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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Item 2.02.
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Results of Operations and Financial Condition.
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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.
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Description
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Press release, dated September 11, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three and Nine Months Ended July 31, 2013.”
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COFFEE HOLDING CO., INC.
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Dated: September 11, 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.
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Description
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Press release, dated September 11, 2013, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for the Three and Nine Months Ended July 31, 2013.”
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July 31,
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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$ | 3,483,229 | $ | 7,568,583 | ||||
Accounts receivable, net of allowances of $213,674 for 2013 and 2012
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12,255,619 | 12,633,128 | ||||||
Inventories
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9,659,829 | 11,303,581 | ||||||
Prepaid green coffee
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428,231 | 150,000 | ||||||
Prepaid expenses and other current assets
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404,495 | 704,013 | ||||||
Prepaid and refundable income taxes
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1,923,560 | 62,763 | ||||||
Deferred income tax asset
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513,875 | 702,655 | ||||||
TOTAL CURRENT ASSETS
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28,668,838 | 33,124,723 | ||||||
Machinery and equipment, at cost, net of accumulated depreciation of $2,981,415 and $2,631,468 for 2013 and 2012, respectively
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2,030,688 | 1,791,754 | ||||||
Customer list and relationships, net of accumulated amortization of $24,375 and $18,750 for 2013 and 2012, respectively
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125,625 | 131,250 | ||||||
Trademarks
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180,000 | 180,000 | ||||||
Goodwill
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440,000 | 440,000 | ||||||
Equity method investments
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98,755 | 1,931,931 | ||||||
Deposits and other assets
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623,271 | 648,094 | ||||||
TOTAL ASSETS
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$ | 32,167,177 | $ | 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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$ | 5,055,539 | $ | 11,769,107 | ||||
Line of credit
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3,300,000 | 562,500 | ||||||
Due to broker
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1,050,197 | 1,367,389 | ||||||
Income taxes payable
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- | 21,122 | ||||||
TOTAL CURRENT LIABILITIES
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9,405,736 | 13,720,118 | ||||||
Deferred income tax liabilities
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72,875 | 32,655 | ||||||
Deferred rent payable
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178,703 | 166,668 | ||||||
Deferred compensation payable
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515,485 | 528,687 | ||||||
TOTAL LIABILITIES
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10,172,799 | 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 $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,372,309 shares outstanding for 2013 and 2012
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6,456 | 6,456 | ||||||
Additional paid-in capital
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15,904,109 | 15,904,109 | ||||||
Retained earnings
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6,024,982 | 7,979,247 | ||||||
Less: Treasury stock, 84,007 common shares, at cost for 2013 and 2012
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(272,133 | ) | (272,133 | ) | ||||
Total Coffee Holding Co., Inc. Stockholders’ Equity
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21,663,414 | 23,617,679 | ||||||
Non-controlling interest
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330,964 | 181,945 | ||||||
TOTAL EQUITY
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21,994,378 | 23,799,624 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 32,167,177 | $ | 38,247,752 |
Nine Months Ended
July 31,
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Three Months Ended
July 31,
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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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$ | 100,375,542 | $ | 138,171,695 | $ | 32,370,692 | $ | 44,484,453 | ||||||||
COST OF SALES (including $24.7 and $23.4 million of related party costs for the nine months ended July 31, 2013 and 2012, respectively. Including $6.3 and $5.9 million for the three months ended July 31, 2013 and 2012, respectively.)
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96,463,019 | 128,472,249 | 33,526,657 | 40,606,840 | ||||||||||||
GROSS PROFIT (LOSS)
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3,912,523 | 9,699,446 | (1,155,965 | ) | 3,877,613 | |||||||||||
OPERATING EXPENSES:
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Selling and administrative
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5,233,157 | 5,149,653 | 1,713,051 | 1,717,472 | ||||||||||||
Officers’ salaries
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440,992 | 429,458 | 169,954 | 141,200 | ||||||||||||
TOTALS
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5,674,149 | 5,579,111 | 1,883,005 | 1,858,672 | ||||||||||||
(LOSS) INCOME FROM OPERATIONS
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(1,761,626 | ) | 4,120,335 | (3,038,970 | ) | 2,018,941 | ||||||||||
OTHER INCOME (EXPENSE)
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Interest income
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30,176 | 27,909 | 12,370 | 9,268 | ||||||||||||
(Loss) income from equity investment
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(105,204 | ) | (27,471 | ) | (158 | ) | 3,627 | |||||||||
Interest expense
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(71,320 | ) | (153,294 | ) | (10,542 | ) | (46,762 | ) | ||||||||
TOTALS
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(146,348 | ) | (152,856 | ) | 1,670 | (33,867 | ) | |||||||||
(LOSS) INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARIES
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(1,907,974 | ) | 3,967,479 | (3,037,300 | ) | 1,985,074 | ||||||||||
(Benefit) provision for income taxes
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(490,108 | ) | 1,460,792 | (997,618 | ) | 729,979 | ||||||||||
Net (Loss) Income Before Non-Controlling Interest in Subsidiary
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(1,417,866 | ) | 2,506,687 | (2,039,682 | ) | 1,255,095 | ||||||||||
Less: net income attributable to the non-controlling interest
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(149,020 | ) | (67,394 | ) | (69,229 | ) | (23,899 | ) | ||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
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$ | (1,566,886 | ) | $ | 2,439,293 | $ | (2,108,911 | ) | $ | 1,231,196 | ||||||
Basic earnings per share
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$ | (.25 | ) | $ | .38 | $ | (.33 | ) | $ | .19 | ||||||
Diluted earnings per share
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$ | (.25 | ) | $ | .37 | $ | (.33 | ) | $ | .19 | ||||||
Dividends declared per share
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$ | .06 | $ | .09 | $ | .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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6,672,309 | 6,639,309 | 6,372,309 | 6,639,309 |
2013
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2012
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OPERATING ACTIVITIES:
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Net income (loss)
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$ | (1,417,866 | ) | $ | 2,506,687 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
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Depreciation and amortization
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355,570 | 332,630 | ||||||
Unrealized gain on commodities
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(317,192 | ) | (1,701,257 | ) | ||||
Loss on equity method investments
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105,204 | 27,471 | ||||||
Deferred rent
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12,035 | 14,811 | ||||||
Deferred income taxes
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229,000 | 628,000 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable
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377,509 | 2,433,607 | ||||||
Inventories
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2,147,252 | 2,277,100 | ||||||
Prepaid expenses and other current assets
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299,518 | 86,813 | ||||||
Prepaid green coffee
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(278,231 | ) | 187,454 | |||||
Prepaid and refundable income taxes
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(1,860,797 | ) | 175,939 | |||||
Accounts payable and accrued expenses
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(5,721,168 | ) | (6,216,243 | ) | ||||
Deposits and other assets
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11,621 | 14,619 | ||||||
Income taxes payable
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(21,122 | ) | 142 | |||||
Net cash (used in) provided by operating activities
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(6,078,667 | ) | 767,773 | |||||
INVESTING ACTIVITIES:
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Purchase of equity method investments
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- | (2,100,000 | ) | |||||
Proceeds from disposition of equity method investment
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232,069 | - | ||||||
Purchases of machinery and equipment
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(588,879 | ) | (517,033 | ) | ||||
Net cash used in investing activities
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(356,810 | ) | (2,617,033 | ) | ||||
FINANCING ACTIVITIES:
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Advances under bank line of credit
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6,788,920 | 129,236,460 | ||||||
Principal payments under bank line of credit
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(4,051,420 | ) | (129,677,124 | ) | ||||
Payment of dividend
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(387,377 | ) | (581,067 | ) | ||||
Net cash provided by (used in) financing activities
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2,350,123 | (1,021,731 | ) | |||||
NET DECREASE IN CASH
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(4,085,354 | ) | (2,870,991 | ) | ||||
CASH, BEGINNING OF PERIOD
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7,568,583 | 4,244,335 | ||||||
CASH, END OF PERIOD
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$ | 3,483,229 | $ | 1,373,344 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
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Interest paid
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$ | 73,261 | $ | 168,428 | ||||
Income taxes paid
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$ | 803,490 | $ | 570,160 |
2013
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2012
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Inventory received
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$ | 503,500 | $ | - | ||||
Settlement of accounts payable
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992,402 | - | ||||||
Total noncash proceeds
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$ | 1,495,902 | $ | - |