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Goldman Sachs Investor Conference New York City June 5, 2007.

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Presentation on theme: "Goldman Sachs Investor Conference New York City June 5, 2007."— Presentation transcript:

1 Goldman Sachs Investor Conference New York City June 5, 2007

2 Safe Harbor We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements.

3 Michael Coles Chairman and Chief Executive Officer

4 Caribou Coffee - Investment Highlights  Gourmet coffee among the fastest growing segments in the restaurant industry  Second largest company-owned gourmet coffeehouse operator  Significant growth opportunities  Coffeehouse openings  Non-coffeehouse sales  Store level comparable sales and margin opportunities  Experienced management team successfully implementing key strategic initiatives

5 INDUSTRY OVERVIEW

6 $8.4bn $9.0bn $9.6bn $8.0bn $8.4bn $8.8bn $9.2bn $9.6bn $10.0bn $10.2bn $10.6bn $11.0bn $11.4bn $11.8bn 200220032004 $11.1bn 2005 Coffee Industry – Large and Growing Market  $22 billion market in the U.S.  Specialty Coffee Consumption Grew Over 48% in the U.S. from 2001 - 2006  Coffeehouses Account for 69% of Specialty Coffee Sales Source: Specialty Coffee Association of America, National Coffee Association, International Coffee Association. Specialty Coffee Experiencing Double-Digit Growth 2006 $12.3bn $12.0bn

7 Coffeehouses are the Pub of the 21 st Century 3,600 6,700 10,000 12,600 15,400 17,400 18,600 21,400 Source: Specialty Coffee Association of America and SEC filings. (1)Reflects Starbucks locations in U.S. and Canada. Among fastest growing segments in the restaurant industry 23,900

8 Caribou Coffee “An Experience that Makes the Day Better”

9 Growth Strategy  Enhanced Growth Opportunities versus One Year Ago  Franchise  U.S. and International  Commercial  Brand Licensing  Focus on Growth at Existing Coffeehouses  Drive comps via:  Product  Marketing Initiatives  Continued Focus on Operational Excellence  Balanced and Diversified Growth Strategy  Improve Financial Performance  Optimize ROIC  Minimize Capital Requirements  Grow Revenue, EBITDA and Achieve Positive Net Income

10 The Caribou Formula

11 Product: Selection and Preparation Sourcing  Only the highest grade of arabica coffee beans  Rainforest Alliance  Fair Trade Blending  Roastmasters create custom blends  Craft roasting in small batches to optimize flavor profile  Valve technology ensures freshness Brewing  High standards for in-store brewing  Strict freshness policy Roasting and Packaging

12 Product: Selected Drink Offerings Iced Latte Pom-A-Mango Smoothie Cold Press Caramel Cooler LatteMochaCappuccino Depth Charge Turtle Mocha Mint Condition Lite-White Berry Caramel Hi-Rise

13 Product: Selected 'Bou Gourmet Offerings  'Bou Gourmet rolled-out August 1, 2005 – proprietary recipes  High quality food that complements store image & premium quality beverages  Exciting pipeline for 2007  First Quarter Launches Included:  New Muffins  Low Fat Banana Nut Bread  Upgraded Biscotti  Cheese Bagels  Enhanced lunch program in in Chicago market

14 Product: Promotional Offerings  2007 Promotional Offerings  Northern Lite Lattes  ‘Bou Gourmet Bagels  National Geographic Wild Adventure  Northern Lite Coolers

15 Environment – A Destination Place  Mountain lodge environment: fireplaces, wood beams and earth tones  Comfortable for in-store relaxation or high-level meetings  Efficient for fast take-away, including drive-thru  Free wireless internet access and kids’ corner

16 Service: "BAMA" Be Excellent, Not Average Act with Urgency Make a Connection Anticipate Needs Meeting Customers Expectations Exceeding Customers Expectations “An experience that makes the day better”

17 CARIBOU OPPORTUNITY Coffeehouse Growth

18 Coffeehouse Franchise Opportunity  Management Expertise  Michael Coles  21 years of franchising experience  Chris Rich-VP Global Store Licensing  13 years with TGIF  Negotiated agreements covering 50 countries  Domestic Area Developers  Well qualified  Financial resources  Market expertise  Proven successful operators  International Opportunities

19 Coffeehouse Franchise Rationale  Management expertise  Infrastructure in place  Unique branded specialty coffee licensing opportunity  Accelerate coffeehouse growth in U.S.  Increase domestic market share  Leverage internal resources, including training  Allocate capital more efficiently

20 New Coffeehouse Franchise Agreements  United States  2007 Franchise Agreements  Hartsfield- Jackson Atlanta Airport  (first opened December 2006)  Dulles International Airport – Washington, D.C.  Denver International Airport  Total of 7 locations by year-end 2007  International  South Korea – Announced December 2006  Three coffeehouses opened Q1 2007  Agreement allows for 50 coffeehouses over next 10 years

21 Limited Footprint Provides Growth Opportunity (196) (61) (30) (37)) (20) (21) (13) 1992 1994 1995 1996 2001 2004 2005 2006 Market Expansion (5) (4) (6) Markets Minnesota Illinois Ohio Michigan North Carolina Georgia Maryland Wisconsin Virginia Washington, D.C. Pennsylvania Iowa North Dakota South Dakota Nebraska Colorado Indiana Kansas Missouri (16) Washington D.C. (10) (7) (6) (12) (1) *Excludes 25 international franchise coffeehouses. As of April 01, 2007 (2) (1) 442 company-owned coffeehouses and 8 franchised coffeehouses in 18 states and the District of Columbia*

22 Significant Growth in Coffeehouses 152 185 203 251 306 395 464 514* * Assumes mid-point of guidance issued January 8, 2007 Stores Open at Year End

23 Comparable Coffeehouse Sales Trends 2007E = 0% to +5% Guidance issued January 8, 2007 200520042003200220061Q 072007E (5.0%) (3.0%) (1.0%) 1.0% 3.0% 5.0% 7.0% 9.0% 11.0%

24 CARIBOU OPPORTUNITY Non-Coffeehouse

25 Compelling Commercial Business Opportunity Grocery Stores & Mass Merchandisers Office Coffee & Food Service Providers Sports, Entertainment & Health/Fitness

26 Strategic Partners – Product Licensing Launched March 2006 Launched July 2006

27 Strategic Partners – Product Licensing Launched April 2007 Launch Second Half 2007

28 Experienced Management Team ExecutivePositionYears of ExperienceYears at Caribou Michael ColesCEO40+4 Roz MalletPresident & COO30< 1 George MileusnicCFO296 Amy O’NeilSVP, Store Operations13 Henry SteinVP, Business Development & Commercial Sales 253 Kathy HollenhorstVP, Marketing202 Chris RichVP, Franchising20< 2

29 George Mileusnic Chief Financial Officer

30 Financial Opportunity  Comparable coffeehouse sales  New coffeehouse openings  Increase in non-coffeehouse sales  Leverage fixed costs  Improved financial performance Balance sheet supports growth

31 Annual Revenue Trends ($ in millions) CAGR: +10.7% +24.1% 2001 - 20032003 – 2006

32 Historical Results Impacted by Infrastructure Growth (2) Includes one time non recurring expenses excluded from adjusted EBITDA (3)Company owned and franchised coffeehouses opened at end of period. (1) See the Company’s 2005 10-K at www.cariboucoffee.com for a reconciliation of fiscal year 2003 through 2005 net loss to Adjusted EBITDA. See the Company’s 10-K filed April 2, 2007 for a reconciliation of the fiscal 2006 net loss to adjusted EBTIDA. See Company’s 10-Q filed on May 14, 2007 for a reconciliation of the fiscal 1Q 2007 and 1Q 2006 net loss to adjusted EBITDA.www.cariboucoffee.com ($ millions) 2002200320042005 General & Administrative Expense ($10.3)($12.3)($15.5)($22.7) Adjusted EBITDA $11.8$11.6$14.4$15.9 Depreciation & Amortization / Other (2) ($8.1)($11.8)($15.3)($19.4) Net Income / (Loss) $3.1($0.9)($2.1)($4.9) Cap Ex $12.2$20.7$32.4$43.2 Total Coffeehouses (3) 203251306395 (1) 2006 ($25.9) $15.0 ($23.6) ($9.1) $34.3 464 2006 ($6.1) $3.8 ($5.3) ($1.6) $7.0 402 2007 ($6.6) $3.5 ($6.6) ($3.3) $3.0 475 First Quarter $3.7($0.2)($0.9)($3.5)($8.6)($1.5)($3.1)EBIT

33 Unit Level Economics * * Historical average range /future expectations Average Investment ($ in 000s) Capital Expenditures (Net of Tenant Improvements Allowances) $365 - $415 Initial Inventory$10 Total$375 - $425 Comparable Coffeehouse Sales Range Year 1 (Months 13th -24th)Mid Teens Year 2 (Months 25th – 36th)Mid Single Digits Mature Store Performance – (New stores open at ~ 80% of a mature store level) Sales$500 – $700 Store-Level Cash Flow Margin17% – 20% Year 3 Contribution$85 – $140 Year 3 Cash-on-Cash ROI ~30% Average Store Payback 4 – 5 Years

34 Balance Sheet to Support Growth  Cash – approximately $9.7 million  Credit Facility – $60 million available (As of April 1, 2007)

35 Caribou Coffee - Investment Highlights  Gourmet coffee among the fastest growing segments in the restaurant industry  Second largest company-owned gourmet coffeehouse operator  Significant growth opportunities  Coffeehouse openings  Non-coffeehouse sales  Store level comparable sales and margin opportunities  Experienced management team successfully implementing key strategic initiatives

36 Appendix

37 EBITDA Reconciliation The table below reconciles net income (loss) to EBITDA and Adjusted EBITDA for the periods presented. (In thousands) December 31,January 1,January 2,December 28, 2006 20052003 Statement of Operations Data: Net income (loss) $ (9,059) $ (4,905) $ (2,074) $ (937) Interest expense 695 1,603 963 511 Interest income (554) (266) (6) (9) Depreciation and amortization(1) 23,645 18,284 14,791 11,768 Provision for income taxes 313 80 219 228 EBITDA 15,040 14,796 13,893 11,561 Consolidation of corporate and operating locations — — 500 Derivative income — (623) — Amendment of employment agreement — 1,738 — Adjusted EBITDA 15,040 15,911 14,393 11,561 (1) Includes depreciation and amortization associated with our headquarters and roast facility that are categorized as general and administrative expenses and cost of sales and related occupancy costs on our statement of operations. Fiscal Year Ended December 29, 2002 $ 3,113 496 (29) 8,050 156 11,786 — — — April 1, 2007 2006 $ (3,251) $ (1,572) 130 148 (33) (187) 6,583 5,281 20 147 3,449 3,817 — — — — — — 3,449 3,817 Three months Ended


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