WATERTOWN, Conn., June 16 /PRNewswire-FirstCall/ -- Vermont Pure Holdings,Ltd. (Amex: VPS) announced its financial results for the second quarter andfirst six months of its fiscal year 2008 and that it will file these resultson Form 10-Q with the Securities and Exchange Commission today.
Total sales for the first six months of fiscal year 2008 increased 9% to$33.8 million from $31 million for the comparable period a year ago. Grossprofit increased 10% in the first half of 2008 to $18.9 million from $17.2million in the comparable period a year earlier. Gross margin, as apercentage of sales, of 56% was unchanged from year to year. Net incomeincreased 40% to $983,000 in the first six months of fiscal year 2008 comparedto $703,000 in the first six months of fiscal year 2007.
For the Company's second fiscal quarter sales increased 11% to $17.4million from $15.7 million in the same period a year ago. Gross marginincreased 13% to $9.8 million in the second quarter of 2008 from $8.7 millionin the second quarter of 2007. Gross margin, as a percentage of salesincreased to 56% from 55% in the respective periods. Net income improved to$471,000 in the second quarter of 2008 compared to $412,000 in the secondquarter of 2007, an increase of $59,000, or 14%.
'Our consistent top line growth has fueled a strong increase in grossmargin so far this year and, despite providing for a one time bad debt writeoff of a note receivable of $475,000, we have generated a meaningful increasein net income in the second quarter and first six months of the year' saidPeter Baker, C.E.O. of Vermont Pure Holdings, Ltd. 'Because of ourconsistently improving sales, gross margin and net income in fiscal years 2007and 2008, we are well positioned to continue to invest in our business tocontrol our costs in the future. Most notably, our solar installation in atthe Connecticut facility will be operational this month and the upgrade of ourfleet to vehicles with greater fuel efficiency and conversion to highefficiency lighting in all of our locations will be complete by year end,'Baker concluded.
Vermont Pure Holdings, Ltd. is the largest independent and third largestHome and Office distributor of its kind in the United States. The Companybottles and distributes natural spring water and purified with minerals addedbottled water under the Crystal Rock(R) and the Vermont Pure(R) trademarks.It markets its bottled water brands, as well as coffee and other home andoffice refreshment products, to customers throughout New England and New York.Vermont Pure Holdings Ltd.'s common stock trades on the American StockExchange under the symbol: VPS.
(Unaudited) (Unaudited) Six Months Ended: Three Months Ended: April 30, April 30, April 30, April 30, 2008 2007 2008 2007 (000's $)
Sales $33,823 $30,979 $17,438 $15,677
Income from operations $3,124 $2,797 $1,578 $1,489
Net Income $983 $703 $471 $412
Basic net earnings per share $0.05 $0.03 $0.02 $0.02 Diluted net earnings per share $0.05 $0.03 $0.02 $0.02
Basic Wgt. Avg. Shares Out. (000's) 21,619 21,629 21,624 21,635 Diluted Wgt Avg. Shares Out. (000's) 21,619 21,629 21,624 21,635
Note: This press release contains forward looking statements that involvea number of risks and uncertainties that could cause actual results to differmaterially from those indicated by such forward looking statements, includingintegration of acquisitions, ability to sustain and manage growth, changingmarket conditions, and other risks detailed in the company's filings with theSecurities and Exchange Commission.
SOURCE Vermont Pure Holdings, Ltd.
