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 November 1, 2002
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 relating to Coolbrands' Fourth Quarter and 2002 Fiscal
Year revenues and net earnings for the period ending August 31, 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 November 5, 2002 By s/Aaron Serrya
------------------ --------------------------
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: November 1, 2002
COOLBRANDS REPORTS RECORD RESULTS
FOR FOURTH QUARTER AND 2002 FISCAL YEAR
CoolBrands International Inc. (TSE: COB.A) announced its operating results for
the fourth quarter, and the fiscal year, ended August 31, 2002.
Revenues and earnings continued the strong growth trends of the previous 7
consecutive fiscal quarters. Revenues for the quarter increased by 38% to
$86,365,000 from $62,445,000 for the same quarter last year. Net earnings for
the quarter increased by 58% to $9,101,000 ($0.18 basic and $0.17 diluted
earnings per share) as compared with net earnings adjusted for the exclusion of
goodwill amortization of $5,749,000 ($0.13 basic and $0.12 diluted earnings per
share) for the same period last year.
For fiscal 2002, revenues increased by 36% to $242,222,000 as compared with
$177,610,000 for fiscal 2001. Net earnings for fiscal 2002 increased by 64% to
$20,984,000 ($0.44 basic and $0.42 diluted earnings per share) as compared with
net earnings adjusted for the exclusion of goodwill amortization of $12,797,000
($0.28 basic and diluted earnings per share) for fiscal 2001.
The growth in revenues for the fourth quarter and fiscal 2002 reflected
increased sales, primarily of prepackaged consumer products. Sales for the
fourth quarter increased by 42% to $83,422,000 as compared with $58,840,000 for
the fourth quarter of 2001. Sales for fiscal 2002 increased by 40% to $231,932
as compared with $165,576 for fiscal 2001. Gross profit percentage for fiscal
2002 increased to 46% as compared to 43.8% for fiscal 2001, due to increased
sales of higher margin products. Selling, general and administrative expenses
for fiscal 2002 declined as a percentage of revenues to 32% as compared to 33%
for fiscal 2001.
Commenting on the results, David J. Stein, President and Co-Chief Executive
Officer of CoolBrands International Inc. stated, "During fiscal 2002, our
business continued to show impressive organic growth, with sales of our branded
consumer products increasing dramatically during each fiscal quarter. Management
believes that each of the Company's consumer product brands, and each of the
Company's reporting segments, is positioned for continued profitable growth in
fiscal 2003."
During the fourth quarter, the Company purchased in separate transactions the
businesses and assets of Chipwich, Inc. and Fruit-A-Freeze, Incorporated for
total consideration of $11,689,000 which was paid out of the Company's operating
cash flow. After paying for these acquisitions, the Company's cash position
increased to $47,086,000 at August 31, 2002 as compared to $31,568,000 at August
31, 2001.
Effective September 1, 2001 the Company adopted the new recommendations of the
Canadian Institute of Chartered Accountants in accounting for goodwill and other
intangible assets. As a result of this change, beginning with the first quarter
of fiscal 2002, the Company no longer amortizes goodwill. Due to the exclusion
of such amortization of goodwill, net earnings as reported last year would have
increased by $383,000 ($0.01 per share) for the fourth quarter, and $1,669,000
($0.04 per share) for the fiscal year. Excluding amortization of goodwill,
reported earnings before income taxes last year would have increased by $613,000
for the forth quarter, and $2,670,000 for the fiscal year. Earnings before
income tax in fiscal 2002 thus reflect an increase of $7,565,000, or 102%, for
the fourth quarter, and $12,939,000, or 65% for the fiscal year, over the same
periods of the prior year, after adjusting for the exclusion of amortization of
goodwill.
Summary Financial Data:
Three Months Ended
August 31, 2002 August 31, 2001
--------------- ---------------
Revenues $86,365,000 $62,445,000
Earnings before income taxes $14,967,000 $6,789,000
Provision for income taxes 5,866,000 1,423,000
---------------------------------
Reported net earnings 9,101,000 5,366,000
Goodwill amortization 383,000
---------------------------------
Adjusted net earnings $9,101,000 $5,749,000
=================================
Basic earnings per share:
Reported net earnings $.18 $.12
Goodwill amortization .01
---------------------------------
Adjusted net earnings $.18 $.13
=================================
Diluted earnings per share:
Reported net earnings $.17 $.11
Goodwill amortization .01
---------------------------------
Adjusted net earnings $.17 $.12
=================================
EBITDA $17,283,000 $9,591,000
Depreciation and amortization $1,736,000 $2,007,000
Interest expense $580,000 $795,000
Weighted average number of shares
outstanding 51,660,000 45,857,000
Year Ended
August 31, 2002 August 31, 2001
--------------- ---------------
Revenues $242,222,000 $177,610,000
Earnings before income taxes $32,874,000 $17,265,000
Provision for Income Taxes 11,890,000 6,137,000
---------------------------------
Reported net earnings 20,984,000 11,128,000
Goodwill amortization 1,669,000
---------------------------------
Adjusted net earnings $20,984,000 $12,797,000
=================================
Basic earnings per share:
Reported net earnings $.44 $.24
Goodwill amortization .04
---------------------------------
Adjusted net earnings $.44 $.28
=================================
Diluted earnings per share:
Reported net earnings $.42 $.24
Goodwill amortization .04
---------------------------------
Adjusted net earnings $.42 $.28
=================================
EBITDA $40,064,000 $27,629,000
Depreciation and amortization $4,646,000 $6,908,000
Interest expense $2,544,000 $3,456,000
Weighted Average number of shares
outstanding 48,050,000 45,834,000
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.
"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.