- Published: 03 June 2016
- Written by Editor
Coffee Holding Co., Inc. Reports Results for Three and Six Months Ended April 30, 2016
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, including the Company's outlook on future margin performance and its share repurchase program. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, hedging activities, 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, 2016 AND OCTOBER 31, 2015 | |||||||||||
April 30, 2016 | October 31, 2015 | ||||||||||
(Unaudited) | |||||||||||
- ASSETS - | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash | $ | 3,198,097 | $ | 3,853,816 | |||||||
Accounts receivable, net of allowances of $144,000 for 2015 and 2014 | 11,318,009 | 10,968,237 | |||||||||
Inventories | 12,333,449 | 13,862,818 | |||||||||
Prepaid green coffee | 344,439 | 620,452 | |||||||||
Prepaid expenses and other current assets | 273,395 | 256,202 | |||||||||
Prepaid income taxes | 931,727 | 1,434,577 | |||||||||
Due from broker | 205,253 | - | |||||||||
Deferred income tax asset | 53,595 | 997,720 | |||||||||
TOTAL CURRENT ASSETS | 28,657,964 | 31,993,822 | |||||||||
Machinery and equipment, at cost, net of accumulated depreciation of $4,516,493 and $4,241,256 for 2016 and 2015, respectively | 1,839,981 | 1,845,000 | |||||||||
Customer list and relationships, net of accumulated amortization of $45,000 and $41,250 for 2016 and 2015, respectively | 105,000 | 108,750 | |||||||||
Trademarks | 180,000 | 180,000 | |||||||||
Goodwill | 440,000 | 440,000 | |||||||||
Equity method investment | 96,327 | 96,571 | |||||||||
Deposits and other assets | 601,993 | 610,499 | |||||||||
TOTAL ASSETS | $ | 31,921,265 | $ | 35,274,642 | |||||||
- LIABILITIES AND STOCKHOLDERS' EQUITY - | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable and accrued expenses | $ | 3,271,416 | $ | 4,021,389 | |||||||
Line of credit | 2,654,121 | 5,554,121 | |||||||||
Due to broker | - | 483,835 | |||||||||
Income taxes payable | 500 | - | |||||||||
TOTAL CURRENT LIABILITIES | 5,926,037 | 10,059,345 | |||||||||
Deferred income tax liabilities | 20,995 | 92,370 | |||||||||
Deferred rent payable | 226,636 | 222,055 | |||||||||
Deferred compensation payable | 489,826 | 482,499 | |||||||||
TOTAL LIABILITIES | 6,663,494 | 10,856,269 | |||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Coffee Holding Co., Inc. stockholders' equity: | |||||||||||
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; no shares issued and outstanding | - | - | |||||||||
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,068,119 and 6,162,207 shares outstanding at April 30, 2016 and October 31, 2015, respectively | 6,456 | 6,456 | |||||||||
Additional paid-in capital | 15,904,109 | 15,904,109 | |||||||||
Retained earnings | 10,936,310 | 9,665,940 | |||||||||
Less: Treasury stock, 388,197 and 294,109 common shares, at cost for six months ended April 30, 2016 and 2015, respectively | (1,881,031 | ) | (1,494,712 | ) | |||||||
Total Coffee Holding Co., Inc. Stockholders' Equity | 24,965,844 | 24,081,793 | |||||||||
Non-controlling interest | 291,927 | 336,580 | |||||||||
TOTAL EQUITY | 25,257,771 | 24,418,373 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 31,921,265 | $ | 35,274,642 | |||||||
COFFEE HOLDING CO., INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Six Months Ended April 30, |
Three Months Ended April 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
NET SALES | $ | 44,212,334 | $ | 68,669,033 | $ | 21,406,939 | $ | 30,263,054 | ||||||||
COST OF SALES (including $5.6 and $14.9 million of related party costs for the six months ended April 30, 2016 and 2015, respectively. Including $2.0 and $5.1 million for the three months ended April 30, 2016 and 2015, respectively.) | 38,251,840 | 67,824,859 | 18,097,486 | 31,340,321 | ||||||||||||
GROSS PROFIT (LOSS) | 5,960,494 | 844,174 | 3,309,453 | (1,077,267 | ) | |||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Selling and administrative | 3,466,440 | 3,563,835 | 1,789,489 | 1,897,480 | ||||||||||||
Officers' salaries | 327,700 | 325,585 | 163,850 | 172,850 | ||||||||||||
TOTAL | 3,794,140 | 3,889,420 | 1,953,339 | 2,070,330 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | 2,166,354 | (3,045,246 | ) | 1,356,114 | (3,147,597 | ) | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 21,000 | 13,228 | 10,988 | 4,930 | ||||||||||||
(Loss) gain from equity method investment | (244 | ) | 448 | 212 | (267 | ) | ||||||||||
Interest expense | (73,473 | ) | (118,612 | ) | (33,670 | ) | (64,633 | ) | ||||||||
TOTAL | (52,717 | ) | (104,936 | ) | (22,470 | ) | (59,970 | ) | ||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY | 2,113,637 | (3,150,182 | ) | 1,333,644 | (3,207,567 | ) | ||||||||||
Provision (benefit) for income taxes | 787,920 | (1,189,825 | ) | 485,356 | (1,158,721 | ) | ||||||||||
NET INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY | 1,325,717 | (1,960,357 | ) | 848,288 | (2,048,846 | ) | ||||||||||
Less: Net (income) attributable to the non-controlling interest | (55,347 | ) | (20,402 | ) | (17,487 | ) | (3,714 | ) | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC. | $ | 1,270,370 | $ | (1,980,759 | ) | $ | 830,801 | $ | (2,052,560 | ) | ||||||
Basic and diluted earnings (loss) per share | $ | .21 | $ | (.32 | ) | $ | .14 | $ | (.33 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and diluted | 6,148,039 | 6,215,894 | 6,133,557 | 6,215,894 | ||||||||||||
COFFEE HOLDING CO., INC. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
SIX MONTHS ENDED APRIL 30, 2016 AND 2015 | |||||||||||
(Unaudited) | |||||||||||
2016 | 2015 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | 1,325,717 | $ | (1,960,357 | ) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 278,987 | 274,022 | |||||||||
Unrealized gain on commodities | (689,088 | ) | (489,696 | ) | |||||||
Loss (gain) loss on equity method investment | 244 | (448 | ) | ||||||||
Deferred rent | 4,581 | 6,206 | |||||||||
Deferred income taxes | 872,750 | (1,143,650 | ) | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (349,772 | ) | 2,263,522 | ||||||||
Inventories | 1,529,369 | 2,536,227 | |||||||||
Prepaid expenses and other current assets | (17,193 | ) | 82,747 | ||||||||
Prepaid green coffee | 276,013 | 346,043 | |||||||||
Prepaid and refundable income taxes | 502,850 | (1,387,393 | ) | ||||||||
Deposits and other assets | 15,833 | - | |||||||||
Accounts payable and accrued expenses | (749,970 | ) | (3,215,641 | ) | |||||||
Income taxes payable | 500 | (331,051 | ) | ||||||||
Net cash provided by (used in) operating activities | 3,000,821 | (3,019,469 | ) | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of machinery and equipment | (270,221 | ) | (341,337 | ) | |||||||
Net cash used in investing activities | (270,221 | ) | (341,337 | ) | |||||||
FINANCING ACTIVITIES: | |||||||||||
Advances under bank line of credit | 600,000 | 9,272,578 | |||||||||
Principal payments under bank line of credit | (3,500,000 | ) | (6,000,000 | ) | |||||||
Purchase of treasury stock | (386,319 | ) | - | ||||||||
Payment of dividend | (100,000 | ) | (80,000 | ) | |||||||
Net cash (used in) provided by financing activities | (3,386,319 | ) | 3,192,578 | ||||||||
NET DECREASE IN CASH | (655,719 | ) | (168,228 | ) | |||||||
CASH, BEGINNING OF PERIOD | 3,853,816 | 3,782,639 | |||||||||
CASH, END OF PERIOD | $ | 3,198,097 | $ | 3,614,411 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA: | |||||||||||
Interest paid | $ | 81,276 | $ | 112,585 | |||||||
Income taxes paid | $ | 25,008 | $ | 1,641,197 |
Coffee Holding Co., Inc.
Andrew Gordon
President & CEO
718-832-0800