CoolBrands loss tops $11.8 million in Q3
July 17, 2006
by Eric Schroeder
TORONTO — CoolBrands International, Inc. sustained a loss of $11,814,000 in the third quarter ended May 31, which compared with a loss of $6,233,000 for the same period last year.
Net sales for the quarter rose 5% to $93,987,000, up from $89,325,000 in the same period last year.
"Negative results were driven by continued declines in our frozen desserts business, underscoring our need to refocus our brand portfolio on more appealing and strongly differentiated brands and products," said David J. Stein, president, co-chairman and chief executive officer of CoolBrands . "Our new product initiatives this year, which began showing up on store shelves in the third quarter, reflect that strategy. Meanwhile, our other three operating segments, including our Breyer’s Yogurt business, showed stable revenues and profitability."
In addition to announcing its third-quarter results, CoolBrands said it has revised its financial statements for the three-month period ended Feb. 28 to reflect the cancellation of 2,141,000 stock options that occurred during the period.