Coffee Holding Co Inc (JVA) 2005 Q4 法說會逐字稿

Good day ladies and gentlemen and welcome to the fourth quarter and year ending 2005 earnings conference call. My name is the Michelle and I will be your audio coordinator for today. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's presentation. (OPERATOR INSTRUCTIONS) As a reminder, this conference is being recorded for replay purposes.

女士們、先生們，大家好，歡迎參加 2005 年第四季和全年的收益電話會議。我叫米歇爾，今天我將擔任你們的音頻協調員。此時，所有參與者都處於只聽模式。我們將在今天的演講結束時安排問答環節。 （操作員說明）謹此提醒，本次會議正在錄製以供重播之用。

I would now like to turn the presentation over to your host for today's call, Mr. Dave Gentry. Please proceed, sir.

現在我想將簡報交給今天電話會議的東道主戴夫金特里先生。請繼續，先生。

Thank you and good afternoon, ladies and gentlemen. This is Dave Gentry with the Aurelius Consulting Group. Welcome to our Q4 and year-end earnings conference call for 2005 for Coffee Holding Company. I will read the Safe Harbor statement and then I will turn the call over to Andrew Gordon, President and CEO of Coffee Holding Company.

謝謝你們，下午好，女士們、先生們。我是 Aurelius Consulting Group 的 Dave Gentry。歡迎參加我們的咖啡控股公司 2005 年第四季和年終收益電話會議。我將閱讀安全港聲明，然後將電話轉給咖啡控股公司總裁兼執行長安德魯戈登。

Any statements that are not historical facts contained in this conference call are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risk in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings.

本次電話會議中包含的任何非歷史事實的陳述均為前瞻性陳述。管理階層為此類報表的目的所做的假設可能不會實現。實際結果可能與任何前瞻性陳述中預測或暗示的結果有重大差異。此類陳述可能涉及風險和不確定性，包括但不限於與產品需求、定價、市場接受度、經濟狀況的影響、智慧財產權、競爭產品的結果、產品開發風險、融資努力的結果、完成交易的能力，以及公司向證券交易委員會提交的文件中不時討論的其他因素。

Andrew, I will turn the call over to you and Andrew will give us a brief presentation and we will then open up the call for questions.

安德魯，我將把電話轉給您，安德魯將為我們做一個簡短的介紹，然後我們將開始提問。

Thank you, David. Good afternoon, everyone. I would like to welcome everyone to the conference call to report the results of our fiscal 2005. As our press release of last week explained, our sales were up 32.5% for the quarter and a 48.2% gain for the fiscal year. In addition, our income increased by 146% for the quarter and 35.4% for the year.

謝謝你，大衛。大家下午好。我謹歡迎大家參加電話會議，報告我們 2005 財年的表現。正如我們上週的新聞稿所解釋的，我們本季的銷售額成長了 32.5%，本財年的銷售額成長了 48.2%。此外，我們的營收本季成長了 146%，全年成長了 35.4%。

We did, I am pleased to report, meet our investment banker's targets and in terms of topline and bottomline revenue, the expectations which were put out in May during our IPO. In fact in terms of topline growth, we exceeded their target of roughly 35 million by over $6 million.

我很高興地向大家報告，我們確實達到了投資銀行家的目標，在營收和利潤方面也達到了我們 5 月份 IPO 期間提出的預期。事實上，就收入成長而言，我們比他們大約 3500 萬美元的目標超出了 600 萬美元以上。

In addition, the year, although it had many challenges, overall was an extreme positive for us. Our business space increased along all three areas of our primary business, green, wholesale specialty sales, private-label, and branded sales. When it comes to our Cafe Caribe, we have now been awarded warehouse space in all three major wholesalers in the country. That is Nash Finch, SUPERVALU, and CNS. So now we are the only Hispanic coffee that is being carried in all three wholesalers across the country.

此外，這一年雖然面臨許多挑戰，但總體而言對我們來說是極其積極的。我們的業務空間在我們主要業務的所有三個領域（綠色、批發專業銷售、自有品牌和品牌銷售）上都有所增加。說到我們的加勒比海咖啡館，我們現在已經獲得了全國所有三大批發商的倉庫空間。那就是納許·芬奇、SUPERVALU 和 CNS。因此，現在我們是全國三個批發商中唯一一家銷售的西班牙咖啡。

In addition, we made several strides in the Florida market, which we had talked about prior to the IPO. We have not yet concluded what we're trying to do down there, however we are headed in the right direction.

此外，我們在佛羅裡達市場取得了一些進展，這是我們在 IPO 之前討論過的。我們還沒有得出我們在那裡要做什麼的結論，但我們正朝著正確的方向前進。

In addition on the private-label front, we were just recently awarded the Raley's business in Northern California. Raley’s is a 120 store chain which has an excellent reputation out there. In addition there has been a major shift in the supermarket landscape as of today which I believe will greatly benefit our Company in the immediate future. The shift involves the movement of three major regional chains over to a current customer whom we have a long-term very, very positive relationship with. In the immediate future I expect to see benefits from that change in the landscape.

此外，在自有品牌方面，我們最近剛獲得了 Raley's 在北加州的業務。Raley's 是一家擁有 120 家商店的連鎖店，在當地享有盛譽。此外，截至今天，超市格局發生了重大轉變，我相信這將在不久的將來使我們公司受益匪淺。這一轉變涉及將三個主要區域連鎖店轉移給與我們有著長期非常積極關係的現有客戶。在不久的將來，我預計會看到這種格局變化帶來的好處。

As far as our numbers go, our balance sheet remains strong and our outlook for continued growth and expansion both topline and bottomline remains positive.

就我們的數據而言，我們的資產負債表仍然強勁，我們對收入和利潤持續成長和擴張的前景仍然樂觀。

I would now like to open up the call for any questions regarding our numbers or what people are looking for in the future.

我現在想打開電話詢問有關我們的電話號碼或人們未來尋找什麼的任何問題。

(OPERATOR INSTRUCTIONS) [Michael Stevens], JB Oxford.

（操作員說明）[Michael Stevens]，JB Oxford。

Can you -- I just had I guess one question. I was looking towards -- can you actually list the supermarkets that -- you were kind of vague with the exact amounts in the consolidation and a couple of different outings. But I just wanted to ask you what is the supermarket that you think will open up most the doors? Is it [Wakeford Corporation] that is a major key in the East?

你能——我剛剛有一個問題。我一直在尋找——你真的能列出那些超市嗎——你對合併的確切金額和一些不同的郊遊有點模糊。但我只是想問你，你覺得開門次數最多的超市是哪家？是東部的一個重要關鍵是[韋克福德公司]嗎？

No, as I said a minute ago, there has been a major change today in the landscape and rather than say names because I don't think it is proper to mention other peoples releases, especially very, very new news like today, I believe that there are some supermarkets that will be there for us in the very near future due to the changes of today.

不，正如我一分鐘前所說，今天的情況發生了重大變化，而不是說出名字，因為我認為提及其他人的發布是不合適的，尤其是像今天這樣非常非常新的新聞，我相信由於今天的變化，在不久的將來會有一些超市為我們服務。

Okay, thank you.

好的，謝謝。

[Anthony Mastronani], Joseph Stevens.

[安東尼·馬斯特羅納尼]，約瑟夫·史蒂文斯。

Just had a couple of questions as far as in previous conference calls that we had there was some mentioning about acquisitions. Is there anything about acquisitions that you could let us know about at this time, looking for any point of 2006?

只是有幾個問題，在之前的電話會議中，我們提到了一些關於收購的內容。尋找 2006 年的任何時間點，您現在可以讓我們了解有關收購的任何資訊嗎？

Absolutely. Again, not to dwell on the negative, we had an acquisition lined up and was ready to be put to bed in Q3 of last year. Unfortunately the quick drop in the stock price made the acquisition untenable in the sense that I was not willing to give more stock than I had previously negotiated with this particular party. And when the stock dropped, obviously they wanted twice as much. Because of that, the acquisition was scrapped. However we have been in talks with other parties and I believe that beyond a shadow of a doubt that we will see something happen in fiscal '06.

絕對地。再說一遍，不要糾纏於負面因素，我們已經準備好了一項收購，並準備在去年第三季付諸實施。不幸的是，股價的快速下跌使收購變得站不住腳，因為我不願意提供比我之前與該特定方協商的更多的股票。當股票下跌時，顯然他們想要兩倍的價格。因此，收購被取消。然而，我們一直在與其他各方進行談判，我相信毫無疑問我們將在 06 財年看到一些事情發生。

Jim Altenbach, RedChip.

吉姆·阿爾滕巴赫，紅籌公司。

I had some prior research I had estimated like maybe a three- to five-year growth rate about 45% topline. Does that sound about right or is that reasonable guidance for the next few years? In revenue?

我之前進行了一些研究，預計三到五年的營收成長率可能約為 45%。這聽起來正確嗎？在收入方面？

If I'm hearing you correctly you're looking for another 20% growth year-over-year, right? It’s for a total of 40?

如果我沒聽錯的話，您希望比去年同期再成長 20%，對嗎？總共40個嗎？

The total year-over-year maybe -- let's see here. In 2006 -- in bottomline -- in earnings, in earnings it was 45% in 2006.

也許是同比總額——讓我們看看這裡。2006 年－從獲利來看，獲利是 2006 年的 45%。

You just said top. Are you looking for revenue growth of roughly 45% over the next three years? Is that the original question?

你剛才說的是頂。您是否希望未來三年收入成長約 45%？這是原來的問題嗎？

Let me restate this. For topline maybe 20 to 30% and for bottomline 45% in the next couple of years.

讓我重申一下。未來幾年，收入可能會成長 20% 到 30%，利潤可能會成長 45%。

I think the bottomline number is extremely aggressive, given if you have me pegged for topline growth of 20% to grow my bottomline by 40 might be a bit aggressive.

我認為底線數字非常激進，因為如果你讓我將收入成長 20%，那麼我的底線成長 40 可能有點激進。

Okay.

好的。

I believe that to say that we're going to look for continued growth topline of roughly 20% a year, maybe 25%, I believe is very conservative. As far as bottomline growth, there are a number of factors that determine that. Of course everyone knows one of which is the underlying commodity price, which is extremely volatile. However I feel comfortable with topline growth assessments and I believe our bottomline should continue to grow with our topline growth, as it has historically.

我認為，說我們將尋求每年約 20% 甚至 25% 的持續成長，我認為這是非常保守的。就利潤成長而言，有許多因素決定。當然，每個人都知道其中之一是基礎商品價格，其波動性極大。然而，我對營收成長評估感到滿意，我相信我們的獲利應該會隨著營收的成長而繼續成長，就像歷史上的那樣。

Then you were affected by the -- you were affected -- there was some disruption in the marketplace for the coffee --.

然後你受到了——你受到了影響——咖啡市場出現了一些混亂——。

Are you referring to the hurricane?

你指的是颶風嗎？

Yes.

是的。

The hurricane did not adversely affect us. We fortunately have two roasting facilities, one of which is in Colorado. The other on is in New York. Neither one was affected by the problems in New Orleans. If anything we might have benefited indirectly from that disaster in the sense that some of our customers were not able to procure Folgers due to their problems. And we might have picked up a little bit of additional business in Q4 because of that situation.

颶風沒有對我們造成不利影響。幸運的是，我們有兩家烘焙工廠，其中一個位於科羅拉多州。另一個是在紐約。兩人都沒有受到新奧爾良問題的影響。如果有什麼不同的話，我們可能會從這場災難中間接受益，因為我們的一些客戶由於他們的問題而無法採購 Folgers。由於這種情況，我們可能會在第四季度獲得一些額外的業務。

Let's see, how about a weighted average cost of capital? What are you looking at right now?

讓我們來看看，加權平均資本成本怎麼樣？你現在在看什麼？

I'm sorry?

對不起？

Weighted average cost of capital, 8.7%. Would that be -- is that a little bit on the low side? That was one figure going around. What would your total cost of capital be right now?

加權平均資本成本8.7%。那是不是有點偏低了？那是一個人影在周圍走來走去。您現在的總資本成本是多少？

I haven't done the calculations for this phone call. I apologize.

我還沒有對這個電話進行計算。我道歉。

That's okay. I'll get back to you later on about that. I think some of the other questions were answered probably in your other statements there. So thanks a lot.

沒關係。我稍後會回覆您。我認為其他一些問題可能在您的其他陳述中得到了答案。非常感謝。

[Dave Starkey], Smith Barney.

[戴夫·斯塔基]，史密斯·巴尼。

Can you tell us how much of your latest quarter's numbers were affected one way or positively or negatively by your hedging strategies?

您能否告訴我們，您最近一季的數據有多少受到對沖策略的某種影響，或正面或負面的影響？

Yes. For the quarter the hedging profit was roughly $274,000, I believe.

是的。我認為該季度的對沖利潤約為 274,000 美元。

What was that per cents per share?

每股百分比是多少？

$274,000 would roughly work out to about $0.05 a share.

274,000 美元大約相當於每股 0.05 美元。

That's my only question. Thank you.

這是我唯一的問題。謝謝。

(OPERATOR INSTRUCTIONS) Jeremy Cohen, Joseph Stevens.

（操作員說明）傑里米·科恩、約瑟夫·史蒂文斯。

Pretty impressive quarter, I might say. Congratulations. I just wanted to highlight on some news that I've been following up on. Just ask you a couple of different questions briefly. I see here that SUPERVALU now and CVS agreed to purchase Albertsons. How is that going to affect your business? I assume that would be -- help you if not -- look to narrow that broad range. You talk about all these retail chains and these coffee wholesalers. I mean, listen, if there is less horses in the race and you supply, you are the sole supply for all three horses, I believe you have to benefit from this. How is that going to affect you?

我可能會說，這個季度相當令人印象深刻。恭喜。我只是想強調我一直在跟進的一些消息。只需簡單地問您幾個不同的問題。我在這裡看到 SUPERVALU 現在和 CVS 同意收購 Albertsons。這將如何影響您的業務？我認為這會——如果沒有的話對你有幫助——尋求縮小這個廣泛的範圍。你談論所有這些零售連鎖店和咖啡批發商。我的意思是，聽著，如果比賽中的馬匹較少，而你提供的馬匹，你是所有三匹馬的唯一供應商，我相信你必須從中受益。這會對你產生什麼影響？

Again, as I stated earlier, I believe given our long-term relationship with the eventual winner of the Albertsons bidding, not to mention we are currently doing business with Albertsons, but Albertsons was a very complex animal. I'm sure people are going to read the releases and they realize that Albertsons is not only Albertsons but it is Jewel in the Chicago market, ACME in the Northeast and Shaw's in the Northeast as well. Those three accounts I was currently not providing private-label for. So I have to believe that the opportunity will be there in the immediate future for us to become a supplier for those three chains.

再次，正如我之前所說，我相信考慮到我們與艾伯森競標的最終獲勝者的長期關係，更不用說我們目前正在與艾伯森做生意，但艾伯森是一個非常複雜的動物。我確信人們會閱讀這些新聞稿，並意識到 Albertsons 不僅是 Albertsons，也是芝加哥市場的 Jewel、東北市場的 ACME 和東北市場的 Shaw's。我目前沒有為這三個帳戶提供自有品牌。所以我必須相信，在不久的將來我們就有機會成為這三家連鎖店的供應商。

Are you -- SUPERVALU, you are the --?

你是－－SUPERVALU，你是－－？

For SUPERVALU I am the exclusive supplier and have been for the past 11 years for all of their private-label coffee.

我是 SUPERVALU 的獨家供應商，並且在過去 11 年裡一直是他們所有自有品牌咖啡的獨家供應商。

Okay, I think that could be good news for you. I also --

好吧，我想這對你來說可能是個好消息。我也——

I never count my chickens before they hatch though, pal.

不過，我從不數我的雞在孵化前的數量，朋友。

In appreciate that and I am the same way. I see that Sara Lee back in October there was a rumor on the street talking about them spinning off their coffee business and I see that it was going to be finalized in the first quarter of this year and they just handed it over to an Italian based company. I know that a big goal for a lot of different companies out there in your position would be to acquire some of these contracts that don't want to deal with the overseas. Has there any pursuit on your part?

欣賞這一點和我也是一樣的。我看到莎拉李早在 10 月就有謠言說他們要剝離咖啡業務，我看到這將在今年第一季完成，他們剛剛將其交給了一家義大利公司公司。我知道對於許多處於你這個位置的不同公司來說，一個大目標是獲得一些不想與海外打交道的合約。你有什麼追求嗎？

We have been again contacted by a number of accounts and in addition we have on our own reached out to certain accounts which we feel might be willing to make a move. However, transitions sometimes when they are smooth, it does take a little time for people to realize that they would rather deal with a local so to speak company than somebody who has an overseas parent.

許多帳戶再次聯繫了我們，此外我們還自行聯繫了某些我們認為可能願意採取行動的帳戶。然而，有時，當過渡順利時，人們確實需要一些時間才能意識到他們寧願與可以說是本地的公司打交道，而不是與擁有海外母公司的人打交道。

I agree with you. Sara Lee has a family name for how many years already and then all of a sudden they are doing business with an Italian-based company and I'm sure it's not going to be business as usual. I agree with you on that.

我同意你的看法。莎拉李 (Sara Lee) 的姓氏已經有很多年了，然後突然間他們與一家義大利公司開展業務，我確信生意不會像往常一樣。我同意你的觀點。

The bottom line is I believe that our stability and the fact that we as a Company have maintained ourselves for many years through thick and thin at some point with all the changes out there, we are going to be the long-term benefactors. Because again, I have always said I am not looking quarter-to-quarter. This is a marathon. It is not a sprint and what I would like to happen in six months might not necessarily happen in six months, but long term I can feel very positive about the outlook.

最重要的是，我相信，我們的穩定性以及我們作為一家公司多年來在經歷各種變化的情況下始終保持自己的地位，我們將成為長期的受益者。因為我再說一遍，我不會逐季進行研究。這是一場馬拉松。這不是衝刺，我希望在六個月內發生的事情不一定會在六個月內發生，但從長遠來看，我對前景感到非常積極。

All I can say before any acquisition like you said you didn't want to take advantage of that in '05 for whatever reasons, but we have to first have that volume out of the increased business and I think that SUPERVALU and CVS deal could benefit you greatly and I wish you all the best. Thank you very much for your time.

在像您這樣的任何收購之前，我只能說，無論出於何種原因，您都不想利用05 年的這一優勢，但我們必須首先從增加的業務中獲得該數量，我認為SUPERVALU 和CVS交易可能會受益非常感謝您，祝您一切順利。非常感謝您抽出時間。

(OPERATOR INSTRUCTIONS) Mike Stevens, JB Oxford. Mr. Oxford did disconnect his line sir. (OPERATOR INSTRUCTIONS)

（操作員說明）Mike Stevens，JB Oxford。先生，牛津先生確實斷開了他的線路。 （操作員說明）

Mr. Gordon, I am currently showing we have no questions in the queue at this time, sir.

戈登先生，我目前正在表明我們目前在隊列中沒有任何問題，先生。

Okay, we will wait another 30 seconds and if there are no further questions, we will end the call then.

好的，我們再等 30 秒，如果沒有其他問題，我們就會結束通話。

A follow-up from Jim Altenbach of RedChip.

RedChip 的 Jim Altenbach 的後續行動。

I have a further question. Will you make any comments about what your immediate competitors, what they have been doing in the past several months and how that is affecting your business? And what are you going to do to respond to that? What do you see happening?

我還有一個問題。您會對您的直接競爭對手的行為、他們在過去幾個月中所做的事情以及這對您的業務有何影響發表評論嗎？您將如何回應？你看到發生了什麼事？

Generally I do not comment on my competition; however as we just discussed a moment ago, Sara Lee has been bought out by an Italian firm, which again things take time to get ironed out. My belief is the transition will probably be a smooth one. However, I know that given the relationships that I have seen out there over the years, people generally prefer to work with a local player.

一般來說，我不會對我的比賽發表評論；然而，正如我們剛才討論的那樣，薩拉·李已被一家義大利公司收購，這件事又需要時間來解決。我相信這一過渡可能會很順利。然而，我知道，考慮到我多年來所看到的關係，人們通常更喜歡與本地玩家合作。

As far as Folgers and Maxwell House, Folgers had their problems in Q4 or not Q4 due to the hurricane. They are back on line for the most part with their roasted facility. However, they are still down on their instant coffee facility, which was pretty much wiped out down in New Orleans. Our sales will probably continue to be benefited by that situation. And the only other player out there worth talking about is the Kroger Company, who continues to be very aggressive out there, looking to pick up private-label business. However, they seem to be running into their problems at least on a capacity side and a service level side. And as I said, I would rather not go into any much more detail than that as I do not comment on my competitors.

至於Folgers和Maxwell House，由於颶風的影響，Folgers在第四季或不是第四季都遇到了問題。他們的烘焙設施大部分已經恢復正常。然而，他們仍然對他們的速溶咖啡設施感到失望，該設施在新奧爾良幾乎被摧毀了。我們的銷售可能會繼續受益於這種情況。唯一值得一提的其他參與者是克羅格公司，該公司繼續非常積極地尋求收購自有品牌業務。然而，他們似乎至少在容量方面和服務水準方面遇到了問題。正如我所說，我不想透露更多細節，因為我不會評論我的競爭對手。

Okay, thanks a lot.

好的，非常感謝。

Sir, I'm showing that we have no additional questions at this time.

先生，我要表明我們目前沒有其他問題。

Okay, then what I would like to do, I would like to thank everyone for listening in and if there's any other further questions, people can reach out to Aurelius Consulting who is our IR firm. And I thank you all for attending the call. Have a good day everybody.

好的，那麼我想做的是，我要感謝大家的收聽，如果還有任何其他問題，人們可以聯絡我們的 IR 公司 Aurelius Consulting。我感謝大家參加這次電話會議。祝大家有美好的一天。

Ladies and gentlemen, thanks for your participation in today's conference call. This does conclude your presentation and you may now disconnect. Have a great day.

女士們、先生們，感謝您參加今天的電話會議。您的演示就此結束，您現在可以斷開連接。祝你有美好的一天。