Odwalla Has Profit Losses for 4Q and FY01, Optimistic About Coke Merger

Odwalla Has Profit Losses for 4Q and FY01, Optimistic About Coke Merger

HALF MOON BAY, Calif.--With revenues slightly depressed in thefourth quarter (4Q01) but stellar at the year's end (FY01), Odwalla Inc. (NASDAQ:ODWA)still posted net losses for the quarter and its fiscal year, ended Sept. 1. Netsales for 4Q01 were down 7.1 percent to $30.6 million from $32.9 million loggedin the same quarter last year (4Q00). Gross margin was the same for both fourthquarters, holding at around 50 percent of sales, as did operating expenses,staying near $15 million. A net loss was registered for 4Q01 of $265,000 (or$.02 per share lost), down from a 4Q00 profit of $534,000 (or $.05 per sharegained).

For FY01, the company had a 32.2-percent growth in sales, going from $93.5million last year (FY00) to $128.3 million for FY01, due in part to theacquisition of Fresh Samantha. Gross margin went up slightly to 51.9 percent of sales, compared to 49.2 percent of sales in the year prior. Due to a $14 millionincrease in sales and distribution expenses in FY01, operating costs balloonedto $63.1 million, a 40.4-percent increase from FY00's $44.9 million, whichcontributed to a net loss of $434,000 (or $.04 per share lost) for this year,compared to a net profit of $3.7 million (or $.44 per share gained) in the yearprior.

"Our sales growth rates declined in some parts of the country due to theslowing of the economy," said Stephen Williamson, chairman and chiefexecutive officer of Odwalla. He added that the recent merger with The Coca-ColaCompany should improve the company's standing. "The Coca-Cola Companybelieves in our vision, our products and our people. We believe the acquisitionwill allow us to continue Odwalla's entrepreneurial spirit and bringing ourvision to more people with the support and experience that Coca-Cola canprovide," Williamson added.