MINNEAPOLIS, Nov. 4, 2009 (GLOBE NEWSWIRE) -- Caribou Coffee Company, Inc. (Nasdaq:CBOU), the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses, today reported financial results for the third quarter of 2009 (thirteen weeks ended September 27, 2009).

HIGHLIGHTS FOR THE THIRD QUARTER OF 2009 INCLUDE:

 * Consolidated sales increased 3.0% compared to the third
   quarter of 2008
 * Earnings per share of $0.03 for the third quarter compared
   to a loss of ($0.45) per share in the third quarter of 2008
 * Commercial sales for the quarter increased 47% compared to
   the third quarter of 2008
 * Comparable coffeehouse store sales for the quarter were
   slightly down 0.5% an improvement of 280 basis points compared
   to the second quarter of 2009
 * EBITDA increased 125% to $4.5 million compared to $2.0 million
   in the third quarter of 2008.

Speaking on behalf of the Company, Michael Tattersfield, the Company's President and CEO commented, "This quarter marks the fourth consecutive quarter of positive earnings for Caribou Coffee. These results were driven by strong execution at every level of our business and a fundamental focus on growing our multi channel business, a key component of our future growth strategy. We are focused on becoming a branded coffee company and are making the necessary investments to expand the brand. Our strong balance sheet and cash flow positions the company for future growth."

THIRD QUARTER 2009 RESULTS

Total net sales increased $1.8 million, or 3.0%, to $62.7 million for the quarter ended September 27, 2009, from $60.9 million for the quarter ended September 28, 2008.

 * Coffeehouse sales were $54.5 million in the third quarter 2009,
   as compared with $54.7 million in the third quarter of 2008, a
   decrease of 0.5%.  The decrease reflects a 0.5% decline in
   comparable coffeehouse sales in the third quarter of 2009 as
   compared to the same period in fiscal 2008. 
 * Commercial sales were $6.6 million in the third quarter of 2009
   as compared with $4.5 million in the third quarter of 2008, an
   increase of 46.8%.  The increase was due to higher sales to
   existing and new customers. 
 * Franchise sales were $1.7 million in both the third quarter of
   2009 and the third quarter of 2008. Higher royalties from 112
   franchise coffeehouses were offset by lower product sales to our
   franchisees.

Cost of sales and related occupancy costs in the third quarter of 2009 were $27.8 million, which is a 3.2% increase over the third quarter of 2008. This increase is due to higher year-over-year revenues and an overall mix change with a higher percentage of sales coming from our commercial and franchise segments.

Operating expenses in the third quarter of 2009 were $24.3 million compared to $24.6 million in the same period of the prior year, a decrease of $0.3 million or 1.2%. This decrease was the result of improved operating performance within the retail segment as well as having fewer coffeehouse operating weeks. As a percentage of revenue, operating costs were 38.7%, down from 40.3% in the same period of the prior year

General and administrative expenses decreased $0.8 million, or 11.3%, to $6.3 million during the third quarter of 2009, from $7.1 million during the third quarter of 2008 due to a Company driven reduction in personnel related costs in the third quarter of 2009.

EBITDA was $4.5 million during the third quarter of 2009, compared to EBITDA of $2.0 million during the same period in 2008, and improvement of 125%. The year-over-year EBITDA increase was primarily due to improved performance within our retail coffeehouses and continued growth in the commercial and franchise segments. (EBITDA is a non-GAAP measure. See EBITDA reconciliation at the end of this release).

Depreciation and amortization decreased $6.7 million, or 66.1%, to $3.5 million during the third quarter of 2009, from $10.2 million during the same period in the prior year. Depreciation and amortization was lower in the quarter related to our lower depreciable asset base from the impairments taken in 2008 and reduced capital spending in the current year. Depreciation and amortization includes $5.7 million in accelerated depreciation associated with coffeehouse impairments in the third quarter of 2008.

The Company's net income for the third quarter of 2009 was $0.7 million or $0.03 per share compared to a net loss of $8.8 million or ($0.45) per share for the same period in 2008. The company ended the quarter with $19.0 million in cash and cash equivalents and no long term debt.

CONFERENCE CALL

Caribou Coffee will host a conference call on November 4, 2009, at 4:30 p.m. (Eastern Time) to discuss these results. Hosting the call will be Mike Tattersfield, Chief Executive Officer, and Tim Hennessy, Chief Financial Officer. The call will be webcast and can be accessed from the Company's website at www.cariboucoffee.com. The webcast link is in the Investor Relations section. The dial in number is 1-888-684-1281 or 1-913-312-1453 for international calls. Confirmation number is 6668445. If you are unable to join the call, a replay will be available beginning at 7:30 p.m. (Eastern Time) on November 4, 2009 through 11:59 p.m. on November 11, 2009 and can be accessed by dialing 1-888-203-1112 or international callers 1-719-457-0820 and enter pin number 6668445. In addition, the webcast will be archived on the Company's website.

ABOUT THE COMPANY

Caribou Coffee Company, Inc., founded in 1992 and headquartered in Minneapolis, Minnesota, is the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses. As of September 27, 2009, Caribou Coffee had 525 coffeehouses, which includes 112 franchised and licensed locations. Caribou Coffee offers its customers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise and related products. In addition, Caribou Coffee sells products to club stores, grocery stores, mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses and online customers. Caribou Coffee focuses on creating a unique experience for customers through a combination of high-quality products, a comfortable and welcoming coffeehouse environment and a unique style of customer service. For more information, visit the Caribou Coffee web site at www.cariboucoffee.com .

FORWARD-LOOKING STATEMENTS

Certain statements in this release, and other written or oral statements made by or on behalf of Caribou Coffee are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties.