COFFEE HOLDING CO., INC.
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(Exact name of registrant as specified in its charter)
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Nevada
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001-32491
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11-2238111
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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3475 Victory Boulevard, Staten Island, New York
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10314
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(Address of principal executive offices)
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(Zip Code)
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ITEM 2.02.
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
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ITEM 8.01.
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OTHER EVENTS.
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ITEM 9.01.
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FINANCIAL STATEMENTS AND EXHIBITS.
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(d) The following exhibit is furnished with this report:
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Exhibit No. | Description | |
Press release, dated March 17, 2011, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three Months Ended January 31, 2011”
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COFFEE HOLDING CO., INC.
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Dated: March 17, 2011
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By:
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/s/ Andrew Gordon
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Name: Andrew Gordon
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Title: President and Chief Executive Officer
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Exhibit No. | Description | |
Press release, dated March 17, 2011, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three Months Ended January 31, 2011”
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●
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Reports net sales of $25,641,093 for the three months ended January 31, 2011 and $21,359,151 for the three months ended January 31, 2010;
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Reports sales growth of 20% for the three months ended January 31, 2011 compared to the three months ended January 31, 2010; and
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Reports net income of $1,041,072, or $0.19 per share (basic and diluted), for the three months ended January 31, 2011 compared to net income of $557,978, or $0.10 per share (basic and diluted), for the three months ended January 31, 2010.
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January 31,
2011
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October 31,
2010
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(unaudited)
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- ASSETS -
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 2,869,014 | $ | 1,672,921 | ||||
Commodities held at broker
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121,062 | 275,499 | ||||||
Accounts receivable, net of allowances of $197,078 for 2011 and 2010
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10,446,733 | 8,852,372 | ||||||
Inventories
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6,914,163 | 8,190,420 | ||||||
Prepaid green coffee
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363,733 | 1,335,676 | ||||||
Prepaid expenses and other current assets
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383,303 | 502,852 | ||||||
Prepaid and refundable income taxes
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132,662 | 9,521 | ||||||
Deferred income tax asset
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169,500 | 328,000 | ||||||
TOTAL CURRENT ASSETS
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21,400,170 | 21,167,261 | ||||||
Machinery and equipment, at cost, net of accumulated depreciation of $5,256,784 and $5,147,593 for 2011 and 2010, respectively
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1,584,255 | 1,560,940 | ||||||
Customer list and relationships, net of accumulated amortization of $5,625 and $3,750 for 2011 and 2010, respectively
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144,375 | 146,250 | ||||||
Trademarks
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180,000 | 180,000 | ||||||
Goodwill
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440,000 | 440,000 | ||||||
Deposits and other assets
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746,446 | 699,029 | ||||||
TOTAL ASSETS
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$ | 24,495,246 | $ | 24,193,480 | ||||
- LIABILITIES AND STOCKHOLDERS’ EQUITY -
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CURRENT LIABILITIES:
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Accounts payable and accrued expenses
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$ | 7,282,297 | $ | 7,124,072 | ||||
Line of credit
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1,816,859 | 2,306,749 | ||||||
Income taxes payable
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198,203 | 234,744 | ||||||
Contingent liability
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41,000 | 41,000 | ||||||
Deferred income tax liabilities
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18,000 | 73,300 | ||||||
TOTAL CURRENT LIABILITIES
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9,338,359 | 9,779,865 | ||||||
Deferred income tax liabilities
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- | 216,700 | ||||||
Deferred rent payable
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130,297 | 124,756 | ||||||
Deferred compensation payable
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592,931 | 540,642 | ||||||
TOTAL LIABILITIES
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10,079,587 | 10,661,963 | ||||||
STOCKHOLDERS’ EQUITY:
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Coffee Holding Co., Inc. stockholders’ equity:
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Preferred stock, par value $.001 per share; 10,000,000 shares authorized; 0 issued
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- | - | ||||||
Common stock, par value $.001 per share; 30,000,000 shares authorized, 5,579,830 shares issued; 5,490,823 shares outstanding for 2011 and 2010
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5,580 | 5,580 | ||||||
Additional paid-in capital
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7,581,973 | 7,581,973 | ||||||
Contingent consideration
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39,000 | 39,000 | ||||||
Retained earnings
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7,025,137 | 6,151,054 | ||||||
Less: Treasury stock, 89,007 common shares, at cost for 2011 and 2010
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(295,261 | ) | (295,261 | ) | ||||
Total Coffee Holding Co., Inc. and OPTCO Stockholders’ Equity
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14,356,429 | 13,482,346 | ||||||
Noncontrolling interest
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59,230 | 49,171 | ||||||
TOTAL EQUITY
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14,415,659 | 13,531,517 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 24,495,246 | $ | 24,193,480 |
2011
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2010
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NET SALES
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$ | 25,641,093 | $ | 21,359,151 | ||||
COST OF SALES (which includes purchases of approximately $4.8 million and $6.6 million for the three months ended January 31, 2011 and 2010, respectively from a related party)
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22,560,399 | 18,721,421 | ||||||
GROSS PROFIT
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3,080,694 | 2,637,730 | ||||||
OPERATING EXPENSES:
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Selling and administrative
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1,506,246 | 1,439,025 | ||||||
Officers’ salaries
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179,850 | 149,849 | ||||||
TOTAL
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1,686,096 | 1,588,874 | ||||||
INCOME FROM OPERATIONS
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1,394,598 | 1,048,856 | ||||||
OTHER INCOME (EXPENSE):
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Interest income
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160,586 | 1,319 | ||||||
Interest expense
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(112,636 | ) | (53,415 | ) | ||||
TOTALS
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47,950 | (52,096 | ) | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES AND NONCONTROLLING INTEREST IN SUBSIDIARIES
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1,442,548 | 996,760 | ||||||
Provision for income taxes
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391,417 | 441,262 | ||||||
NET INCOME BEFORE NONCONTROLLING INTEREST IN SUBSIDIARIES
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1,051,131 | 555,498 | ||||||
Less: Net loss (income) attributable to the noncontrolling interest
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(10,059 | ) | 2,480 | |||||
NET INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
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$ | 1,041,072 | $ | 557,978 | ||||
Basic and diluted earnings per share
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$ | .19 | $ | .10 | ||||
Dividends declared per share
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$ | .03 | $ | - | ||||
Weighted average common shares outstanding:
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Basic
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5,490,823 | 5,440,823 | ||||||
Diluted
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5,500,823 | 5,440,823 |
2011
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2010
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OPERATING ACTIVITIES:
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Net income
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$ | 1,051,131 | $ | 555,498 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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111,066 | 111,002 | ||||||
Unrealized loss on commodities
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154,437 | 262,862 | ||||||
Bad debt expense
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- | 13,500 | ||||||
Deferred rent
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5,541 | 6,422 | ||||||
Deferred income taxes
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(113,500 | ) | (38,500 | ) | ||||
Changes in operating assets and liabilities:
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Accounts receivable
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(1,594,361 | ) | 544,213 | |||||
Inventories
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1,276,257 | (149,585 | ) | |||||
Prepaid expenses and other current assets
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119,549 | (12,701 | ) | |||||
Prepaid green coffee
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971,943 | - | ||||||
Prepaid and refundable income taxes
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(123,141 | ) | (4,288 | ) | ||||
Accounts payable and accrued expenses
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158,225 | (1,241,583 | ) | |||||
Deposits and other assets
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4,872 | 25,787 | ||||||
Income taxes payable
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(36,541 | ) | (51,803 | ) | ||||
Net cash provided by operating activities
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1,985,478 | 20,784 | ||||||
INVESTING ACTIVITIES:
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Purchases of machinery and equipment
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(132,506 | ) | (80,994 | ) | ||||
Net cash used in investing activities
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(132,506 | ) | (80,994 | ) | ||||
FINANCING ACTIVITIES:
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Advances under bank line of credit
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20,690,112 | 22,465,558 | ||||||
Principal payments under bank line of credit
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(21,180,002 | ) | (21,832,633 | ) | ||||
Payment of dividend
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(166,989 | ) | - | |||||
Net cash (used in) provided by financing activities
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(656,879 | ) | 632,925 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
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1,196,093 | 572,715 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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1,672,921 | 970,327 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
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$ | 2,869,014 | $ | 1,543,042 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
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Interest paid
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$ | 116,675 | $ | 63,366 | ||||
Income taxes paid
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$ | 659,773 | $ | 483,772 |