Diedrich narrows loss in quarter
January 26, 2010
by Eric Schroeder
IRVINE, CALIF. — Diedrich Coffee, Inc. sustained a loss of $32,000 in the second quarter ended Dec. 9, which compared with a loss of $995,000 in the second quarter of fiscal 2009. The most recent results included approximately $2.5 million in merger-related costs in connection with Diedrich’s decision to be acquired by Green Mountain Coffee Roasters, Inc.
Net sales during the second quarter totaled $24,650,000, up 78% from $13,870,000 in the same period a year ago. The gain reflected an $11.3 million increase in K-Cup sales.
For the six months ended Dec. 9, net income was $539,000, equal to 9c per share on the common stock, which compared with a loss of $2,778,000 in the year-ago period. Net sales for the six months totaled $40,423,000, up from $24,278,000.
Separately, several executive changes have been announced at Diedrich. Paul C. Heeschen will assume the role of executive chairman and Sean M. McCarthy will be promoted to president of the company in connection with the previously announced departure of J. Russell Phillips, the company’s chief executive officer. The changes will take effect Feb. 1.
Mr. Heeschen has been a member of the company’s board of directors since 1996 and has been the non-executive chairman since 2001. By transitioning to the role of executive chairman, he will assume a more active role at the company working collaboratively with Mr. McCarthy.
Mr. McCarthy joined Diedrich Coffee in 2004 and has been the company’s chief financial officer since 2006. Prior to joining Diedrich Coffee, Mr. McCarthy held a number of business and financial positions at Advantica Restaurants Group, Inc., Taco Bell, Inc. and El Torito Restaurants. In addition to retaining his duties as c.f.o., Mr. McCarthy will assume responsibility for oversight of the day-to-day operations of the company.