|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: COFFEE PEOPLE INC, 8-K/A, 1997-08-04 |
Next: BOSTON RESTAURANT ASSOCIATES INC, DEF 14A, 1997-08-04 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
July 31, 1997
-------------
Coffee People, Inc.
-------------------
(Exact name of registrant as specified in its charter)
Oregon 0-21397 93-1073218
- --------------------------------------------------------------------------------
(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification No.)
incorporation)
15100 SW Koll Parkway, Suite J, Beaverton, Oregon 97006
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(503) 672-9603
- --------------------------------------------------------------------------------
<PAGE>
ITEM 5. OTHER EVENTS.
On July 31, 1997, Coffee People, Inc., an Oregon corporation, announced its
earnings for the second quarter of 1997. The announcement was in the form of the
attached press release.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
2.1 Press release, dated July 31, 1997.
<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.
COFFEE PEOPLE, INC.
(Registrant)
Date: August 3, 1997 By: Kenneth B. Ross
- --------------------- -------------------------
Kenneth B. Ross
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Page
- ----------- ----
2.1 Press release, dated July 31, 1997. 5
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION, CONTACT:
Ken Ross Dolores Chenoweth
Chief Financial Officer Investor Relations
503-672-3300 503-291-1924
COFFEE PEOPLE REPORTS ONE-TIME CHARGE, LOSS IN
SECOND QUARTER ON 63 PERCENT INCREASE IN REVENUE
PORTLAND, OREGON... July 31, 1997 --- Coffee People, Inc. (NASDAQ:MOKA), a
specialty retailer and operator of coffee houses, today reported a net loss of
$6.1 million, or $1.87 per share, for the quarter ended June 30, 1997, including
a $5.5 million charge to provide for store closures outside its major Oregon and
Arizona markets and related restructuring.
Revenue for the quarter rose a strong 63 percent to $4.9 million from
$3.0 million in the comparable 1996 period. Higher costs and expenses related to
new stores, and the one-time charge for store closures and restructuring,
contributed to the loss for the quarter. The per share effect of the one-time
charge was $1.70 and provides for the closing or sale of seven company stores --
two in Denver, two in Chicago and three in southern California. The company
reported net income of $67,000, or $0.03 per share, for the prior year quarter.
"We are extremely disappointed with the overall sales performance of
these seven stores," said Taylor H. Devine, president and chief executive
officer. "Sales in our new markets have not built as fast as anticipated and
operations outside Oregon and Arizona are not profitable. As a result, we are
taking decisive action now in order to return the company to profitability as
quickly as possible."
Coffee People intends to make substantial reductions in its general and
administrative overhead and to evaluate a number of strategic alternatives to
return the company to profitability and maximize shareholder value. As part of
this effort, the company has retained Black & Company to advise it on a full
range of potential actions including strategic acquisitions and the merger or
sale of the company.
-more-
"We have a strong base from which to move forward in re-evaluating our
growth strategy," Devine said. "The majority of our stores -- 25 in Oregon and
15 in Arizona -- continue to perform well and are not areas of concern. We
reached a record $2 million in sales for the month of June 1997 and 94 percent
of that amount came from the 40 stores in Oregon and Arizona."
The revenue growth in the second quarter was a combination of improved
same-store sales and contribution from new stores opened and acquired since the
1996 second quarter. Much of the higher revenue -- $952,000 or approximately 50
percent -- was attributable to the 15 Coffee Plantation stores acquired on May
21, 1997 and represented only six weeks of operation. Second quarter revenues
also benefited from 14 new stores opened since September 1996. These stores,
seven of which are in Oregon, added 46 percent of the $1.9 million increase.
Comparable store sales for the 19 stores open for the full second quarter of
both 1997 and 1996 grew 2.8 percent.
For the six months ended June 30, 1997, revenues were $8.1 million, up
from $5.9 million in the comparable 1996 period. The net loss of $6.2 million,
or $1.93 per share, declined from net income of $133,000, or $0.07 per share, a
year ago.
Coffee People has been in business since 1983 and currently operates 47
outlets in five markets, Oregon, southern California, Denver, Chicago, and
Phoenix/Tucson. The company's coffee houses, drive through Motor Mokas(R) and
Aero Moka(R) kiosks at Portland International Airport feature a menu of more
than 200 coffee drinks, shakes, pastries, and coffee-related products.
This news release contains forward-looking statements that involve a
number of risks and uncertainties. Actual results may differ materially from
projected results. For a complete discussion of the risks associated with
forward-looking information, refer to the Risk Factors contained in the
company's 10-KSB for 1996 and the Registration Statement on Form SB-2 as filed
with the Securities and Exchange Commission effective September 25, 1996.
<PAGE>
COFFEE PEOPLE, INC.
BALANCE SHEETS
(Dollars in thousands)
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
--------------- ---------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ $ 10,274
4,537
Accounts receivable
80 26
Inventories
539 205
Prepaid expenses
193 141
Income taxes receivable
129 -
Deferred tax assets
27 28
Other current assets
4 96
--------------- ---------------
Total current assets
5,509 10,770
Property and equipment, net
10,800 5,513
Goodwill
5,917 -
Other assets
170 129
=============== ===============
Total assets $ 22,396 $ 16,412
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ $
1,306 115
Current portion of long-term debt to related parties
21 20
Accounts payable
1,181 533
Construction accounts payable
210 321
Accrued liabilities
634 262
Income taxes payable
- 47
--------------- ---------------
Total current liabilities
3,352 1,298
Deferred tax liability
86 86
Long-term debt and capital lease obligations
4,932 267
Long-term debt to related parties
148 159
Stockholders' equity:
Common stock, no par value; authorized, 50,000,000 shares;
issued and outstanding, 3,247,512 and 3,237,432 shares
14,524 14,492
Stock subscription notes receivable
(292) (281)
Retained earnings
(354) 391
--------------- ---------------
Total stockholders' equity
13,878 14,602
--------------- ---------------
Total liabilities and stockholders' equity $ 22,396 $ 16,412
=============== ===============
</TABLE>
<PAGE>
COFFEE PEOPLE, INC.
STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------------------------
June 30, June 30,
1997 1996
-------------------- --------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$ (6,244) $ 133
Adjustments to reconcile net income (loss) to net cash
provided by operating activities -
Depreciation and amortization
547 232
Provision for store closures and restructuring
5,500 -
Deferred provision for income taxes
- 24
Interest income on stock subscription
(11) (12)
Changes in operating assets and liabilities:
Accounts receivable
(54) (19)
Inventories
(334) 56
Prepaid expenses
(52) 76
Income taxes receivable
(129) -
Other current assets
92 -
Accounts payable
648 (289)
Accrued liabilities
372 (13)
Income taxes payable
(47) (40)
-------------------- --------------------
Net cash provided by operating activities
288 148
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in property and equipment, net
(5,801) (443)
Goodwill
(5,950) -
Change in other assets
(41) (57)
Construction accounts payable
(111) -
-------------------- --------------------
Net cash used in investing activities
(11,903) (500)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt and capital lease
obligations
6,000 -
Change in debt and capital lease obligations
(143) (202)
Repayment of related party debt
(11) (44)
Proceeds from private placement
- 3,725
Issuance of common stock, net
32 3
-------------------- --------------------
Net cash provided by financing activities
5,878 3,482
(DECREASE) INCREASE IN CASH
-------------------- --------------------
AND CASH EQUIVALENTS
(5,737) 3,130
CASH AND CASH EQUIVALENTS, beginning of period
10,274 260
==================== ====================
CASH AND CASH EQUIVALENTS, end of period $ 4,537 $ 3,390
==================== ====================
</TABLE>
<PAGE>
COFFEE PEOPLE, INC.
STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
--------------------------------------- --------------------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
----------------- ----------------- ----------------- -----------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Retail sales $4,798 $2,983 $7,958 $5,776
Wholesale and other 91 48 124 100
----------------- ----------------- ----------------- -----------------
Total revenues 4,889 3,031 8,082 5,876
Cost of sales and related
occupancy expenses 2,412 1,449 4,014 2,783
Store operating expenses 1,814 931 2,949 1,804
Other operating expenses 1 12 1 25
Depreciation and amortization 344 118 547 232
General and administrative
expenses 884 436 1,556 855
Provision for store closures
and restructuring 5,500 - 5,500 -
----------------- ----------------- ----------------- -----------------
Income (loss) from operations (6,066) 85 (6,485) 177
Other income, net 89 45 214 82
Interest expense (77) (21) (92) (43)
----------------- ----------------- ----------------- -----------------
Income (loss) before benefit
(provision) for income taxes (6,054) 109 (6,363) 216
Benefit (provision) for income taxes - (42) 119 (83)
----------------- ----------------- ----------------- -----------------
Net income (loss) $(6,054) $67 $(6,244) $133
================= ================= ================= =================
Earnings (loss) per share $(1.87) $0.03 $(1.93) $0.07
================= ================= ================= =================
Shares used in computing
earnings per share 3,245,393 2,077,298 3,242,183 2,041,220
</TABLE>
|
|