WATERBURY, VT -- Green Mountain Coffee Roasters Inc., which makes Keurig brewers and K-Cup packs, reported net sales of $575 million for the first quarter of fiscal 2011 (13 weeks ended Dec. 25, 2010). This is an increase of 67% from sales of $345.2 million reported for the first quarter of fiscal 2010.
Investors were clearly pleased with Green Mountain's report released on Feb. 3, and on that day pushed its shares higher to $32.96, ahead of the earnings report. Stocks closed at $43.50 on Feb. 11.
The company’s net income, calculated under generally accepted accounting practices (GAAP), totaled $2.2 million, or 2¢ per diluted share, down 78% from $10.1 million, or 7¢ per diluted share, for the first quarter of fiscal 2010.
Non-GAAP net income for the first quarter increased 73% to $26.1 million over non-GAAP net income of $15.1 million in the year-earlier period. Fiscal first quarter non-GAAP net income excludes pretax items of $11.2 million in expenses related to the acquisition of Van Houtte Inc. (Montreal, QC, Canada).
(Costs related to acquisition include the write-off of $2.6 million of deferred financing fees associated with the former credit facility; $6.0 million in legal and accounting-related expenses associated with an inquiry conducted by the Securities & Exchange Commission; the company’s own internal investigation and pending litigation; $6.2 million in amortization of identifiable intangibles related to Green Mountain’s acquisitions; and $5.3 million in realized and unrealized loss on foreign exchange transactions associated with hedging the risk associated with the Canadian-dollar purchase price of Van Houtte.)
First-quarter 2010 non-GAAP net income excludes pretax items of $5.1 million in expenses related to the 2009 acquisition of Timothy’s Coffees of the World (Toronto) and Diedrich Coffee (Irvine, CA), as well as $2.1 million in amortization of identifiable intangibles related to prior acquisitions.
On the same basis of presentation, GMCR’s non-GAAP earnings per diluted share increased 62% to 18¢ in the first quarter of fiscal 2011, up from 11¢ in the first quarter of fiscal 2010.