ILLINOIS
|
000-17363
|
36-3442829
|
||
(State or other jurisdiction of
incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
||
6431 West Oakton St. Morton Grove, IL
|
60053
|
|||
(Address of principal executive offices)
|
(Zip code)
|
99.1
|
Press release dated August 14, 2012.
|
LIFEWAY FOODS, INC.
|
||||
Dated: August 14, 2012
|
By:
|
/s/ Edward Smolyansky
|
||
Edward Smolyansky
|
||||
Chief Financial and Accounting Officer and Treasurer
|
Exhibit No.
|
Description
|
99.1
|
Press release dated August 14, 2012.
|
Lifeway Foods, Inc.
|
|
Phone: 877.281.3874
|
|
Email: info@Lifeway.net
|
|
Investor Relations:
|
|
ICR
|
|
Katie Turner
|
|
John Mills
646.277.1228
|
(Unaudited)
|
||||||||||||
June 30,
|
December 31,
|
|||||||||||
2012
|
2011
|
2011
|
||||||||||
ASSETS
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
$
|
2,000,325
|
$
|
1,398,523
|
$
|
1,115,150
|
||||||
Investments
|
1,867,234
|
1,172,193
|
1,695,044
|
|||||||||
Certificates of deposits in financial institutions
|
300,000
|
300,000
|
300,000
|
|||||||||
Inventories
|
5,426,715
|
5,608,151
|
4,954,475
|
|||||||||
Accounts receivable, net of allowance for doubtful accounts and discounts
|
9,486,141
|
8,891,068
|
7,950,276
|
|||||||||
Prepaid expenses and other current assets
|
96,860
|
199,866
|
79,630
|
|||||||||
Other receivables
|
104,009
|
9,825
|
224,204
|
|||||||||
Deferred income taxes
|
512,260
|
394,376
|
338,690
|
|||||||||
Refundable income taxes
|
0
|
0
|
41,316
|
|||||||||
Total current assets
|
19,793,544
|
17,974,002
|
16,698,785
|
|||||||||
Property and equipment, net
|
14,865,789
|
15,237,279
|
15,198,822
|
|||||||||
Intangible assets
|
||||||||||||
Goodwill and other non amortizable brand assets
|
14,068,091
|
14,068,091
|
14,068,091
|
|||||||||
Other intangible assets, net of accumulated amortization of $3,465,349 and $2,696,023 at June 30, 2012 and 2011 and 3,087,940 at December 31, 2011, respectively
|
4,840,652
|
5,609,977
|
5,218,060
|
|||||||||
Total intangible assets
|
18,908,743
|
19,678,068
|
19,286,151
|
|||||||||
Other Assets
|
||||||||||||
Long-term accounts receivable net of current portion
|
191,590
|
0
|
289,550
|
|||||||||
Total assets
|
$
|
53,759,666
|
$
|
52,889,349
|
$
|
51,473,308
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
Current liabilities
|
||||||||||||
Checks written in excess of bank balances
|
$
|
711,597
|
$
|
1,709,050
|
$
|
592,040
|
||||||
Current maturities of notes payable
|
540,478
|
1,892,042
|
1,540,716
|
|||||||||
Accounts payable
|
4,769,851
|
4,174,835
|
4,386,239
|
|||||||||
Accrued expenses
|
593,412
|
552,058
|
553,725
|
|||||||||
Accrued income taxes
|
1,639,515
|
378,482
|
0
|
|||||||||
Total current liabilities
|
8,254,853
|
8,706,467
|
7,072,720
|
|||||||||
Notes payable
|
5,228,395
|
5,957,795
|
5,539,836
|
|||||||||
Deferred income taxes
|
3,240,826
|
3,329,537
|
3,503,595
|
|||||||||
Total liabilities
|
16,724,074
|
17,993,799
|
16,116,151
|
|||||||||
Stockholders' equity
|
||||||||||||
Common stock, no par value; 20,000,000 shares authorized; 17,273,776 shares issued; 16,372,217 shares outstanding at June 30, 2012; 17,273,776 shares issued; 16,430,809 shares outstanding at June 30, 2011; 17,273,776 shares issued; 16,409,317 shares outstanding at December 31, 2011
|
6,509,267
|
6,509,267
|
6,509,267
|
|||||||||
Paid-in-capital
|
2,032,516
|
2,032,516
|
2,032,516
|
|||||||||
Treasury stock, at cost
|
(7,947,418)
|
( 7,397,344
|
)
|
( 7,606,974
|
)
|
|||||||
Retained earnings
|
36,429,095
|
33,767,188
|
34,431,296
|
|||||||||
Accumulated other comprehensive income, (loss) net of taxes
|
12,132
|
( 16,077
|
)
|
( 8,948
|
)
|
|||||||
Total stockholders' equity
|
37,035,592
|
34,895,550
|
35,357,157
|
|||||||||
Total liabilities and stockholders' equity
|
$
|
53,759,666
|
$
|
52,889,349
|
$
|
51,473,308
|
(Unaudited)
Three Months Ended
June 30,
|
(Unaudited)
Six Months Ended
June 30,
|
||||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||||||||
Sales
|
$
|
22,713,958
|
|
$ |
19,913,003
|
|
$ |
44,259,854
|
$
|
38,960,269
|
|||||||||||||||||||||||
Less: discounts and allowances
|
(2,160,578)
|
(1,715,085)
|
(4,309,276)
|
(3,458,448
|
)
|
||||||||||||||||||||||||||||
Net Sales
|
20,553,380
|
18,197,918
|
18,197,918
|
39,950,578
|
35,501,821
|
35,501,821
|
|||||||||||||||||||||||||||
Cost of goods sold
|
12,102,841
|
12,306,764
|
24,341,182
|
21,711,256
|
|||||||||||||||||||||||||||||
Depreciation expense
|
413,109
|
390,694
|
812,154
|
767,207
|
|||||||||||||||||||||||||||||
Total cost of goods sold
|
12,515,950
|
12,697,458
|
25,153,336
|
22,478,463
|
|||||||||||||||||||||||||||||
Gross profit
|
8,037,430
|
5,500,460
|
14,797,242
|
13,023,358
|
|||||||||||||||||||||||||||||
Selling expenses
|
2,622,275
|
2,897,118
|
5,326,515
|
5,248,157
|
|||||||||||||||||||||||||||||
General and administrative
|
2,099,699
|
1,707,171
|
4,094,035
|
3,417,449
|
|||||||||||||||||||||||||||||
Amortization expense
|
188,705
|
195,957
|
377,409
|
391,916
|
|||||||||||||||||||||||||||||
Total Operating Expenses
|
4,910,679
|
4,800,246
|
9,797,959
|
9,057,522
|
|||||||||||||||||||||||||||||
Income from operations
|
3,126,751
|
700,214
|
4,999,283
|
3,965,836
|
|||||||||||||||||||||||||||||
Other income (expense):
|
|||||||||||||||||||||||||||||||||
Interest and dividend income
|
24,478
|
17,094
|
36,049
|
34,687
|
|||||||||||||||||||||||||||||
Rental income
|
3,018
|
650
|
6,017
|
650
|
|||||||||||||||||||||||||||||
Interest expense
|
(43,918)
|
(72,298)
|
|
(94,103)
|
(134,428)
|
|
|||||||||||||||||||||||||||
Impairment of investments
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||||||||
Gain (loss) on sale of investments, net
|
4,406
|
541
|
22,390
|
(2,056)
|
|
||||||||||||||||||||||||||||
Total other income (expense)
|
(12,016)
|
|
(54,013)
|
|
(29,647)
|
(101,147)
|
|
||||||||||||||||||||||||||
Income before provision for income taxes
|
3,114,735
|
646,201
|
4,969,636
|
3,864,689
|
|||||||||||||||||||||||||||||
Provision for income taxes
|
1,065,607
|
380,659
|
1,825,520
|
1,673,376
|
|||||||||||||||||||||||||||||
Net income
|
$
|
2,049,128
|
$
|
265,542
|
3,144,116
|
$
|
2,191,313
|
||||||||||||||||||||||||||
Basic and diluted earnings per common share
|
.13
|
0.02
|
.19
|
0.13
|
|||||||||||||||||||||||||||||
Weighted average number of shares outstanding
|
16,376,601
|
16,434,314
|
16,389,674
|
16,461,981
|
|||||||||||||||||||||||||||||
(Unaudited)
June 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 3,144,116 | $ | 2,191,313 | ||||
Adjustments to reconcile net income to net
|
||||||||
cash flows from operating activities, net of acquisition:
|
||||||||
Depreciation and amortization
|
1,189,563 | 1,159,123 | ||||||
Loss (gain) on sale of investments, net
|
(22,390 | ) | 2,056 | |||||
Loss on disposition of equipment
|
0 | 0 | ||||||
Impairment of investments
|
0 | 0 | ||||||
Deferred income taxes
|
(480,311 | ) | (156,040 | ) | ||||
Bad Debt Expense
|
172,303 | 20,000 | ||||||
(Increase) decrease in operating assets:
|
||||||||
Accounts receivable
|
(1,610,208 | ) | (2,117,792 | ) | ||||
Other receivables
|
120,195 | 94,855 | ||||||
Inventories
|
(472,240 | ) | (1,622,777 | ) | ||||
Refundable income taxes
|
41,316 | 906,748 | ||||||
Prepaid expenses and other current assets
|
(17,230 | ) | (41,551 | ) | ||||
Increase (decrease) in operating liabilities:
|
||||||||
Accounts payable
|
383,612 | (8,646 | ) | |||||
Accrued expenses
|
39,687 | 42,599 | ||||||
Income taxes payable
|
1,639,515 | 378,482 | ||||||
Net cash provided by operating activities
|
4,127,928 | 848,370 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of investments
|
(743,675 | ) | (582,697 | ) | ||||
Proceeds from sale of investments
|
658,233 | 532,640 | ||||||
Investments in certificates of deposits
|
0 | (50,000 | ) | |||||
Proceeds from redemption of certificates of deposit
|
0 | 0 | ||||||
Purchases of property and equipment
|
(478,428 | ) | (747,250 | ) | ||||
Net cash used in provided by investing activities
|
(563,870 | ) | (847,307 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds of note payable
|
0 | 250,000 | ||||||
Checks written in excess of bank balances
|
119,557 | 367,840 | ||||||
Purchases of treasury stock
|
(340,444 | ) | (971,798 | ) | ||||
Dividends Paid
|
(1,146,317 | ) | 0 | |||||
Repayment of notes payable
|
(1,311,679 | ) | (1,478,521 | ) | ||||
Net cash used in financing activities
|
(2,678,883 | ) | (1,832,479 | ) | ||||
Net (decrease) increase in cash and cash equivalents
|
885,175 | (1,831,416 | ) | |||||
Cash and cash equivalents at the beginning of the period
|
1,115,150 | 3,229,939 | ||||||
Cash and cash equivalents at the end of the period
|
$ | 2,000,325 | $ | 1,398,523 |
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