TC GLOBAL, INC (TULLY’S) ANNOUNCES FIRST QUARTER FISCAL 2012 FINANCIAL RESULTS

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Mark Dringenberg

 

 

 

 

TC GLOBAL, INC (TULLY’S) ANNOUNCES FIRST QUARTER FISCAL 2012 FINANCIAL RESULTS

 

Company Continues its Positive Operating Trends - Finishes First Quarter of its Fiscal Year with Positive Operating Cash Flows and Decreasing Net Losses

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Seattle, Wash., (August 15, 2011) – TC Global, Inc., dba Tully’s Coffee (Tully’s), a leading specialty coffee retailer, today announced its financial results for the 13-week period ending July 3, 2011 (“First Quarter Fiscal 2012”).

 

Driven by same-store-sales increases and aggressive cost saving initiatives, Tully’s continued to make substantial operating improvements during First Quarter Fiscal 2012, and reported a positive cash contribution from operating activities of $189,000 for the First Quarter Fiscal 2012.  The Company has also reduced it net loss by $1,385,000, or 82%, to $295,000 in First Quarter Fiscal 2012, compared to a net loss of $1,680,000 in the 13-week period ending June 27, 2010 (“First Quarter Fiscal 2011”).

 

“We continue to see improvement in key operating metrics, a trend which started in the second half of Fiscal 2011. Our team is focused on execution and accountability for achieving our revenue and profitability goals” stated Scott Pearson, President and CEO of TC Global, Inc.

 

Tully’s finished First Quarter Fiscal 2012 with an increase in comparable store sales of $392,000, or 4.8%, offset by a decrease in sales due to store closures and less retail sales to franchisees due to its outsourced warehouse and distribution arrangement, netting to an overall increase in net sales of $63,000 over the prior year period. This was achieved by strengthened retail operations, successful promotions, new product launches and enhanced staff training. The Company continues to evaluate its real estate portfolio and assess the need for change in light of its drive toward profitable retail operations.

 

Despite rising commodity prices for coffee, dairy and paper, retail cost of goods sold as a percentage of retail store sales remained relatively stable at 37.4% in First Quarter Fiscal 2012 as compared to 36.6% in First Quarter Fiscal 2011, reflecting continued initiatives to work with vendors to decrease cost of goods sold and optimize product sales mix.

 

“We are encouraged by our ability to increase our sales while purposefully controlling our costs,” expounds Pearson. “We will continue our diligent efforts to reduce organizational expenses while striving to add value for both our customers and our shareholders. We are also very focused on optimizing our franchising opportunities both domestically and internationally. We continue to collaborate with our existing franchise network and our franchisees to increase revenues and profitability”.

 

“Our momentum is moving in the right direction and our team is intently focused on staying the course.”

 

The Company has scheduled its annual shareholder’s meeting for September 27, 2011 at the Museum of Flight in Seattle, Washington, and looks forward to discussing company status and prospects with those in attendance.

 

Additional information about First Quarter Fiscal 2012 results is contained in TC Global, Inc.’s Quarterly Report on Form 10-Q that was filed with the U.S. Securities and Exchange Commission on August 17, 2011.

 

ABOUT TC GLOBAL, INC.:

TC Global, Inc., dba Tully’s Coffee, is a leading specialty coffee retailer and wholesaler. Through company owned, licensed and franchised specialty retail stores in Washington, Oregon, California, Arizona, Idaho, Montana, Colorado, Wyoming and Utah, throughout Asia with Tully’s Coffee International, and with its global alliance partner Tully’s Coffee Japan, Tully’s premium coffees are available at more than 550 branded retail locations globally, including 186 locations in the United States. TC Global also has the rights to distribute Tully’s coffee through all wholesale channels internationally, outside of North America, the Caribbean and Japan. TC Global’s corporate headquarters is located at 3100 Airport Way S, in Seattle, WA. For more information: (800) MY-TULLY or TullysCoffeeShops.com.

 

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