SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QA Amendment #1
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarterly period ended July 31, 1995.
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from to .
Commission File Number: 0-16787
INTERNATIONAL YOGURT COMPANY
(Exact name of registrant as specified in its charter)
Oregon 91-0989395
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5858 N.E. 87th Avenue
Portland, Oregon 97220
(Address of Principal (Zip Code)
Executive Office)
(503) 256-3754
(Registrant's telephone number, including area code.)
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 such 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
The number of shares outstanding of the registrant's common
stock, as of the latest practicable date is:
Class: Common stock outstanding at
September 8, 1995: 2,167,043 shares
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INTERNATIONAL YOGURT COMPANY
CONTENTS
Page
PART I FINANCIAL INFORMATION:
Item 1. Financial Statements 3 - 6
Balance Sheet as of July 31, 1995, 3
(unaudited) and October 31, 1994
Statement of Operations for the 4
Three Months and Nine Months ended
July 31, 1995 (unaudited) and 1994
(unaudited)
Statements of Cash Flows for the 5
Nine Months ended July 31,1995
(unaudited) and 1994 (unaudited)
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of 7 - 8
Financial Condition and Results of
Operations
PART II OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults upon Senior Securities 8
Item 4. Submission of Matters to a Vote of 8
Security Holders
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 10
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
INTERNATIONAL YOGURT COMPANY
BALANCE SHEET
July 31, October 31,
1995 1994
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 187,288 $ 336,894
Accounts receivable 1,090,968 908,303
Inventories 1,306,381 1,434,334
Equipment held for resale, net 32,595 45,840
Other current assets 193,248 198,704
Total current assets 2,810,480 2,924,075
Plant and equipment 1,795,982 1,810,475
Intangible assets 186,099 218,637
$4,792,561 $4,953,187
LIABILITIES
Current liabilities:
Note payable to bank $ 1,093,860 $ 1,146,537
Current portion of long-term debt 73,912 84,149
Current portion capital lease 27,828 58,835
Accounts payable 750,027 934,039
Other accrued liabilities 105,408 119,730
Total current liabilities 2,051,035 2,343,290
Notes and contracts payable,
portion due after one year 157,094 187,900
Long term obligations under
capital lease 113,874 106,922
Total liabilities $ 2,322,003 $ 2,638,112
SHAREHOLDERS' EQUITY
Common stock, nor par value,
30,000,000 shares authorized;
2,167,043 shares issued and
outstanding at July 31, 1995
and October 31, 1994 4,538,014 4,538,014
Accumulated deficit (2,067,456) (2,222,939)
2,470,558 2,315,075
Total liabilities and
stockholder's equity $ 4,792,561 $4,953,187
The accompanying notes are an integral part
of the financial statements.
<PAGE>
INTERNATIONAL YOGURT COMPANY
STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
July 31, July 31,
1995 1994 1995 1994
Yogurt sales $2,482,930 $1,927,592 $5,708,405 $5,013,518
Costs of yogurt sales:
Manufacturing 1,292,195 793,161 2,986,375 2,302,889
Transportation and
warehousing 316,303 457,509 885,363 946,402
1,608,498 1,250,670 3,871,738 3,249,291
Gross Profit 874,432 676,922 1,836,667 1,764,227
Selling and marketing
expenses 310,018 254,831 730,641 695,649
General and
administrative
expenses 344,421 285,311 851,667 814,373
Income from
operations $ 219,993 $ 136,780 $ 254,359 $ 254,205
Other income (expenses):
Interest income 2,096 1,845 6,479 5,341
Interest expense (37,708) (35,922) (105,356) (84,048)
(35,612) (34,077) (98,877) (78,707)
Net Income $184,381 $ 102,703 $ 155,482 $ 175,498
Net Income
per share $ .08 $ .05 $ .07 $ .08
Weighted average
number of shares
outstanding 2,167,043 2,163,863 2,167,043 2,163,863
The accompanying notes are an integral part
of the financial statements.
<PAGE>
INTERNATIONAL YOGURT COMPANY
STATEMENT OF CASH FLOWS
(Unaudited)
FOR THE NINE MONTHS ENDED
Cash flows from operating activities: July 31, 1995 July 31, 1994
Net Income (loss) $ 155,482 $ 175,498
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 199,618 169,656
Changes in current assets and liabilities, net (221,776) (495,470)
Net cash provided by (used for) operating activities 133,324 (150,316)
Cash flows from investing activities:
Additions to plant and equipment (166,684) (314,612)
Proceeds from sale of equipment 1,530 17,000
Net cash provided by (used for) investing activities (165,154) (297,612)
Cash flows from financing activities:
Net proceeds from insurance/(payments) of
long term notes, debt, & capital leases, net (117,776) 178,381
Stock options exercised 288,151
Net cash provided by (used for) financing activities (117,776) 466,532
Net Increase (Decrease) in cash (149,606) 18,604
Cash at beginning of period 336,894 291,458
Cash at end of period $ 187,288 $ 310,062
The accompanying notes are an
integral part of the financial statement.
<PAGE>
INTERNATIONAL YOGURT COMPANY
NOTES TO FINANCIAL STATEMENTS
Note A - Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information 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 b generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments, which consist of normal recurring
accruals, considered necessary for a fair presentation have been
included. Operating results for the three months ended July 31,
1995 are not necessarily indicative of the results that may be
expected for the year ending October 31, 1995. For further
information, refer to the financial statements, and footnotes
thereto, included in the Corporation's annual report on Form 10-K
for the year ended October 31, 1994.
Note B - Inventories
Inventories consist of July 31, October 31,
1995 1994
Finished Goods $ 903,720 $ 1,037,977
Raw Materials 174,984 150,339
Packaging Materials & Supplies 227,677 246,018
$ 1,306,381 $ 1,434,334
Note C - Dividends
None.
Note D - Earnings per share
Earnings per share are based on the number of shares of common stock
outstanding during the period presented.
<PAGE>
Item 2. Management's Discussion and Aanlysis of Financial Condition and
Results of Operations
Results of Operations.
The Company's revenues from yogurt sales were $2,482,930 and
$5,708,405 for the three months and nine months ended July 31, 1995,
compared to revenues during the same periods in 1994 of $1,927,592
and $5,013,518, respectively. The increase in sales of 29% for the
three months and 14% for the nine months ending July 31, 1995, was
primarily due to (1) roll out of the Company's products into the
outlets of two major national food service accounts; (2)
introduction of the Western Family/Yo Cream co-brand to the retail
grocery marketplace; and (3) increased copacking activity.
Management expects the trend of increased sales to continue as it
executes its aggressive growth plan which includes expanded
alliances with other national companies, intensified direct sales
activity, and the introduction of new products.
Net income during the three months and nine months ended July
31, 1995, was $184,381 and $155,482 respectively, compared to net
income of $102,703 and $175,498 during the same periods in 1994.
While net income was down by 11% for the nine months, operating
income was up by 4% for that period. Furthermore, the increase in
net income of 79% for the quarter reflects the economies of scale
associated with the higher sales levels. The company has
significant unutilized plant capacity. Therefore, management
believes that anticipated sales growth will bring increased profit
margins.
Cost of yogurt sales were $1,608,498 and $3,871,738 for the
three months and nine months ended July 31, 1995, compared to
$1,250,670 and $3,249,291 for the same periods in 1994. The
Company's gross margins as a percentage of yogurt sales were
relatively constant at 35.2% and 32.2% during the three months and
nine months ended July 31, 1995, compared to 35.1% and 35.2% for the
comparative periods in 1994. While raw material and transportation
costs increased, these increases were offset by economies of scale
obtained through increased sales levels as noted above.
Selling and marketing expenses were $310,018 and $730,641 for
the three months and nine months ended July 31, 1995 compared to
$254,831 and $695,647 for the same periods in 1994. While these
costs are predominately variable, decreases of approximately 1% as a
percentage of sales were obtained as a result of the company's
budgeting and planning process.
General and Administrative expenses were $344,421 and $851,667
for the three months and nine months ended July 31, 1995, compared
to $285,311 and $814,373 for the same periods of 1994. The dollar
increase for three months was primarily due to timing differences.
The relatively smaller dollar increase for the nine months was
primarily due to increased insurance costs. However, as a
percentage of sales, such expenses decreased by 0.9% for the three-
month period and 1.3% for the nine-month period.
<PAGE>
Liquidity and Capital Resources.
The Company has financed its operations and expansion from bank
loans, capital leases, capital investment by its founders, public
securities offerings and internally generated funds. As of July 31,
1995, the Company's total borrowing under its bank line of credit
were $1,093,860 at an interest rate of 1.0 percent over that bank's
prime rate. Total borrowings under this line are based upon the
Company's level of accounts receivable and inventory up to an
aggregate maximum of $1,500,000. As of July 31, 1995, the maximum
amount available under the terms of the line of credit was
$1, 453,252. On October 31, 1994, total borrowings were $1,146,537.
Accounts receivable at July 31, 1995 were $1,090,968, a 20.1%
increase over the accounts receivable of $908,303 at October 31,
1994. That increase is primarily attributable to the higher level
of sales in July 1995 as compared to October 1994.
Inventory decreased to $1,306,382 at July 31, 1995, from
$1,434,334 at October 31, 1994. This 9.8% decrease is primarily due
to management efforts to reduce consigned and warehouse finished
goods in the face of rising freight and warehousing costs.
The Company believes its existing assets, bank lines, and
revenues from operations will be sufficient to fund the Company's
operations for at least the next 12 months. The Company's bank
lines are subject to renewal on June 1, 1996. The Company expects
its bank lines to be renewed. In the event that the Company's bank
lines were not renewed and replacement financing could not be
obtained, the Company would need to curtail operations
substantially, seek additional capital, or both.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not involved in any material pending legal
proceedings, other than non-material legal proceedings occurring in
the ordinary course of business.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to Vote of Security Holders
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Registrant:
INTERNATIONAL YOGURT COMPANY
Date: __Sept. 13, 1995_________ By_____John N. Hanna________________
John N. Hanna, Chairman of the
Board and Chief Executive Officer
Date: __Sept. 13, 1995__________ By______R. H. Olson________________
R. H. Olson
Controller
(Principal Financial Officer)
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<PERIOD-TYPE> 3-MOS 9-MOS YEAR
<FISCAL-YEAR-END> OCT-31-1995 OCT-31-1995 OCT-31-1994
<PERIOD-END> JUL-31-1995 JUL-31-1995 OCT-31-1994
<CASH> 0 187,288 336,894
<SECURITIES> 0 0 0
<RECEIVABLES> 0 1,090,968 908,303
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0 0 0
0 0 0
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<INTEREST-EXPENSE> 35,612 98,877 0
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