EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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99.1 Press release, dated July 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 SECOND QUARTER 2003 RESULTS
EMERYVILLE, Calif. - July 30, 2003 - Peet's Coffee & Tea, Inc. (NASDAQ:PEET),
today announced its second quarter results for the period ended June 29, 2003,
which included 13-weeks.
Net revenue increased 16.8 percent to $29.1 million for the 13-weeks ended June
29, 2003, compared to $24.9 million for the 13-weeks ended June 30, 2002.
Retail Store revenue increased 9.8 percent to $21.1 million, while Specialty
Sales revenue increased 40.6 percent to $8.0 million.
Net income for the second quarter of 2003 increased 114.3 percent to $1.5
million, or $0.12 per share, compared to $718,000, or $0.06 per share for the
second quarter of 2002.
For the 26-weeks ended June 29, 2003, Net revenue increased 14.5 percent to
$56.5 million, compared to $49.3 million for the 26-weeks ended June 30, 2002.
Retail Store revenue increased 7.4 percent to $41.1 million and Specialty Sales
revenue increased 39 percent to $15.4 million.
Net income for the 26-weeks ended June 29, 2003 was $2.8 million, or $0.22 per
share, compared to $1.2 million, or $0.11 per share, for the 26-weeks ended June
30, 2002.
"We're pleased with our second quarter results, which were driven by solid base
business performance, new stores and new specialty customers", said Patrick
O'Dea, president and chief executive officer of Peet's Coffee & Tea, Inc.
"Importantly, we're continuing to strengthen our organization with the right
people, systems, and processes to help us grow well into the future."
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. Q2 2003 CONFERENCE CALL
The company will report its second quarter 2003 earnings via conference call on
Wednesday, July 30, 2003. The teleconference call will begin at 2 p.m. PDT/5
p.m. EDT. 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 651420. The recording will be archived
through midnight EDT on August 6, 2003. The webcast will be archived through
midnight EDT on July 29, 2004.
-MORE-
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 specialty
grocery and gourmet food stores, online and mail order, office and restaurant
accounts and 71 company-owned 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 Thirteen Twenty-six Twenty-six
weeks ended weeks ended weeks ended weeks ended
06/29/2003 06/30/2002 06/29/2003 06/30/2002
Retail stores $ 21,057 $ 19,183 $ 41,088 $ 38,273
Specialty sales 8,023 5,706 15,390 11,072
------------ ------------ ------------ ------------
NET REVENUE 29,080 24,889 56,478 49,345
COGS & related occupancy expenses 13,273 11,493 25,989 23,068
Operating expenses 9,546 7,939 18,757 15,917
Marketing & advertising expenses 1,289 1,246 2,399 2,270
General & administrative expenses 1,493 2,054 2,862 4,031
Depreciation & amortization expenses 1,181 1,133 2,319 2,230
------------ ------------ ------------ ------------
Total operating cost & expenses 26,782 23,865 52,326 47,516
OPERATING INCOME 2,298 1,024 4,152 1,829
Interest income 225 117 473 87
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAX 2,523 1,141 4,625 1,916
Income tax provision 984 423 1,804 709
------------ ------------ ------------ ------------
NET INCOME $ 1,539 $ 718 $ 2,821 $ 1,207
============ ============ ============ ===========
NET INCOME PER SHARE:
Basic $ 0.12 $ 0.06 $ 0.23 $ 0.12
Diluted $ 0.12 $ 0.06 $ 0.22 $ 0.11
SHARES USED IN CALCULATING NET INCOME PER SHARE:
Basic 12,412 11,155 12,320 9,831
Diluted 13,100 11,922 12,948 10,587
Peet's Coffee & Tea, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
June 29, 2003 December 29, 2002 June 30, 2002
ASSETS
Current Assets
Cash & cash equivalents $ 22,809 $ 19,672 $ 46,145
Accounts receivable 2,780 2,210 969
Income tax receivable - 1,117 -
Inventories 11,684 11,007 9,469
Prepaid expenses and other 1,919 1,803 1,283
-------------- ------------------ ---------------
Total Current Assets 39,192 35,809 57,866
Property and equipment, net 30,787 27,929 23,910
Deferred income taxes - - 1,059
Intangibles and other assets, net 3,226 3,305 3,777
Long-term U.S. government securities 27,356 28,102 -
-------------- ------------------ ---------------
Total Assets $ 100,561 $ 95,145 $ 86,612
============== ================== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 5,469 $ 6,463 $ 5,174
Accrued compensation and benefits 3,728 3,741 3,142
Other accrued liabilities 3,741 2,638 1,784
Short-term borrowings - - -
Current portion of long-term borrowings 444 468 507
-------------- ------------------ ---------------
Total Current Liabilities 13,382 13,310 10,607
Long-term borrowings, less current portion 201 424 646
Deferred income taxes 163 181 -
Deferred lease credits 775 726 635
-------------- ------------------ ---------------
Total Liabilities 14,521 14,641 11,888
-------------- ------------------ ---------------
Shareholders' Equity
Common stock 80,761 78,014 75,983
Other comprehensive income (loss) 233 265 (34)
Retained earnings (accumulated deficit) 5,046 2,225 (1,225)
-------------- ------------------ ---------------
Total Shareholders' Equity 86,040 80,504 74,724
-------------- ------------------ ---------------
Total Liabilities & Shareholders' Equity $ 100,561 $ 95,145 $ 86,612
============== ================== ===============