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:
June 27, 1998 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.)
30 Community Drive
South Burlington, Vermont 05403-6828
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:
(802) 651-9600
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. 6,280,426 shares of
Class A Common Stock and 856,557 shares of Class B Common Stock outstanding as
of August 5, 1998.
<PAGE>
INDEX
PART I: FINANCIAL INFORMATION PAGE NO.
Condensed Consolidated Balance Sheets
June 27, 1998 and December 27, 1997 1-2
Condensed Consolidated Statements of Income
Thirteen and twenty-six weeks ended
June 27, 1998 and June 28, 1997 3
Condensed Consolidated Statements of Cash Flows
Twenty-six weeks ended June 27, 1998
and June 28, 1997 4
Notes to Condensed Consolidated Financial Statements 5-6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-11
PART II: OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of
Security Holders 12
Item 5 - Other Information 13
Item 6 - Exhibit and Reports on Form 8-K 14
SIGNATURES 15
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All numbers in tables in thousands except per share data)
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated 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. Operating Results for the three and six month periods ended June
27, 1998 are not necessarily indicative of the results that may be expected for
the year ending December 26, 1998. 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 27, 1997. Certain prior period
amounts have been reclassified for comparative purposes.
2. INVENTORIES
June 27, December 27,
1998 1997
---- ----
Ice cream, frozen yogurt, sorbet and ingredients $15,797 $10,294
Paper goods 524 536
Food, beverage and gift items 301 292
--- ---
Total $16,622 $11,122
======= =======
3. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
June 27, December 27,
1998 1997
---- ----
Trade accounts payable $ 6,414 $ 3,832
Accrued expenses 11,724 10,313
Accrued payroll and related costs 2,616 2,076
Accrued promotional costs 8,893 3,581
Accrued marketing costs 3,027 2,230
Accrued insurance expense 1,542 1,234
Income taxes payable 2,096
----- -----
$36,312 $23,266
======= =======
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
Form 10-Q for quarter ended June 27, 1998
4. COMPREHENSIVE INCOME
As of December 28, 1997 the Company adopted Statement No. 130, Reporting
Comprehensive Income (FAS 130). FAS 130 establishes new rules for the reporting
and display of comprehensive income and its components; however, the adoption of
this statement had no impact on the Company's net income or shareholders'
equity. Statement 130 requires unrealized gains or losses on the Company's
available-for-sale securities and foreign currency translation adjustments,
which prior to adoption were reported separately in shareholders' equity, to be
included in other comprehensive income.
Total comprehensive income for the thirteen weeks ended June 27, 1998 amounted
to $2,128,000 compared to $1,739,000 for the same period in 1997. Total
comprehensive income for the twenty-six weeks ended June 27, 1998 amounted to
$2,511,000 compared to $681,000 for the same period in 1997.
5. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued Statement No. 131,
Disclosure about Segments of an Enterprise and Related Information (FAS 131).
FAS 131 establishes standards for public companies to report information about
operating segments in financial statements, and supercedes FAS 14, Financial
Reporting for Segments of a Business Enterprise, but retains the requirements to
report information about major customers. FAS 131 is effective in fiscal 1998.
The Company does not believe the adoption of this statement will have a material
impact on the Company's financial statements.
In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities (FAS 133). FAS 133
establishes standards for public companies regarding the recognition and
measurement of derivatives and hedging activities. The statement is effective
for years beginning after June 15, 1999. The Company does not believe the
adoption of this statement will have a material impact on the Company's
financial statements based on the nature and extent of the Company's use of
derivative instruments at the present time.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth certain items as a percentage of net sales which
are included in the Company's Condensed Consolidated Statements of Income and
the percentage increase (decrease) of such items as compared to the prior
period:
<TABLE>
<CAPTION>
Percentage of Net Sales
Thirteen Weeks Twenty-Six Weeks Percentage Increase (Decrease)
Ended Ended 1998 Compared to 1997
----- ----- ---------------------
June 27, June 28, June 27, June 28, Thirteen Weeks Twenty-Six Weeks
1998 1997 1998 1997 Ended Ended
------- -------- ------- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0% 15.9% 15.5%
Cost of sales 64.0% 62.2% 65.0% 66.4% 19.2% 13.0%
------ ------ ------ ------ ------- -------
Gross profit 36.0% 37.8% 35.0% 33.6% 10.5% 20.5%
Selling, general and
administrative expenses 30.4% 31.6% 31.1% 31.8% 11.2% 13.3%
------ ------ ------ ------ ------ ------
Operating income 5.6% 6.2% 3.9% 1.8% 6.5% 146.9%
Other income (expense) 0.0% - 0.7% 0.0% - 0.5% 100.6% 111.8%
----- ------- ----- ----- -------- -------
Income before income taxes 5.6% 5.5% 3.9% 1.3% 18.5% 256.5%
Income taxes 2.0% 2.1% 1.4% 0.5% 12.3% 237.8%
------ ------- ------ ------ ------ ------
Net income 3.6% 3.4% 2.5% 0.8% 22.3% 268.0%
====== ======= ====== ====== ====== ========
</TABLE>
Thirteen Weeks Ended June 27, 1998 and June 28, 1997
Net Sales
Net sales for the thirteen weeks ended June 27, 1998 increased 15.9% to $58.7
million compared to $50.7 million for the same period in 1997. Sales of the
Company's domestic pint products increased 5.0% with the original ice cream line
providing the majority of the increase. This 5.0% increase was comprised of a
volume increase of 4.0% and a price increase of approximately 1.0% which was
effective in April 1997. Also contributing to the increase in sales this quarter
was the launch of the Company's new single-serving products in Japan and the
introduction of a new line of premium plus ice cream, Newman's Own(TM) All
Natural Ice Cream, manufactured and sold under a license agreement with Paul
Newman and Newman's Own.
Packaged sales (primarily pints) represented 78% of total net sales in the
second quarter of 1998 and 84% of total net sales in the second quarter of 1997.
Net sales of 2 1/2 gallon bulk containers
<PAGE>
represented approximately 10% of total net sales in the second quarter of 1998
and 9% of total net sales in the second quarter of 1997. Net sales of novelty
products (including single servings) accounted for approximately 12% of total
net sales in this period in 1998 and 7% of total net sales in 1997.
Cost of Sales and Gross Profit
Cost of sales in the second quarter of 1998 increased approximately $6 million
or 19.2% over the same period in 1997 and overall gross profit as a percentage
of net sales was 36.0% in the second quarter of 1998 as compared to 37.8% in the
comparable period last year. The lower gross profit as a percentage of net sales
resulted from substantial increases in dairy commodity costs and manufacturing
costs associated with new products, partially offset by favorable manufacturing
variances resulting from better plant utilization due to higher volumes.
The Company experienced significant increases in dairy prices in the second
quarter of 1998 compared to the same period last year. In response to higher
dairy costs the Company instituted a 3.3% price increase for its packaged pints
and a 4.3% price increase for its 2 1/2 gallon Bulk containers effective July
15, 1998. If dairy commodity prices continue to rise to much higher levels,
there is the possibility that these costs will not be passed on to customers
which will negatively impact future gross profit margins. See Risk Factors
referred to in the "Forward-Looking Statements" section.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 11.2% to $17.8 million in
the second quarter of 1998 from $16 million for the same period in 1997.
Selling, general and administrative expenses were 30.4% of net sales in the
second quarter of 1998 as compared to 31.6% for the comparable period last year.
The decrease as a percentage of net sales is due to calculating the percentage
on a higher net sales base. The $1.8 million dollar increase is attributed
primarily to increased sales and marketing expenses to support the launch of a
new line of premium plus ice cream under the name of Newman's Own (TM) All
Natural Ice Cream, and increased international costs.
Other Income (Expense)
Interest income increased $70,000 in the second quarter of 1998 as compared to
the same period in the prior year. Interest expense decreased $46,000 in the
second quarter of 1998 as compared to the same period in the prior year. Other
expense decreased $201,000 as compared to the same period in the prior year
primarily due to a decrease in losses associated with asset dispositions and
foreign currency exchange.
Income Taxes
Income taxes increased approximately $131,000 primarily due to the increase in
income. Management expects 1998's effective income tax rate to decrease to
approximately 36% compared to 38% in 1997 due to higher income tax credits and
lower state taxes.
<PAGE>
Net Income
As a result of the foregoing, net income for the second quarter of 1998
increased 22.3% to $2.1 million from $1.7 million, for the second quarter of
1997. Net income was 3.6% of net sales in the second quarter of 1998 compared to
3.4% in 1997. Diluted net income per share increased 16.7% to $.28 per common
share for the second quarter of 1998 compared to $.24 diluted net income per
common share for the second quarter of 1997.
Twenty-Six Weeks Ended June 27, 1998 and June 28, 1997
Net Sales
Net sales for the twenty-six weeks ended June 27, 1998 increased 15.5% to $100.3
million compared to $86.8 million for the same period in 1997. Sales of the
Company's domestic pint products increased 7.0% with the original ice cream line
providing the majority of the increase. This 7.0% increase was comprised of a
volume increase of 5.0% and a price increase of approximately 2.0% which was
effective in April 1997. Also contributing to the increase in sales for the
first half of 1998 was the launch of the Company's new single-serving products
in Japan and the introduction of a new line of premium plus ice cream,
Newman's'Own(TM) All Natural Ice Cream, manufactured and sold under a license
agreement with Paul Newman and Newman's Own.
Packaged sales (primarily pints) represented 82% of total net sales in the first
half of 1998 and 85% of total net sales in the first half of 1997. Net sales of
2 1/2 gallon bulk containers represented approximately 9% of total net sales in
the first half of 1998 and 1997. Net sales of novelty products (including single
servings) accounted for approximately 9% of total net sales in this period in
1998 and 6% of total net sales in 1997.
Cost of Sales and Gross Profit
Cost of sales in the first half of 1998 increased approximately $7.5 million or
13.0% over the same period in 1997 and overall gross profit as a percentage of
net sales was 35.0% in 1998 as compared to 33.6% for the comparable period in
1997. The higher gross profit as a percentage of net sales primarily resulted
from increases in selling prices effective in April 1997, and better plant
utilization due to higher production volumes partially offset by higher dairy
commodity costs and manufacturing costs associated with new products. In
addition, in the first half of 1997, the Company provided for additional
reserves for potential product obsolescence. In 1998, additional reserves for
product obsolescence were not necessary.
The Company experienced significant increases in dairy prices in the first six
months of 1998 compared to the same period last year. In response to higher
dairy costs the Company instituted a 3.3% price increase for its packaged pints
and a 4.3% price increase for its 2 1/2 gallon Bulk containers effective July
15, 1998. If dairy commodity prices continue to rise to much higher levels,
there is the
<PAGE>
possibility that these costs will not be passed on to customers
which will negatively impact future gross profit margins. See Risk Factors in
the "Forward-Looking Statements" section.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 13.3% to $31.3 million
for the first six months of 1998 from $27.6 million for the same period in 1997.
Selling, general and administrative expenses were 31.2% of net sales for the
first six months of 1998 as compared to 31.8% for the same period last year. The
$3.7 million increase is attributed to increased sales and marketing expenses to
support the launch of a new line of premium plus ice cream under the name of
Newman's Own (TM) All Natural Ice Cream and increased international costs.
Other Income (Expense)
Interest income increased $218,000 for the first six months of 1998 as compared
to the same period in the prior year. The increase in interest income was due to
a higher average invested balance throughout the period. Interest expense
decreased $81,000 for the first six months of 1998 as compared to the same
period in the prior year. Other expense decreased for the first six months of
1998 from $224,000 in the prior year to $2,000 in 1998. This is primarily due to
a decrease in losses associated with asset dispositions and foreign currency
exchange.
Income Taxes
Income taxes increased approximately $994,000 primarily due to the increase in
income. Management expects 1998's effective income tax rate to decrease to
approximately 36% compared to 38% in 1997 due to higher income tax credits and
lower state taxes.
Net Income
As a result of the foregoing, net income for the first half of 1998 increased
268.0% to $2.5 million from $682,000 for the same period in 1997. Net income was
2.5% of net sales in the first half of 1998 compared to 0.8% for the same period
in 1997. Diluted net income per share increased to $.33 per common share for the
first half of 1998 as compared to $.09 per share for the same period in 1997.
Liquidity and Capital Resources
As of June 27, 1998 the Company had $51.7 million of cash and cash equivalents,
an increase of $4.4 million since December 27, 1997. Net cash provided by
operations in the first half of 1998 was $9.5 million. Approximately $5.1
million was used for additions to property, plant and equipment, primarily for
equipment upgrades at the Company's manufacturing facilities, and leasehold
improvement costs related to Company owned scoop shop locations in Europe.
<PAGE>
Since December 27, 1997, trade receivables, and the sum of accounts payable and
accrued expenses have increased $2.2 million and $13 million, respectively.
These increases reflect the seasonality of the Company's business and increased
sales and marketing expenses. Inventories have increased $5.5 million since
December 27, 1997. This increase reflects seasonally higher raw material
inventories and increased finished good inventories.
The Company anticipates other capital expenditures in the remainder of 1998 of
approximately $4.0 million. These additional projected capital expenditures
relate to equipment upgrades and enhancements at the Company's manufacturing
facilities and leasehold improvement costs related to Company owned scoop shop
locations in Europe.
During the six months ended June 27, 1998 the Company repurchased 20,000 shares
for approximately $364,000, of the Company's Class A common stock pursuant to
the repurchase program as announced May 8, 1997 for use in connection with stock
option awards under the 1995 Equity Incentive Plan. As of August 5, 1998 the
Company has repurchased an additional 102,500 shares for $2.0 million. These
transactions, together with earlier repurchases of 77,500 shares, complete the
repurchase of the 200,000 shares authorized under this program.
The Company's short and long term debt includes $30 million aggregate principal
amount of Senior Notes issued in 1993 and 1994, which are held in cash
equivalents pending their use in the business. The first principal payment of $5
million is due in September 1998.
The Company has two lines of credit providing an aggregate of $20,000,000 with
The First National Bank of Boston and Key Bank of Vermont. These unsecured
agreements provide for borrowings from time to time and unless further extended
expire September 29, 1998 and December 29, 1998, respectively. The agreements
specify interest at either bank's Base Rate or the Eurodollar rate plus a
maximum of 1.25%. As of August 11, 1998, there have been no borrowings under
these line of credit agreements. Management intends to renew its lines of
credit.
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.
"Forward-Looking Statements"
This section, as well as other portions of this document, includes certain
forward-looking statements about the Company's business and new products, sales,
expenditures and cost savings, effective tax rate and operating and capital
requirements and refinancings. Any such statements are subject to risks that
could cause the actual results or needs to vary materially. These risks are
discussed in "Risk Factors" in the Company's Annual Report on Form 10-K for the
year 1997.
<PAGE>
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's 1998 Annual Meeting of Stockholders was held on Saturday,
June 27, 1998. The stockholders voted to (1) fix the number of directors at ten
and to elect one class of three directors to serve for one year expiring at the
1999 Annual Meeting of Shareholders, one class of three directors to serve for a
two year term expiring in 2000, and one class of four directors to serve for a
three year term expiring in 2001; and in each case, until their successors are
elected and qualified. (2) and ratify the selection of Ernst & Young LLP as
independent auditors for the 1998 fiscal year.
(1) The tabulation of votes for the nominees for directors were as follows:
Class A Directors, term expires at the Annual Meeting of shareholders 1999:
For Withheld
--- --------
Elizabeth Bankowski 12,633,422 397,868
Jeffrey Furman 12,078,802 952,488
Henry Morgan 12,633,822 397,468
Class B Directors, term expires at the Annual Meeting of Shareholders 2000:
Pierre Ferrari 12,635,326 395,964
Jerry Greenfield 12,634,323 396,967
Frederick A. Miller 12,634,539 396,751
Class C Directors, term expires at the Annual Meeting of Shareholders 2001:
Ben Cohen 12,635,310 395,980
Jennifer Henderson 12,634,026 397,264
Perry D. Odak 12,635,439 395,851
Andrew S. Patti 12,635,439 395,851
(2) The vote on the appointment of Ernst & Young LLP as the Company's
independent auditors for 1998 was 12,988,092 for; 21,023 against; with 22,174
abstaining.
<PAGE>
ITEM 5 - OTHER ITEMS
Under the Company's By-laws, stockholders who wish to make a proposal
at the 1999 Annual Meeting - other than one that will be included by the Board
of Directors in the Company's proxy materials - must notify the Company no
earlier than 120 days before the 1999 Annual Meeting and no later than 75 days
prior to the 1999 Annual Meeting. Under recent changes to Federal proxy rules,
if a stockholder who wishes to present such a proposal fails to notify the
Company by 75 days prior to the 1999 Annual Meeting, then the proxies that
management solicits for the 1999 Annual Meeting will include discretionary
authority to vote on the stockholder's proposal, in the event it is properly
brought before the meeting notwithstanding the Company's By-laws.
<PAGE>
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit (11) Statement Re: Computation of Net Income Per Common Share
Exhibit (27) Financial Data Schedule
(b) A report on Form 8-K was filed April 1, 1998, to reflect amendments
to the By-laws as adopted March 31, 1998.
<PAGE>
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.
DATE: August 11, 1998 BY: /s/Frances Rathke
--------------
Frances Rathke, Chief Financial Officer
and Secretary
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(In thousands)
<TABLE>
<CAPTION>
June 27, December 27,
1998 1997
-------------- --------------
(Unaudited) (Note)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 51,674 $ 47,318
Investments 485 481
Trade accounts receivable:
(less allowance of $1,009 in 1998
and $1,066 in 1997 for doubtful accounts) 14,961 12,710
Inventories 16,622 11,122
Deferred income taxes 8,394 6,071
Prepaid expenses and other current assets 2,326 2,378
-------------- --------------
Total current assets 94,462 80,080
Property, plant and equipment, net 63,910 62,724
Investments 200 1,061
Other assets 3,078 2,606
-------------- --------------
$ 161,650 $ 146,471
============== ==============
</TABLE>
Note: The balance sheet at December 27, 1997 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. See notes to condensed
consolidated financial statements.
- 1 -
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES & STOCKHOLDERS' EQUITY
(In thousands except share data)
<TABLE>
<CAPTION>
June 27, December 27,
1998 1997
-------------- --------------
(Unaudited) (Note)
<S> <C> <C>
Current liabilities:
Accounts payable and accrued expenses $ 36,312 $ 23,266
Current portion of long-term debt and
obligations under capital leases 5,392 5,402
-------------- --------------
Total current liabilities 41,704 28,668
Long-term debt and obligations under capital leases 25,488 25,676
Deferred income taxes 5,106 5,208
Stockholders' equity:
$1.20 noncumulative Class A preferred stock - par value $1.00 per share,
redeemable at $12.00 per share; 900 shares authorized, issued and
outstanding;
aggregated preference on liquidation - $9 1 1
Class A common stock - $.033 par value; authorized
20,000,000 shares; issued: 6,522,821 at June 27, 1998
and 6,494,835 at December 27, 1997 215 214
Class B common stock - $.033 par value; authorized
3,000,000 shares; issued: 858,723 at June 27, 1998
and 866,664 at December 27, 1997 28 29
Additional paid-in-capital 49,967 49,681
Retained earnings 41,596 39,086
Cumulative translation adjustment (128) (129)
Treasury stock, at cost: 144,532 Class A and 1,092 Class B
shares at June 27, 1998 and 124,532 Class A
and 1,092 Class B shares at December 27, 1997 (2,327) (1,963)
-------------- --------------
Total stockholders' equity 89,352 86,919
-------------- --------------
$ 161,650 $ 146,471
============== ==============
</TABLE>
Note: The balance sheet at December 27, 1997 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. See notes to condensed
consolidated financial statements.
- 2 -
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)
<TABLE>
<CAPTION>
For the Thirteen weeks ended For the Twenty-six weeks ended
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
----------------- ------------------ ------------------ -------------------
<S> <C> <C> <C> <C>
Net sales $ 58,749 $ 50,701 100,305 86,849
Cost of sales 37,596 31,551 65,188 57,696
----------------- ------------------ ------------------ -------------------
Gross profit 21,153 19,150 35,117 29,153
Selling, general and
administrative expenses 17,827 16,027 31,250 27,588
----------------- ------------------ ------------------ -------------------
Operating income 3,326 3,123 3,867 1,565
Interest income 477 407 1,030 812
Interest expense (458) (504) (973) (1,054)
Other income (expense), net (17) (218) (2) (223)
----------------- ------------------ ------------------ -------------------
2 (315) 55 (465)
----------------- ------------------ ------------------ -------------------
Income before income taxes 3,328 2,808 3,922 1,100
Income taxes 1,198 1,067 1,412 418
----------------- ------------------ ------------------ -------------------
Net income $ 2,130 $ 1,741 $ 2,510 $ 682
================= ================== ================== ===================
Shares Outstanding:
Basic 7,245 7,274 7,244 7,236
Diluted 7,546 7,337 7,498 7,300
Basic income per common share $ 0.29 $ 0.24 $ 0.35 $ 0.09
Diluted income per common share $ 0.28 $ 0.24 $ 0.33 $ 0.09
</TABLE>
See notes to condensed consolidated financial statements.
- 3 -
<PAGE>
BEN & JERRY'S HOMEMADE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
For the Twenty-six weeks ended
June 27, June 28,
1998 1997
---------------- ----------------
<S> <C> <C>
Net income $ 2,510 $ 682
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,966 3,895
Provision for bad debts 0 355
Deferred income taxes (2,425) (1,506)
Loss on disposition of assets 89 45
Changes in operating assets and liabilities:
Accounts receivable (2,777) (9,019)
Inventories (5,500) 1,959
Prepaid expenses (599) (152)
Accounts payable and accrued expenses 10,950 10,267
Income taxes payable/receivable 3,273 1,916
---------------- ----------------
Net cash provided by operating activities 9,487 8,442
Additions to property, plant and equipment (5,116) (1,810)
Changes in other assets (597) (157)
Decrease (increase) in investments 857 (41)
---------------- ----------------
Net cash used for investing activities (4,856) (2,008)
Repayments of long-term debt and capital leases (198) (265)
Repurchase of common stock (364)
Proceeds from issuance of common stock 286 951
---------------- ----------------
Net cash provided by (used for) financing activities (276) 686
Effect of exchange rate changes on cash 1 (1)
---------------- ----------------
Increase in cash and cash equivalents 4,356 7,119
Cash and cash equivalents at beginning of period 47,318 36,104
---------------- ----------------
Cash and cash equivalents at end of period $ 51,674 $ 43,223
================ ================
</TABLE>
See notes to condensed consolidated financial statements.
- 4 -
BEN & JERRY'S HOMEMADE, INC.
COMPUTATION OF NET EARNINGS PER SHARE
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Thirteen weeks ended Twenty-six weeks ended
6/27/98 6/28/97 6/27/98 6/28/97
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Basic:
Weighted average shares outstanding 7,245 7,274 7,244 7,236
============= ============ ============= ============
Net income $2,130 $1,741 $2,510 $682
============= ============ ============= ============
Basic earnings per share amount $0.29 $0.24 $0.35 $0.09
============= ============ ============= ============
Diluted:
Weighted average shares outstanding 7,245 7,274 7,244 7,236
Effect of dilutive securities
Employee stock options 301 63 254 64
------------- ------------ ------------- ------------
Diluted shares outstanding 7,546 7,337 7,498 7,300
============= ============ ============= ============
Net income $2,130 $1,741 $2,510 $682
============= ============ ============= ============
Diluted earnings per share amount $0.28 $0.24 $0.33 $0.09
============= ============ ============= ============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> See accompanying notes.
$ in thousands, except per share data.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-mos
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