Wednesday, January 30, 2013 7:57:45 AM
Total operating expenses increased $262,117, or 3.6%, to $7,607,269 for the fiscal year ended October 31, 2012 from $7,345,152 for the fiscal year ended October 31, 2011. Selling and administrative expenses increased $184,446, or 2.7%, to $6,900,199 for the year ended October 31, 2012 from $6,715,753 for 2011. The increase in selling and administrative expenses reflects several factors, including increases of approximately $120,000 in labor and related taxes, $42,000 in freight costs, $95,000 in insurance cost, $50,000 in travel/show and demo expense, $28,000 in office and computer related costs, and $31,000 in equipment maintenance, partially offset by a decrease of approximately $56,000 in professional fees, $28,000 in advertising costs, $30,000 in packaging development costs, $55,000 in commission expenses and $13,000 in charitable contributions.
...“During 2012, we saw major growth in sales of our flagship brand, Café Caribe, and we believe we will be able to build upon such growth during 2013. In addition, we made our first sales of green coffee into China, validating our belief that this can be a promising new avenue for revenue growth. Our wholesale green coffee and private label sales also remained strong in spite of the volatility in both the coffee market and the macro environment,” added Mr. Gordon.
http://www.sec.gov/Archives/edgar/data/1007019/000135448813000336/jva_ex991.htm
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