EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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99.1 Press release, dated April 30, 2003.
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACTS: INVESTOR CONTACT:
Julie Kim/Jamie Borasi Billie Anderson
Weber Shandwick Peet's Coffee & Tea, Inc.
415.248.3419/415.248.3416 510.594.2100
jkim@webershandwick.com banderson@peets.com
jborasi@webershandwick.com
PEET'S COFFEE & TEA, INC. REPORTS FIRST QUARTER 2003 RESULTS
EMERYVILLE, Calif. - April 30, 2003 - Peet's Coffee & Tea, Inc. (NASDAQ: PEET)
today announced its first quarter results for the period ended March 30, 2003,
which included 13-weeks.
Net sales increased 12.0 percent to $27.4 million for the 13-weeks ended March
30, 2003, compared to $24.5 million for the 13-weeks ended March 31, 2002.
Retail Store revenue increased 4.9 percent to $20.0 million, while Specialty
Sales revenue increased 37.3 percent to $7.4 million.
Net income for the first quarter 2003 increased 162.7 percent to $1.3 million,
or $0.10 per share, compared to $488,000, or $0.05 per share for the first
quarter of 2002.
"Our first quarter results are on track with our quarterly plan to deliver the
year. We successfully implemented several initiatives that will contribute to
our growth in future quarters, including opening four new stores late in March,
converting our Safeway grocery business from warehouse to direct distribution
and adding several new grocery customers," said Patrick O'Dea, president and
chief executive officer of Peet's Coffee & Tea, Inc. "We continue to make strong
progress in each of our channels of business and remain confident in our outlook
for the year."
The Company reiterated its guidance for fiscal 2003 with sales growth between 13
and 15 percent and EPS between $0.57 and $0.60 per share.
PEET'S COFFEE & TEA, INC. Q1 2003 CONFERENCE CALL
The Company will report its first quarter 2003 earnings via conference call
on Wednesday, April 30, 2003. The teleconference call will begin at 2 p.m. PT/5
p.m. ET. The call will be simultaneously webcast on Peet's Web site at
www.peets.com. A news release outlining the financial results will be
distributed publicly an hour prior to the call.
The teleconference can be accessed by calling 1-800-289-0496. A replay of the
teleconference will be available 90 minutes after the end of the call at
1-888-203-1112, using access code 708764. The recording will be archived
through midnight ET on May 7, 2003.
-MORE-
PEET'S COFFEE & TEA, INC.
REPORTS FIRST QUARTER 2003 RESULTS
PAGE 2
ABOUT PEET'S COFFEE & TEA, INC.
Founded in Berkeley, Calif. in 1966, Peet's Coffee & Tea, Inc. is a
specialty coffee roaster and marketer of fresh, deep-roasted whole bean coffee
for home and office enjoyment. Peet's fresh-roasted coffee, hand-selected tea
and related items are sold in several distribution channels including grocery
stores, online and mail order, office, restaurant, and foodservice accounts and
69 company-operated stores in four states. Peet's is committed to strategically
growing its business and to maintaining a unique culture and focus on customer
satisfaction. For information about Peet's Coffee & Tea, Inc., visit
www.peets.com or call 1-800-999-2132. Peet's Coffee & Tea, Inc. shares are
traded under the symbol PEET.
###
This press release contains statements that are not based on historical
fact and are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including those relating to estimated
earnings per share and net revenues for the full year 2003. Because of the
uncertainties inherent in these forward-looking statements, the Company's actual
results could differ materially from those set forth in forward-looking
statements. The Company's estimates regarding its operations and financial
results are based on currently available operating, financial and competitive
information. Actual future results and trends may differ materially depending on
a variety of factors including but not limited to, risks arising from accounting
adjustments; the Company's ability to implement its business strategy, attract
and retain customers, and obtain and expand its market presence in new
geographic regions; the availability and cost of high quality Arabica coffee
beans; consumers' tastes and preferences; and competition in its market as well
as other risk factors as described more fully in the Company's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the year ended December 29, 2002.
Peet's Coffee & Tea, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in thousands)
Thirteen weeks ended Thirteen weeks ended
03/30/2003 03/31/2002
Retail stores $ 20,031 $ 19,090
Specialty sales 7,367 5,366
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NET REVENUE 27,398 24,456
COGS & related occupancy expenses 12,716 11,575
Operating expenses 9,211 7,978
Marketing & advertising expenses 1,110 1,024
General & administrative expenses 1,369 1,977
Depreciation & amortization expenses 1,138 1,097
---------------------- ---------------------
Total operating cost & expenses 25,544 23,651
OPERATING INCOME 1,854 805
Interest (income)/expense, net (248) 31
---------------------- ---------------------
INCOME BEFORE INCOME TAX 2,102 774
Income tax provision 820 286
---------------------- ---------------------
NET INCOME $ 1,282 $ 488
====================== =====================
NET INCOME PER SHARE:
Basic $ 0.10 $ 0.06
Diluted $ 0.10 $ 0.05
SHARES USED IN CALCULATING NET INCOME PER SHARE:
Basic 12,227 8,508
Diluted 12,814 9,263
Peet's Coffee & Tea, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
March 30, 2003 December 29, 2002 March 31, 2002
ASSETS
Current Assets
Cash & cash equivalents $ 21,094 $ 19,672 $ 6,404
Accounts receivable 2,320 2,210 1,321
Income tax receivable 297 1,117 -
Inventories 9,309 11,007 7,344
Prepaid expenses and other 1,990 1,803 1,519
--------------- ------------------ ----------------
Total Current Assets 35,010 35,809 16,588
Property and equipment, net 28,989 27,929 23,221
Deferred income taxes - - 811
Intangibles and other assets, net 3,688 3,305 1,969
Long term U.S. government securities 27,328 28,102 -
--------------- ------------------ ----------------
Total Assets $ 95,015 $ 95,145 $ 42,589
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 5,045 $ 6,463 $ 4,297
Accrued compensation and benefits 2,867 3,741 2,378
Other accrued liabilities 2,554 2,638 1,927
Short-term borrowings - - 450
Current portion of long-term borrowings 449 468 513
--------------- ------------------ ----------------
Total Current Liabilities 10,915 13,310 9,565
Long-term borrowings, less current portion 313 424 767
Deferred income taxes 144 181 -
Deferred lease credits 729 726 633
--------------- ------------------ ----------------
Total Liabilities 12,101 14,641 10,965
--------------- ------------------ ----------------
Shareholders' Equity
Common stock 79,203 78,014 33,655
Other comprehensive income (loss) 204 265 (87)
Retained earnings (accumulated deficit) 3,507 2,225 (1,944)
--------------- ------------------ ----------------
Total Shareholders' Equity 82,914 80,504 31,624
--------------- ------------------ ----------------
Total Liabilities & Shareholders' Equity $ 95,015 $ 95,145 $ 42,589
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