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Lifeway Foods Reports Record 2nd Quarter 2009 Revenues and EarningsBY PR Newswire
— 4:38 PM ET 08/13/2009
MORTON GROVE, Ill., Aug. 13 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc. (LWAY
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),, makers of the nutritious, probiotic dairy beverage called kefir, announced today for the second quarter ended June 30, 2009, total sales increased 26% to approximately $14,481,000 from $11,523,000 during the same period a year ago. This increase is primarily attributable to increased sales and awareness of Lifeway's flagship line, Kefir, as well as ProBugs(TM) Organic Kefir for kids. Additionally, these results include revenues from its February 6, 2009 acquisition of Fresh Made Dairy. Included in the total group sales was $2,152,730 of revenue related to this acquisition and recorded from the period of February 7, 2009 to March 31, 2009.
Cost of goods sold as a percentage of sales was approximately 58% during the second quarter 2009, compared to about 65% during the same period in 2008. The decrease was primarily attributable to the decreased cost of conventional milk, our largest raw material, and the cost of transportation and other petroleum based production supplies. Gross profit increased approximately 59% during the second quarter of 2009, when compared with the same period in 2008.
Operating expenses as a percentage of sales were approximately 21% during the second quarter 2009, compared to about 20% during the same period in 2008. This increase is primarily attributable to the increase in professional fees related to the February 6, 2009 acquisition of Fresh Made Dairy and a 111% in amortization expense, a non cash expense, also related to the Fresh Made acquisition. Many of the acquisition related professional fees are non recurring expenses.
Total operating income increased by $1,608,486, (approximately 104%) to $3,154,647 during the second quarter 2009, from $1,546,161 during the same period in 2008.
Total net income was $2,531,905 or $.15 per share for the second quarter ended June 30, 2009, compared with $911,718 or $.05 per share in the same period in 2008. This represents a 178% increase in net income from the second quarter 2009 when compared to the same period in 2008. Net cash provided by operating activities was $1,695,393 during the three months ended March 31, 2009, which is an increase of $770,525 when compared to the same period in 2008.
Net cash provided by operating activities was $3,390,715 during the six months ended June 30, 2009, which is an increase of $762,708 when compared to the same period in 2008.
Edward Smolyansky, CFO commented, "We are extremely pleased at our record second quarter 2009 results. From top to bottom this was our best quarter in our company's history. We were aided by low raw material costs and low conventional milk prices, which remained at second quarter lows during July and August."
Smolyansky added, "In addition to lower input costs, the acquisition in February 2009 of Fresh Made Dairy also added to our record quarter. We continue to generate very strong cash flows from this acquisition, and we are aggressively paying down our debt and strengthening our balance sheet. During the first seven months of 2009, we have paid down approximately $3 million in debt taken out to finance the acquisition as well as other current and long term liabilities."
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