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 |
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Press Release, dated September 14, 2016, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for Three and Nine Months Ended July 31, 2016.” |
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COFFEE HOLDING CO., INC. | |
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Dated: September 14, 2016 |
By: |
/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 September 14, 2016, issued by Coffee Holding entitled “Coffee Holding Co., Inc. Reports Results for Three and Nine Months Ended July 31, 2016.” |
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July 31,
2016
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October 31,
2015
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(Unaudited) |
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- ASSETS - | ||
CURRENT ASSETS: |
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Cash |
$1,830,441 |
$3,853,816 |
Accounts receivable, net of allowances of $144,000 for 2015 and 2014 |
15,819,019 |
10,968,237 |
Inventories |
12,737,022 |
13,862,818 |
Prepaid green coffee |
562,142 |
620,452 |
Prepaid expenses and other current assets |
518,909 |
256,202 |
Prepaid income taxes |
503,327 |
1,434,577 |
Due from broker |
107,731 |
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Deferred income tax asset |
85,272 |
997,720 |
TOTAL CURRENT ASSETS |
32,163,863 |
31,993,822 |
Machinery and equipment, at cost, net of accumulated depreciation of $4,661,610 and $4,241,256 for 2016 and 2015, respectively |
2,126,239 |
1,845,000 |
Customer list and relationships, net of accumulated amortization of $46,875 and $41,250 for 2016 and 2015, respectively |
223,125 |
108,750 |
Trademarks |
180,000 |
180,000 |
Goodwill |
1,017,905 |
440,000 |
Equity method investments |
95,522 |
96,571 |
Deposits and other assets |
593,476 |
610,499 |
TOTAL ASSETS |
$36,400,130 |
$35,274,642 |
- LIABILITIES AND STOCKHOLDERS’ EQUITY - | ||
CURRENT LIABILITIES: |
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Accounts payable and accrued expenses |
$2,539,048 |
$4,021,389 |
Line of credit |
7,258,375 |
5,554,121 |
Due to broker |
|
483,835 |
Income taxes payable |
925 |
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TOTAL CURRENT LIABILITIES |
9,798,348 |
10,059,345 |
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Deferred income tax liabilities |
70,672 |
92,370 |
Deferred rent payable |
228,927 |
222,055 |
Deferred compensation payable |
497,034 |
482,499 |
TOTAL LIABILITIES |
10,594,981 |
10,856,269 |
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, 6,494,680 and 6,456,316 shares issued; 6,026,283 and 6,162,207 shares outstanding at July 31, 2016 and October 31, 2015, respectively |
6,495 |
6,456 |
Additional paid-in capital |
16,104,074 |
15,904,109 |
Retained earnings |
11,691,828 |
9,665,940 |
Less: Treasury stock, 468,397 and 294,109 common shares, at cost at July 31, 2016 and October 31, 2015, respectively |
(2,334,639) |
(1,494,712) |
Total Coffee Holding Co., Inc. Stockholders' Equity |
25,467,758 |
24,081,793 |
Non-controlling interest |
337,391 |
336,580 |
TOTAL EQUITY |
25,805,149 |
24,418,373 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$36,400,130 |
$35,274,642 |
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Nine Months Ended
July 31, |
Three Months Ended
July 31, | ||
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2016
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2015
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2016
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2015
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NET SALES |
$61,566,868 |
$95,708,890 |
$17,354,533 |
$27,039,857 |
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COST OF SALES (including $7.4 and $17.9 million of related party costs for the nine months ended July 31, 2016 and 2015, respectively. Including $1.9 and $3.0 million for the three months ended July 31, 2016 and 2015, respectively.) |
52,455,081 |
92,816,224 |
14,203,343 |
24,991,366 |
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GROSS PROFIT |
9,111,787 |
2,892,666 |
3,151,190 |
2,048,491 |
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OPERATING EXPENSES: |
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Selling and administrative |
5,170,915 |
5,286,993 |
1,704,373 |
1,723,158 |
Officers’ salaries |
491,550 |
489,435 |
163,850 |
163,850 |
TOTALS |
5,662,465 |
5,776,428 |
1,868,223 |
1,887,008 |
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INCOME (LOSS) FROM OPERATIONS |
3,449,322 |
(2,883,762) |
1,282,967 |
161,483 |
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OTHER INCOME (EXPENSE) |
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Interest income |
30,889 |
26,302 |
9,890 |
13,074 |
Loss from equity method investment |
(1,049) |
(162) |
(805) |
(610) |
Interest expense |
(116,144) |
(153,768) |
(42,671) |
(35,156) |
TOTAL |
(86,304) |
(127,628) |
(33,586) |
(22,692) |
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INCOME (LOSS) BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARIES |
3,363,018 |
(3,011,390) |
1,249,381 |
138,791 |
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Provision (benefit) for income taxes |
1,236,319 |
(1,189,785) |
448,399 |
40 |
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NET INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY |
2,126,699 |
(1,821,605) |
800,982 |
138,751 |
Less: net income attributable to the non-controlling interest |
(100,811) |
(19,992) |
(45,464) |
411 |
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NET INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC. |
$2,025,888 |
$(1,841,597) |
$755,518 |
$139,162 |
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Basic earnings (loss) per share |
$.33 |
$(.30) |
$.12 |
$.02 |
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Diluted earnings (loss) per share |
$.33 |
$(.30) |
$.12 |
$.02 |
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Weighted average common shares outstanding: |
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Basic and Diluted |
6,117,610 |
6,215,894 |
6,056,420 |
6,215,894 |
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2016
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2015
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OPERATING ACTIVITIES: |
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Net income (loss) |
$2,126,699 |
$(1,821,605) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
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Depreciation and amortization |
425,977 |
408,436 |
Unrealized gain on commodities |
(591,566) |
(8,263) |
Loss on equity method investments |
1,049 |
162 |
Deferred rent |
6,872 |
9,311 |
Deferred income taxes |
890,750 |
(1,149,500) |
Changes in operating assets and liabilities: |
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Accounts receivable |
(4,766,640) |
3,424,104 |
Inventories |
1,432,701 |
2,765,836 |
Prepaid expenses and other current assets |
(262,707) |
(29,039) |
Prepaid green coffee |
58,310 |
(547,756) |
Prepaid and refundable income taxes |
931,250 |
(1,433,818) |
Deposits and other assets |
31,558 |
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Accounts payable and accrued expenses |
(1,554,385) |
(3,093,085) |
Income taxes payable |
925 |
(331,051) |
Net cash used in operating activities |
(1,269,207) |
(1,806,268) |
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INVESTING ACTIVITIES: |
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Cash paid for acquisition of business |
(856,904) |
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Purchases of machinery and equipment |
(661,591) |
(351,194) |
Net cash used in investing activities |
(1,518,495) |
(351,194) |
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FINANCING ACTIVITIES: |
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Advances under bank line of credit |
5,204,254 |
9,272,578 |
Principal payments under bank line of credit |
(3,500,000) |
(7,502,578) |
Purchase of treasury stock |
(839,927) |
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Payment of dividend |
(100,000) |
(80,000) |
Net cash provided by financing activities |
764,327 |
1,690,000 |
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NET DECREASE IN CASH |
(2,023,375) |
(467,462) |
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CASH, BEGINNING OF PERIOD |
3,853,816 |
3,782,639 |
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CASH, END OF PERIOD |
$1,830,441 |
$3,315,177 |
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA: |
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Interest paid |
$111,060 |
$152,765 |
Income taxes paid |
$26,582 |
$1,647,668 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |
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On June 29, 2016 Coffee Holding Co., Inc. acquired certain assets of Coffee Kinetics, LLC: |
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Fair value of assets acquired |
$1,128,952 |
Less: liabilities assumed |
(72,045) |
Net assets acquired: |
1,056,907 |
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Common stock, par value $.001 per share, 38,364 shares |
38 |
Additional paid-in capital |
199,965 |
Non-cash payment |
200,003 |
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Net cash paid |
$856,904 |