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Jeudi 28 Janvier 2010 09:50
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Coffee Holding Co., Inc. Reports Year End Results

Coffee Holding Co., Inc. (AMEX:JVA) today announced its operating results for the year ended October 31, 2009. In this release, the Company:

* Reports net income of $3,291,066, or $0.60 per share (basic and diluted) for the year ended October 31, 2009;
* Reports net sales of $74,451,673 for the year ended October 31, 2009; and
* Reports sales growth of 4.6% for the year ended October 31, 2009 compared to the year ended October 31, 2008.

The Company had net income of $3,291,066, or $0.60 per share (basic and diluted) for the year ended October 31, 2009 compared to a net loss of ($2,597,294) or ($0.47) per share (basic and diluted) for the year ended October 31, 2008. The increase in net income primarily reflects an increase in net sales and a decrease in cost of sales, which resulted in an increase in gross profit, and a $1,955,847 increase in other income resulting from the sale of our Brooklyn, New York facility.

Net sales totaled $74,451,673 for the fiscal year ended October 31, 2009, an increase of $3,265,361 or 4.6% from $71,186,312 for the fiscal year ended October 31, 2008. The increase in net sales reflects higher coffee prices during fiscal year 2009 as compared to fiscal year 2008, as well as the Company's focus on producing and selling higher margin products.

Cost of sales for the fiscal year ended October 31, 2009 was $64,439,494 or 86.6% of net sales, as compared to $68,762,310 or 96.6% of net sales for the fiscal year ended October 31, 2008. Cost of sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. The decrease in cost of sales reflects the decreased cost of green coffee and gains on options and futures contracts as the Company held favorable positions in both throughout fiscal year 2009.

Total operating expenses increased $26,516 or 0.42% to $6,389,050 for the fiscal year ended October 31, 2009 from $6,362,534 for the fiscal year ended October 31, 2008 due to increases in bad debt expense and officers' salaries, partially offset by a decrease in selling and administrative expense. Selling and administrative expenses decreased $183,675 or 3.2% to $5,530,357 for the year ended October 31, 2009 from $5,714,032 for 2008.

"We are extremely pleased with our year end results. Following the difficulties we experienced last year, we endeavored to take action to improve our performance. A combined effort of cost analysis and profitability modeling was done on an account by account basis to help us achieve what we believe would be an acceptable rate of return given the heightened risks of operating in this new economic environment," said Andrew Gordon, President and Chief Executive Officer.

"The closure of our Brooklyn facility was the greatest contributor to our cost savings as we increased our operating efficiencies through combining the majority of our production in our Colorado plant. In addition, the funds received on the sale of the building further strengthened our already strong cash position and overall balance sheet. We now have the flexibility and necessary funds to accomplish the goals and initiatives which had to be deferred following our sub-par performance in 2008," Mr. Gordon said.

"Although our net sales increased by less than 5% (well below our three year annual growth rate of approximately 20%), net sales continued to increase during a period in which we chose to forgo certain long-term business relationships and focus on attracting and retaining more profitable business in order to offset the ever escalating costs of roasting and packing coffee. We believe that we have nearly completed our transition from a producer of middle margin, high volume business to a company whose overall gross margins will increase over the next several years on a broader range of midsize customers and upscale products," added Mr. Gordon.

About Coffee Holding
Coffee Holding 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 has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.

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. 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. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, 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.

 

Contact

Nom: Andrew Gordon
E-mail : 
Web : http://www.coffeeholding.com/
Société : Coffee Holding Co, Inc.
Adresse :  -
Pays : UNITED STATES
Téléphone : (718) 832-0800
 

 


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