Coffee Holding Co., Inc. Reports Year End Earnings
Market Wire, January, 2008
COFFEE HOLDING CO., INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
OCTOBER 31, 2007 AND 2006
2007 2006
------------ -------------
- ASSETS -
CURRENT ASSETS:
Cash $ 890,649 $ 1,112,165
Commodities held at broker 3,468,530 4,330,489
Accounts receivable, net of allowances of
$136,781 and $480,349 for 2007 and 2006,
respectively 7,130,467 6,534,848
Inventories 4,472,097 2,899,543
Prepaid expenses and other current assets 502,240 328,544
Prepaid and refundable income taxes 236,406 302,003
Deferred income tax assets 279,000 221,000
------------ -------------
TOTAL CURRENT ASSETS 16,979,389 15,728,592
Property and equipment, at cost, net of
accumulated depreciation of $4,542,490 and
$4,159,274 for 2007 and 2006, respectively 2,651,960 2,138,951
Investment in joint venture - 408,798
Due from joint venture - 73,658
Deposits and other assets 765,368 631,859
------------ -------------
TOTAL ASSETS $ 20,396,717 $ 18,981,858
============ =============
- LIABILITIES AND STOCKHOLDERS' EQUITY -
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 6,791,690 $ 4,828,689
Line of credit borrowings 897,191 2,542,881
Income taxes payable 9,161 -
------------ -------------
TOTAL CURRENT LIABILITIES 7,698,042 7,371,570
Deferred income tax liabilities 145,000 12,300
Deferred compensation payable 351,332 256,284
------------ -------------
TOTAL LIABILITIES 8,194,374 7,640,154
------------ -------------
MINORITY INTEREST - -
COMMITMENTS AND CONTINGENCIES
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, 5,529,830
shares issued; 5,514,930 shares outstanding
for 2007 and 5,529,830 shares outstanding
in 2006 5,530 5,530
Additional paid-in capital 7,327,023 7,327,023
Retained earnings 4,946,467 4,009,151
Less: Treasury stock, 14,900 common shares,
at cost in 2007 (76,677) -
------------ -------------
TOTAL STOCKHOLDERS' EQUITY 12,202,343 11,341,704
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 20,396,717 $ 18,981,858
============ =============
COFFEE HOLDING CO., INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED OCTOBER 31, 2007, 2006 AND 2005
2007 2006 2005
------------ ------------ ------------
NET SALES $ 57,423,417 $ 51,171,202 $ 41,545,345
COST OF SALES 49,128,961 43,575,963 33,875,973
------------ ------------ ------------
GROSS PROFIT 8,294,456 7,595,239 7,669,372
------------ ------------ ------------
OPERATING EXPENSES:
Selling and administrative 6,026,361 5,585,787 4,854,018
Writedown of amount due from
dissolved joint venture 192,860 - -
Bad debt expense 38,990 29,093 270,000
Officers' salaries 584,151 616,052 574,245
------------ ------------ ------------
TOTALS 6,842,362 6,230,932 5,698,263
------------ ------------ ------------
INCOME FROM OPERATIONS 1,452,094 1,364,307 1,971,109
------------ ------------ ------------
OTHER INCOME (EXPENSE)
Interest income 131,537 128,967 50,363
Other income - 65,310 -
Equity in loss from dissolved
joint venture (91,340) (176,911) -
Management fee income 12,026 44,403 -
Writedown of investment in
dissolved joint venture (33,000) - -
Interest expense (109,260) (130,101) (110,684)
------------ ------------ ------------
TOTALS (90,037) (68,332) (60,321)
------------ ------------ ------------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST IN SUBSIDIARY 1,362,057 1,295,975 1,910,788
Provision for income taxes 418,175 602,059 725,653
------------ ------------ ------------
INCOME BEFORE MINORITY INTEREST 943,882 693,916 1,185,135
Minority interest in earnings
(loss) of subsidiary (6,566) 6,166 -
------------ ------------ ------------
NET INCOME $ 937,316 $ 700,082 $ 1,185,135
============ ============ ============
Basic and diluted earnings per
share $ .17 $ .13 $ .25
============ ============ ============
Weighted average common shares
outstanding:
Basic 5,525,408 5,529,830 4,721,327
============ ============ ============
Diluted 5,595,408 5,599,830 4,776,757
============ ============ ============
COFFEE HOLDING CO., INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED OCTOBER 31, 2007, 2006 AND 2005
2007 2006 2005
----------- ----------- -----------
OPERATING ACTIVITIES:
Net income $ 937,316 $ 700,082 $ 1,185,135
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation 383,216 431,750 373,106
Writeoff of leasehold improvements 38,918 - -
Bad debt expense 38,990 29,093 270,000
Deferred income taxes 74,700 56,200 (173,200)
Loss from dissolved joint venture 91,340 176,911 -
Writedown of investment in
dissolved joint venture 33,000 - -
Writedown of amount due from
dissolved joint venture 192,860 - -
Changes in operating assets and
liabilities:
Commodities held at broker 861,959 (1,336,095) (2,120,493)
Accounts receivable (634,609) (1,404,365) (1,423,821)
Inventories (1,572,554) 1,597,035 (2,238,289)
Prepaid expenses and other
current assets (173,696) (56,003) 563,558
Prepaid and refundable income
taxes 65,597 (290,374) (11,629)
Due from dissolved joint
venture (110,505) (73,658) -
Deposits, other assets and other (45,027) (328,388) (135,054)
Accounts payable and accrued
expenses 1,963,001 397,112 (227,259)
Income tax payable 9,161 (218,864) 58,864
----------- ----------- -----------
Net cash provided by (used in)
operating activities 2,153,667 (319,564) (3,879,082)
----------- ----------- -----------
INVESTING ACTIVITIES:
Purchases of property and equipment
including equipment deposit (659,382) (190,749) (466,122)
Investment in dissolved joint
venture - (585,709) -
Security deposits - - (8,025)
----------- ----------- -----------
Net cash used in investing
activities (659,382) (776,458) (474,147)
----------- ----------- -----------
FINANCING ACTIVITIES:
Principal payments on term loan - - (252,000)
Net proceeds from public
offering - - 6,436,016
Advances under bank line of
credit 49,127,817 41,847,244 27,754,052
Principal payments under bank
line of credit (50,773,507) (40,367,530) (29,375,930)
Purchase of treasury stock (76,677) - -
Principal payments of obligations
under capital leases - (1,329) (115,586)
----------- ----------- -----------
Net cash (used in) provided by
financing activities (1,722,367) 1,478,385 4,446,552
----------- ----------- -----------
MINORITY INTEREST 6,566 (5,666) -
----------- ----------- -----------
NET INCREASE (DECREASE) IN CASH (221,516) 376,697 93,323
Cash, beginning of year 1,112,165 735,468 642,145
----------- ----------- -----------
CASH, END OF YEAR $ 890,649 $ 1,112,165 $ 735,468
=========== =========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW DATA:
Interest paid $ 117,758 $ 121,844 $ 103,286
=========== =========== ===========
Income taxes paid $ 287,480 $ 831,503 $ 460,744
=========== =========== ===========
COFFEE HOLDING CO., INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OCTOBER 31, 2007, 2006 AND 2005
NONCASH INVESTING AND FINANCING ACTIVITIES:
During 2007, the Company received equipment valued at $275,761
originally contributed to the now dissolved joint venture.
On June 10, 2005, 10,000 shares of restricted stock valued at $24,650
were issued for services to be rendered.
- 5 Rules for Immediate Annuities
- Death in the Family: 12 Things to Do Now
- Dumbest Things You Do With Your Money
- 6 Online Networking Mistakes to Avoid
- 401(k) Mistakes to Avoid
- 5 Economic Scenarios to Keep You Up at Night
- The Real ‘Best Places to Retire’
- Best Credit Cards for You
- 12 Tough Questions to Ask Your Parents
- The Real ‘Best Colleges’
- Home Buyer Tax Credit: How to Cash In
- Why You Shouldn't Bash Cash
- 8 Phony 'Bargains' and Better Alternatives
- Danger: 3 Debit Card Scams to Avoid
- 6 Myths About Gas Mileage
- 29 Fees We Hate Most
- Quick and Easy Ways to Boost Returns
- Best Stocks to Buy Now
- Lower Your Taxes: 10 Moves to Make Now
- New Jobs: 8 Lessons from Real-Life Career Switchers
- The New Job Market: Who Wins and Who Loses?
- Health Care Reform's Public Option: Everything You Need to Know
- Volunteer Work When Unemployed: Should You Work for Free?
- Whose Recovery Is This?
- Long-Term-Care Insurance: 4 Biggest Risks to Avoid
Content provided in partnership with
Most Recent Business Articles
- Fox Networks Group and Bright House Networks Strike Comprehensive Deal to Distribute Fox Broadcast Stations, National Cable and Regional Sports Networks
- Fox Networks Group and Time Warner Cable Strike Comprehensive Deal to Distribute Fox Broadcast Stations, National Cable and Regional Sports Networks
- Houston Radio D.J. Kevin Kline Completes 500-Mile, 13-Day Ultramarathon Across Texas for Kids with Cancer
- Seaspan Corporation Provides Information on the CSCL Hamburg
- Dodecylamine improves nanocrystal synthesis
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- LIFO vs. FIFO: a return to the basics
- Using object-oriented analysis and design over traditional structured analysis and design
- Design a commission plan that drives sales - Sales Commissions
