hogfan2
14 years ago
Lifeway Foods Reports Record 3rd Quarter 2009 Revenues and Earnings Results
- Q3 Revenues Up 37% - Q3 Gross Profit Increases 77%; Q3 2009 Gross Margins up to 41% from 31% in Q3 2008 - Q3 2009 Operating Income Increases 121% from same period in 2008 - Q3 2009 Pre-tax Income Increases 168% from same period in 2008
MORTON GROVE, Ill., Nov. 16 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc., (NASDAQ:LWAY), makers of the nutritious, probiotic dairy beverage called kefir, announced today for the third quarter ended September 30, 2009, total consolidated group sales increased by $4,193,594, (approximately 37%) to $15,433,876 during the three month period ended September 30, 2009 from $11,240,282 during the same three month period in 2008. This increase is primarily attributable to increased sales and awareness of Lifeway's flagship line, Kefir, as well as ProBugs® Organic Kefir for kids. Additionally, Lifeway recorded revenues from its February 6, 2009 acquisition of Fresh Made Dairy. Included in the total group sales was approximately $2,190,000 of revenue related to this acquisition and recorded during the third quarter of 2009.
Cost of goods sold as a percentage of sales, excluding depreciation was approximately 58% during the third quarter 2009, compared to about 67% 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 77% during the third quarter of 2009, when compared with the same period in 2008.
Operating expenses as a percentage of sales were approximately 20% during the third quarter 2009, compared to about 18% during the same period in 2008. This increase is primarily attributable to a 111% increase in amortization expense, a non cash expense, related to the February 6, 2009 acquisition of Fresh Made Dairy.
Total operating income increased by $1,772,193, (approximately 121%) to $3,239,432 during the third quarter 2009, from $1,467,239 during the same period in 2008.
Total income before taxes increased by $1,884,819 (approximately 168%) to $3,007,652 during the third quarter 2009, from $1,122,833 during the same period in 2008.
Provision for income taxes was $1,636,911, or a 54% tax rate, for the third quarter ended September 30, 2009, compared with a provision for income taxes of $267,917, or a 24% tax rate, for the same period in 2008.
Total net income was $1,370,741 or $.08 per share for the third quarter ended September 30, 2009, compared with $854,916 or $.05 per share in the same period in 2008. This represents a 60% increase in net income from the third quarter 2009 when compared to the same period in 2008.
Nine-Month Period Ended September 30, 2009
Total income before taxes increased by $4,440,498, (approximately 110%) to $8,474,370 during the nine-month period ended September 30, 2009, from $4,033,872 during the same period in 2008.
Provision for income taxes was $3,024,261, or a 36% tax rate, for the nine-month period ended September 30, 2009, compared with a provision for income taxes of $1,378,632, or a 34% tax rate, for the same period in 2008.
Total net income was $5,450,109, or $.32 per share for the nine-month period ended September 30, 2009, compared with $2,655,240, or $.16 per share in the same period in 2008. This represents a 105% increase in net income from the nine-month period ended September 30, 2009 when compared to the same period in 2008.
Net cash provided by operating activities was $5,504,144 during the nine months ended September 30, 2009, which is an increase of $1,872,155 when compared to the same period in 2008.
Edward Smolyansky, CFO commented, "We are extremely pleased at our record third quarter 2009 results. This was again the best quarter in our company's history from both the revenue side as well as the bottom line. Even though the cost of our conventional milk and other raw materials has increased during in the third quarter, our gross margins have remained strong and consistent."
Smolyansky added, "During the fourth quarter, weekly sales volumes continue at a record pace, and existing customers are consistently increasing their orders from previous weeks. Additionally, starting in late December, we will resume shipments to Costco in the Midwest, the first shipments since June 2009. Our cash flows remain very robust, and just this past couple of weeks, we paid down approximately $1.5 million in debt taken out to finance our February 6, 2009 acquisition as well as other current and long term liabilities."
Lifeway Foods, Inc.
Phone: 877.281.3874 Email: http://www.kefir.com/ and http://www.starfruitcafe.com/
Find Lifeway Foods, Inc. on Facebook: http://www.facebook.com/lifeway.kefir, Follow us on Twitter: http://twitter.com/lifeway_kefir and http://twitter.com/starfruitcafe Flickr: http://www.flickr.com/photos/lifeway_kefir/ YouTube: http://www.youtube.com/user/lifewaykefir
About Lifeway Foods
Lifeway Foods, Inc., recently named one of Fortune Small Business' Fastest Growing Companies for the 4th consecutive year, is America's leading supplier of the cultured dairy product known as Kefir, and America's sole supplier of Organic Kefir. Lifeway Kefir is a dairy beverage that contains 10 exclusive live and active probiotic cultures. While most regular yogurt contains only two or three of these "friendly" cultures, Lifeway Kefir products offer even more nutritional benefits. Lifeway produces 12 different flavors of its drinkable Kefir and Organic Kefir beverage, and recently introduced a series of innovative new products such as a children's line of Organic Kefir products called ProBugs (TM) with a no-spill pouch and kid-friendly flavors like Orange Creamy Crawler, Goo Berry Pie, and Sublime Slime Lime. In addition to its line of Kefir products, the company produces a variety of probiotic cheese products, and a line of products marketed in US Hispanic communities called La Fruta Drinkable Yogurt (yogurt drinks distinct from Kefir).
This news release contains forward-looking statements. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, competitive pressures and other important factors detailed in the Company's reports filed with the Securities and Exchange Commission.
(Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ----
Sales $15,433,876 $11,240,282 $43,649,383 $33,885,912
Cost of goods sold 8,892,088 7,505,794 24,994,778 22,403,574 Depreciation expense 288,613 197,366 859,044 581,920 ------- ------- ------- -------
Total cost of goods sold 9,180,701 7,703,160 25,853,822 22,985,494 --------- --------- ---------- ----------
Gross profit 6,253,175 3,537,122 17,795,561 10,900,418
Selling Expenses 1,231,216 957,978 3,176,162 3,171,269 General and Administrative 1,613,828 1,032,043 5,173,724 3,109,506 Amortization expense 168,699 79,862 508,086 239,585 ------- ------ ------- -------
Total Operating Expenses 3,013,743 2,069,883 8,857,972 6,520,360
Income from operations 3,239,432 1,467,239 8,937,589 4,380,058
Other income (expense): Interest and dividend income 34,180 95,042 144,899 261,037 Rental Income 12,047 13,647 33,340 36,940 Interest expense ( 99,864) (71,928) (364,337) (226,851) Impairment of marketable securities --- (270,908) --- (270,908) Loss on Disposition of Equipment --- --- (2,825) Gain (loss) on sale of marketable securities, net (178,143) (110,259) (274,296) (146,404) -------- -------- -------- -------- Total other income (Expense) (231,780) (344,406) (463,219) (346,186) -------- -------- -------- --------
Income before provision for income taxes 3,007,652 1,122,833 8,474,370 4,033,872
Provision for income taxes 1,636,911 267,917 3,024,261 1,378,632 --------- ------- --------- ---------
Net income $1,370,741 $854,916 $5,450,109 $2,655,240 ========== ======== ========== ==========
Basic and diluted earnings per common share 0.08 0.05 0.32 0.16 ==== ==== ==== ====
Weighted average number of shares outstanding 16,798,623 16,730,650 16,799,134 16,867,890 ========== ========== ========== ==========
COMPREHENSIVE INCOME --------------------
Net income $1,370,741 $854,916 $5,450,109 $2,655,240
Other comprehensive income (loss), net of tax: Unrealized gains (losses) on marketable securities (net of tax benefits) 114,628 (480,045) 326,060 (895,641) Less reclassification adjustment for (gains) losses included in net income (net of taxes) 104,609 64,746 161,071 85,963 ------- ------ ------- ------
Comprehensive income $1,589,978 $439,617 $5,937,240 $1,845,562 ========== ======== ========== ==========
(Unaudited) Nine Months Ended September September December 30, 30, 31, --------- --------- -------- 2009 2008 2008 ---- ---- ----
Cash flows from operating activities: ------------------------------------- Net income $3,024,261 $2,655,240 $1,912,275 Adjustments to reconcile net income to net cash flows from operating activities, net of acquisition: Depreciation and amortization 1,367,130 821,505 1,092,995 (Gain)Loss on sale of marketable securities, net 274,296 146,404 733,647 Loss on disposition of assets 2,825 --- --- Impairment of marketable securities --- 270,908 958,879 Deferred income taxes 790,858 (125,221) (509,386) Treasury stock issued for compensation 113,476 65,809 96,968 Increase (decrease) in allowance for doubtful accounts --- (4,449) 70,551 (Increase) decrease in operating assets: Accounts receivable (2,000,033) (947,303) (626,754) Other receivables 2,599 14,193 2,797 Inventories (636,236) (700,540) 409,012 Refundable income taxes 252,272 240,880 (115,536) Prepaid expenses and other current assets 4,661 665 (1,973) Increase (decrease) in operating liabilities: Accounts payable (284,927) 766,988 665,942 Accrued expenses 167,114 118,650 44,243 Accrued income taxes --- 308,260 --- ------ ------- ------ Net cash provided by operating activities 3,078,296 3,631,989 4,733,660
Cash flows from investing activities: ------------------------------------- Purchases of marketable securities (6,050,202) (4,864,873) (5,782,452) Sale of marketable securities 6,792,962 4,659,350 5,323,423 Increase in margin --- 428,951 --- Purchases of property and equipment (1,020,776) (1,892,472) (2,157,315) Acquisition of Fresh Made, net of cash acquired (3,442,546) --- --- ---------- ------ ------ Net cash used in investing activities (3,720,562) (1,669,044) (2,616,344)
Cash flows from financing activities: ------------------------------------- Proceeds of note payable 1,753,504 --- --- Purchases of treasury stock, net (905,607) (1,139,987) (1,239,488) Repayment of notes payable (2,104,340) (887,977) (1,196,465) ---------- -------- ---------- Net cash provided (used) in financing activities (1,256,443) (2,027,964) (2,435,953) ---------- ---------- ----------
Net increase (decrease) in cash and cash equivalents (1,898,709) (65,019) (318,637)
Cash and cash equivalents at the beginning of the period 277,248 595,885 595,885 ------- ------- -------
Cash and cash equivalents at the end of the period $(1,621,461) $530,866 $277,248 =========== ======== ========
DATASOURCE: Lifeway Foods, Inc.
CONTACT: Lifeway Foods, 1-877-281-3874,
Web Site: http://www.kefir.com/
http://www.starfruitcafe.com/
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