Caribou Coffee Company Inc. (CBOU, Financial) filed Quarterly Report for the period ended 2009-06-28.
Caribou Coffee is the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses. It offers its customers high-quality gourmet coffee and espresso-based beverages as well as specialty teas baked goods whole bean coffee branded merchandise and related products. In addition it sells products to grocery stores and mass merchandisers office coffee providers airlines hotels sports and entertainment venues college campuses and other commercial customers. It also focuses on creating a unique experience for customers through a combination of high-quality products a comfortable and welcoming coffeehouse environment and customer service. Caribou Coffee Company Inc. has a market cap of $135.8 million; its shares were traded at around $7.01 with and P/S ratio of 0.6.
Depreciation and amortization. Depreciation and amortization decreased $1.1 million, or 23.1%, to $3.6 million in the second thirteen weeks of 2009, from $4.6 million in the second thirteen weeks of 2008. As a percentage of total net sales, depreciation and amortization was 5.7% in the second thirteen weeks of 2009, compared to 7.4% in the second thirteen weeks of 2008.This decrease is due to the impairment of company-owned coffeehouses during the preceding twelve months and the fewer number of company-owned coffeehouses in operation at the end of the second thirteen weeks ended June 28, 2009 as compared to the prior year. Depreciation and amortization includes $0.2 million in accelerated depreciation associated with coffeehouse impairments in the second thirteen weeks of 2008.
Coffeehouse sales decreased $2.0 million, or 3.4%, to $55.3 million in the second thirteen weeks of 2009 from $57.3 million in the second thirteen weeks of 2008. This decrease is attributable to 62 fewer operating coffeehouse weeks due to store closings and a 3.3% decrease in comparable coffeehouse net sales in the second thirteen weeks of 2009 as compared to the same period in 2008.
Cost of sales and related occupancy costs. Cost of sales and related occupancy costs decreased $1.0 million, or 4.1%, to $22.5 million in the second thirteen weeks of 2009, from $23.4 million for the second thirteen weeks of 2008. Cost of sales and related occupancy costs as a percentage of coffeehouse net sales decreased slightly to 40.6% for the second thirteen weeks of 2009 from 40.9% for the second thirteen weeks of 2008. The decrease was primarily due to lower coffeehouse sales in 2009 and the closing of underperforming coffeehouses in 2008.
Depreciation and amortization. Depreciation and amortization decreased $1.1 million, or 23.3%, to $3.6 million for the second thirteen weeks of 2009, from $4.6 million for the second thirteen weeks of 2008. This decrease is due to the impairment of company-owned coffeehouses during the preceding twelve months and the fewer number of company-owned coffeehouses in operation at the end of the second thirteen weeks ended June 28, 2009 as compared to the prior year. Depreciation and amortization includes $0.2 million in accelerated depreciation associated with coffeehouse impairments in the second thirteen weeks of 2008.
Closing expense and disposal of assets. Closing expense and disposal of assets decreased $1.2 million to less than $0.1 million for the second thirteen weeks of 2009 from $1.2 million for the second thirteen weeks of 2008. The decrease in closing expense and disposal of assets is primarily attributable to asset write-offs and lease termination costs associated with the closing of 6 underperforming company-owned coffeehouses in the second thirteen weeks of 2008. There were no company-owned coffeehouse closures in the second thirteen weeks of fiscal 2009. We will continue to actively manage our portfolio of company-owned coffeehouses. Expenses associated with the closings are variable from coffeehouse to coffeehouse and are dependent upon the amount of time left on the lease and the remaining book value of assets associated with each coffeehouse.
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Caribou Coffee is the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses. It offers its customers high-quality gourmet coffee and espresso-based beverages as well as specialty teas baked goods whole bean coffee branded merchandise and related products. In addition it sells products to grocery stores and mass merchandisers office coffee providers airlines hotels sports and entertainment venues college campuses and other commercial customers. It also focuses on creating a unique experience for customers through a combination of high-quality products a comfortable and welcoming coffeehouse environment and customer service. Caribou Coffee Company Inc. has a market cap of $135.8 million; its shares were traded at around $7.01 with and P/S ratio of 0.6.
Highlight of Business Operations:
Total net sales decreased $0.2 million, or 0.4%, to $63.0 million in the second thirteen weeks of 2009 from $63.2 million in the second thirteen weeks of 2008. This decrease was attributable to a 3.3% decrease of comparable coffeehouse sales and 62 fewer operating coffeehouse weeks due to coffeehouse closures in 2008 partially offset by commercial and franchise segment sales growth. Coffeehouse net sales decreased $2.0 million, or 3.4%, to $55.3 million in the second thirteen weeks of 2009 from $57.3 million in the second thirteen weeks of 2008. Commercial and franchise sales increased by $1.7 million, or 29.5%, to $7.7 million for the second thirteen weeks of 2009 from $5.9 million for the second thirteen weeks of 2008. This increase was largely due to sales to existing and newDepreciation and amortization. Depreciation and amortization decreased $1.1 million, or 23.1%, to $3.6 million in the second thirteen weeks of 2009, from $4.6 million in the second thirteen weeks of 2008. As a percentage of total net sales, depreciation and amortization was 5.7% in the second thirteen weeks of 2009, compared to 7.4% in the second thirteen weeks of 2008.This decrease is due to the impairment of company-owned coffeehouses during the preceding twelve months and the fewer number of company-owned coffeehouses in operation at the end of the second thirteen weeks ended June 28, 2009 as compared to the prior year. Depreciation and amortization includes $0.2 million in accelerated depreciation associated with coffeehouse impairments in the second thirteen weeks of 2008.
Coffeehouse sales decreased $2.0 million, or 3.4%, to $55.3 million in the second thirteen weeks of 2009 from $57.3 million in the second thirteen weeks of 2008. This decrease is attributable to 62 fewer operating coffeehouse weeks due to store closings and a 3.3% decrease in comparable coffeehouse net sales in the second thirteen weeks of 2009 as compared to the same period in 2008.
Cost of sales and related occupancy costs. Cost of sales and related occupancy costs decreased $1.0 million, or 4.1%, to $22.5 million in the second thirteen weeks of 2009, from $23.4 million for the second thirteen weeks of 2008. Cost of sales and related occupancy costs as a percentage of coffeehouse net sales decreased slightly to 40.6% for the second thirteen weeks of 2009 from 40.9% for the second thirteen weeks of 2008. The decrease was primarily due to lower coffeehouse sales in 2009 and the closing of underperforming coffeehouses in 2008.
Depreciation and amortization. Depreciation and amortization decreased $1.1 million, or 23.3%, to $3.6 million for the second thirteen weeks of 2009, from $4.6 million for the second thirteen weeks of 2008. This decrease is due to the impairment of company-owned coffeehouses during the preceding twelve months and the fewer number of company-owned coffeehouses in operation at the end of the second thirteen weeks ended June 28, 2009 as compared to the prior year. Depreciation and amortization includes $0.2 million in accelerated depreciation associated with coffeehouse impairments in the second thirteen weeks of 2008.
Closing expense and disposal of assets. Closing expense and disposal of assets decreased $1.2 million to less than $0.1 million for the second thirteen weeks of 2009 from $1.2 million for the second thirteen weeks of 2008. The decrease in closing expense and disposal of assets is primarily attributable to asset write-offs and lease termination costs associated with the closing of 6 underperforming company-owned coffeehouses in the second thirteen weeks of 2008. There were no company-owned coffeehouse closures in the second thirteen weeks of fiscal 2009. We will continue to actively manage our portfolio of company-owned coffeehouses. Expenses associated with the closings are variable from coffeehouse to coffeehouse and are dependent upon the amount of time left on the lease and the remaining book value of assets associated with each coffeehouse.
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