Current Report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities and Exchange Act of 1934

Date of Report (Date of earliest event reported): April 28, 2009

Peet's Coffee & Tea, Inc.  

(Exact Name of Registrant as Specified in Its Charter)

Washington (State or other jurisdiction of Incorporation)

0-32233 (Commission File No.)

91-0863396 (IRS Employer Identification No.)

1400 Park Avenue

Emeryville, California 94608-3520

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (510) 594-2100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

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SECTION 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On April 28, 2009, Peet's Coffee & Tea, Inc. (the "Company") announced via press release its financial results for the quarter ended March 29, 2009.

The press release is attached as Exhibit 99.1. The press release is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or subject to the liabilities of that section. The information in Items 2.02 and 9.01 of this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

SECTION 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.

 

	Exhibit No.	Description
	99.1	Press Release dated April 28, 2009

 

 

 

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 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Peet's Coffee & Tea, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Peet's Coffee & Tea, Inc.
Dated: April 28, 2009		By:	/s/ Thomas Cawley
			Thomas Cawley
			Chief Financial Officer

 

 

 

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EXHIBIT INDEX

Exhibit Number		Description
99.1		Press release dated April 28, 2009

 

 

 

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Exhibit 99.1

Media Contact: Melanie Vuynovich Double Forte 415.848.8122 mvuynovich@double-forte.com

Investor Contact: Seanna Allen Peet’s Coffee & Tea, Inc. 510.594.2196 investorrelations@peets.com

PEET’S COFFEE & TEA, INC. REPORTS FIRST QUARTER 2009 RESULTS

EMERYVILLE, Calif. – April 28, 2009 - Peet’s Coffee & Tea, Inc. (NASDAQ: PEET) today announced its first quarter 2009 results for the period ended March 29, 2009, which included 13 weeks.

In this release, the Company:

·

Reports first quarter diluted earnings per share of $0.23, an increase of 53% versus last year,

·

Reports net revenue of $72.1 million, an increase of 7% versus last year, and

·

Reaffirms guidance for 2009 of diluted earnings per share of $0.94 to $1.00.

For the 13 weeks ended March 29, 2009, net revenue increased 7% to $72.1 million from $67.1 million for the corresponding period last year.

Net income for the quarter was $3.1 million, or $0.23 per share, compared to $2.1 million, or $0.15 per diluted share, for the corresponding period last year.

“Our strong profit this quarter reflects the power of the Peet’s brand and our ability to leverage the people, plant and systems infrastructure we’ve built to drive improved results,” said Patrick O’Dea, president and CEO of Peet's Coffee & Tea. “The combination of focusing on our highly loyal customer base and executing with excellence across the Company is enabling us to grow quite profitably despite the challenging economic environment.”

Financial and Operating Summary

Retail net revenue increased 8% to $48.0 million for the 13 weeks ended March 29, 2009 from $44.6 million for the corresponding period last year. The increase was primarily attributed to new retail stores opened in the last 12 months. The Company opened two new retail locations in the quarter.

Specialty net revenue increased 7% to $24.1 million, compared to $22.5 million for the corresponding period last year .  At the end of the quarter, approximately 8,400 grocery stores carried Peet’s coffee. Within the specialty business, grocery sales grew 11%, foodservice and office was up 10%, and home delivery sales were down 8% compared to the same period last year.

Cost of sales and related occupancy costs increased to $32.6 million, compared to $32.0 million for the corresponding period last year, but decreased as a percentage of net revenue to 45.2%, compared to 47.6% for the corresponding period last year.  The decrease from last year was due to effective cost controls in the plant and retail stores, higher prices in retail and grocery, favorable product mix in foodservice and office, and lower milk and shipping costs, partially offset by higher green coffee costs.

Operating expenses increased to $25.2 million, compared to $23.5 million for the corresponding period last year, but decreased slightly as a percentage of net revenue to 34.9%, compared to 35.0%, for the corresponding period last year.  The decrease was primarily due to effective cost management in the retail business, including lower training, repairs and supplies spending, as well as leveraging of retail overhead costs.  This was mostly offset by higher costs in grocery to support the expansion of the direct store delivery sales system into the eastern U.S.

 

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General and administrative expenses increased to $5.9 million compared to $5.6 million for the same period last year driven by higher payroll related costs, partially offset by lower administration costs.

Depreciation and amortization expenses increased to $3.6 million, compared to $3.1 million for the corresponding period last year. The increase was primarily due to the opening of 16 new retail stores in the last 12 months.

The Company ended the quarter with cash and cash equivalents plus investments of $16.6 million.

 

Peet’s Coffee & Tea, Inc. Q1 2009 Conference Call

 

The Company will report its first quarter 2009 earnings results via conference call on Tuesday, April 28, 2009.  The teleconference will begin at 2:00 p.m. PT/5:00 p.m. ET. 

The teleconference can be accessed by calling 1-877-545-1489. The call will be simultaneously webcast on Peet’s web site at www.peets.com . A replay of the teleconference will be available at 5:00 p.m. PT/ 8:00 p.m. ET through 8:59 p.m. PT/11:59 p.m. ET on, May 5, 2009 at 1-888-203-1112 or 1-719-457-0820, using access code 7479322.  It will also be archived at http://investor.peets.com/medialist.cfm through April 28, 2010, at 8:59p.m. PT/11:59 p.m. ET.

ABOUT PEET’S COFFEE & TEA, INC.

 

Peet's Coffee & Tea, Inc., (PEET), is the premier specialty coffee and tea company in the United States. Peet's buys the highest quality beans in the world, artisan roasts every bean by hand to order, and delivers all of its coffee quickly for superior freshness no matter where it is sold. Founded in 1966 in Berkeley, California by Alfred Peet, who is widely recognized as the grandfather of specialty coffee in the U.S., Peet's has a rapidly growing, passionate customer following that seeks out Peet's coffees wherever they go. Peet's is committed to strategically growing its business through many channels without compromising the extraordinary quality of its coffee. For more information about Peet's Coffee & Tea, Inc. visit www.peets.com.

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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. These forward looking statements include statements relating to 2009 forecasted earnings per diluted share. Forward-looking statements are based on management’s beliefs as well as assumptions made by and information currently available to management, including financial and operational information, the Company’s stock price volatility, and current competitive conditions.  As a result, these statements are subject to various risks and uncertainties.  The Company’s actual results could differ materially from those set forth in forward-looking statements depending on a variety of factors including, but not limited to, general economic conditions, including the current recession and its ongoing negative impact on consumer spending, 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 impact of the Company’s stock price volatility on the valuation of stock-based compensation under SFAS 123(R); 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 28, 2008.  These factors may not be exhaustive.  The Company operates in a continually changing business environment, and new risks emerge from time to time.  Any forward-looking statements speak only as of the date of this press release.

 

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PEET’S COFFEE & TEA, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share amounts)
		March 29,				December 28,
		2009				2008
ASSETS
Current assets
Cash and cash equivalents		$	12,003			$	4,719
Short-term marketable securities			4,558				8,600
Accounts receivable, net			10,115				11,924
Inventories			22,572				26,124
Deferred income taxes - current			2,922				2,922
Prepaid expenses and other			5,499				7,193
Total current assets			57,669				61,482
Property, plant and equipment, net			108,391				107,914
Deferred income taxes - non current			3,068				3,059
Other assets, net			2,812				3,897
Total assets		$	171,940			$	176,352
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and other accrued liabilities		$	9,366			$	9,858
Accrued compensation and benefits			8,294				8,852
Deferred revenue			4,979				6,350
Total current liabilities			22,639				25,060
Deferred lease credits			7,030				6,645
Other long-term liabilities			808				740
Total liabilities			30,477				32,445
Shareholders' equity
Common stock, no par value; authorized 50,000,000 shares;
issued and outstanding:12,880,000 and 13,174,000 shares			84,669				90,123
Accumulated other comprehensive income (loss)			(9	)			34
Retained earnings			56,803				53,750
Total shareholders' equity			141,463				143,907
Total liabilities and shareholders' equity		$	171,940			$	176,352

 

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PEET’S COFFEE & TEA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share amounts)
		Thirteen weeks ended
		March 29,				March 30,
		2009				2008
Retail stores		$	47,982			$	44,609
Specialty sales			24,122				22,526
Net revenue			72,104				67,135
Cost of sales and related occupancy expenses			32,568				31,989
Operating expenses			25,171				23,529
General and administrative expenses			5,938				5,562
Depreciation and amortization expenses			3,607				3,070
Total costs and expenses from operations			67,284				64,150
Income from operations			4,820				2,985
Interest income			78				304
Income before income taxes			4,898				3,289
Income tax provision			1,845				1,198
Net income		$	3,053			$	2,091
Net income per share:
Basic		$	0.23			$	0.15
Diluted		$	0.23			$	0.15
Shares used in calculation of net income per share:
Basic			13,039				13,956
Diluted			13,241				14,236

 

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PEET’S COFFEE & TEA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
		Thirteen weeks ended
		March 29,				March 30,
		2009				2008
Cash flows from operating activities:
Net income		$	3,053			$	2,091
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization			4,141				3,605
Amortization of interest purchased			27				60
Stock-based compensation			643				668
Excess tax benefit from exercise of stock options			(28	)			(30	)
Tax benefit from exercise of stock options			17				19
Loss on disposition of assets and asset impairment			7				49
Deferred income taxes			(9	)			-
Changes in other assets and liabilities:
Accounts receivable, net			1,809				(44	)
Inventories			3,552				2,010
Prepaid expenses and other current assets			1,694				(178	)
Other assets			177				3
Accounts payable, accrued liabilities and deferred revenue			(3,235	)			1,075
Deferred lease credits and other long-term liabilities			453				529
Net cash provided by operating activities			12,301				9,857
Cash flows from investing activities:
Purchases of property, plant and equipment			(3,787	)			(8,828	)
Changes in restricted investments			884				-
Proceeds from sales and maturities of marketable securities			3,972				1,765
Purchases of marketable securities			-				(917	)
Net cash provided by/(used in) investing activities			1,069				(7,980	)
Cash flows from financing activities:
Net proceeds from issuance of common stock			450				544
Purchase of common stock			(6,564	)			-
Excess tax benefit from exercise of stock options			28				30
Net cash provided by/(used in) financing activities			(6,086	)			574
Increase in cash and cash equivalents			7,284				2,451
Cash and cash equivalents, beginning of period			4,719				15,312
Cash and cash equivalents, end of period		$	12,003			$	17,763
Non-cash investing activities:
Capital expenditures incurred, but not yet paid		$	1,548			$	2,772
Other cash flow information:
Cash paid for income taxes			21				119

 

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SEGMENT REPORTING
(Unaudited, dollars in thousands)
		Retail								Specialty								Unallocated				Total
						Percent								Percent												Percent
						of Net								of Net												of Net
		Amount				Revenue				Amount				Revenue								Amount				Revenue
For the thirteen weeks ended March 29, 2009
Net revenue		$	47,982				100.0	%		$	24,122				100.0	%						$	72,104				100.0	%
Cost of sales and occupancy			20,525				42.8	%			12,043				49.9	%							32,568				45.2	%
Operating expenses			19,756				41.2	%			5,415				22.4	%							25,171				34.9	%
Depreciation and amortization			2,762				5.8	%			427				1.8	%		$	418				3,607				5.0	%
Segment operating income			4,939				10.3	%			6,237				25.9	%			(6,356	)			4,820				6.7	%
For the thirteen weeks ended March 30, 2008
Net revenue		$	44,609				100.0	%		$	22,526				100.0	%						$	67,135				100.0	%
Cost of sales and occupancy			20,356				45.6	%			11,633				51.6	%							31,989				47.6	%
Operating expenses			19,026				42.7	%			4,503				20.0	%							23,529				35.0	%
Depreciation and amortization			2,378				5.3	%			340				1.5	%		$	352				3,070				4.6	%
Segment operating income			2,849				6.4	%			6,050				26.9	%			(5,914	)			2,985				4.4	%

 

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