UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: Commission File Number:
April 1, 1995 0-13544
BEN & JERRY'S HOMEMADE, INC.
(Exact name of registrant as specified in its charter)
VERMONT 03-0267543
(State of incorporation) (I.R.S. Employer Identification No.)
Duxtown Commercial Plaza
Junction of Rts 2 & 100
North Moretown, Vermont 05660
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:
(802) 244-6957
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the
classes of common stock outstanding as of the latest practicable
date. 6,241,516 shares of Class A Common Stock and 926,337 shares
of Class B Common Stock outstanding as of May 5, 1995.
<PAGE>
INDEX
PART I: FINANCIAL INFORMATION
Condensed Balance Sheets
April 1, 1995 and December 31, 1994
Condensed Statement of Income
Thirteen weeks ended April 1, 1995
and March 26, 1994
Condensed Statement of Cash Flows
Thirteen weeks ended April 1, 1995
and March 26, 1994
Notes to Condensed Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II: OTHER INFORMATION
Item 6-Exhibits and Reports on Form 8-K
SIGNATURES
Exhibit 1
<PAGE>
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial statements and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. For further
information, refer to the financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1994.
2. INVENTORIES
Inventories consisted of the following:
<TABLE>
<CAPTION>
April 1, December 31,
1995 1994
<S> <C> <C>
Ice cream, frozen yogurt and ingredients $13,527,137 $12,394,915
Paper goods 587,958 486,216
Food, beverage and gift items 366,504 581,441
Total $14,481,599 $13,462,572
</TABLE>
3. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the
following:
<TABLE>
<CAPTION>
April 1, December 31,
1995 1994
<S> <C> <C>
Trade accounts payable $ 8,155,837 $ 5,075,238
Accrued expenses 3,196,298 2,626,690
Accrued construction costs 2,905,000 2,975,000
Accrued payroll and related costs 1,630,446 1,606,767
Accrued promotional costs 1,740,713 1,579,911
Other 41,232 51,336
Total $17,669,526 $13,914,972
</TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The following table shows certain items as a percentage of net
sales which are included in the Company's Condensed Statement of
Income and the percentage increase (decrease) of such items as
compared to the indicated prior period.
<TABLE>
<CAPTION>
Percentage of Net Sales Period-to-Period
Thirteen Weeks Increase (Decrease)
Ended Thirteen Weeks
April March 1995 Compared
1, 1995 26, 1994 To 1994
<S> <C> <C> <C>
Net Sales 100.0% 100.0% 6.3%
Cost of Sales 71.6% 75.2% 1.2%
Gross Profit 28.4% 24.8% 21.5%
Selling, general and
administrative expenses 24.4% 20.4% 26.7%
Operating income 4.0% 4.4% (2.6%)
Other income(expense) .5% 0.2% 150.9%
Income before income taxes 4.5% 4.6% 4.5%
Income taxes 1.8% 1.8% 7.8%
Net Income 2.7% 2.8% 2.4%
</TABLE>
Thirteen Weeks Ended April 1, 1995 and March 26, 1994
Net Sales
Net sales of $34.2 million for the thirteen weeks ended April
1, 1995 were up 6.3% from the same period in 1994. This increase
resulted from a combination of both volume and price increases of
the Company's pint and novelties sales during this quarter. Total
pint sales accounted for approximately 4% of the increase in net
sales for the period. Pint volume increased 3% primarily due to a
full quarter of sales of the Company's new "Smooth, No Chunks" line
which was introduced nationally during the months of March through
May 1994.In addition a 3.7% price increase on packaged pints
effective in March 1995 contributed 1% to the increase in net sales
in the first thirteen weeks of 1995. The Company's reformulated
repackaged peace pop novelty sales accounted for the remaining 2.3%
increase in net sales.
Pint sales represented 90% of total net sales in the first
quarter of 1995 as compared to 92% for the same period in 1994.
Net sales of 2.5 gallon bulk containers represented approximately 5%
of total net sales in the first quarters of 1995 and 1994. Net
sales of novelty products accounted for approximately 4% of total
net sales during this period in 1995 compared to 2% in 1994. Net
sales from the Company's retail stores represented 1% of total net
sales in the first quarters of 1995 and 1994.
Cost of Sales
Cost of sales in the first quarter of 1995 increased
approximately $.3 million or 1% over the same period in 1994 and
overall gross profit as a percentage of net sales increased from
24.8% in 1994 to 28.4% in 1995. The higher gross profit as a
percentage of net sales reflects improvements in manufacturing
efficiencies, production planning and inventory management as well
as less product being manufactured for the Company by Edy's Grand
Ice Cream, a subsidiary of Dreyer's Grand Ice Cream, at its plant in
Fort Wayne, Indiana. In the first quarter of 1995 approximately 27%
of the packaged pints manufactured were manufactured at the Edy's
plant as compared to 42% in the first quarter of 1994.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 26.7%
from $6.6 million in the first quarter of 1994 to $8.3 million in
1995. Selling, general and administrative expenses as a percentage
of net sales increased from 20% in 1994 to 24% in 1995. This
increase reflects the Company's strengthening of its organizational
infrastructure over the past year plus the timing of certain
promotional and marketing expenditures in the first quarter that had
been spread more evenly over the entire year in 1994.
Other Income (Expense)
Other income (expense)-net increased during the first
quarter of 1995 as compared to 1994. Other income includes
interest and dividend income which increased from $220,000 in 1994
to $360,000 in 1995. This increase is a result of higher interest
rates and increased investment balances due to the receipt of the
second installment of $15,000,000 from the issuance of $30,000,000
Series A and B Senior Notes in March 1994, pending their use in the
Company's business. Net interest expense decreased due to the
capitalization of interest as part of the cost of the new plant
currently under construction in St. Albans, Vermont.
Income Taxes
Income taxes increased approximately $45,000 reflecting the
increase in income as well as an effective rate of 40% in 1995
compared to an effective rate of 39% in the prior year.
Net Income
As a result of the foregoing, net income for the first
quarter of 1995 was slightly above that for the first quarter of
1994. Net income decreased to 2.7% of net sales in the first
quarter of 1995 from 2.8% in 1994. Net income per share was $.13
per share for the first quarter of 1995 and 1994.
Liquidity and Capital Resources
The Company's working capital at April 1, 1995 was
approximately $39.3 million as compared to $37.5 million at December
31, 1994. This $1.8 million increase was due primarily to increases
in accounts receivable, inventories and increases in cash and cash
equivalents partially offset by increases in accounts payable.
Net cash provided by operations in the first quarter of 1995
was approximately $2.8 million. In addition, approximately $3.4
million was used for net additions to property, plant and equipment,
primarily for the new plant currently being constructed in St.
Albans, Vermont. Funds were provided by operations, cash and
investments existing at December 31, 1994. All of this resulted in
a increase to cash and cash equivalents of $2 million since
December 31, 1994 and a decrease in investments of $2.7 million.
Inventories have increased since December 1994 from $13.5
million to $14.5 million at April 1, 1995.
During the second quarter of 1989, the Company entered into a
manufacturing and warehouse agreement with Edy's Grand Ice Cream, a
subsidiary of Dreyer's Grand Ice Cream, Inc., to manufacture product
at Edy's plant in Fort Wayne, Indiana in accordance with
specifications and quality control provided by the Company and using
dairy products from Vermont. In September 1994 the Company amended
this agreement to extend the period for an additional two years
expiring September 1995. The agreement specifies certain minimum
quantities which the Company is obligated to purchase, which
represented approximately 1.1 million gallons or $8 million in
future commitments at April 1, 1995. The agreement also specifies
certain maximum quantities which the Company may require Edy's to
manufacture. This agreement assists the Company in meeting its
current and near-term expected demand. Because per unit
manufacturing costs are higher under this agreement than at the
Company's plants, the Company expects this agreement to continue to
have an adverse impact on its gross profit as a percentage of net
sales throughout the term of this agreement.
In October 1992, the Company began construction of the new
plant in St. Albans, Vermont. The cost of building and equipping
the new plant is currently estimated to be approximately $40
million, of which $34.8 million has been spent to date ($2.7 million
in the first quarter of 1995). Construction is currently scheduled
to be completed in the latter part of 1995.
In addition to the New Plant, the Company anticipates 1995
capital expenditures of approximately $5 million of which $.7
million was spent in the first quarter of 1995. These projects
include equipment upgrades in the Waterbury and Springfield plants.
Management believes that internally generated funds, cash
currently on hand, investments held in marketable securities
(pending their use in the business), and equipment lease financing
will be adequate to meet anticipated operating and capital
requirements.
The Company also has existing $20,000,000 aggregate lines of
credit with The First National Bank of Boston and Key Bank (which
recently acquired the Bank of Vermont). These are unsecured
agreements providing for borrowings from time to time, expiring at
September 29, 1995, with interest at either banks' Base Rate or the
Eurodollar rate plus 1.25%. As of May 12, 1995, there have been no
borrowings under these line of credit agreements.
<PAGE>
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - Exhibit (1) Statement Re: Computation of
Per Share Earnings
(b) No reports on Form 8-K were filed during the quarter
ended April 1, 1995, for
which this report is filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this Report to be duly
signed on its behalf by the undersigned thereunto duly authorized,
being also its principal financial officer.
BEN & JERRY'S HOMEMADE, INC.
BY: Frances Rathke
Frances Rathke, Treasurer
and Principal Financial Officer
DATE: May 12, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
See accompanying notes.
This schedule contains unaudited summary financial information extracted from
the first quarter 10-Q and is qualified in its entirety by reference to such
10-Q.
</LEGEND>
<CIK> 0000768384
<NAME> BEN & JERRYS HOMEMADE INC
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> APR-01-1995
<CASH> 22,758,100
<SECURITIES> 0
<RECEIVABLES> 14,621,438
<ALLOWANCES> 0
<INVENTORY> 14,481,599
<CURRENT-ASSETS> 57,489,569
<PP&E> 60,038,056
<DEPRECIATION> 0
<TOTAL-ASSETS> 125,149,993
<CURRENT-LIABILITIES> 18,193,884
<BONDS> 0
<COMMON> 239,207
0
900
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 125,149,993
<SALES> 34,204,869
<TOTAL-REVENUES> 0
<CGS> 24,502,817
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 248,592
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (336,211)
<INCOME-PRETAX> 1,525,445
<INCOME-TAX> 613,995
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 911,450
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0
</TABLE>
Exhibit (1) - Statement Re: Computation of Per Share Earnings
BEN & JERRY'S HOMEMADE, INC.
COMPUTATION OF NET INCOME PER COMMON SHARE
Thirteen weeks ended
4/1/95 3/26/94
Primary:
Average shares outstanding 7,164,454 7,144,629
Net effect of dilutive stock options -
based on the treasury stock
method using average
market price 13,396 -
Totals 7,177,850 7,144,629
Net Income $911,450 $901,735
Per share amount $0.13 $0.13
Fully diluted:
Average shares outstanding 7,164,454 7,144,629
Net effect of dilutive stock options -
based on the treasury stock
method using quarter-end
market price which is greater
than average market price 17,154 -
Totals 7,181,608 7,144,629
Net Income $911,450 $901,735
Per share amount $0.13 $0.13
