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Krispy Kreme posts best year since 2004

March 15, 2013

Krispy Kreme Doughnuts Inc. reported financial results for fiscal year 2012 and Q4, the latter of which included a same-store sales increase of 7.5 percent, the 17 consecutive quarterly increase.

During Thursday's call, CEO Jim Morgan said 2012 was the company's since 2004.

"The year as a whole also was our best since fiscal 2004, and demonstrated again the strength of our business model and affirmed our confidence in achieving our goal of sustainable and profitable growth for years to come. Going forward, the Krispy Kreme investment thesis will no longer be predicated solely on the progress we have made in building a strong foundation for our business, but also on our ability to execute our long-term growth plans," he said.

Krispy Kreme is expanding its system to 1,300 stores by 2017 through company and domestic and international franchise development.

Q4 highlights include:

• Revenues increased 15.9 percent to $118.1 million from $102.0 million;
• Operating income rose 60 percent to $8.5 million from $5.3 million;
• Adjusted net income increased 85 percent to $7.4 million ($0.11 per share) from $4.0 million ($0.06 per share);
• Net income was $4.8 million ($0.07 per share) compared to $143.5 million ($2.01 per share) in the fourth quarter last year; net income for the fourth quarter of last year included an unusual credit of $139.6 million ($1.95 per share) from the reversal of valuation allowances on deferred income tax assets.

Fiscal 2013 highlights include:

• Revenues increased 8.1 percent to $435.8 million from $403.2 million;
• Operating income rose 48 percent to $37.7 million from $25.6 million;
• Adjusted net income increased 54 percent to $34.2 million ($0.49 per share) from $22.2 million ($0.31 per share);
• Net income was $20.8 million ($0.30 per share) compared to $166.3 million ($2.33 per share) last year.
• Company same store sales rose 5.5 percent.

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