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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Not Applicable
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(Former name or former address, if changed since last report.)
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(d)
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The following exhibit is furnished with this report:
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Exhibit No. | Description | |
99.1 | Press Release, dated January 28, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Reports Year End Results.” |
COFFEE HOLDING CO., INC. | |||
Dated: January 28, 2013
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By:
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/s/ Andrew Gordon | |
Name: Andrew Gordon | |||
Title: President and Chief Executive Officer | |||
Exhibit No. | Description | |
99.1 | Press Release, dated January 28, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Reports Year End Results.” |
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Reports record net sales of $173,656,215 for the fiscal year ended October 31, 2012;
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Reports sales growth of 18.3% for the fiscal year ended October 31, 2012 compared to the fiscal year ended October 31, 2011;
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Reports net income of $2,485,677, or $0.39 per share (basic) and $0.37 per share (diluted) for the fiscal year ended October 31, 2012; and
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Reports payment of $0.15 in quarterly dividends in fiscal 2012 as compared to $0.12 paid during fiscal 2011.
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2012
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2011
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- ASSETS -
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CURRENT ASSETS:
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||||||||
Cash
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$ | 7,568,583 | $ | 4,244,335 | ||||
Accounts receivable, net of allowances of $213,674 and $269,611 for 2012 and 2011, respectively
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12,633,128 | 16,021,581 | ||||||
Inventories
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11,303,581 | 13,475,855 | ||||||
Prepaid green coffee
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150,000 | 388,754 | ||||||
Prepaid expenses and other current assets
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704,013 | 275,679 | ||||||
Prepaid and refundable income taxes
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62,763 | 377,972 | ||||||
Deferred income tax asset
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702,655 | 896,400 | ||||||
TOTAL CURRENT ASSETS
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33,124,723 | 35,680,576 | ||||||
Machinery and equipment, at cost, net of accumulated depreciation of $2,631,468 and $2,191,566 for 2012 and 2011, respectively
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1,791,754 | 1,661,759 | ||||||
Customer list and relationships, net of accumulated amortization of $18,750 and $11,250 for 2012 and 2011, respectively
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131,250 | 138,750 | ||||||
Trademarks
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180,000 | 180,000 | ||||||
Goodwill
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440,000 | 440,000 | ||||||
Equity method investments
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1,931,931 | - | ||||||
Deposits and other assets
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648,094 | 677,606 | ||||||
TOTAL ASSETS
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$ | 38,247,752 | $ | 38,778,691 | ||||
- LIABILITIES AND STOCKHOLDERS’ EQUITY -
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CURRENT LIABILITIES:
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Accounts payable and accrued expenses
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$ | 11,769,107 | $ | 12,379,414 | ||||
Line of credit
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562,500 | 1,820,109 | ||||||
Due to broker
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1,367,389 | 1,867,558 | ||||||
Income taxes payable
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21,122 | 100 | ||||||
TOTAL CURRENT LIABILITIES
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13,720,118 | 16,067,181 | ||||||
Deferred income tax liabilities
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32,655 | 35,900 | ||||||
Deferred rent payable
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166,668 | 146,921 | ||||||
Deferred compensation payable
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528,687 | 538,707 | ||||||
TOTAL LIABILITIES
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14,448,128 | 16,788,709 | ||||||
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; none issued
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- | - | ||||||
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,372,309 shares outstanding for 2012 and 2011
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6,456 | 6,456 | ||||||
Additional paid-in capital
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15,904,109 | 15,884,609 | ||||||
Contingent consideration
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- | 19,500 | ||||||
Retained earnings
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7,979,247 | 6,268,326 | ||||||
Less: Treasury stock, 84,007 common shares, at cost for 2012 and 2011
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(272,133 | ) | (272,133 | ) | ||||
Total Coffee Holding Co., Inc. Stockholders’ Equity
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23,617,679 | 21,906,758 | ||||||
Noncontrolling interest
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181,945 | 83,224 | ||||||
TOTAL EQUITY
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23,799,624 | 21,989,982 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 38,247,752 | $ | 38,778,691 |
2012
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2011
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NET SALES
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$ | 173,656,215 | $ | 146,755,165 | ||||
COST OF SALES (which include purchases of approximately $31.9 million and $25.3 million in fiscal years 2012 and 2011, respectively, from a related party)
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161,649,282 | 138,210,277 | ||||||
GROSS PROFIT
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12,006,933 | 8,544,888 | ||||||
OPERATING EXPENSES:
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Selling and administrative
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6,900,199 | 6,715,753 | ||||||
Officers’ salaries
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707,070 | 629,399 | ||||||
TOTAL
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7,607,269 | 7,345,152 | ||||||
INCOME FROM OPERATIONS
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4,399,664 | 1,199,736 | ||||||
OTHER INCOME (EXPENSE):
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Interest income
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32,967 | 150,442 | ||||||
Other income and losses
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(14,690 | ) | 14,848 | |||||
Loss from equity method investments
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(168,069 | ) | - | |||||
Interest expense
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(195,093 | ) | (289,521 | ) | ||||
TOTAL
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(344,885 | ) | (124,231 | ) | ||||
INCOME BEFORE PROVISION FOR INCOME TAXES AND
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NONCONTROLLING INTEREST IN SUBSIDIARY
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4,054,779 | 1,075,505 | ||||||
Provision for income taxes
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1,470,381 | 229,522 | ||||||
NET INCOME BEFORE NONCONTROLLING INTEREST IN SUBSIDIARY
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2,584,398 | 845,983 | ||||||
Less: Net income attributable to the noncontrolling interest in subsidiary
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(98,721 | ) | (34,053 | ) | ||||
NET INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
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$ | 2,485,677 | $ | 811,930 | ||||
Basic earnings per share
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$ | .39 | $ | .15 | ||||
Diluted earnings per share
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$ | .37 | $ | .14 | ||||
Dividends declared per share
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$ | .12 | $ | .12 | ||||
Weighted average common shares outstanding:
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Basic
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6,372,309 | 5,563,802 | ||||||
Diluted
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6,639,309 | 5,835,802 |
2012
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2011
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OPERATING ACTIVITIES:
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Net income
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$ | 2,584,398 | $ | 845,983 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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Depreciation and amortization
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447,404 | 433,199 | ||||||
Unrealized (gain) loss on commodities
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(500,169 | ) | 2,143,057 | |||||
Loss on equity method investments
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168,069 | - | ||||||
Stock cancellation
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- | (24,650 | ) | |||||
Bad debt expense
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- | 72,533 | ||||||
Deferred rent
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19,747 | 22,165 | ||||||
Deferred income taxes
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190,500 | (822,500 | ) | |||||
Changes in operating assets and liabilities:
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Accounts receivable
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3,388,453 | (7,241,742 | ) | |||||
Inventories
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2,172,274 | (5,285,435 | ) | |||||
Prepaid expenses and other current assets
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(428,334 | ) | 227,173 | |||||
Prepaid green coffee
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238,754 | 946,922 | ||||||
Prepaid and refundable income taxes
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315,209 | (368,451 | ) | |||||
Accounts payable and accrued expenses
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(610,307 | ) | 5,214,342 | |||||
Deposits and other assets
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19,492 | 19,488 | ||||||
Income taxes payable
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21,022 | (234,644 | ) | |||||
Net cash provided by (used in) operating activities
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8,026,512 | (4,052,560 | ) | |||||
INVESTING ACTIVITIES:
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Purchases of equity method investments
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(2,100,000 | ) | - | |||||
Purchases of machinery and equipment
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(569,899 | ) | (526,518 | ) | ||||
Net cash used in investing activities
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(2,669,899 | ) | (526,518 | ) | ||||
FINANCING ACTIVITIES:
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Advances under bank line of credit
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134,801,724 | 128,456,096 | ||||||
Principal payments under bank line of credit
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(136,059,333 | ) | (128,942,736 | ) | ||||
Proceeds from issuance of stock, net of offering costs
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- | 8,331,790 | ||||||
Payment of dividend
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(774,756 | ) | (694,658 | ) | ||||
Net cash (used in) provided by financing activities
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(2,032,365 | ) | 7,150,492 | |||||
NET INCREASE IN CASH
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3,324,248 | 2,571,414 | ||||||
CASH, BEGINNING OF PERIOD
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4,244,335 | 1,672,921 | ||||||
CASH, END OF PERIOD
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$ | 7,568,583 | $ | 4,244,335 |
2012
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2011
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
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Interest paid
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$ | 208,064 | $ | 289,866 | ||||
Income taxes paid
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$ | 879,756 | $ | 1,041,731 |