• Coffee Holding Co., Inc. Reports an Approximately 19% Increase in Net Sales During Third Quarter of 2024

    ソース: Nasdaq GlobeNewswire / 16 9 2024 08:00:00   America/Chicago

    STATEN ISLAND, New York, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. (Nasdaq: JVA) (the “Company”) today announced its operating results for the fiscal quarter ended July 31, 2024:

    Net Sales. Net sales totaled $18,813,162 for the three months ended July 31, 2024, an increase of $3,048,797, or 19%, from $15,764,365 for the three months ended July 31, 2023. The increase in net sales was due to increased sales to new private label customers.

    Cost of Sales. Cost of sales for the three months ended July 31, 2024 was $14,887,098, or 79.1% of net sales, as compared to $13,315,602, or 84.5% of net sales, for the three months ended July 31, 2023, an increase of $1,571,496. Cost of sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. This increase in gross margin was due to price increases that were initiated during the three months ended July 31, 2024 for the Company’s roasted coffee customers as well as a favorable inventory position which resulted in higher gross margins related to the Company’s wholesale green coffee customers.

    Gross Profit. Gross profit for the three months ended July 31, 2024 amounted to $3,926,064 or 20.9% of net sales, as compared to $2,448,763 or 15.5% of net sales, for the three months ended July 31, 2023. The increase in gross profits on a percentage and dollar basis was attributable to the factors listed above.

    Operating Expenses. Total operating expenses increased by $354,191 to $3,206,201 for the three months ended July 31, 2024 from $2,852,010 for the three months ended July 31, 2023. Selling and administrative expenses increased by $336,373 and officers’ salaries increased by $17,818. The increase in selling and administrative expenses was due to higher payroll costs, professional fees, and insurance expense, partially offset by decreases in medical expenses, automobile costs, and advertising costs.

    Other Income (Expense). Other income for the three months ended July 31, 2024 was $166,182, a decrease of $84,934 from other income of $251,116 for the three months ended July 31, 2023. The change was attributable to a decrease in interest expense of $99,383, an increase in interest income of $249, a decrease in loss from the Company’s equity method investments of $5,007, and a gain on extinguishment of lease of $210,567, partially offset by a decrease in other income of $400,140 related to an insurance claim.

    Income Taxes. The Company’s expense for income taxes for the three months ended July 31, 2024 totaled $259,249 compared to a benefit of $40,250 for the three months ended July 31, 2023. The change was primarily attributable to the difference in the income for the three months ended July 31, 2024 versus the loss for the three months ended July 31, 2023.

    Net Income (Loss). We had net income of $626,796, or $0.11 per share basic and diluted, for the three months ended July 31, 2024 compared to a net loss of $111,881, or $0.02 per share basic and diluted, for the three months ended July 31, 2023.

    “We are pleased to deliver a strong third quarter performance to our shareholders” said Andrew Gordon, President and CEO of Coffee Holding Company. Our efforts over the last several months are now being reflected in our results. The addition of new customers for our private label business along with renewed growth of our flagship Café Caribe Brand have led the way to the strong growth in sales which I referred to in the company update which we issued at the beginning of 2024. In addition, we have paid down our line of credit by over $7 million during the last nine months, resulting in a savings of over $150,000 in interest expense. As of today, we have a zero-balance outstanding on our line of credit and I expect we will be able to maintain a similar level of borrowings over the next several periods as I believe we will continue to have positive cash flow from our operations. Annualized, these savings would translate into approximately $.10 a share in pretax earnings. Lastly, with the termination of the Delta transaction, we are determined to see a higher price for our stock that is commensurate with the true value of our company,” concluded Mr. Gordon.

    About Coffee Holding

    Founded in 1971, Coffee Holding Co., Inc. (NASDAQ: JVA) is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding’s product offerings consist of eight proprietary brands, each targeting a different segment of the consumer coffee market as well as roasting and blending coffees for major wholesalers and retailers throughout the United States who want to have products under their own names to compete with national brands. In addition to selling roasted coffee, Coffee Holding Co., Inc. also imports green coffee beans from around the world which it resells to smaller regional roasters and coffee shops around the United States and Canada.

    Forward looking statements

    Any statements that are not historical facts contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company’s outlook on the revenue growth. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. We have based these forward-looking statements upon information available to management as of the date of this release and management’s expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, hedging activities, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions and other factors discussed from time to time in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

    Company Contact

    Coffee Holding Co., Inc.
    Andrew Gordon
    President & CEO
    (718) 832-0800

    COFFEE HOLDING CO., INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS

      July 31, 2024  October 31, 2023 
       (Unaudited)     
    ASSETS        
    CURRENT ASSETS:        
    Cash and cash equivalents $3,098,158  $2,733,977 
    Accounts receivable, net of allowances for credit losses of $144,000 for 2024 and 2023  7,449,547   7,983,032 
    Receivable from sale of investment     3,150,000 
    Inventories  14,506,015   18,986,539 
    Due from broker  1,263,603   345,760 
    Prepaid expenses and other current assets  213,443   413,752 
    Prepaid and refundable income taxes  311,306   365,876 
    TOTAL CURRENT ASSETS  26,842,072   33,978,936 
             
    Building, machinery, and equipment, net  3,329,576   3,494,450 
    Customer list and relationships, net of accumulated amortization of $278,125 and $310,383 for 2024 and 2023, respectively  161,875   184,750 
    Trademarks and tradenames  327,000   327,000 
    Equity method investments  39,676   39,676 
    Right-of-use asset  1,192,834   2,696,159 
    Deferred income tax assets, net  1,017,453   1,341,407 
    Deposits and other assets  141,529   129,523 
    TOTAL ASSETS $33,052,015  $42,191,901 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    CURRENT LIABILITIES:        
    Accounts payable and accrued expenses $4,535,476  $5,206,442 
    Line of credit  1,900,000   9,620,000 
    Due to broker  275,276   292,407 
    Note payable - current portion     4,200 
    Lease liabilities - current portion  636,534   255,625 
    TOTAL CURRENT LIABILITIES  7,347,286   15,378,674 
             
    Note payable, net of current  2,860   3,034 
    Lease liabilities, net of current  903,821   2,974,579 
    Deferred compensation payable  126,978   120,523 
    TOTAL LIABILITIES  8,380,945   18,476,810 
    Commitments and Contingencies (Note 8)        
    STOCKHOLDERS’ EQUITY:        
    Coffee Holding Co., Inc. stockholders’ equity:        
    Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued      
    Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,633,930 shares issued for 2024 and 2023; 5,708,599 shares outstanding for 2024 and 2023  6,634   6,634 
    Additional paid in capital  19,094,618   19,094,618 
    Retained earnings  10,447,840   9,491,861 
    Less: common stock held in treasury, at cost; 925,331 shares for 2024 and 2023  (4,633,560)  (4,633,560)
    Total Coffee Holding Co., Inc. stockholders’ equity  24,915,532   23,959,553 
    Noncontrolling interest  (244,462)  (244,462)
    TOTAL STOCKHOLDERS’ EQUITY  24,671,070   23,715,091 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $33,052,015  $42,191,901 

    The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


    COFFEE HOLDING CO., INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)

      Nine months ended July 31,  Three months ended July 31, 
      2024  2023  2024  2023 
    NET SALES $57,349,477  $49,411,183  $18,813,162  $15,764,365 
                     
    COST OF SALES  46,239,134   41,810,204   14,887,098   13,315,602 
                     
    GROSS PROFIT  11,110,343   7,600,979   3,926,064   2,448,763 
                     
    OPERATING EXPENSES                
    Selling and administrative  9,365,236   8,722,156   3,045,611   2,709,238 
    Officers’ salaries  474,983   467,548   160,590   142,772 
    TOTAL  9,840,219   9,189,704   3,206,201   2,852,010 
                     
    INCOME (LOSS) FROM OPERATIONS  1,270,124   (1,588,725)  719,863   (403,247)
                     
    OTHER INCOME (EXPENSE)                
    Interest income  34,669   3,120   256   7 
    Interest expense  (235,427)  (393,590)  (44,641)  (144,024)
    Loss from equity method investments     (14,310)     (5,007)
    Gain on extinguishment of lease  210,567      210,567    
    Other income     634,181      400,140 
    TOTAL  9,809   229,401   166,182   251,116 
                     
    INCOME (LOSS) BEFORE EXPENSE (BENEFIT) FOR INCOME TAXES  1,279,933   (1,359,324)  886,045   (152,131)
    Expense (benefit) for income taxes  323,954   (355,500)  259,249   (40,250)
    NET INCOME (LOSS) $955,979  $(1,003,824) $626,796  $(111,881)
                     
    Basic and diluted earnings (loss) per share $0.17  $(0.18) $0.11  $(0.02)
                     
    Weighted average common shares outstanding:                
    Basic and diluted  5,708,599   5,708,599   5,708,599   5,708,599 


    COFFEE HOLDING CO., INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
    (UNAUDITED)

                             
      Common Stock  Treasury Stock  Additional Paid-in  Retained  Non-controlling    
      Shares  Amount  Shares  Amount  Capital  Earnings  Interest  Total 
                             
    Balance, October 31, 2022  5,708,599  $6,634   925,331  $(4,633,560) $19,094,618  $10,327,437  $(244,462) $24,550,667 
                                     
    Net loss                 (532,103)     (532,103)
                                     
    Balance, January 31, 2023  5,708,599   6,634   925,331   (4,633,560)  19,094,618   9,795,334   (244,462)  24,018,564 
                                     
    Net loss                 (359,840)     (359,840)
                                     
    Balance, April 30, 2023  5,708,599   6,634   925,331   (4,633,560)  19,094,618   9,435,494   (244,462)  23,658,724 
                                     
    Net loss                 (111,881)     (111,881)
                                     
    Balance, July 31, 2023  5,708,599  $6,634   925,331  $(4,633,560) $19,094,618  $9,323,613  $(244,462) $23,546,843 
                                     
    Balance October 31, 2023  5,708,599  $6,634   925,331  $(4,633,560) $19,094,618  $9,491,861  $(244,462) $23,715,091 
                                     
    Net income                 351,024      351,024 
                                     
    Balance January 31, 2024  5,708,599   6,634   925,331   (4,633,560)  19,094,618   9,842,885   (244,462)  24,066,115 
                                     
    Net loss                 (21,841)     (21,841)
                                     
    Balance, April 30, 2024  5,708,599   6,634   925,331   (4,633,560)  19,094,618   9,821,044   (244,462)  24,044,274 
                                     
                                     
    Net loss                 626,796      626,796 
                                     
                                     
    Balance, July 31, 2024  5,708,599  $6,634   925,331  $(4,633,560) $19,094,618  $10,447,840  $(244,462) $24,671,070 


    COFFEE HOLDING CO., INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

           
      Nine months ended July 31, 
      2024  2023 
    OPERATING ACTIVITIES:        
             
    Net income (loss) $955,979   (1,003,824)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
    Depreciation and amortization  458,429   436,669 
    Unrealized gain on commodities  (934,974)  (776,521)
    Loss on equity method investments     14,310 
    Amortization of right-of-use asset  203,268   240,504 
    Gain on extinguishment of lease liability  (210,567)   
    Deferred income taxes  323,954   (355,500)
    Changes in operating assets and liabilities:        
    Accounts receivable  533,485   1,334,319 
    Inventories  4,480,524   2,113,830 
    Prepaid expenses and other current assets  200,309   (9,306)
    Prepaid and refundable income taxes  54,570    
    Lease liabilities  (179,225)  (203,908)
    Deposits and other assets  (12,006)   
    Accounts payable, accrued expenses, and deferred compensation payable  (664,511)  (991,411)
    Net cash provided by operating activities  5,209,235   799,162 
             
    Cash flows from investing activities:        
    Purchases of machinery and equipment  (270,680)  (721,696)
    Proceeds from sale of investment  3,150,000    
    Net cash provided by (used in) investing activities  2,879,320   (721,696)
             
    Cash flows from financing activities:        
    Advances under bank line of credit     2,434,783 
    Cash overdraft     (876,148)
    Principal payments on note payable  (4,374)  (4,641)
    Principal payments under bank line of credit  (7,720,000)  (1,728,783)
    Net cash used in financing activities  (7,724,374)  (174,789)
             
    Net change in cash and cash equivalents  364,181   (97,323)
             
    Cash and cash equivalents, beginning of period  2,733,977   2,515,873 
             
    Cash and cash equivalents, end of period $3,098,158  $2,418,550 
    SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:        
    Interest paid $281,841  $243,100 
             
    SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
    Initial recognition of operating lease right-of-use asset $547,975  $146,416 

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