Shareholders at Tully's meeting learn little about proposed IPO

About 500 long-time Tully's Coffee shareholders gathered at the Museum of Flight on Thursday morning to hear more about its plans for an initial public offering.

They didn't learn much beyond what the company announced two weeks ago — that Tully's plans to file a registration statement by April 30 with its proposed public offering. At least one investment bank is involved, but Tully's executives can't name it yet.

"We can't answer how the proposed stock offering might affect you in particular," Chief Financial Officer Kris Galvin told the shareholders, most of whom have owned the stock for at least eight years.

The IPO's success depends on several factors, including the strength of the stock market, the economy and Tully's performance.

"You should all be praying for the stock market to stay strong for the next few months," advised Galvin, who appeared at the podium on crutches because of an accident that's "a long story, starting with the grandchildren."

Executives reviewed Tully's business, including its improvement under current CEO John Buller.

For the past three quarters, Tully's has reported positive sales growth for stores open at least a year, and sales for the third quarter ended Dec. 31 were up 13 percent.

"We seem to be at a wonderful point where all the arrows are pointing in the right direction," Chairman and Founder Tom O'Keefe said during an interview with reporters after the meeting.

Although Tully's is not publicly traded, it must disclose quarterly results and hold an annual meeting because it has more than 500 shareholders.

Investors have asked for years when Tully's would go public, so they were mostly upbeat at Thursday's meeting and seemed willing to wait for details.

"I'm looking forward to it, because I know it's going to happen now," said Maureen Longen of Seattle, who figures she's held shares for about 15 years.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com