Alameda companies offer Q3 results
Local companies announced their third quarter results last week, and the results were mixed.
Local brewer Peet’s Coffee & Tea continued to perform well, with third quarter diluted earnings of 19 cents per share, a 27 percent increase over the same period last year. Net revenues also increased eight percent, to $73.9 million, in the 13 weeks that ended on September 27.
Peet’s CEO and president Patrick O’Dea said the company would continue to leverage past investments – including their new roasting facility here on the Island – and new growth initiatives that are designed to extend the company’s brand as the lading premium specialty coffee company.
The company has since announced that it will acquire Diedrich Coffee, maker of the K-Cup single cup brewing system, in a $213 million cash and stock deal. The deal will include single-serve rights to the Gloria Jean’s coffee brand.
Conversely, the Bank of Alameda saw a loss of $584,000, or 19 cents per diluted share, compared to a gain of $102,000 and three cents a share a year ago. Bank of Alameda president and CEO Stephen G. Andrews attributed the results to increased loan loss provisions associated with asset write-downs of real estate developments and commercial loans.
“We feel these substantial loan loss provisions and the associated chargeoffs reflect Bank of Alameda’s realistic view of the current market values and collectability of its problem loans,” Andrews said. “Management believes these proactive actions reflect our principles of recognizing and recording estimated losses in a full and transparent fashion.”
The allowance for loan and lease losses was 2.73 percent of total loans and losses on September 30, compared to 1.64 percent in September 2008. Non-performing loans and other real estate owned totaled 5.9 percent of assets, or $14.9 million.
Total assets were down to $267.1 million compared to $279.2 million a year earlier. Total deposits decreased to $225.6 million, compared to $238.4 million, and total loans and leases decreased 9 percent to $219 million, compared to $241.6 million at September 30, 2008.
The company remains “well capitalized” under federal guidelines, the release said.
The bank restated its first quarter results and results for all of 2008 this past May.
Celera Corporation also announced reduced earnings, with net revenues of $40 million for the quarter that ended on September 26, compared to $45.8 million during the same quarter in 2008. The losses equated to nine cents per share.
CEO Kathy Ordoñez said the health care company is addressing issues that have impacted the financial performance of Berkeley HeartLab, its biggest subsidiary. Its revenues were $24.2 million this quarter, compared with $30.1 million the same quarter in 2008.