WATERTOWN, CT--(Marketwire - January 25, 2010) - Vermont Pure Holdings, Ltd. (
NYSE Amex:
VPS)
announced its financial results for its fiscal year 2009 that ended October
31, 2009 and that these results have been filed on Form 10-K with the
Securities and Exchange Commission today.
Sales in fiscal year 2009 decreased 4% to $66.1 million from $69.2 million
in fiscal year 2008. Sales attributable to acquisitions in fiscal year 2009
were $2.2 million. Net of the acquisitions, sales decreased 8%. Gross
profit decreased 9% in fiscal year 2009 to $35.3 million from $38.9 million
in fiscal year 2008. Gross profit, as a percentage of sales, decreased to
53% from 56% for the respective periods. Income for operations in fiscal
year 2009 was $4.4 million. This compared to a loss from operations in
fiscal year 2008 of $15.9 million. The loss was a result of a non-cash
charge of $22.4 million for impairment of goodwill in the fourth quarter of
fiscal 2008. Net income in fiscal year 2009 was $3.0 million compared to a
net loss of $19.8 million in fiscal year 2008.
Excluding the effect of the goodwill impairment charge in fiscal 2008 and a
one-time increase in non-operating income in fiscal 2009, the Company's
financial performance for fiscal year 2009 declined when compared to fiscal
year 2008. The decline was a result of decreased sales and gross profit and
was not offset by lower operating and interest costs. The decrease in sales
was primarily a result of poor general economic conditions in the Company's
marketplace and a reduction of fuel adjustment charges which were offset by
lower fuel costs. Product margins decreased, as a percentage of sales, as a
result of the product mix skewing more toward single serve coffee and
increased competition.
"Despite lower sales and margins as a result of the poor economic
environment in 2009, our core business continued to be profitable and the
Company remains healthy," said Peter Baker, CEO of Vermont Pure Holdings,
Ltd. "In the face of the challenging operating environment in 2009, we've
made changes to reduce costs while improving our operations. As a result,
we are poised to take advantage of an economic recovery when it occurs," he
concluded.
Vermont Pure Holdings, Ltd. (
NYSE Amex:
VPS), the largest independent home
and office distributor of its kind in the United States, markets water,
coffee and other home and office refreshment products throughout the
Northeast through its subsidiary Crystal Rock LLC. The Company bottles and
distributes natural spring water under the Vermont Pure® brand and
purified water with minerals added under the Crystal Rock® label. The
majority of its sales are derived from a route distribution system that
delivers water in 3- to 5-gallon reusable and recyclable bottles. The
Company continues to set high standards in the bottled water industry
through its technical innovation, commitment to the environment and by
integrating its family roots into relationships with employees and
customers. More information is available at
http://www.crystalrock.com.
VERMONT PURE HOLDINGS, LTD.
Results of Operations
(Unaudited)
Twelve Months Ended: Three Months Ended:
------------------------ ------------------------
October 31, October 31, October 31, October 31,
2009 2008 2009 2008
------------ ----------- ------------ -----------
(000's $)
Sales $ 66,126 $ 69,237 $ 16,612 $ 17,428
Income (Loss) from
operations $ 4,385 $ (15,862) $ 1,012 $ (21,352)
Net Income (Loss) $ 3,020 $ (19,836) $ 400 $ (21,847)
Basic net earnings
(loss) per share $ 0.14 $ (0.92) $ 0.02 $ (1.02)
Diluted net earnings
(loss) per share $ 0.14 $ (0.92) $ 0.02 $ (1.02)
Basic Wgt. Avg. Shares
Out. (000's) 21,526 21,564 21,524 21,497
Diluted Wgt. Avg. Shares
Out. (000's) 21,526 21,564 21,524 21,497
Note: This press release contains forward-looking statements that involve a
number of risks and uncertainties that could cause actual results to differ
materially from those indicated by such forward-looking statements,
including integration of acquisitions, ability to sustain and manage
growth, changing market conditions, and other risks detailed in the
company's filings with the Securities and Exchange Commission.
Contact Information: Contact:
Peter Baker
CEO
860-945-0661 Ext. 3001
Bruce MacDonald
CFO
802-658-9112