EX-99.1 2 exh99-1_13983.txt PRESS RELEASE DATED NOVEMBER 14, 2005 EXHIBIT 99.1 ------------ LIFEWAY FOODS REPORTS RECORD THIRD QUARTER, AND NINE MONTHS SALES RESULTS Monday November 14, 5:55 pm ET -- SALES FOR 3RD QUARTER 2005 ROSE 26% -- PRE TAX INCOME FOR 3RD QUARTER 2005 ROSE 18% MORTON GROVE, Ill., Nov. 14 /PRNewswire-FirstCall/ -- Lifeway Foods Inc., (Nasdaq: LWAY - News), makers of a nutritious, milk-based cultured beverage called kefir, announced today for the third quarter ended September 30, 2005, sales increased 26% to $5,194,648 from $4,138,606 during the same period a year ago. For the nine months period ended September 30, 2005, sales rose 23% to $14,924,076, compared to $12,075,778 for the same period in 2004. Earnings increased to $.07 per share for the third quarter 2005, from $.06 per share for the same three-month period in 2004. For the nine months ended September 30, 2005, earnings increased to $.22 per share, from $.20 per share from the same nine-month period in 2004. Julie Smolyansky, CEO commented, "We are very excited about our quarterly results. We continue to invest our funds into sales and marketing of our award winning products, and this has shown in our revenue growth all year long. The introduction of Lifeway Organic 'It's Pudding' was met with stellar approval by our distributors and some major food chains such as Whole Foods and Wild Oats. Also, in the fourth quarter, we plan to begin test marketing to a third club-type outlet not previously serviced. Julie Smolyansky added, "In the coming months and year, we will be introducing numerous new and exciting products that should continue to bolster our already strong product line and brand name, and we are very excited for 2006." Edward Smolyansky, CFO commented, "Even though many of our costs such as transportation, utilities, and production supplies, all increased significantly due to the sharp rise in gas prices experienced in the third quarter, we were able to maintain strong operating margins, and offset these costs by making prudent investments in the energy markets. This was evident in our pre tax income. In addition, our stockholders equity increased by $1.9 million to $19,285,219 at September 30, 2005, compared to $17,385,071 at September 30, 2004." About Lifeway Foods, Inc. Lifeway, named as Forbes' 38th best small business and Fortune Small Business' 47th Fastest Growing Small Business, is America's leading supplier of the cultured dairy product known as kefir. Kefir is a dairy beverage that contains ten types of "friendly," active probiotic cultures. While most regular yogurt only contains two or three of these cultures, Lifeway kefir products offer more nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway also produces a line of products marketed in US Hispanic communities, called La Fruta Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding!. For more information, contact Lifeway Foods, Inc. at (847) 967-1010 or e- mail at info@lifeway.net and visit http://www.lifeway.net. ---------------- ---------------------- This news release contains forward-looking statements. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, competitive pressures and other important factors detailed in the Company's reports filed with the Securities and Exchange Commission. Lifeway Foods, Inc. Condensed Consolidated Statement of Income (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2005 2004 2005 2004 ---- ---- ---- ---- Sales $5,194,648 $4,138,606 $14,924,076 $12,075,778 Cost of Goods Sold 3,073,314 2,239,553 8,607,538 6,604,554 Gross Profit 2,121,334 1,899,053 6,316,538 5,471,224 Operating Expenses 1,359,171 1,157,906 3,793,394 3,089,336 Income From Operations 762,163 741,147 2,523,144 2,381,888 Total other income 197,251 70,172 500,520 411,433 Pre-tax income 959,414 811,319 3,023,664 2,793,321 Income taxes 400,464 296,210 1,182,479 1,080,905 Net income 558,950 515,109 1,841,185 1,712,416 Per Share Earnings $.07 $.06 $.22 $.20 Wtg. Ave. Shares 8,393,384 8,440,207 8,407,768 8,438,433 Consolidated Balance Sheet (Unaudited) Nine Months Ended ----------------- September 30, 2005 September 30, 2004 ------------------ ------------------ Current Assets $ 16,007,184 $ 15,182,890 Property, Plant, Equip. 7,755,352 3,482,524 Total Assets 24,204,903 19,177,214 Current Liabilities 1,637,714 899,452 Long-term Debt 2,919,656 465,796 Stockholders Equity $19,285,219 $17,385,071 --------------------- Source: Lifeway Foods Inc.