Diedrich Coffee (DDRX, Financial) filed Annual Report for the period ended 2009-06-24.
Diedrich Coffee is a specialty coffee retailer that sells specialtybrewed coffee and espresso-based beverages such as cappuccinos lattes mochas and espressos and various blended drinks through its retail locations. To complement beverage sales they also sell light food items specialty whole bean coffee and accessories at retail locations. Brands include Diedrich Coffee Gloria Jean's Coffee People and Coffee Plantation. Diedrich Coffee has a market cap of $132.5 million; its shares were traded at around $24.23 with and P/S ratio of 2.9.
On February 11, 2005, we sold Gloria Jeans international franchise operations to Jireh International Pty. Ltd., formerly the Gloria Jeans master franchisee for Australia, and certain of its affiliates (collectively, Jireh) for $16,000,000 in cash and an additional $7,020,000 payable over the next six years under license, roasting and consulting agreements. After all payments have been made to us under the license, roasting and consulting agreements, all remaining Gloria Jeans trademarks, including those in the U.S., will be transferred to Jireh. Concurrent with such future transfer, Diedrich will enter into a perpetual, royalty-free trademark assignment agreement with Jireh under which we will continue to have exclusive rights to continue our wholesale operations for the manufacturing and distribution of the Gloria Jeans branded K-Cups® worldwide under the Gloria Jeans Coffees brand in these same markets.
We had net losses from continuing operations of $179,000 for the fiscal year ended June 24, 2009 and $11,385,000 for the fiscal year ended June 25, 2008. We could continue to suffer losses in the future, which may negatively affect our stock price.
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Highlight of Business Operations:
As previously announced, on March 27, 2009, we and Praise International North America, Inc., a Delaware corporation (Praise), entered into an agreement (the Agreement) pursuant to which we agreed to sell all of the issued and outstanding shares (the Shares) of common stock, par value $0.01 per share, of Praise U.S. Holdings, Inc. (formerly known as Coffee People Worldwide, Inc.), a Delaware corporation and wholly-owned subsidiary of Diedrich Coffee Inc. that owned assets used in the Companys U.S. franchise operations (such purchase, the Transaction). On June 12, 2009, the Company completed the Transaction, and pursuant to the Agreement Praise purchased the Shares for $3,100,000, of which $1,500,000 was paid in cash and the remainder paid in the form of a twelve-month promissory note with an aggregate principal amount of $1,600,000 and an interest rate equal to 7.0% per annum, issued by Praise to the Company. In addition, we entered into several ancillary agreements, including a roasting agreement whereby we agreed to provide coffee roasting services to Praise for a period of five years and a trademark license agreement whereby we granted to Praise a license to use the Companys Gloria Jeans Gourmet Coffees Corp. U.S. trademarks in the United States of America (including the Commonwealth of Puerto Rico) until these trademarks are transferred to Gloria Jeans Coffees International Pty. Ltd.On February 11, 2005, we sold Gloria Jeans international franchise operations to Jireh International Pty. Ltd., formerly the Gloria Jeans master franchisee for Australia, and certain of its affiliates (collectively, Jireh) for $16,000,000 in cash and an additional $7,020,000 payable over the next six years under license, roasting and consulting agreements. After all payments have been made to us under the license, roasting and consulting agreements, all remaining Gloria Jeans trademarks, including those in the U.S., will be transferred to Jireh. Concurrent with such future transfer, Diedrich will enter into a perpetual, royalty-free trademark assignment agreement with Jireh under which we will continue to have exclusive rights to continue our wholesale operations for the manufacturing and distribution of the Gloria Jeans branded K-Cups® worldwide under the Gloria Jeans Coffees brand in these same markets.
We had net losses from continuing operations of $179,000 for the fiscal year ended June 24, 2009 and $11,385,000 for the fiscal year ended June 25, 2008. We could continue to suffer losses in the future, which may negatively affect our stock price.
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