JVA 3.95 Coffee Holding Co., Inc. Reports Second Quarter and Six Month Earnings
Jun 14, 2007 9:00:00 AM
BROOKLYN, NY -- (MARKETWIRE) -- 06/14/07 -- Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three and six months ended April 30, 2007. In this release, the Company:
-- Reports sales growth of 18.2% for the quarter;
-- Reports a $623,122 increase in net income for the quarter; and
-- Reports net income of $0.06 per share for the quarter.
Net income equaled $338,888, or $.06 per share (basic and diluted), for the three months ended April 30, 2007 compared to a net loss of $284,234, or ($0.05) per share (basic and diluted), for the three months ended April 30, 2006. Net income equaled $648,592, or $.12 per share (basic and diluted), for the six months ended April 30, 2007 compared to net income of $235,404, or $0.04 per share (basic and diluted), for the six months ended April 30, 2006. The increase primarily reflects increased gross profit and was partially offset by increased operating expenses.
Net sales totaled $14,194,373 for the three months ended April 30, 2007, an increase of $2,183,445 or 18.2% from $12,010,928 for the three months ended April 30, 2006. Net sales totaled $26,829,485 for the six months ended April 30, 2007, an increase of $973,712 or 3.8% from $25,855,773 for the six months ended April 30, 2006. The increase in green coffee sales reflects higher sales of green coffee and private label coffee compared to the second quarter of fiscal year 2006.
"We are obviously pleased with our results for the quarter as operating margins returned to more historical levels. The price increases implemented at the beginning of 2007 were crucial in achieving these historical margins along with a favorable position in the green coffee markets were keys to a profitable quarter," said Andrew Gordon, President and Chief Executive Officer.
"I am always pleased when we are able to grow our business at the rate we have (18.8% for the quarter) while maintaining normal operating margins. In doing so, we continue to meet the challenges of an ever increasing volatile economic environment and we hope to keep to improving our margins while growing our sales over the balance of fiscal 2007. With some exciting new business on the West Coast as well as our first substantial business with our Joint Venture - Generations Coffee Co. to begin in the immediate future, we believe our goals will be achievable."
About Coffee Holding
Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold through the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.
Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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, risks 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. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.
COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
APRIL 30, 2007 AND OCTOBER 31, 2006
April 30, October 31,
2007 2006
------------ ------------
(unaudited)
- ASSETS -
CURRENT ASSETS:
Cash $ 1,677,825 $ 1,112,165
Commodities held at broker 3,428,114 4,330,489
Accounts receivable, net of allowance for
doubtful accounts of $420,349 for 2007 and
2006 4,589,560 6,534,848
Inventories 3,938,672 2,899,543
Prepaid expenses and other current assets 744,693 328,544
Prepaid and refundable taxes 6,710 302,003
Deferred tax asset 452,000 221,000
------------ ------------
TOTAL CURRENT ASSETS 14,837,574 15,728,592
Property and equipment, at cost, net of
accumulated depreciation of $4,317,727 and
$4,159,274 for 2007 and 2006, respectively 2,458,544 2,138,951
Investment in joint venture 281,858 408,798
Due from joint venture, less reserve of $242,000
for 2007 220,030 73,658
Deposits and other assets 349,335 631,859
------------ ------------
TOTAL ASSETS $ 18,147,341 $ 18,981,858
============ ============
- LIABILITIES AND STOCKHOLDERS' EQUITY -
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 4,052,468 $ 4,828,689
Income taxes payable 74,707 -
Line of credit borrowings 1,703,952 2,542,881
------------ ------------
TOTAL CURRENT LIABILITIES 5,831,127 7,371,570
Deferred income tax liabilities 9,750 12,300
Deferred compensation payable 316,169 256,284
------------ ------------
TOTAL LIABILITIES 6,157,046 7,640,154
------------ ------------
MINORITY INTEREST - -
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.001 per share;
10,000,000 shares authorized; none issued - -
Common stock, par value $.001 per share;
30,000,000 shares authorized, 5,529,830
shares issued and outstanding for 2007 and
2006, respectively 5,530 5,530
Additional paid-in capital 7,327,023 7,327,023
Retained earnings 4,657,742 4,009,151
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 11,990,295 11,341,704
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,147,341 $ 18,981,858
============ ============
COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX AND THREE MONTHS ENDED APRIL 30, 2007 AND 2006
(Unaudited)
Six Months Ended Three Months Ended
April 30, April 30,
2007 2006 2007 2006
----------- ----------- ----------- -----------
NET SALES $26,829,485 $25,855,773 $14,194,373 $12,010,928
COST OF SALES 22,553,727 22,667,636 12,087,210 11,148,234
----------- ----------- ----------- -----------
GROSS PROFIT 4,275,758 3,188,137 2,107,163 862,964
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Selling and
administrative 2,846,734 2,502,295 1,456,044 1,219,458
Writedown of amount due
from joint venture 242,000 - - -
Bad debt expense 31,195 - 31,195 -
Officers’ salaries 234,449 272,180 117,437 136,205
----------- ----------- ----------- -----------
TOTALS 3,354,378 2,774,475 1,604,676 1,355,663
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS 921,380 413,662 502,487 (492,969)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest income 66,576 57,289 32,460 26,723
Equity in loss of joint
venture (93,939) (5,322) (30,000) (5,322)
Writedown of investment
in joint venture (33,000) - - -
Management fee income 12,046 - - -
Interest expense (56,406) (38,225) (32,174) (22,766)
Impairment loss -
leasehold improvements (31,892) - (31,892) -
----------- ----------- ----------- -----------
(136,615) 13,742 (61,606) (1,365)
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY
INTEREST IN SUBSIDIARY 784,765 427,406 440,881 (494,334)
Benefit (provision) for
income taxes (140,050) (192,000) (102,200) 210,100
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE MINORITY
INTEREST 644,715 - 338,681 -
Minority interest in
subsidiary 3,877 - 207 -
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 648,592 $ 235,404 $ 338,888 $ (284,234)
=========== =========== =========== ===========
Basic and diluted earnings
(loss) per share $ .12 $ .04 $ .06 $ (.05)
=========== =========== =========== ===========
COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED APRIL 30, 2007 AND 2006
(Unaudited)
2007 2006
----------- -----------
OPERATING ACTIVITIES:
Net income $ 648,592 $ 235,404
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 165,478 227,907
Writedown of amount due from joint
venture 242,000 -
Loss from joint venture 93,939 5,322
Writedown of investment in joint venture 33,000 -
Deferred taxes (233,550) 29,300
Impairment loss 31,892 -
Changes in operating assets and
liabilities:
Commodities held at broker 902,375 14,443
Accounts receivable 1,703,288 899,654
Inventories (1,039,129) 950,421
Prepaid expenses and other current
assets (416,149) (116,866)
Prepaid and refundable income taxes 295,293 (104,607)
Accounts payable and accrued expenses (776,221) (502,758)
Due from joint venture (146,372) -
Deposits and other assets 14,021 (19,675)
Income taxes payable 74,707 (217,064)
----------- -----------
Net cash provided by operating activities 1,593,164 1,401,485
----------- -----------
INVESTING ACTIVITIES:
Purchases of property and equipment (188,575) (113,756)
Security deposits - (2,500)
Investment in joint ventures - (450,501)
----------- -----------
Net cash (used in) investing activities (188,575) (566,757)
----------- -----------
FINANCING ACTIVITIES:
Advances under bank line of credit 23,967,150 20,737,183
Principal payments under bank line of credit (24,806,079) (20,920,638)
Principal payments of obligations under
capital leases - (1,329)
----------- -----------
Net cash (used in) financing activities (838,929) (184,784)
----------- -----------
NET INCREASE IN CASH 565,660 649,944
Cash, beginning of year 1,112,165 735,468
----------- -----------
CASH, END OF PERIOD $ 1,677,825 $ 1,385,412
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid $ 43,351 $ 16,873
=========== ===========
Income taxes paid $ - $ 185,000
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING
ACTIVITIES:
The Company utilized its deposit for the purchase
of machinery and equipment $ 328,388 -
=========== -----------
Contact:
Andrew Gordon
President & CEO
Telephone: (718) 832-0800
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