FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the period ended July 15, 2003
Coolbrands International Inc.
(formerly Yogen Fruz World-Wide Incorporated)
(Translation of registrant's name into English)
8300 Woodbine Avenue, Markham, Ontario Canada L3R 9Y7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F x
----------- -----------
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No x
------ ----
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82-
------------
Materials relating to Registrant and filed pursuant to this Form 6-K
include a press release concerning Coolbrands' Third Quarterly Report for the
period ending May 31, 2003, together with Consolidated Balance Sheets as at May
31, 2003 (unaudited) and August 31, 2002, Consolidated Statements of Earnings
and Summary Financial Data Consolidated (unaudited) each for the nine months
ended May 31, 2003 and 2002 and the three months ended May 31, 2003 and 2002.
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.
COOLBRANDS INTERNATIONAL INC.
Date July 17, 2003 By /s/ Aaron Serruya
----------------- -------------------------------------
Name: Aaron Serruya
Title: Executive Vice-President
NEWS FROM:
COOLBRANDS INTERNATIONAL, INC.
8300 Woodbine Avenue, 5th Floor Contact: Michael Serruya
Markham, Ontario, Canada, L3R 9Y7 Telephone: (905) 479-8762
FOR IMMEDIATE RELEASE: July 15, 2003
- ------------------------------------
COOLBRANDS INTERNATIONAL INC. REPORTS THIRD QUARTER RESULTS -
11th CONSECUTIVE QUARTER OF
INCREASED REVENUES AND EARNINGS
CoolBrands International Inc. (TSX: COB.A) announced today that net earnings for
the quarter ended May 31, 2003 were $8,957,000 ($0.17 net earnings per share
basic and diluted) as compared with net earnings of $6,826,000 ($0.14 basic and
$0.13 diluted earnings per share) for the same quarter last year, an increase of
$2,131,000 or 31.2%.
Earnings before income taxes were $14,258,000 as compared with $10,433,000 for
the same quarter last year, an increase of $3,825,000, or 36.7%. EBITDA for the
third quarter increased to $15,827,000 from $11,904,000 during the same quarter
last year, an increase of $3,923,000, or 33%.
Revenues increased by $13,919,000, or 20.5%, to $81,908,000 as compared with
$67,989,000 for the same quarter of fiscal 2002. The increase in revenues was
primarily due to increased prepackaged consumer products sales.
Operating results for the quarter reflect an increase in gross profit dollars of
$1,625,000, primarily due to the increase in sales. Gross profit margin as a
percentage of sales declined to 42.9% as compared with 48.4% for the same
quarter last year, primarily due to temporary higher product costs and freight
expenses on certain products. The Company began manufacturing the affected
products at a lower cost facility at the beginning of the fourth quarter which
should result in the gross profit margin increasing to historical levels in the
fourth quarter. Selling, general and administrative expenses decreased by
$460,000, and declined to 28.1% as a percentage of revenues as compared with 34%
of revenues for the third quarter of 2002.
Commenting on the results, David J. Stein, President and Co-Chief Executive
Officer of CoolBrands International Inc. stated "CoolBrands' consumer products
business continued to flourish during the third quarter, with strong sales
growth despite extremely adverse weather conditions that negatively impacted
overall sales in the frozen snack segment. Sales trends have remained very
positive versus last year for the first 6 weeks in the fourth quarter,
reflecting robust internal growth in our core consumer products segment.")
On July 7, 2003 the Company acquired the Dreamery'r' ice cream and Whole
Fruit'TM' sorbet brands from Dreyer's Grand Ice Cream, as well as the rights to
the license for the Godiva'r' ice cream brand, which was assigned by Dreyer's,
including inventories related to these brands, and substantially the entire
Haagen-Dazs ice cream distribution system in the U.S. from Nestle, including
distribution assets in the States of Washington, Oregon, Florida, California,
Pennsylvania, New Jersey, Utah, Minnesota, Georgia, Maryland, and the District
of Columbia. The Company paid approximately CND$13.5 million in cash.
CoolBrands International Inc.
Consolidated Balance Sheets
As at May 31, 2003 and August 31, 2002
- -------------------------------------------------------------------------------
(in thousands of dollars)
May 31, August 31,
2003 2002
(Unaudited)
$ $
Assets
Current Assets:
Cash and short term investments 37,962 47,086
Receivables 41,265 43,001
Receivables - affiliates 5,749 3,792
Inventories 34,249 25,361
Prepaid expenses 9,818 6,752
Asset held for sale 3,432
Future income taxes 2,416 2,415
--------------------------
Total current assets 131,459 131,839
Future income taxes 3,070 3,433
Property, plant and equipment 18,551 19,710
License agreements 11,098 13,438
Intangible and other assets 6,792 7,332
Goodwill 99,011 107,910
--------------------------
269,981 283,662
==========================
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable 27,177 24,399
Payables - affiliates 2,295 978
Accrued liabilities 29,432 32,880
Income taxes payable 952 7,347
Future income taxes 3,581 2,566
Revolving loan 2,742
Current maturities of long-term debt 4,325 6,315
--------------------------
Total current liabilities 70,504 74,485
Long-term debt 19,431 29,279
Other liabilities 4,400 5,240
Future income taxes 3,716 3,950
--------------------------
Total liabilities 98,051 112,954
--------------------------
Capital stock 122,298 122,378
Cumulative translation adjustment (9,881) 5,685
Retained earnings 59,513 42,645
--------------------------
Total shareholders' equity 171,930 170,708
--------------------------
269,981 283,662
==========================
CoolBrands International Inc.
Consolidated Statements of Earnings
- -------------------------------------------------------------------------------
(Unaudited)
(in thousands of dollars, except share data)
For the Nine Months For the Three Months
Ended Ended
May 31 May 31
2003 2002 2003 2002
Revenues:
Sales 197,356 151,656 78,978 66,617
Franchising and licensing revenues:
Royalty income 2,034 2,123 721 734
Franchise and license fees 1,446 862 352 378
Consumer products 436 396 241
Net rental and other income 1,987 820 1,616 260
------------------------------------------------------
Total revenues 203,259 155,857 81,908 67,989
------------------------------------------------------
Operating expenses:
Cost of goods sold 117,016 86,246 45,114 34,378
Selling, general and administrative expenses 57,843 49,740 22,163 22,623
Interest expense 1,451 1,964 373 555
------------------------------------------------------
Total operating expenses 176,310 137,950 67,650 57,556
------------------------------------------------------
Earnings before income taxes 26,949 17,907 14,258 10,433
Provision for income taxes 10,081 6,024 5,301 3,607
------------------------------------------------------
Net earnings 16,868 11,883 8,957 6,826
======================================================
Earnings per share:
Basic 0.33 0.25 0.17 0.14
------------------------------------------------------
Diluted 0.32 0.24 0.17 0.13
======================================================
Weighted average shares outstanding:
Shares used in per share calculation - basic 51,740 46,834 51,757 48,658
Shares used in per share calculation - diluted 53,492 49,284 53,946 51,599
CoolBrands International Inc.
Summary Financial Data (in thousands of dollars, except share data):
Nine Months Ended Three Months Ended
May 31, May 31,
2003 2002 2003 2002
---- ---- ---- ----
$ $ $ $
Revenues 203,259 155,857 81,908 67,989
Earnings before income taxes 26,949 17,907 14,258 10,433
Provision for income taxes 10,081 6,024 5,301 3,607
--------------------------------------------------------
Net earnings 16,868 11,883 8,957 6,826
========================================================
Basic earnings per share: 0.33 0.25 0.17 0.14
Diluted earnings per share: 0.32 0.24 0.17 0.13
EBITDA 32,126 22,781 15,827 11,904
Depreciation and amortization 3,726 2,910 1,196 916
Interest expense 1,451 1,964 373 555
Weighted average number of shares
outstanding:
Shares used in per share calculation - basic 51,740 46,834 51,757 48,658
Shares used in per share calculation - diluted 53,492 49,284 53,946 51,599
CoolBrands markets Eskimo Pie'r', Chipwich'r' and Fruit-A-Freeze'r' branded
frozen novelties and frozen dessert products. Eskimo Pie'r' created the frozen
novelty industry in 1921 when its founder, Christian K. Nelson, invented the
chocolate-coated ice cream bar. Today, more than 80 years later, Eskimo Pie'r'
remains one of the best-known and most widely distributed of all frozen novelty
brands. The Company also markets a broad range of frozen novelties and frozen
dessert products under the Tropicana'r', Welch's'r', Weight Watchers'r' Smart
Ones'r', Betty Crocker'r', Trix'r', Yoplait'r', Colombo'r' and Yoo Hoo'r' brand
names pursuant to long-term licensing agreements. In addition, CoolBrands
franchises and licenses frozen dessert outlets operated under a Family of Brands
including Yogen Fruz'r', I Can't Believe It's Yogurt'r', Bresler's'r',
Swensen's'r', Golden Swirl'r', Ice Cream Churn'r', and Java Coast'r' Fine
Coffees, with company-owned, franchised and non-traditional partnership
locations in approximately 80 countries around the world. Coolbrands'
Foodservice Division is a leading manufacturer and supplier of premium soft
serve ice cream, frozen yogurt, custard and smoothies to the foodservice
industry. The Company also manufactures and sells a full line of quality
flavors, chocolate coatings, fudge sauces, powders for chocolate milk, egg nog
bases and other ingredients and flexible packaging products for use in private
label dairy products in addition to the Company's brands.
As a part of our investor relations activities, the Company is speaking to
certain institutional investors. A copy of the information that is being made to
these investors is available at the investor relations section on the Company's
website: www.yogenfruz.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
Information in this release relating to the Company's future plans and
performance are "forward looking statements" and, as such, involve certain risks
and uncertainties that could cause actual results to vary materially. Potential
risks and uncertainties include, but are not limited to: (1) the highly
competitive nature of the frozen dessert market and the level of consumer
interest in the Company's products, (2) product costing, (3) the weather, (4)
the performance of management, including management's ability to implement its
plans as contemplated, (5) the Company's relationships with its customers,
franchisees, licensees and licensors, and (6) government regulation.
STATEMENT OF DIFFERENCES
The trademark symbol shall be expressed as.................................'TM'
The registered trademark symbol shall be expressed as.......................'r'