We are very proud of the fact that we have been able to achieve significant improvements in our quarterly and year-to-date key operating metrics," comments Pearson.
Seattle, Wash. (PRWEB) November 18, 2011
TC Global, Inc., dba Tully’s Coffee (Tully’s), a leading specialty coffee retailer, today announced its financial results for the 13- and 26-week periods ending October 2, 2011 (“Second Quarter Fiscal 2012” and “Six Months Fiscal 2012,” respectively).
Continuing to be driven by same-store-sales increases and aggressive cost saving initiatives, Tully’s made substantial operating improvements over the prior year comparable periods during Second Quarter Fiscal 2012. For the fourth sequential quarter, Tully’s has reported a positive cash contribution from operating activities. For the Second Quarter Fiscal 2012, this positive cash contribution from operating activities was $49,000, and on a year-to-date basis, a total positive cash contribution from operating activities of $238,000. The Company has also reduced its net loss by $1.4 million, or 53%, to $748,000 in Second Quarter Fiscal 2012, compared to a net loss of nearly $1.6 million in the 13-week period ending September 26, 2010 (“Second Quarter Fiscal 2011”). On a year-to-date basis, the Company has reduced its net loss by $2.2 million, or 68%, to just over $1.0 million.
“Our focus continues on sales growth, expense management and operational effectiveness. Our same store sales are solid at a 5.3% increase over the same period of the prior year,” stated Scott Pearson, President and CEO of TC Global, Inc. “We have also made some strategic real estate decisions that will have a positive impact on our results longer term.”
Tully’s finished Second Quarter Fiscal 2012 with an increase in comparable store sales of $433,000, or 5.3%, offset by a decrease in sales due to store closures and less retail sales to franchisees due to its outsourced warehouse and distribution arrangement, netting to an overall increase in net sales of $284,000 over the prior year quarterly period. This was achieved by strengthened retail operations, successful promotions, new product launches and enhanced staff training. The Company continues to evaluate its real estate portfolio and assess the need for change in light of its drive toward individually profitable retail operations.
The Company reports a slight increase in its cost of goods sold and related occupancy costs of $19,000, or 0.4%, to $4.4 million for the Second Quarter of Fiscal 2012, which constitutes a rate of 46.8% of against net sales, compared to 48% in the prior year quarterly period. This increase represents a general rise in the price of coffee beans, dairy, and other commodities that go into the products offered for sale.
“We continue to remain committed to the execution of our revenue and profitability goals that we set forth at the beginning of this fiscal year. We are very proud of the fact that we have been able to achieve significant improvements in our quarterly and year-to-date key operating metrics,” comments Pearson.
On September 27, 2011, the Company convened its annual meeting of shareholders. Due to a lack of quorum, the Company adjourned the meeting to November 15, 2011 in order to provide additional time for management to solicit proxies from the Company’s shareholders. On November 15, the meeting was reconvened but again adjourned, due to a lack of quorum, to 8:00 a.m. PST on December 15, 2011, at the Company’s corporate headquarters located at 3100 Airport Way South, Seattle, WA. No business update or presentation will be offered at this meeting, which will be reconvened only to confirm the election of the Company’s board of directors.
Additional information about Second Quarter Fiscal 2012 results is contained in TC Global, Inc.’s Quarterly Report on Form 10-Q that was filed with the U.S. Securities and Exchange Commission on November 16, 2011.
ABOUT TC GLOBAL, INC.:
TC Global, Inc., dba Tully’s Coffee, is a leading specialty coffee retailer and wholesaler. Through company owned, licensed and franchised specialty retail stores in Washington, Oregon, California, Arizona, Idaho, Montana, Colorado, Wyoming and Utah, throughout Asia with Tully’s Coffee International, and with its global alliance partner Tully’s Coffee Japan, Tully’s premium coffees are available at more than 550 branded retail locations globally, including 186 locations in the United States. TC Global also has the rights to distribute Tully’s coffee through all wholesale channels internationally, outside of North America, the Caribbean and Japan. TC Global’s corporate headquarters is located at 3100 Airport Way S, in Seattle, WA. For more information: (800) MY-TULLY or TullysCoffeeShops.com.