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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Exhibit No. | Description | |
99.1 | Press release, dated June 13, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three and Six Months Ended April 30, 2013.” |
COFFEE HOLDING CO., INC.
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Dated: June 13, 2013
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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 | |
99.1 | Press release, dated June 13, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three and Six Months Ended April 30, 2013.” |
●
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Reports net sales of $68,004,850 for the six months ended April 30, 2013 and $36,686,047 for the three months ended April 30, 2013 compared to net sales of $93,687,243 for the six months ended April 30, 2012 and $37,085,559 for the three months ended April 30, 2012; and
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●
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Reports net loss of $395,512, or $0.06 per share (basic and diluted) for the three months ended April 30, 2013 compared to net loss of $370,247, or $0.06 per share (basic and diluted) for the three months ended April 30, 2012.
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April 30,
2013
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October 31,
2012
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- ASSETS -
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CURRENT ASSETS:
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Cash
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$ | 7,615,141 | $ | 7,568,583 | ||||
Accounts receivable, net of allowances and reserves of $213,674 for 2013 and 2012
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10,726,416 | 12,633,128 | ||||||
Inventories
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8,751,842 | 11,303,581 | ||||||
Prepaid green coffee
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459,473 | 150,000 | ||||||
Prepaid expenses and other current assets
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659,937 | 704,013 | ||||||
Prepaid and refundable income taxes
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465,730 | 62,763 | ||||||
Deferred income tax, net
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621,267 | 702,655 | ||||||
TOTAL CURRENT ASSETS
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29,299,806 | 33,124,723 | ||||||
Machinery and equipment, at cost, net of accumulated depreciation of $2,862,195 and $2,631,468 for 2013 and 2012, respectively
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2,030,872 | 1,791,754 | ||||||
Customer list and relationships, net of accumulated amortization of $22,500 and $18,750 for 2013 and 2012, respectively
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127,500 | 131,250 | ||||||
Trademarks
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180,000 | 180,000 | ||||||
Goodwill
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440,000 | 440,000 | ||||||
Equity method investment
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98,913 | 1,931,931 | ||||||
Deferred income tax asset
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9,733 | - | ||||||
Deposits and other assets
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628,119 | 648,094 | ||||||
TOTAL ASSETS
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$ | 32,814,943 | $ | 38,247,752 | ||||
- LIABILITIES AND STOCKHOLDERS’ EQUITY -
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CURRENT LIABILITIES:
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Accounts payable and accrued expenses
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$ | 6,753,530 | $ | 11,769,107 | ||||
Line of credit
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- | 562,500 | ||||||
Due to broker
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1,336,834 | 1,367,389 | ||||||
Income taxes payable
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370 | 21,122 | ||||||
TOTAL CURRENT LIABILITIES
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8,090,734 | 13,720,118 | ||||||
Deferred income tax liabilities
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- | 32,655 | ||||||
Deferred rent payable
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174,691 | 166,668 | ||||||
Deferred compensation payable
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515,458 | 528,687 | ||||||
TOTAL LIABILITIES
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8,780,883 | 14,448,128 | ||||||
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; no shares issued and outstanding
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- | - | ||||||
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,372,309 shares outstanding for 2012 and 2011
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6,456 | 6,456 | ||||||
Additional paid-in capital
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15,904,109 | 15,904,109 | ||||||
Retained earnings
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8,133,893 | 7,979,247 | ||||||
Less: Treasury stock, 84,007 common shares, at cost for 2012 and 2011
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(272,133 | ) | (272,133 | ) | ||||
Total Coffee Holding Co., Inc. Stockholders’ Equity
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23,772,325 | 23,617,679 | ||||||
Non-controlling interest
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261,735 | 181,945 | ||||||
TOTAL EQUITY
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24,034,060 | 23,799,624 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 32,814,943 | $ | 38,247,752 |
Six Months Ended
April 30,
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Three Months Ended
April 30,
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2013
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2012
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2013
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2012
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NET SALES
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$ | 68,004,850 | $ | 93,687,243 | $ | 36,686,047 | $ | 37,085,559 | ||||||||
COST OF SALES (including $18.4 and $17.5 million of related party costs for the six months ended April 30, 2013 and 2012, respectively. Including $8.7 and $7.0 million for the three months ended April 30, 2013 and 2012, respectively.)
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62,936,854 | 87,853,608 | 35,301,868 | 35,701,667 | ||||||||||||
GROSS PROFIT
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5,067,996 | 5,833,635 | 1,384,179 | 1,383,892 | ||||||||||||
OPERATING EXPENSES:
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Selling and administrative
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3,519,614 | 3,443,982 | 1,753,155 | 1,763,249 | ||||||||||||
Officers’ salaries
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271,037 | 288,258 | 141,100 | 141,100 | ||||||||||||
TOTAL
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3,790,651 | 3,732,240 | 1,894,255 | 1,904,349 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS
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1,277,345 | 2,101,395 | (510,076 | ) | (520,457 | ) | ||||||||||
OTHER INCOME (EXPENSE)
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Interest income
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17,805 | 18,641 | 10,226 | 4,758 | ||||||||||||
Loss from equity method investment
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(105,046 | ) | (31,098 | ) | (609 | ) | (10,961 | ) | ||||||||
Interest expense
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(60,779 | ) | (106,532 | ) | (22,379 | ) | (40,803 | ) | ||||||||
TOTAL
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(148,020 | ) | (118,989 | ) | (12,762 | ) | (47,006 | ) | ||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY
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1,129,325 | 1,982,406 | (522,838 | ) | (567,463 | ) | ||||||||||
Provision (benefit) for income taxes
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507,510 | 730,813 | (127,974 | ) | (233,687 | ) | ||||||||||
NET INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY
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621,815 | 1,251,593 | (394,864 | ) | (333,776 | ) | ||||||||||
Less: Net (income) attributable to the non-controlling interest
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(79,790 | ) | (43,495 | ) | (648 | ) | (36,471 | ) | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
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$ | 542,025 | $ | 1,208,098 | $ | (395,512 | ) | $ | (370,247 | ) | ||||||
Basic earnings (loss) per share
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$ | .09 | $ | .19 | $ | (.06 | ) | $ | (.06 | ) | ||||||
Diluted earnings (loss) per share
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$ | .08 | $ | .18 | $ | (.06 | ) | $ | (.06 | ) | ||||||
Dividends declared per share
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$ | .06 | $ | .06 | $ | .00 | $ | .03 | ||||||||
Weighted average common shares outstanding:
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Basic
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6,372,309 | 6,372,309 | 6,372,309 | 6,372,309 | ||||||||||||
Diluted
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6,639,309 | 6,644,309 | 6,372,309 | 6,372,309 |
2013
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2012
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OPERATING ACTIVITIES:
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Net income
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$ | 621,815 | $ | 1,251,593 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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234,476 | 223,398 | ||||||
Unrealized gain on commodities
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(30,555 | ) | (1,296,613 | ) | ||||
Loss on equity method investment
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989 | 31,098 | ||||||
Loss on disposition of equity method investment
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104,057 | |||||||
Deferred rent
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8,023 | 9,874 | ||||||
Deferred income taxes
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39,000 | 493,000 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable
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1,906,712 | 6,386,652 | ||||||
Inventories
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3,055,239 | 1,482,771 | ||||||
Prepaid expenses and other current assets
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44,076 | 68,534 | ||||||
Prepaid green coffee
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(309,473 | ) | 338,471 | |||||
Prepaid and refundable income taxes
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(402,967 | ) | (123,219 | ) | ||||
Accounts payable and accrued expenses
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(4,023,176 | ) | (6,428,912 | ) | ||||
Deposits and other assets
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6,746 | 9,746 | ||||||
Income taxes payable
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(20,752 | ) | (100 | ) | ||||
Net cash provided by operating activities
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1,234,210 | 2,446,293 | ||||||
INVESTING ACTIVITIES:
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Purchase of equity method investment
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- | (2,000,000 | ) | |||||
Proceeds from disposition of equity method investment
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232,069 | - | ||||||
Purchases of machinery and equipment
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(469,844 | ) | (188,640 | ) | ||||
Net cash used in investing activities
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(237,775 | ) | (2,188,640 | ) | ||||
FINANCING ACTIVITIES:
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Advances under bank line of credit
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3,466,969 | 90,112,780 | ||||||
Principal payments under bank line of credit
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(4,029,469 | ) | (91,795,389 | ) | ||||
Payment of dividend
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(387,377 | ) | (387,378 | ) | ||||
Net cash used in financing activities
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(949,877 | ) | (2,069,987 | ) | ||||
NET INCREASE (DECREASE) IN CASH
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46,558 | (1,812,334 | ) | |||||
CASH, BEGINNING OF PERIOD
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7,568,583 | 4,244,335 | ||||||
CASH, END OF PERIOD
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$ | 7,615,141 | $ | 2,432,001 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
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Interest paid
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$ | 64,177 | $ | 121,872 | ||||
Income taxes paid
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$ | 477,991 | $ | 343,805 |
CONTACT: | Coffee Holding Co., Inc. |
Andrew Gordon, President & CEO | |
(718) 832-0800 |