COFFEE HOLDING CO., INC.
|
(Exact name of registrant as specified in its charter)
|
Nevada
|
001-32491
|
11-2238111
|
(State or other jurisdiction
|
(Commission
|
(IRS Employer
|
of incorporation)
|
File Number)
|
Identification No.)
|
3475 Victory Boulevard, Staten Island, New York
|
10314
|
(Address of principal executive offices)
|
(Zip Code)
|
Not Applicable
|
(Former name or former address, if changed since last report.)
|
Exhibit No.
|
Description
|
99.1
|
Press Release, dated March 6, 2015, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for Three Months ended January 31, 2015.”
|
COFFEE HOLDING CO., INC.
|
||
Dated: March 6, 2015
|
By:
|
/s/ Andrew Gordon |
Name: Andrew Gordon
|
||
Title: President and Chief Executive Officer
|
||
Exhibit No.
|
Description
|
99.1
|
Press Release, dated March 6, 2015, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for Three Months ended January 31, 2015.”
|
The Company reported net income of $71,801, or $0.01 per share basic and diluted, for the three months ended January 31, 2015, compared to net income of $1,371,740 or $0.22 per share basic and $0.21 per share diluted, for the three months ended January 31, 2014. The decrease in net income reflects a $1.7 million or $0.27 per share unrealized loss on our hedging activities.
|
Net sales totaled $38,405,979 for the three months ended January 31, 2015, an increase of $11,059,632, or 40%, from $27,346,347 for the three months ended January 31, 2014. The increase in net sales reflects a combination of increased sales of green and roasted coffee along with higher coffee prices year over year.
|
Cost of sales for the three months ended January 31, 2015 was $36,484,535 or 95.0% of net sales, as compared to $23,227,722 or 84.9% of net sales for the three months ended January 31, 2014. The increase in cost of sales reflects higher prices paid for green coffee during this period compared to the same period during 2014 and a $1.7 million unrealized loss on our hedging activities in the three months ended January 31, 2015 compared to a $1 million gain in the three months ended January 31, 2014.
|
Gross profit decreased $2,197,181 to $1,921,444 for the three months ended January 31, 2015 as compared to gross profit of $4,118,625 for the three months ended January 31, 2014. Gross profit as a percentage of net sales decreased by 10.1% for the three months ended January 31, 2015, as compared to gross profit as a percentage of net sales for the three months ended January 31, 2014. The decrease in our margins reflects unrealized losses in our hedging activities and higher prices paid for green coffee during this period compared to the same period during 2014.
|
Total operating expenses decreased by $50,620, or 2.7%, to $1,819,092 for the three months ended January 31, 2015 as compared to operating expenses of $1,869,712 for the three months ended January 31, 2014. The decrease in operating expenses was due to a decrease in selling and administrative expenses of $44,255 and a decrease of $6,365 in officers’ salaries.
|
January 31, 2015
|
October 31, 2014
|
|||||||
(Unaudited)
|
||||||||
- ASSETS -
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash
|
$
|
3,519,981
|
$
|
3,782,639
|
||||
Accounts receivable, net of allowances of $144,000 for 2015 and 2014
|
21,295,183
|
15,419,860
|
||||||
Inventories
|
13,562,889
|
15,210,153
|
||||||
Prepaid green coffee
|
218,451
|
467,155
|
||||||
Prepaid expenses and other current assets
|
268,670
|
260,112
|
||||||
Prepaid and refundable income taxes
|
135,946
|
759
|
||||||
Deferred income tax asset
|
819,052
|
343,657
|
||||||
TOTAL CURRENT ASSETS
|
39,820,172
|
35,484,335
|
||||||
Machinery and equipment, at cost, net of accumulated depreciation of $3,847,166 and $3,704,802 for 2015 and 2014, respectively
|
1,885,769
|
1,991,094
|
||||||
Customer list and relationships, net of accumulated amortization of $35,625 and $33,750 for 2015 and 2014, respectively
|
114,375
|
116,250
|
||||||
Trademarks
|
180,000
|
180,000
|
||||||
Goodwill
|
440,000
|
440,000
|
||||||
Equity method investments
|
98,119
|
97,404
|
||||||
Deposits and other assets
|
631,158
|
643,549
|
||||||
TOTAL ASSETS
|
$
|
43,169,593
|
$
|
38,952,632
|
||||
- LIABILITIES AND STOCKHOLDERS’ EQUITY -
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable and accrued expenses
|
$
|
8,420,898
|
$
|
8,693,100
|
||||
Line of credit
|
5,498,458
|
2,498,458
|
||||||
Due to broker
|
1,846,733
|
484,924
|
||||||
Income taxes payable
|
474,309
|
331,051
|
||||||
TOTAL CURRENT LIABILITIES
|
16,240,398
|
12,007,533
|
||||||
Deferred income tax liabilities
|
150,052
|
165,157
|
||||||
Deferred rent payable
|
212,744
|
209,640
|
||||||
Deferred compensation payable
|
503,158
|
515,549
|
||||||
TOTAL LIABILITIES
|
17,106,352
|
12,897,879
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Coffee Holding Co., Inc. stockholders’ equity:
|
||||||||
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,215,894 shares outstanding for 2015 and 2014
|
6,456
|
6,456
|
||||||
Additional paid-in capital
|
15,904,109
|
15,904,109
|
||||||
Retained earnings
|
11,150,969
|
11,079,168
|
||||||
Less: Treasury stock, 240,422 common shares, at cost for 2015 and 2014
|
(1,267,862
|
)
|
(1,267,862
|
)
|
||||
Total Coffee Holding Co., Inc. Stockholders’ Equity
|
25,793,672
|
25,721,871
|
||||||
Noncontrolling interest
|
269,569
|
332,882
|
||||||
TOTAL EQUITY
|
26,063,241
|
26,054,753
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
43,169,593
|
$
|
38,952,632
|
January 31, 2015
|
January 31, 2014
|
|||||||
NET SALES
|
$
|
38,405,979
|
$
|
27,346,347
|
||||
COST OF SALES (which include purchases of approximately $9.8 million and $5.0 million for the three months ended January 31, 2015 and 2014, respectively, from a related party)
|
36,484,535
|
23,227,722
|
||||||
GROSS PROFIT
|
1,921,444
|
4,118,625
|
||||||
OPERATING EXPENSES: | ||||||||
Selling and administrative
|
1,666,357
|
1,710,612
|
||||||
Officers’ salaries
|
152,735
|
159,100
|
||||||
TOTAL
|
1,819,092
|
1,869,712
|
||||||
INCOME FROM OPERATIONS
|
102,352
|
2,248,913
|
||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest income
|
8,297
|
883
|
||||||
Gain (Loss) from equity method investments
|
715
|
(182
|
)
|
|||||
Interest expense
|
(53,979
|
)
|
(18,088
|
)
|
||||
TOTAL
|
(44,967
|
)
|
(17,387
|
)
|
||||
INCOME BEFORE PROVISION FOR INCOME TAXES AND
|
||||||||
NON-CONTROLLING INTEREST IN SUBSIDIARY
|
57,385
|
2,231,526
|
||||||
(Benefit) provision for income taxes
|
(31,104)
|
825,925
|
||||||
NET INCOME BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY
|
88,489
|
1,405,601
|
||||||
Less: net income attributable to the non-controlling interest in subsidiary
|
(16,688
|
)
|
(33,861
|
)
|
||||
NET INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.
|
$
|
71,801
|
$
|
1,371,740
|
||||
Basic earnings per share
|
$
|
0.01
|
$
|
0.22
|
||||
Diluted earnings per share
|
$
|
0.01
|
$
|
0.21
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
6,215,894
|
6,372,309
|
||||||
Diluted
|
6,215,894
|
6,639,309
|
January 31, 2015
|
January 31, 2014
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
88,489
|
$
|
1,405,601
|
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
145,673
|
148,248
|
||||||
Unrealized loss (gain) on commodities
|
1,361,809
|
(1,179,594
|
)
|
|||||
(Gain) loss on equity method investments
|
(715)
|
182
|
||||||
Deferred rent
|
3,104
|
4,877
|
||||||
Deferred income taxes
|
(490,500)
|
414,100
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(5,875,323)
|
2,325,651
|
||||||
Inventories
|
1,647,264
|
406,461
|
||||||
Prepaid expenses and other current assets
|
(8,558)
|
102,965
|
||||||
Prepaid green coffee
|
248,704
|
(181,670
|
)
|
|||||
Prepaid and refundable income taxes
|
(135,187)
|
407,704
|
||||||
Accounts payable and accrued expenses
|
(272,203
|
)
|
(2,004,402
|
)
|
||||
Income taxes payable
|
143,258
|
200
|
||||||
Net cash (used in) provided by operating activities
|
(3,144,185)
|
1,850,323
|
||||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of machinery and equipment
|
(38,473
|
)
|
(123,874
|
)
|
||||
Net cash used in investing activities
|
(38,473
|
)
|
(123,874
|
)
|
||||
FINANCING ACTIVITIES:
|
||||||||
Advances under bank line of credit
|
5,000,000
|
40,202
|
||||||
Principal payments under bank line of credit
|
(2,000,000
|
)
|
(1,269,384
|
)
|
||||
Payment of dividend
|
(80,000)
|
-
|
||||||
Net cash provided by (used in) financing activities
|
2,920,000
|
(1,229,182)
|
||||||
NET (DECREASE) INCREASE IN CASH
|
(262,658)
|
497,267
|
||||||
CASH, BEGINNING OF PERIOD
|
3,782,639
|
4,035,669
|
||||||
CASH, END OF PERIOD
|
$
|
3,519,981
|
$
|
4,532,936
|
2015
|
2014
|
|||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
|
||||||||
Interest paid
|
$
|
46,479
|
$
|
21,225
|
||||
Income taxes paid
|
$
|
453,205
|
$
|
5,089
|