Green Mountain Coffee Roasters, Inc., (GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffee makers, today announced a workforce reduction affecting a total of 74 full-time production and production support employees in its Castroville, California and Toronto, Ontario facilities. In addition, seasonal layoffs impact a total of 36 positions in its Toronto and Montreal, Quebec facilities. Combined, these actions affect less than 2% of GMCR’s total North American employees as of the end of its first quarter fiscal 2013, December 29, 2012.
“As we continue to grow, we also are working to enhance manufacturing and logistics efficiency across our nine North American K-Cup® pack and Vue® pack production locations. As part of these efforts, we are reducing the size of our regular workforce in two of our smaller production facilities, Castroville, California and Toronto, Ontario, while also implementing some seasonal layoffs in our Montreal, Quebec and Toronto facilities,” said Brian Kelley, President and CEO of GMCR. “These changes align the size of our workforce with production demand at these particular locations.”
All reductions are anticipated to be complete by May 11, 2013. GMCR expects a one-time pre-tax charge related to these actions during its second quarter fiscal 2013 in the range of $600,000 to $650,000. The Company expects the impact of the charge will be immaterial to its second quarter fiscal 2013 results and did not update its previously issued second quarter or fiscal year 2013 guidance as a result of these actions.
“We recognize the impact these actions have on our employees and their families and intend to support them through the transition process,” continued Kelley. “We appreciate and value the importance of reliable employment at all of our locations. While we have consistently supplemented our regular production work force with seasonal employees, as we continue to grow and create more jobs, we expect the ratio of flexible production and support employees to regular work force will increase as we work to drive efficiency during peak periods across our North American manufacturing base.”
In general, affected employees would be considered for qualified regular or flexible positions that may be available in the future. For those employees whose positions are eliminated, GMCR is offering outplacement services and severance based upon years of service in order to support the transition.
GMCR manufactures all of the licensed, Keurig Brewed® certified K-Cup® and Vue® packs for use in its Keurig® Single Cup coffee makers in nine facilities in North America: Castroville, California; Knoxville, Tennessee; Windsor, Virginia; Essex, Waterbury and Williston, Vermont; Sumner, Washington; Montreal and Toronto, Ontario. In addition, the Company conducts research and development for its beverages and its Keurig® Single Cup systems in Waterbury, Vermont and Burlington, Reading and Wakefield, Massachusetts and employs administrative and support staff in a number of locations including South Burlington, Vermont.
On February 6, 2013, GMCR reported revenue growth of 16% in its fiscal first quarter 2013, with GAAP earnings per share growth of 6% and non-GAAP earnings per share growth of 27% over the same prior year period. As of September 29, 2012, the end of its fiscal year 2012, GMCR employed approximately 6,000 regular and temporary employees in the U.S. and Canada combined including approximately 1,200 employees added from external hires during its fiscal year 2012.
About Green Mountain Coffee Roasters, Inc.
As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig® Single Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by investing in sustainably-grown coffee, and donating a portion of its pre-tax profits to social and environmental projects.
GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company’s automatic email news release delivery, individuals can receive news directly from GMCR as it is released.
Certain information contained in this filing, including statements concerning expected performance such as those relating to net sales, earnings, cost savings, acquisitions and brand marketing support, are “forward-looking statements”. Generally, these statements may be identified by the use of words such as “may,” “will,” “would,” “expect,” “should,” “anticipate,” “estimate,” “believe,” “forecast,” “intend,” “plan” and similar expressions intended to identify forward-looking statements. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the ability to maximize or successfully assert our intellectual property rights, the success of introducing and producing new product offerings, ability to attract and retain senior management, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, and the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings.
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by external factors such as damage to our reputation or brand name, business interruptions due to natural disasters or similar unexpected events, actions of competitors, customer relationships and financial condition, the ability to achieve expected cost savings and margin improvements, the successful acquisition and integration of new businesses, fluctuations in the cost and availability of raw and packaging materials, changes in regulatory requirements, and global economic conditions generally which would include the availability of financing, interest, inflation rates and investment return on retirement plan assets, as well as foreign currency fluctuations, risks associated with our information technology systems, the threat of data breaches or cyber-attacks, and other risks described in our filings with the Securities and Exchange Commission.
Actual results could differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.