YoCream International Announces Record Second Quarter Results: YTD Sales Up 34.7%; Operating Income Up 339%; Net Income Up 711%

PORTLAND, Ore., May 28 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler of frozen desserts and beverages, today reported the financial results for the second quarter ended April 30, 2008. To view the full results, please visit http://www.yocream.com/.

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It was a record second quarter with sales up 41.9%, and sales for the six months ended April 30, 2008 up 34.7% compared to the same period of 2007. Copacking sales were purposefully limited in order to operationally meet the explosive growth of the Company's proprietary products. The breakdown of sales by category was as follows:

6 months % 6 months % Dollar %
Category 2008 Total 2007 Total Change Change

Frozen Desserts $9,985,000 69.0% $6,303,000 58.6% $3,682,000 58.4%

Frozen Beverages 4,338,000 30.0% 3,944,000 36.7% 394,000 10.0%

Co-packing 155,000 1.0% 502,000 4.7% (347,000)

Total $14,478,000 100.0% $10,749,000 100.0% $3,729,000 34.7%

For the six months ended April 30, gross profit margins were 41.1% in 2008 compared with 38.9% in 2007; income from operations was $1,803,000 for 2008, a 339% increase over the same period in 2007; net income was $1,009,000, or $0.44 per share, compared with $124,000 or $0.06 per share for the same period last year.

"This was an outstanding quarter for YoCream in both sales and earnings," observed Matt Hanna, Director of Administration. "Income from operations and net income benefited from sales volume increases and the effects of management's intense efforts to create operating efficiencies. We were even successful in reducing freight as a percentage of sales in this period of escalating fuel costs! It's gratifying to report the strongest second quarter revenue and earnings growth in YoCream's history. Opportunities at hand are indicative of the continuance of this positive trend."

YoCream sales reached record levels as a result of consistently dynamic growth from both frozen desserts and frozen beverages. The sales increase of 58.4% in frozen desserts was lead by the Company's core frozen yogurt products and significantly exceeded industry growth. YoCream's frozen yogurt products are manufactured with a proprietary process that maintains high probiotic culture counts, distinguishing them from a number of competitive brands. "YoCream continues to expand its frozen yogurt market share with strong results in both sweet-profile frozen yogurt and tart-profile frozen yogurt," stated Suzanne Gardner, Director of Marketing. "We anticipate solid sales throughout the year based on the performance of current products and the introduction of new items." EuroTart(TM) frozen yogurt was introduced in the second quarter to complement the Company's popular Original Tart(TM) frozen yogurt, and a new Fruitquake(TM) flavoring system for Tart and plain frozen yogurt was promoted. "YoCream will introduce six new flavors of frozen yogurt with well-known national flavor brands in the third quarter," continued Gardner. "A subcategory with new flavors will be added to YoCream's successful frozen beverage line this summer as well."

The second quarter of 2008 represents the eighth consecutive quarter of double digit sales growth for YoCream. Total YTD foodservice sales, exclusive of club and co-packing business are up approximately 75.9%. "This impressive performance includes expansion within existing accounts as well as new business development," remarked Tyler Bargas, Director of Sales. "We've made considerable progress on a number of strategic initiatives and this growth provides momentum into the next fiscal year." Sales of a frozen yogurt smoothie base developed for a major fast food restaurant chain began a nationwide roll out in the second quarter. "Escalating volumes for this account are expected to have a significant and positive impact on continuing operations," stated Bargas. "The Company also has a contract in place to produce a frozen beverage product for another large corporation in fiscal 2009."

YoCream International, Inc., with headquarters and a dairy and manufacturing facility in Portland, OR, is a pioneer and leading producer of frozen yogurt, desserts and beverages. Founded in 1977, YoCream produces, markets and sells its signature frozen yogurt, tart frozen yogurt, ice cream and frozen custard mixes under the YoCream brand. YoCream's frozen beverage product lines include Fruitquake(TM) Frozen Drinks and Smoothies for blender, bar drinks and lemonades or ice teas as well as Jolly Rancher(TM), Bubble Yum(TM), Twizzlers(TM), and Jarritos(TM) Frozen Beverages for frozen carbonated and uncarbonated machine dispensing. The Company also co-packs similar products for other companies. YoCream's end-user customers number in the thousands and include marquee convenience stores, quality quick service restaurants, warehouse stores, prestigious eating establishments, large grocery chains, frozen yogurt shops, colleges, military and government foodservice locations, international restaurants and neighborhood stores involving over 250 specialty and full line distributors in the supply chain.

This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in co-packing relationships and strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.

First Call Analyst:
FCMN Contact: SuzanneG@yocream.com

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Source: YoCream International, Inc.

CONTACT: Terry Lusetti, Investor Relations of YoCream International,
Inc., +1-503-256-3754

Web site: http://www.yocream.com/

2008-05-28 21:10:59 0372328 PRNEWSWIRE