Krispy Kreme Doughnuts, Inc. (KKD) reported Monday a profit for the first quarter that declined from last year, reflecting significantly higher provision for income taxes. However, adjusted earnings per share and quarterly revenues increased and topped analysts' expectations. The company also reaffirmed its earnings outlook for the full-year 2013.
"We got off to a good start in fiscal 2013 as operating income rose 11% on a 4% increase in revenues. All four of our business segments reported improved operating results compared to last year," CEO James Morgan said in a statement.
The Winston-Salem, North Carolina-based company reported net income of $6.03 million or $0.08 per share for the first quarter, lower than $9.17 million or $0.13 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to $10.26 million or $0.14 per share from $9.22 million or $0.13 per share in the year-ago quarter.
On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 3.7 percent to $108.50 million from $104.60 million in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $111.40 million for the quarter.
At the company's stores, revenues rose 5.6 percent to $73.3 million from last year, with same store sales growth of 2.1 percent aided by higher customer traffic and price increases.
Domestic franchise revenues increased 11.1 percent, with same store sales increasing 5.8 percent, and international franchise revenues increased 6.9 percent from last year. Meanwhile, KK supply chain revenues were flat with last year.
Looking ahead to the fiscal 2013, Krispy Kreme continues to expect adjusted earnings in the range of $0.35 to $0.41 per share, while Street is looking for $0.25 per share.
"Based on these results and other factors, we expect our business model to generate healthy cash flows and financial returns for investors, and we remain confident in our previous outlook for the full year," Morgan added.
In Monday's regular trading session, KKD is currently trading at $6.18, up $0.17 or 2.83% on a volume of 19,505 shares.
by RTT Staff Writer
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