Krispy Kreme adjusted net up sharply in quarter

by Eric Schroeder
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WINSTON-SALEM, N.C. — Net income at Krispy Kreme Doughnuts, Inc. in the second quarter ended July 29 totaled $4,929,000, equal to 7c per share on the common stock, down 44% from $8,839,000, or 13c per share, in the same period a year ago. Last year’s results included an after-tax gain of $4.7 million on the sale of the company’s interest in KK Mexico, while this year’s results reflect a book tax rate of 45% compared to a rate of 12% in the second quarter of fiscal 2012.

Adjusted net income for the second quarter totaled $8,219,000, or 12c per share, up from $4,216,000, or 6c per share, in the same period a year ago.

Revenues for the second quarter rose 4% to $102,115,000 from $97,952,000.

“We were very pleased with our quarterly performance, as we drove both solid same store sales growth and increased guest traffic,” said James H. Morgan, president and chief executive officer. “The top-line momentum translated into significant year-over-year increases in both operating income and adjusted earnings per share. The period was highlighted by our 75th birthday celebration and by National Doughnut Day, each of which provided consumers another reason to visit Krispy Kreme and create some lasting joyful memories.

“Based on our performance to date, we are reiterating our operating income guidance for the full year of $29 million to $33 million, although we now believe the high end of that range is increasingly achievable.”

For the first six months of fiscal 2013, net income was $18,479,000, or 27c per share, which compared with $13,432,000, or 20c per share, in the same period a year ago. Net revenues were $210,611,000, up 4% from $202,552,000.

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