Exhibit 99.1
Vermont Pure Holdings, Ltd. Announces Third Quarter Results
RANDOLPH, Vt., Sept. 15 /PRNewswire-FirstCall/ -- Vermont Pure Holdings,
Ltd. (Amex: VPS) announced results for its third quarter and nine months
ending July 31, 2003. The results will be filed, in detail, on Form 10-Q with
the SEC today.
Total sales for the third quarter increased 4% to $22.5 million from $21.6
million the previous year. Sales for the nine month period totaled $55.7
million, up $1.9 million, or 3%, from a year ago when total sales were $53.8
million.
"We have continued to increase sales by taking advantage of strategic,
accretive acquisitions in the home and office segment," explained Peter Baker,
President of the Company. "While a soft economy has created a challenging
operating environment for our industry, it has provided timely opportunities
for us to continue to acquire independent distributors in our geographic
marketplace," Baker added.
Net income for the third quarter was $566,000, or $.03 per share (basic
and diluted), compared to $1.3 million, or $.06 per share (basic and diluted),
the previous year. Net Income for the first nine months of fiscal year 2003
was $1.2 million, $.05 per share (basic and diluted), compared to $2.2
million, or $.10 per share (basic, $.11 diluted), last year.
"The overall sluggish economy continues to hold margins below our
historical growth rate," said Tim Fallon, Chairman and CEO of Vermont Pure
Holdings, Ltd. He continued, "However, our business continues to be profitable
and generate cash after servicing debt, and funding operations, capital
expenditures, and acquisitions in the home and office segment of our business.
We feel that this positions us well for an upturn in the economic cycle."
Volume in the retail segment remained strong on the strength of the demand
for private label products. The City of New York recently announced that it
has entered into an agreement for Snapple Beverage Group to supply beverages,
including Snap2O bottled spring water, which is a product Vermont Pure
packages, to all City owned facilities.
The Company will hold a conference call to discuss financial results for
its third quarter ending July 31, 2003 today at 11:00 AM (Eastern Time) and is
expected to run approximately one hour. The conference can be attended by
telephone by dialing 800-903-0247 in the U.S. and 785-832-0326 outside the
U.S. The conference ID is VPHL. The call can be accessed live via the
Internet at www.companyboardroom.com. The call also will be available for
replay until midnight on September 18, 2003 by dialing 800-938-0997 in the
U.S. and 402-220-1541 outside the U.S. The call will be available over the
Internet for a period of 90 days after the call. This web-cast can be accessed
through the Company's website, www.vermontpure.com on the investor relations
page as well as the web address listed above.
Vermont Pure Holdings, Ltd., located in Randolph Vermont, is a bottler and
distributor of natural spring water under the Vermont Pure(R), Hidden
Spring(R), and regional private label brands. It also markets purified with
minerals added bottled water through the Crystal Rock(R) brand. The Company's
primary businesses are the marketing of these brands throughout the New
England, New York, and the Mid-Atlantic regions. The Company is currently
executing a growth strategy through expansion of the home and office customer
base, acquisitions, and consolidation of regional home and office bottled
water and coffee distributors. Vermont Pure Holdings Ltd.'s common stock
trades on the American Stock Exchange under the symbol: VPS.
VERMONT PURE HOLDINGS, LTD
Results of Operations
(Unaudited) (Unaudited)
Nine Months Ended: Three Months Ended:
July 31, July 31, July 31, July 31,
2003 2002 2003 2002
(000's $)
Sales $55,680 $53,802 $22,536 $21,579
Income from Operations $5,258 $7,348 $2,107 $3,592
Net Income $1,160 $2,232 $566 $1,292
*Add Back to Net Income:
Interest $3,288 $3,569 $1,139 $1,187
Income Taxes $780 $1,488 $381 $850
Depreciation $3,736 $3,210 $1,248 $1,106
Amortization $126 $174 $48 $58
**EBITDA $9,090 $10,673 $3,382 $4,493
Basic Net Earnings
(Loss) per Share $0.05 $0.11 $0.03 $0.06
Diluted Net Earnings
(Loss) per Share $0.05 $0.10 $0.03 $0.06
Basic Wgt. Avg.
Shares Out. (000's) 21,267 21,092 21,283 21,118
Diluted Wgt Avg.
Shares Out. (000's) 21,824 22,111 21,799 21,978
* This portion of the table can be used to derive EBITDA, a non-GAAP
measure, from net income, a GAAP measure.
** Earnings Before Interest, Taxes, Depreciation and Amortization
Note: This press release contains forward looking statements that involve
a number of risks and uncertainties that could cause actual results to differ
materially from those indicated by such forward looking statements, including
integration of acquisitions, ability to sustain and manage growth, changing
market conditions, and other risks detailed in the company's filings with the
Securities and Exchange Commission.
Contact: Tim Fallon, CEO or Bruce MacDonald, CFO - 802-728-3600
Peter Baker, President - 860-945-0661
Eugene Malone, Corporate Investors Network - 888-377-9777;
Fax: 201-670-6460