reduce their bedding costs since digesters, like VOR s process, create safe solid material as an end product.But digesters don t address the global climate change crisis, Camisa said. Methane is generated best at about 100 degrees and 135 degrees Fahrenheit, temperatures typical of digesters, so they do a good job of producing methane, which is then burned to drive a generator. But the burning process produces carbon dioxide as well as electricity, he observed adding to global warming.Worldwide, according to the United Nations report The Carbon Hoofprint of the Cow, cars are responsible for 11 percent of carbon emissions, while livestock accounts for 18 percent, Camisa said. A herd of 500 cows produces about 10,000 gallons of waste a day (that s 20 gallons per cow), he said but with scientific recycling of the nutrients those 500 cows can drive 20 greenhouses and produce $2 million in annual plant sales.VOR is setting up a greenhouse of its own, not to produce the usual bedding plants that get put out annually in gardens, but to do tissue cultures of varieties adapted to northern climates for stream bank erosion restoration and similar projects, Camisa said.Show And (Not) SmellAbout 100 farmers learned about VOR at the 2009 Farm Show in Barre, and according to the company, many of them signed up to be notified when the fourth generation demo machine was ready to go. Camisa said that automated system may be in operation by the time Vermont Business Magazine s June issue comes out; those interested can call 881-0012 or email to email@example.com(link sends e-mail).For Vermont generally, VOR has some searching questions as to what is being wasted and what Vermont resources remain untapped. For farmers, they have a simple question: When would you like us to take away manure that you do not need?Ed Barna is a freelance writer for Vermont Business Magazine from Middlebury.
For those on the move in 2009, the Western region has maintained its position as a popular destination, while many states in the Great Lakes region continue outbound moving trends. The findings are among the results of the United Van Lines 2009 mid-year migration study, which tracks where its customers moved from and their most popular destinations. Vermont ranked 23rd, behind only Massachusetts (20th) for Northeastern states.United has tracked shipment patterns annually on a state-by-state basis since 1977. The findings are based on 60,520 interstate household moves handled by United among the 48 contiguous states and Washington, D.C., from January through June 2009. United classifies the states as high inbound (55% or more of moves going into a state), high outbound (55% or more of moves going out of a state) or balanced.Three out of the top five high-outbound states were located in the Great Lakes region. Michigan (70.0%) maintained its status as the top outbound state, up more than 2.0 percentage points since January 2009. Illinois(58.3%) came in third and maintained its position as an outbound state since 1977, while Indiana (57.2%) ranked fourth and continued its 15-year trend.The District of Columbia (63.8%) maintained its position as the most popular inbound destination, up 1.5 percentage points in the past six months, and a clear winner ahead of Oregon (59.3%), which has experienced high-inbound migration for 21 consecutive years. Other high-inbound Western states included Nevada (57.7%) capturing fourth place and Wyoming (57.5%) coming in as the fifth highest inbound state.About United Van LinesUnited Van Lines, with headquarters in suburban St. Louis, is one of the nation s largest household goods movers and maintains a network of 1,000 affiliated agencies in 135 countries. More information about United and its services can be obtained through the company s Web site at www.unitedvanlines.com(link is external).
4,018 Thirteen weeks ended June 26, 2010 Weighted average shares outstanding Thirty-nine weeks ended 6/26/10 $0.13 GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Cash Flows(Dollars in thousands) 131,677,459 $0.37 13,081 Acquisition of Diedrich Coffee, Inc. (25,051) 201,783 Commitments and contingencies 12,124 June 26, 2010 $985,792 Attributing a 64 percent net sales growth by the success of the Keurig Single-Cup Brewing System, Green Mountain Coffee Roasters, Inc of Waterbury has reported strong sales and earnings growth. Net sales for the third quarter of fiscal 2010 increased to $311.5 million as compared to $190.5 million reported in the third quarter of fiscal 2009. According to Generally Accepted Accounting Principles, net income for the third quarter of fiscal 2010 totaled $18.6 million, or $0.13 per fully diluted share; non-GAAP EPS of $0.19.Excluding transaction-related expenses incurred in the quarter, and the resulting tax effect of reversing the tax benefit associated with previously incurred acquisition-related expenses, the Company’s non-GAAP net income for the third quarter of fiscal 2010 was $25.8 million, or $0.19 per diluted share, representing an increase of 82% from $14.1 million, or $0.12 per diluted share, in the third quarter of fiscal 2009.1The Company completed its acquisition of Diedrich Coffee Inc. (’Diedrich’) on May 11, 2010 for $35 per share of common stock in a transaction with a total value of approximately $300 million. The recent Financial Accounting Standards Board (’FASB’) pronouncement on business combinations, effective in fiscal 2010 for the Company, requires acquisition-related costs be expensed rather than capitalized. The Company’s fiscal third quarter GAAP net income is inclusive of approximately $4.0 million of non-deductible expenses associated with the Diedrich acquisition incurred during the fiscal third quarter. In accordance with the FASB pronouncement, because the Diedrich acquisition closed during the fiscal third quarter, this quarter’s GAAP net income also reflects the tax effect of reversing the tax benefit of $3.2 million associated with the $8.1 million of acquisition-related costs for the Diedrich acquisition recorded during the first and second quarters of fiscal 2010.During fiscal 2010’s third quarter, 683 million K-Cup® portion packs were shipped system-wide by all Keurig licensed roasters, representing an increase of 72% over the year-ago quarter. Supporting continued growth in K-Cup demand, there were 846,000 system brewers with Keurig®-branded brewing technology shipped during the third quarter of fiscal 2010 compared to 444,000 shipped during the third quarter of fiscal 2009.The Company completed a three-for-one stock split during the third quarter, effected in the form of a stock dividend. Shareholders of record at the close of business on May 10, 2010 received two additional shares of common stock for every one share of common stock held on that date.Lawrence J. Blanford, GMCR’s President and CEO, said, ‘In our fiscal third quarter, through the strong efforts of all our employees, we delivered excellent results on our key financial performance metrics including revenue, gross margin, operating margin and net income. We have now achieved 11 consecutive quarters of better than 40 percent net sales growth. For the first nine months of fiscal 2010 we have produced net sales growth of 70% and non-GAAP earnings per share growth of 89% over the same period for fiscal year 2009.’‘Continued execution of our strategic business initiatives, including most recently, our acquisition of Diedrich, is driving GMCR’s growth and enabling us to advance adoption and awareness of our growing portfolio of compelling brands,’ said Blanford. ‘We believe the inherent strength of our business model, combined with our passionate employees, the strong support of our business partners and our fervent belief that we can transform the way the world views business are key drivers behind our growth and success.Blanford concluded, ‘The coming holiday buying season is shaping up to be another exciting opportunity for us to help more consumers discover and enjoy outstanding beverages with the convenience and choice of the Keurig Single-Cup brewing system. We are looking for a strong kickoff to our fiscal year 2011 and are providing our initial fiscal year 2011 estimate for sales growth in a range of between 44% to 50% and earnings per share of $1.15 to $1.20.’ Fiscal 2010 Third Quarter Financial ReviewKey Business Drivers & MetricsThe two primary drivers of the $121.0 million, or 64%, increase in the Company’s net sales were increases in total K-Cup portion pack net sales and Keurig brewer and accessory sales.Approximately 86% of consolidated net sales in the third quarter was from the Keurig brewing system and its recurring K-Cup portion pack revenue.Net sales from K-Cup portion packs totaled $197 million in the quarter, up 90%, or $93.1 million, over 2009.Net sales from Keurig brewers and accessories totaled $64 million in the quarter, up 69%, or 26.2 million, from the prior year period.For the Keurig business unit, net sales for the third quarter of fiscal 2010, after the elimination of inter-company sales, were $157.2 million, up 74% from net sales of $90.1 million in the third quarter of fiscal 2009.For the Specialty Coffee business unit (SCBU), net sales for the third quarter of fiscal 2010, after the elimination of inter-company sales, were $154.3 million, up 54% from net sales of $100.4 million in the third quarter of fiscal 2009.Costs, Margins and IncomeThird quarter 2010 gross profit increased to 35.2% of total net sales compared to 33.6% for the corresponding quarter in 2009. This was as a result of higher manufacturing gross margin derived from the increase in volume of the Company’s manufactured K-Cups as a percentage of total system volume.During the third quarter, the Company experienced continued higher levels of warranty expense and sales returns related to a quality issue associated with certain brewer models produced primarily in late calendar 2009. As previously disclosed, the Company implemented hardware and software changes which it believes has corrected the issue. The Company reached agreement with its suppliers and will recover approximately $6 million as reimbursement related to this issue. This recovery was reflected in the third quarter cost of sales as a reduction to warranty expense and substantially offsets the higher warranty expense and sales returns costs incurred in the fiscal third quarter.Selling, general and administrative expenses as a percentage of net sales for the third quarter were 23.0% as compared to 21.7% in the prior year. Third quarter 2010 general and administrative expenses include $4.0 million related to the Diedrich acquisition as well as the amortization of identifiable intangibles of $4.3 million due to the Company’s prior acquisitions as compared to $1.5 million in the prior year third quarter.The Company increased its GAAP operating income by 68%, to $38.2 million, in the third quarter of fiscal 2010, as compared to $22.8 million in the year ago quarter, and improved its GAAP operating margin to 12.3% from 12.0% in the prior year period. Excluding the impact of the $4.0 million transaction-related expenses in the third quarter of fiscal 2010, the Company’s non-GAAP operating income was up 85% to $42.2 million and represented 13.5% of sales compared to $22.8 million, or 12.0% of sales in the prior year.Interest expense was $1.5 million in the third quarter of fiscal 2010, compared to $1.1 million in the prior year quarter.Income before taxes for the third quarter of fiscal 2010 increased 70% to $36.7 million as compared to $21.7 million in the third quarter of fiscal 2009.The Company’s tax rate for the fiscal third quarter was 49.5% as compared to 34.7% in the prior year quarter reflecting the tax effect of the recognition of the estimated total $12 million non-deductible acquisition-related expenses incurred during the Company’s first, second and third quarters of fiscal 2010 for the Diedrich acquisition which closed during the Company’s fiscal third quarter.Balance Sheet HighlightsCash and short-term cash investments were $10 million at June 26, 2010, down from $144.2 million at March 27, 2010, primarily due to the Diedrich acquisition.Accounts receivable increased 88% year-over-year to $128.8 million at June 26, 2010, from $68.5 million at June 27, 2009, as a result of continuing strong sales during the third quarter of fiscal 2010, particularly within the retail channel where days sales outstanding is higher than other channels, and due to the recent Diedrich acquisition.Inventories increased 80% to $186.3 million at June 26, 2010 from $103.2 million at June 27, 2009, reflecting the Company’s effort to ensure sufficient inventories of brewers and K-Cups for the fourth quarter of fiscal 2010.Long-term debt increased to $271.4 million at June 26, 2010 from $72.7 million at March 27, 2010 as a result of the Company’s execution of a $140 million term loan used to pay a portion of the Diedrich purchase price.Business Outlook and Other Forward-Looking InformationFourth Quarter and Fiscal Year 2010With one quarter remaining, the Company has refined its outlook for its fiscal year 2010 and is providing its first estimates for its fourth quarter of fiscal 2010. It now expects:Total fiscal fourth quarter consolidated net sales growth of 58% to 63% resulting in total fiscal 2010 consolidated net sales growth of 66% to 68%, compared to the prior estimate of 62% to 65%.Total fiscal 2010 K-Cup portion packs shipped system-wide by all Keurig licensed roasters to increase in the range of 73% to 76%, compared to prior estimate of 73% to 78%.Fiscal fourth quarter non-GAAP operating margin in the range of 13.0% to 13.5%, resulting in a total fiscal 2010 non-GAAP operating margin in the range of 12.1% to 12.5% excluding acquisition-related transaction expenses.Fiscal 2010 interest expense of $5.5 million to $6.5 million.A tax rate of 39.2% for the fiscal year excluding the tax impact of expenses related to the Timothy’s and Diedrich acquisitions.Fiscal fourth quarter fully diluted non-GAAP earnings per share in the range of $0.18 to $0.20 per share, resulting in total fiscal 2010 fully diluted non-GAAP earnings per share in the range of $0.69 to $0.71 per share, excluding any acquisition-related transaction expenses. The fully diluted non-GAAP earnings per share estimate of $0.69 to $0.71 for the 2010 fiscal year includes $15 million pre-tax or $0.07 per diluted share non-cash amortization expenses related to the identifiable intangibles of the Company’s acquisitions.Capital expenditures for fiscal 2010 in the range of $120 to $140 million, as compared to prior estimates in the range of $105 to $125 million.Depreciation and amortization expenses in the range of $44 to $46 million for fiscal year 2010, including $15 million for amortization of identifiable intangibles, up from prior estimates of $40 to $44 million.First Issue of Company Estimates for Fiscal Year 2011The company also is providing its first estimates for fiscal year 2011:Total consolidated net sales growth of 44% to 50%.Total K-Cup portion packs shipped system-wide to increase in the range of 64% to 68%.Fully diluted earnings per share in the range of $1.15 to $1.20 per share, representing an increase in the range of 62% to 74% over fiscal year 2010’s fully diluted non-GAAP earnings per share estimate range of $0.69 to $0.71 per share. The fiscal 2011 estimate includes approximately $22 million, or approximately $0.09 per share, of non-cash amortization expenses related to the identifiable intangibles mentioned above.Use of Non-GAAP Financial MeasuresIn 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 such as acquisition-related transaction expenses, the one-time operating income related to the settlement of the Company’s Kraft litigation, and non-cash related items such as amortization of identifiable intangibles. 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. Please see the ‘GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations’ tables that accompany this press release for a full reconciliation the Company’s GAAP to non-GAAP results.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 5:00 PM ET and will be available, with accompanying slides, via live webcast on the Company’s website at www.GMCR.com(link is external). The Company archives the latest conference call on the Investor Relations 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, Passcode 2978546 from 9:00 PM ET on July 28th through 9:00 PM ET on Monday, August 2, 2010.GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company’s automatic email news release delivery, individuals can receive news directly from GMCR as it is released.About Green Mountain Coffee Roasters, Inc.As a leader in the specialty coffee industry, Green Mountain Coffee Roasters, Inc. is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. GMCR’s operations are managed through two business units. The Specialty Coffee business unit produces coffee, tea and hot cocoa from its family of brands, including Tully’s Coffee®, Green Mountain Coffee®, Newman’s Own® Organics coffee, Timothy’s World Coffee® and Diedrich, Coffee People and Gloria Jeans®, a trademark licensed to the Company for use in North America and owned by Gloria Jeans Coffees International Pty. Ltd. The Keurig business unit is a pioneer and leading manufacturer of gourmet single-cup brewing systems. K-Cup® portion packs for Keurig® Single-Cup Brewers are produced by a variety of roasters, including Green Mountain Coffee, Tully’s, Timothy’s and Diedrich. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in Fair Trade Certifiedâ ¢ coffee, and donating at least five percent of its pre-tax profits to social and environmental projects. Visit www.gmcr.com(link is external) for more information.Forward-Looking StatementsCertain statements contained herein are not based on historical fact and are ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as ‘anticipate,’ ‘believe,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘feel,’ ‘forecast,’ ‘intend,’ ‘may,’ ‘plan,’ ‘potential,’ ‘project,’ ‘should,’ ‘would,’ and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those stated here. 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 sales and profitability of consumer sentiment in this difficult economic environment, the Company’s success in efficiently expanding operations and capacity to meet growth, the Company’s success in efficiently and effectively integrating Timothy’s and Diedrich’s wholesale operations and capacity into its Specialty Coffee business unit, the Company’s success in introducing and producing new product offerings, the ability of lenders to honor their commitments under the Company’s credit facility, competition and other business conditions in the coffee industry and food industry in general, fluctuations in availability and cost of high-quality green coffee, any other increases in costs including fuel, Keurig’s ability to continue to grow and build profits with its roaster partners in the At Home and Away from Home businesses, the Company experiencing product liability, product recall and higher than anticipated rates of warranty expense or sales returns associated with a product quality or safety issue, the impact of the loss of major customers for the Company or reduction in the volume of purchases by major customers, delays in the timing of adding new locations with existing customers, the Company’s level of success in continuing to attract new customers, sales mix variances, 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.-Tables Follow-GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Statements of Operations(Dollars in thousands except per share data) (14,949)Net income $0.09 – 131,677,459 $816,650 28,597 119,010,138 (43,127) 320,208 137,681,766 12,708 – – Net Sales General and administrative expenses $5,030 Patent litigation settlement (1,495) 38,187 $0.40 Other long-term liabilities – Accrued compensation costs 27 Diedrich Coffee, Inc. Net Sales (323)Interest expense Net cash provided by operating activities (18,165) – $985,792 Cash and cash equivalents at beginning of period $0.12 Goodwill – 137,898,253 – Additional paid-in capital 131,677,459 (25,051)Net income Other short-term liabilities $190,509 – $41,507 28,597 Cash and cash equivalents Patent Litigation Settlement ====== (1,080) Income before income taxes (3,992) $985,792 Weighted average shares outstanding $- Thirty-nine weeks ended June 27, 2009 (3,376) 590,174 112,775,280 36,719 Income tax expense 18,570 – 137,898,253 144,835 137,681,766 (9,123)Deferred income taxes Liabilities and Stockholders’ Equity 401,428 66,558 $- Proceeds from borrowings of long-term debt 128,758 $- Basic income per share: Cost of Sales 665,584 36,719 Operating income (232,830) – (1,080) – (Gain) loss on futures derivatives Acquisition- related Transaction Expenses – $0.13 13,054 Patent litigation settlement Income tax expense – – Timothy’s Coffees of the World, Inc. Retained earnings Receivables $(10,361) 53,375 – 12,819 10,151 401,428 – $- $55,750 12,708 – 386,416 64,081 3,257 $0.20 Basic income per share: – Other long-term assets 49,558 – (5,626) ====== 137,681,766 – Current liabilities: 1,700 $1,927 79,772 GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations(Dollars in thousands) 73,013 Acquisition- related Transaction Expenses 21,657 50,000 $190,509 Accrued expenses – (39) (163)Excess tax benefits from equity-based compensation plans Timothy’s Coffees of the World, Inc. $- $18,554 $- – $55,750 General and administrative expenses 126,428 $580,841 (7,517)Net income Tax benefit (expense) from exercise of non-qualified options and disqualified dispositions of incentive stock options Net income – – Acquisition- related Transaction Expenses Net Sales Operating income – Stockholders’ equity: Preferred stock, $0.10 par value: Authorized – 1,000,000 shares; No shares issued or outstanding – – (12,124) Provision for doubtful accounts Diluted income per share: (7,517) – – 25 Income tax benefit (expense) (42) Gross Profit – $0.37 241,811 36,478 Cash and cash equivalents at end of period $- Total liabilities and stockholders’ equity $41,507 Net Sales 15,474 Thirty-nine weeks ended June 26, 2010 Thirty-nine weeks ended June 27, 2009Cash flows from operating activities: – $12,124 $0.05 (7,517) Diedrich Coffee, Inc. 20,379 17,264 (1,870)ESOP unallocated shares, at cost ‘ 38,061 shares at June 26, 2010, and September 26, 2009 (17,000) 46,277 (17,000) Thirty-nine weeks ended June 26, 2010 168 Net income – 327 Non-GAAP (188) 13,178 Interest expense General and administrative expenses – $- 112,775,280 Acquisition of Timothy’s Coffee of the World Inc. 112,044 $8,981 $1,197,019 – Intangibles, net $0.01 (14,003)Inventories Net income – (3,851) GAAP – (6,342) $241,811 – $(0.09) (43,127)Net income – (1,500) (3,494) Income before income taxes Accrued compensation costs (1,495) 131,677,459 $31,146 – – $7,399 12,124 Thirteen weeks ended 6/26/10 Cash flows from investing activities: Proceeds from sale of short-term investments (17,000) $41,507 137,681,766 $- 70,375 111,397,302 117,318,258 Weighted average shares outstanding 21,657 – Long-term debt 144,835 (41,451)Capital expenditures for fixed assets – (29,027)Proceeds from disposal of fixed assets Other income (expense) 22,215 Cost of sales 85,469 64,081 Basic income per share: Net change in revolving line of credit 57,001 9,497 – $8,981 – 3,992 (1,359) 22,776 Selling and operating expenses Gross Profit (205)Proceeds from issuance of common stock $311,514 (84,386) $(0.09) 6,759 280 Excess tax benefits from equity-based compensation plans 5,626 Gross Profit Net cash provided by financing activities – $580,841 $- 66,558 Other expense Other expense – $816,650 Net income – $4,100 Fixed asset purchases included in accounts payable and not disbursed at the end of each period: $12,549 $0.42 1 A complete reconciliation of the Company’s GAAP to non-GAAP results is provided with this announcement.ContactsGreen Mountain Coffee Roasters, Inc. 7.28.2010 $19,058 Total current liabilities $210 6,639 109,731 – $0.53 Acquisition- related Transaction Expenses 119,010,138 Basic income per share: – 1,927 72,903 33,165 $- $7,208 99,600 $311,514 131,677,459 140,000 21,275 (154,208) 940 192,912 Deferred income taxes, net 421 Adjustments to reconcile net income to net cash provided by operating activities: $0.09 21,657 Acquisition of certain assets of Tully’s Coffee Corporation 9,517 – Amortization 372 – Thirty-nine weeks ended 6/27/09 General and administrative expenses $0.13 $0.13 – – $- Acquisition- related Transaction Expenses Thirteen weeks ended 6/27/09 Accrued expenses $- $1,197,019 6,351 (15,640)Income tax receivable, net (1,080) $1,533 111,397,302 38,187 117,318,258 Net income 28,597 (1,927) GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations(Dollars in thousands) (18,478) (1,495) Income before income taxes – Loss on disposal of fixed assets 25,267 401,428 33,165 21,544 57,381 – 131,303,879 – – $18,554 441,875 Non-GAAP Weighted average shares outstanding $0.27 46,277 Noncash investing activity: – – 91,559 $- 42,179 207 102,470 – – – $55,750 $- Gross profit 2,500 540,612 137,898,253 137,898,253 – Net (decrease) increase in cash and cash equivalents – Changes in assets and liabilities: $0.05 $- $0.19 Weighted average shares outstanding 25,267 $0.35 (74)Total stockholders’ equity Acquisition- related Transaction Expenses 4,127 Non-GAAP Timothy’s Coffees of the World, Inc. Diedrich Coffee, Inc. (217) (3,494)Income before income taxes 665,584 137,162 102,470 GAAP Cost of Sales 665,584 46,277 – $0.42 58,852 22,776 320,208 – 16,611 (74) 320,208 Weighted average shares outstanding 49 126,428 – GAAP – Income tax payable – (35,325) 119,010,138 – 98,877 – Net cash used for investing activities 111,397,302 1,788 4,892 Basic income per share: 9,123 356,071 $- 522 117,318,258 11,500 Receivables, less allowances of $8,852 and $4,792at June 26, 2010, and September 26, 2009, respectively Proceeds from payment of note receivable (39) $0.13 (70,326) 804 Depreciation 117,318,258 5,681 27 201,783 (43,127) 72,903 – Operating income – Other current assets – Weighted average shares outstanding 2,514 Income tax benefit (expense) 201,783 – – Total current assets 131,303,879 131,303,879 131,303,879 Deferred income taxes, net – 5,157 137,294 201,603 112,775,280 1,927 Income tax receivable 50,000 112,928 2,971 – 137,681,766 Net income $0.40 $0.01 – (3,376) $0.51 Cash flows from financing activities: – Accounts payable 131,677,459 112,775,280 Patent Litigation Settlement Non-GAAP 3,296 – – Other expense Income tax benefit (expense) – – GAAP Cost of Sales 126,428 $0.28 (3,494) – 55,853 – – – 119,010,138 GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations(Dollars in thousands) 64,081 Repayments of long-term debt Total assets (3,750) 111,397,302 131,303,879 Short-term investments (217)Interest expense 218,821 Capital lease obligations – 457,617 Weighted average shares outstanding 3,979 Net sales 26,599 ===== 191,880 1,071 – 92,873 70,375 6,061 117,318,258 – Diluted income per share: – – Selling and operating expenses 135,981 187 131,303,879 Gross Profit $0.12 $14,140 – Inventories Accounts payable 112,775,280 $- (1,940)Deferred compensation and stock compensation $14,140 $- – $- Patent Litigation Settlement 3,861 12,708 33,165 – 40,711 252,380 – 225,481 179,413 152 (323) (39)Interest expense $25,762 (18,412)Net income – Weighted average shares outstanding September 26, 2009Assets $0.12 119,010,138 119,010,138 137,898,253 $- – Diluted income per share: – Fixed assets, net 587 179,413 Net income – Acquisition- related Transaction Expenses 662,133 112,775,280 Timothy’s Coffees of the World, Inc. $0.14 17,769 $580,841 – 116,521 – – 109,731 Selling and operating expenses – – 126,864 – – – – Net income Net income Accumulated other comprehensive loss Selling and operating expenses Selling and operating expenses Debt assumed in conjunction with acquisitions – Current portion of long-term debt (3,376) Income before income taxes General and administrative expenses (491,814) 3,992 – 186,262 92,873 137,681,766 ===== Net income – Deferred financing fees $0.14 Diedrich Coffee, Inc. GREEN MOUNTAIN COFFEE ROASTERS, INC.Unaudited Consolidated Balance Sheets(Dollars in thousands) – (18,165) (17,000)Operating income – $190,509 (323)Interest expense – 17,000 36,049 – Other expense – – (217) 111,397,302 Thirteen weeks ended June 27, 2009 Other long-term assets, net – $14,140 10,230 137,898,253 27 98,877 Patent Litigation Settlement (305,261) $69,801 Common stock, $0.10 par value: Authorized – 200,000,000 shares; Issued ‘ 131,783,168 and 130,811,052 shares at June 26, 2010, and September 26, 2009, respectively GREEN MOUNTAIN COFFEE ROASTERS, INC.GAAP to Non-GAAP Reconciliation of Unaudited Consolidated Statements of Operations(Dollars in thousands) $- Restricted cash and cash equivalents Acquisition- related Transaction Expenses Weighted average shares outstanding Diluted income per share: 92,873 Diluted income per share: 253 – 109,731 Net income – $- $- Cost of Sales 144,835 111,397,302 Operating income 117,318,258 – 22,776 Current assets: – 179,413 $0.35 3,216 – – $311,514 Other current assets
Davis & Hodgdon Associates, CPAs, PLC,Williston accounting firm Davis & Hodgdon Associates CPAs (www.dh-cpa.com(link is external)) has worked up a synopsis of the deal President Obama cut with congressional Republicans on taxes and jobless benefits. The deal signed into law on December 17, 2010 extends President Bush’s tax cuts and makes changes to other key provisions. Among the major highlights: An extension of the Bush tax cuts for all, not just lower and middle incomers. Thus, the 35% top rate on individuals will continue for two years. And caps on itemized deductions and personal exemptions won’t return until 2013.Favorable rates on dividends and long-term capital gains.The 15% maximum rate on both remains in effect through 2012. The same goes for the 0% rate on gains and dividends for filers in the 10% or 15% tax brackets.A return of the estate tax for 2011 and 2012, with a $5-million exemption, a 35% rate and a reinstatement of a stepped-up basis for heirs. For 2010, estates will have a choice: Pay no estate tax, but heirs face a carryover basis for inherited assets that have appreciated by more than $1.3 million (plus $3 million for assets going to a surviving spouse). Or the heirs can claim a stepped-up basis on the inherited assets if the estate pays estate tax at 35% on assets over $5 million.The estate tax exemptions will be portable, so that when one spouse dies, the unused amount goes to the surviving spouse and can be used at his or her death. This ends the need for spouses to set up trusts in their wills just to save estate tax.The lifetime gift tax exemption will rise to $5 million. This will be done by reintegrating the gift and estate taxes, restoring the system in place before 2004.Some refundable tax breaks will be extended through 2012.Higher earned income and child credits.The American Opportunity college credit.Many tax breaks that lapsed after 2009 will be revived for 2010 and 2011. They include direct payouts to charity of up to $100,000 from IRAs, the R&D credit and the write-offs for state sales tax, up to $250 of teacher supplies and college tuition.A Social Security tax cut for employees and self-employed. For 2011 only, the 6.2% tax rate for the employee portion of Social Security tax will decline to 4.2%, a tax saving of up to $2,136 per filer. This will replace the Making Work Pay Credit, which provided a maximum tax saving of $400 for single filers and $800 for couples.Businesses of any size will be able to immediately expense the cost of assets by claiming 100% bonus depreciation. The break is retroactive for assets put in use after Sept. 8, 2010 and before Jan. 1, 2012. In tax year 2012, 50% bonus depreciation will be available. Only new assets with useful lives of 20 years or less will qualify. This includes machinery, land improvements, and single-purpose farm buildings.The AMT exemptions will increase for 2010 and 2011.