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Green Mountain Coffee Roasters Reports Full Fiscal Year and Fourth Quarter Fiscal 2013 Results

  • Fiscal Year 2013 Revenue of $4.4 billion, Up 16% vs. Year Ago (52-to-52 weeks)
  • Fiscal Year 2013 Free Cash Flow of $603 million
  • Fiscal Year 2013 GAAP EPS of $3.16
  • Fiscal Year 2013 Non-GAAP EPS of $3.39, Up 45% vs. Year Ago (52-to-52 weeks)
  • Fourth Quarter Revenue of $1.0 billion up 22% vs. Year Ago (52-to-52 weeks)
  • Fourth Quarter GAAP EPS of $0.83
  • Fourth Quarter Non-GAAP EPS of $0.89, Up 56% vs. Year Ago (52-to-52 weeks)

WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc., (GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffee makers with its innovative Keurig® brewing technology, today announced its results for the 13 weeks and 52 weeks ended September 28, 2013.

“We had a strong end to an excellent year, driven by continued consumer passion for the Keurig brewing system”

Performance Highlights

“We had a strong end to an excellent year, driven by continued consumer passion for the Keurig brewing system,” said Brian P. Kelley, GMCR’s President and CEO. “Our 16% annual revenue growth and 22% revenue growth for the fourth quarter were driven by robust brewer sales and continued portion pack sales momentum. We also continued to deliver solid operating results, growing non-GAAP earnings per share by 56% in the fourth quarter and 45% for the fiscal year. Importantly, for the year, free cash flow generation of $603 million was nearly eight times last year’s $77 million.”*

*Please note that the Company's fourth quarter and fiscal year 2012 included an additional week (53rd week) which added approximately $90.0 million in net sales; approximately $11.0 million (net of income taxes of $5.8 million) in net income; and, approximately $0.07 in diluted earnings per share in the fourth quarter and fiscal year 2012. The Company has provided both 52 and 53 week comparisons for its fiscal fourth quarter and fiscal year 2013 results but believes the 52-week data reflects a more meaningful comparison for the periods. Comparisons other than free cash flow exclude management’s estimates of the impact of the extra week of fiscal year 2012.

Fiscal Year 2013

                   
($ in millions except earnings per share)

Fifty-two weeks Ended

Fifty-three weeks Ended

 

Fiscal 2012
as adjusted(1)

Sept 28, 2013 Sept 29, 2012 % Increase Fifty-two weeks % Increase
Net sales $ 4,358.1 $ 3,859.2 13 % $ 3,769.2 16 %
Operating income:
GAAP $ 765.2 $ 568.9 35 % N/A N/A
Non-GAAP $ 815.5 $ 621.6 31 % $ 604.8 35 %
Net income:
GAAP $ 483.2 $ 362.6 33 % N/A N/A
Non-GAAP $ 517.6 $ 381.6 36 % $ 370.6 40 %
Diluted income per share:
GAAP $ 3.16 $ 2.28 39 % N/A N/A
Non-GAAP $ 3.39 $ 2.40 41 % $ 2.33 45 %

(1)Management’s estimates of fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 52-week period, as adjusted.

Note: Complete GAAP to Non-GAAP reconciliation tables provided with this release.

Fourth Quarter 2013

                   

 

Thirteen weeks Ended Fourteen weeks Ended Q4 2012

($ in millions except earnings per share)

as adjusted(1)
Sept 28, 2013 Sept 29, 2012   % Increase Thirteen weeks % Increase
Net sales $ 1,047.2 $ 946.7 11 % $ 856.7 22 %
Operating income:
GAAP $ 177.3 $ 143.7 23 % N/A N/A
Non-GAAP $ 190.6 $ 157.1 21 % $ 140.3 36 %
Net income:
GAAP $ 127.0 $ 91.9 38 % N/A N/A
Non-GAAP $ 136.0 $ 101.0 35 % $ 90.0 51 %
Diluted income per share:
GAAP $ 0.83 $ 0.58 43 % N/A N/A
Non-GAAP $ 0.89 $ 0.64 39 % $ 0.57 56 %

(1)Management’s estimates of fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 13-week period, as adjusted.

Note: Complete GAAP to Non-GAAP reconciliation tables provided with this release.

Fiscal Year 2013 Financial Review

Net Revenue by Product

 

                                 
Fifty-two weeks ended     Fifty-three weeks ended

Fifty-two weeks, as
adjusted(1)

 
($ in millions) Sept 28, 2013     Sept 29, 2012

$ Increase
(Decrease)

% Increase
(Decrease)

  Sept 29, 2012

$ Increase
(Decrease)

% Increase
(Decrease)

Portion packs $ 3,187.3 $ 2,708.9 $ 478.4 18 % $ 2,639.7 $ 547.6 21 %
Brewers and accessories   827.6   759.8   67.8   9 %   748.2   79.4   11 %
Subtotal 4,014.9 3,468.7 546.2 16 % 3,387.9 627.0 19 %
Other products and royalties   343.2   390.5   (47.3 ) (12 )%   381.3   (38.1 ) (10 )%
Total net sales $ 4,358.1 $ 3,859.2 $ 498.9   13 % $ 3,769.2 $ 588.9   16 %

(1)Management's estimates of fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 52-week period, as adjusted.

  • Approximately 92% of consolidated fiscal year 2013 net sales were sales of Keurig® Single Cup brewers, portion packs, and Keurig®-related accessories, with the remainder of net sales consisting primarily of bagged coffee, fractional packs and our Canadian office coffee services business.

Portion Packs

  • The 21% increase in portion pack revenue over the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012) was driven by a 26 percentage point increase in unit volume offset by a 1 percentage point decrease due to net price realization and a 4 percentage point decrease due to portion pack product mix.

Brewers and Accessories

  • 10.6 million Keurig® system brewers were sold during fiscal year 2013.
    Fifty-two wks     Fifty-three wks     FY 2012
Ended Ended as adjusted (1) to
Sept 28, 2013 Sept 29, 2012 Fifty-two wks
GMCR-sold Keurig® Brewers 9.8 8.6 8.5
Licensed partner-sold Keurig® Brewers 0.8 0.6 0.6
Total 10.6 9.2 9.1

(1)Management’s estimates of fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 52-week period, as adjusted.

Other Products and Royalties

  • Revenue of other products and royalties declined 10% over the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012) primarily due to the continuing demand shift from traditional coffee package formats to portion packs.
  • In fiscal year 2013, gross margin improved 430 basis points to 37.2% from 32.9% in the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012). The following table quantifies the changes in gross margin period to period:
     

Change from
FY 2012 to
FY 2013

Favorable green coffee costs +290 bps
Lower labor and overhead manufacturing costs +100 bps
Net price realization -100 bps
Lower warranty expense +80 bps
Lower sales returns primarily related to Keurig® Single Cup brewers +60 bps
  • GAAP operating income improved to 17.6% of net sales in fiscal year 2013 compared to 14.7% in the prior year period.
  • Non-GAAP operating income improved to 18.7% of net sales in fiscal year 2013 compared to 16.0% in the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012).
  • The Company’s effective income tax rate was 34.7% for fiscal year 2013 as compared to 36.9% for the prior year.
  • Diluted weighted average shares outstanding for fiscal year 2013 decreased 3.9% to 152.8 million from 159.1 million in the prior year period in part as a result of the Company’s share repurchases under its previously announced share repurchase program.

Balance Sheet & Cash Flow Highlights

“Our strong fiscal year 2013 free cash flow of $603 million, which was 125% of GAAP net income, resulted from a healthy balance of net profit growth, lower inventory levels on the working capital side and lower capital investment,” said Frances G. Rathke, GMCR’s Chief Financial Officer.

($ in millions)     Sept 28, 2013     Sept 29, 2012     % Change
Cash and cash equivalents, including restricted cash $ 260.7 $ 71.2 266 %
Accounts receivables, net $ 468.0 $ 363.8 29 %
Inventories $ 676.1 $ 768.4 (12 )%
Raw materials & supplies $ 182.9 $ 229.9 (20 )%
Coffee $ 100.2 $ 148.9 (33 )%
Packaging & other raw materials $ 82.7 $ 81.0 2 %
Finished goods $ 493.2 $ 538.5 (8 )%
Brewers & accessories $ 323.2 $ 384.3 (16 )%
Portion packs $ 149.3 $ 120.9 23 %
Other $ 20.7 $ 33.3 (38 )%
Debt outstanding and capital lease and financing obligations $ 251.0 $ 531.5 (53 )%
Cash provided by operating activities (1) $ 836.0 $ 477.8 75 %
Free cash flow (1)(2) $ 603.2 $ 76.7 686 %

(1) Represents 52 weeks for fiscal 2013 and 53 weeks for fiscal 2012.

(2) Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows.

Share Repurchase and Dividend Declaration Summary

From the inception of its Board authorized share repurchase program in August of 2012 through today the Company has repurchased a total of 10.1 million shares at a total cost of $362 million and an average price of $35.82.

Separately today, the Company announced its Board of Directors has approved a new share repurchase authorization of up to $1 billion. The new share repurchase program will take effect upon completion of the Company’s current program, which has $138 million remaining of its previously authorized $500 million. The Company also announced the Board approved an indicated annual dividend of $1.00 per share, payable $0.25 per quarter and declared a quarterly cash dividend of $0.25 per share.

Fourth Quarter Fiscal Year 2013 Financial Review

Net Revenue By Product

 

                                 
Thirteen weeks ended   Fourteen weeks ended

Thirteen weeks, as
adjusted(1)

($ in millions) Sept 28, 2013  

Sept 29, 2012

$ Increase
(Decrease)

% Increase
(Decrease)

Sept 29, 2012

$ Increase
(Decrease)

% Increase
(Decrease)

Portion packs $ 777.9 $ 700.2 $ 77.7 11 % $ 631.0 $ 146.9 23 %
Brewers and accessories   190.4   150.1   40.3   27 %   138.5   51.9   37 %
Subtotal 968.3 850.3 118.0 14 % 769.5 198.8 26 %
Other products and royalties   78.9   96.4   (17.5 ) (18 )%   87.2   (8.3 ) (10 )%
Total net sales $ 1,047.2 $ 946.7 $ 100.5   11 % $ 856.7 $ 190.5   22 %

(1)Management's estimates of fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 13-week period, as adjusted.

  • As shown in the table above, approximately 92% of consolidated fourth quarter fiscal year 2013 net sales were sales of Keurig® Single Cup Brewers, portion packs, and Keurig®-related accessories, with the remainder of net sales consisting primarily of bagged coffee, fractional packs and our Canadian office coffee services business.

Portion Packs

  • The 23% increase in portion pack revenue over the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012) was driven by a 29 percentage point increase in unit volume offset by a 2 percentage point decrease due to net price realization and a 4 percentage point decrease due to portion pack product mix.

Brewers and Accessories

  • For the quarter, 2.6 million Keurig® system brewers were sold
    Thirteen wks   Fourteen wks     Q4 2012
Ended Ended as adjusted (1) to
Sept 28, 2013 Sept 29, 2012 Thirteen wks  
GMCR-sold Keurig® Brewers 2.5 1.8 1.7
Licensed partner-sold Keurig® Brewers 0.2 0.2 0.2  
Total 2.6 (2) 2.0 1.8 (2)

(1)Management’s estimates of the fiscal year 2012’s 53rd week's financial results are not included in the calculation of the 13-week period, as adjusted.

(2) Does not sum due to rounding

Other Products and Royalties

  • Revenue of other products and royalties declined 10% in the quarter over the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012) primarily due to the continuing demand shift from traditional coffee package formats to portion packs.
  • In the fourth quarter of fiscal year 2013, gross margin improved 240 basis points to 36.0% from 33.6% in the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012). The following table quantifies the changes in gross margin period to period:
   

Change from
Q4 2012 to
Q4 2013

Favorable green coffee costs +380 bps
Lower labor and overhead manufacturing costs +210 bps
Higher write-downs due to obsolescence expense of brewer inventories as part of product transition plans -210 bps
Net price realization -140 bps
Shift in sales mix between Keurig® Single Cup brewers and portion packs -120 bps
Lower warranty expense +70 bps
Lower sales returns primarily related to Keurig® Single Cup brewers +40 bps
Other Items +10 bps
  • GAAP operating income of 16.9% of net sales in the fourth quarter of fiscal year 2013 increased from 15.2% in the prior year period.
  • Non-GAAP operating income of 18.2% of net sales in the fourth quarter of fiscal year 2013 increased from 16.4% in the prior year period (excluding management’s estimated impact of the extra week of fiscal year 2012).
  • The Company’s effective income tax rate was 27.8% for the fourth quarter of fiscal year 2013 as compared to 34.6% for the prior year period.
  • Diluted weighted average shares outstanding as of the end of the fourth quarter of fiscal year 2013 decreased 3.0% to 153.3 million from 158.1 million in the prior year period in part as a result of the Company’s share repurchases under its previously announced share repurchase program.

Business Outlook and Other Forward-Looking Information

“Over the long term, the Company continues to expect double digit annual revenue growth and annual earnings growth in the mid-teens as we launch a new Keurig hot single-serve system and other anticipated disruptive product innovations,” said Kelley. “For fiscal year 2014, we expect net sales growth in the high single digits with some variability quarter-to-quarter as we anticipate rolling out new products to customers and managing the transition from prior generations of products.”

The Company updated its outlook for its fiscal year 2014 and expects:

  • Net sales growth in the high single digits over fiscal year 2013 with stronger revenue growth in the second half of the year as a number of currently unlicensed packs are transitioned to licensed partners.
  • An annual effective tax rate of 37.0%
  • Non-GAAP earnings per diluted share of $3.75 to $3.85 (excluding the amortization of identifiable intangibles related to the Company’s acquisitions; any acquisition-related transaction expenses; and legal and accounting expenses related to the SEC inquiry and the Company’s pending securities and stockholder derivative class action litigation).
  • Free cash flow in the range of $200 million to $300 million
  • Capital investment in the range of $400 million to $450 million primarily to fund new system introductions

The Company also provided its outlook for its first quarter of fiscal year 2014:

  • Net sales growth of low-to-mid single digits over the first quarter of fiscal year 2013 due to difficult brewer and portion pack sales comparisons; the impact of unlicensed packs; and, the currency headwind in Canada.
  • Non-GAAP earnings per diluted share in a range of $0.85 to $0.90, an increase of 12% to 18% over the prior year period (excluding the amortization of identifiable intangibles related to the Company’s acquisitions and, legal and accounting expenses related to the SEC inquiry and the Company’s pending securities and stockholder derivative class action litigation).

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude any gain from sale of the Filterfresh U.S.-based coffee services business; legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation; and non-cash acquisition-related items such as amortization of identifiable intangibles, each of which include adjustments to show the tax impact of excluding these items. These amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with 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” table that accompanies this document for a full reconciliation the Company’s GAAP to non-GAAP results.

Conference Call and Webcast

Green Mountain Coffee Roasters, Inc. will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, November 20, 2013. The call is accessible via live webcast from the events section of the Investor Relations portion of the Company’s website at http://investor.gmcr.com/events.cfm. The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, passcode 5918330 from 9:00 p.m. ET on November 20, 2013 through 9:00 p.m. ET on Monday, November 25, 2013.

About Green Mountain Coffee Roasters, Inc.

As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig® Single Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by investing in sustainably-grown coffee, and donating a portion of its pre-tax profits to social and environmental projects. For more information visit: www.gmcr.com. To purchase Keurig® and Green Mountain Coffee® products visit: www.Keurig.com or www.greenmountaincoffee.com.

GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.GMCR.com, 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.

Forward-Looking Statements

Certain information contained in this filing constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the success of introducing and producing new product offerings, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, and projection of payment of dividends. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those risks and uncertainties described in our filings with the SEC.

Actual results could differ materially from those projected in the forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GMCR-C

       
GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except per share data)
 
September 28,

2013

September 29,

2012

Assets
Current assets:
Cash and cash equivalents $ 260,092 $ 58,289
Restricted cash and cash equivalents 560 12,884
Receivables, less uncollectible accounts and return allowances of $33,640 and $34,517 at September 28, 2013 and September 29, 2012, respectively 467,976 363,771
Inventories 676,089 768,437
Income taxes receivable 11,747 32,943
Other current assets 46,891 35,019
Deferred income taxes, net   58,137     51,613
Total current assets 1,521,492 1,322,956
 
Fixed assets, net 985,563 944,296
Intangibles, net 435,216 498,352
Goodwill 788,184 808,076
Deferred income taxes, net 149
Other long-term assets   30,944     42,109
 
Total assets $ 3,761,548   $ 3,615,789
 
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt 12,929 6,691
Current portion of capital lease and financing obligations 1,760 3,057
Accounts payable 312,170 279,577
Accrued expenses 242,427 171,450
Income tax payable 29,322
Deferred income taxes, net 233 245
Other current liabilities   27,544     29,645
Total current liabilities 597,063 519,987
 
Long-term debt, less current portion 160,221 466,984
Capital lease and financing obligations, less current portion 76,061 54,794
Deferred income taxes, net 252,867 270,348
Other long-term liabilities 28,721 32,544
 
Commitments and contingencies
 
Redeemable noncontrolling interests 11,045 9,904
 
Stockholders' equity:
Preferred stock, $0.10 par value: Authorized - 1,000,000 shares; No shares issued or outstanding
Common stock, $0.10 par value: Authorized - 500,000,000 shares; Issued and outstanding - 150,265,809 and 152,680,855 shares at September 28, 2013 and September 29, 2012, respectively 15,026 15,268
Additional paid-in capital 1,387,322 1,464,560
Retained earnings 1,252,407 771,200
Accumulated other comprehensive (loss) income   (19,185 )   10,200
Total stockholders' equity   2,635,570     2,261,228
 
Total liabilities and stockholders’ equity $ 3,761,548   $ 3,615,789
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except per share data)
               

Thirteen
weeks ended

Fourteen
weeks ended

Fifty-two
weeks ended

Fifty-three
weeks ended

Sept 28, 2013 Sept 29, 2012 Sept 28, 2013 Sept 29, 2012
Net sales $ 1,047,177 $ 946,736 $ 4,358,100 $ 3,859,198
Cost of sales   669,718     630,290     2,738,714     2,589,799  
Gross profit 377,459 316,446 1,619,386 1,269,399
 
 
Selling and operating expenses 127,062 111,048 560,430 481,493
General and administrative expenses   73,059     61,661     293,729     219,010  
Operating income 177,338 143,737 765,227 568,896
 
Other income, net 308 230 960 1,819
(Loss) gain on financial instruments, net (3,481 ) (4,731 ) 5,513 (4,945 )
Gain (loss) on foreign currency, net 6,536 5,812 (12,649 ) 7,043
Gain on sale of subsidiary 26,311
Interest expense   (4,696 )   (4,321 )   (18,177 )   (22,983 )
Income before income taxes 176,005 140,727 740,874 576,141
 
Income tax expense   (48,864 )   (48,692 )   (256,771 )   (212,641 )
Net income $ 127,141 $ 92,035 $ 484,103 $ 363,500
 
Net income attributable to noncontrolling interests   185     148     871     872  
 
Net income attributable to GMCR $ 126,956   $ 91,887   $ 483,232   $ 362,628  
 
Basic income per share:
Basic weighted average shares outstanding 150,633,106 154,557,765 149,638,636 154,933,948
Net income per common share - basic $ 0.84 $ 0.59 $ 3.23 $ 2.34
 
Diluted income per share:
Diluted weighted average shares outstanding 153,280,550 158,094,806 152,801,493 159,075,646
Net income per common share - diluted $ 0.83 $ 0.58 $ 3.16 $ 2.28
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
Unaudited Consolidated Statements of Cash Flows
(Dollars in thousands)
       
Fifty-two Fifty-three
weeks ended weeks ended
September 28, 2013 September 29, 2012
Cash flows from operating activities:
Net income $ 484,103 $ 363,500
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets 183,814 135,656
Amortization of intangibles 45,379 45,991
Amortization deferred financing fees 7,125 6,050
Unrealized loss (gain) on foreign currency, net 9,159 (6,557 )
(Gain) loss on disposal of fixed assets (85 ) 2,517
Gain on sale of subsidiary, excluding transaction costs (28,914 )
Provision for doubtful accounts 689 3,197
Provision for sales returns 79,747 107,436
(Gain) loss on derivatives, net (4,507 ) 6,310
 
Excess tax benefits from equity-based compensation plans (54,699 ) (12,070 )
Deferred income taxes (17,701 ) 60,856
Deferred compensation and stock compensation 26,315 18,079
Other 844 (672 )
Changes in assets and liabilities:
Receivables (187,221 ) (159,317 )
Inventories 87,677 (92,862 )
Income tax payable/receivable, net 46,290 16,457
Other current assets (12,668 ) (6,900 )
Other long-term assets, net 3,915 (469 )
Accounts payable and accrued expenses 133,532 17,125
Other current liabilities 3,100 (2,718 )
Other long-term liabilities   1,161     5,090  
Net cash provided by operating activities 835,969 477,785
 
Cash flows from investing activities:
Change in restricted cash 3,005 (2,875 )
Proceeds from the sale of subsidiary, net of cash acquired 137,733
Capital expenditures for fixed assets (232,780 ) (401,121 )
Other investing activities   4,208     618  
Net cash used in investing activities (225,567 ) (265,645 )
 
Cash flows from financing activities:
Net change in revolving line of credit (226,210 ) (108,727 )
Proceeds from issuance of common stock under compensation plans 29,777 12,092
Repurchase of common stock (188,278 ) (76,470 )
Excess tax benefits from equity-based compensation plans 54,699 12,070
Payments on capital lease and financing obligations (8,288 ) (7,558 )
Repayment of long-term debt (71,620 ) (7,814 )
Other financing activities   (1,406 )   3,283  
Net cash used in financing activities (411,326 ) (173,124 )
 
Change in cash balances included in current assets held for sale 5,160
 
Effect of exchange rate changes on cash and cash equivalents 2,727 1,124
 
Net increase in cash and cash equivalents 201,803 45,300
Cash and cash equivalents at beginning of period   58,289     12,989  
Cash and cash equivalents at end of period $ 260,092   $ 58,289  
 
Supplemental disclosures of cash flow information:
Cash paid for interest $ 9,129 $ 20,783
Cash paid for income taxes $ 223,580 $ 136,407
Fixed asset purchases included in accounts payable and not disbursed at the end of each year $ 30,451 $ 56,127
Noncash investing and financing activities:
Fixed assets acquired under capital lease and financing obligations $ 27,791 $ 66,531
Settlement of acquisition-related liabilities through release of restricted cash $ 9,227 $ 18,788
 

GREEN MOUNTAIN COFFEE ROASTERS, INC.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands, except per share data)
       

Thirteen weeks
ended

Fourteen weeks
ended

September 28, 2013 September 29, 2012
Operating income $ 177,338 $ 143,737
Expenses related to SEC inquiry (1) 2,111 1,858
Amortization of identifiable intangibles (2)   11,145   11,495
Non-GAAP operating income $ 190,594 $ 157,090
 

Thirteen weeks
ended

Fourteen weeks
ended

September 28, 2013 September 29, 2012
Net income attributable to GMCR $ 126,956 $ 91,887
After tax:
Expenses related to SEC inquiry (1) 1,435 1,184
Amortization of identifiable intangibles (2)   7,605   7,897
Non-GAAP net income attributable to GMCR $ 135,996 $ 100,968
 

Thirteen weeks
ended

Fourteen weeks
ended

September 28, 2013 September 29, 2012
Diluted income per share $ 0.83 $ 0.58
After tax:
Expenses related to SEC inquiry (1) 0.01 0.01
Amortization of identifiable intangibles (2)   0.05   0.05
Non-GAAP net income per share $ 0.89 $ 0.64

(1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense.

(2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.

GREEN MOUNTAIN COFFEE ROASTERS, INC.

GAAP to Non-GAAP Reconciliation

(Dollars in thousands, except per share data)

     

Fifty-two weeks
ended

Fifty-three weeks
ended

September 28, 2013 September 29, 2012
Operating income $ 765,227 $ 568,896
Expenses related to SEC inquiry (1) 4,910 6,669
Amortization of identifiable intangibles (2)   45,379   45,991  
Non-GAAP operating income $ 815,516 $ 621,556  
 
 
 

Fifty-two weeks
ended

Fifty-three weeks
ended

September 28, 2013 September 29, 2012
Net income attributable to GMCR $ 483,232 $ 362,628
After tax:
Expenses related to SEC inquiry (1) 3,208 4,073
Amortization of identifiable intangibles (2) 31,128 31,555
Gain on sale of subsidiary (3)     (16,685 )
Non-GAAP net income attributable to GMCR $ 517,568 $ 381,571  
 
 
 

Fifty-two weeks
ended

Fifty-three weeks
ended

September 28, 2013 September 29, 2012
Diluted income per share $ 3.16 $ 2.28
After tax:
Expenses related to SEC inquiry (1) 0.02 0.03
Amortization of identifiable intangibles (2) 0.20 0.20
Gain on sale of subsidiary (3)     (0.10 )
Non-GAAP net income per share $ 3.39

*

 

$ 2.40   *

* Does not sum due to rounding.

(1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense.

(2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense.

(3) Represents the gain on the sale of Filterfresh, net of income taxes of $9.6 million.

Contacts

Green Mountain Coffee Roasters, Inc.
Suzanne DuLong, 802-488-2600
Investor.Services@GMCR.com
or
Katie Gilroy, 781-205-7345
Investor.Services@GMCR.com

Company Information Center

Green Mountain Coffee Roasters, Inc. RSS feed for Green Mountain Coffee Roasters, Inc.

NASDAQ:GMCR

ISIN: US3931221069

  • Headquarters: Waterbury, Vermont
  • Website: www.KeurigGreenMountain.com
  • CEO: Brian Kelley
  • Employees: 6000
  • Organization: Private
  • Revenues: $4.5 billion (2015)