Form 8-K LIFEWAY FOODS INC For: Nov 10
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section�13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported):���November 10, 2014
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LIFEWAY FOODS, INC.
(Exact name of registrant as specified in its charter)
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ILLINOIS
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000-17363
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36-3442829
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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6431 West Oakton St. Morton Grove, IL
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60053
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(Address of principal executive offices)
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(Zip code)
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Registrants telephone number, including area code: (847)�967-1010
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N/A
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule�14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule�13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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On November 10, 2014, Lifeway Foods, Inc. (the Company) announced the Companys third quarter results for 2014.
A copy of the press release is attached as Exhibit 99.1 to this Form 8-K.��This Form 8-K and Exhibit 99.1 are each being furnished to the Securities and Exchange Commission (the SEC) pursuant to Item 2.02 of Form 8-K and are therefore not to be considered filed with the SEC.
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Item 9.01
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Financial Statements and Exhibits.
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(d)���Exhibits
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99.1�����������Press release date November 10, 2014.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LIFEWAY FOODS, INC.
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Dated:��� November 10, 2014
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By:��
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/s/ Edward Smolyansky �
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Edward Smolyansky�
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Chief Financial and Accounting Officer, Secretary and Treasurer
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EXHIBIT INDEX
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Exhibit No.
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Description
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99.1
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Press release dated November 10, 2014.
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EXHIBIT 99.1
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Lifeway Foods Announces Results for the Third Quarter of 2014
Third Quarter Net Sales Increase 27% to $30.1 Million
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Morton Grove, IL November 10, 2014 Lifeway Foods, Inc., (Nasdaq: LWAY),�a leading supplier of cultured dairy products known as kefir and organic kefir, today announced results for the third quarter ended September 30, 2014.
Our strong double digit net sales growth in the third quarter demonstrates the continued demand for our nutritious probiotic kefir products, said Julie Smolyansky, CEO of Lifeway Foods, Inc. Greater brand awareness, increased distribution, and successful new product innovation helped us deliver another quarter of profitability despite continued pressure from increased milk prices. We are committed to executing on our long-term growth strategy and believe there are compelling opportunities ahead as we expand with new and existing customers.
Third Quarter Results
Total consolidated net sales increased 27%, or $6.3 million, to $30.1 million during the three-month period ended September 30, 2014 from $24.0 million during the same three-month period in 2013.
Gross profit for the third quarter of 2014 was $7.4 million compared to $6.9 million in the third quarter of the prior year. The Company's gross profit margin decreased to 25% in the third quarter of 2014 versus 29% in the third quarter of 2013. The decrease was primarily attributable to an approximate 20% increase in the cost of milk, the Companys largest raw material, compared to the same period last year. In addition, gross profit for the quarter was impacted by an increase in depreciation expense of $0.6 million related to a true-up on Starfruit leasehold improvements and expense associated with assets placed in service at the Lifeway Wisconsin location.
In the third quarter, general and administrative expenses increased to $2.6 million from $1.7 million the prior year. This increase is primarily due to start up costs associated with the purchase of the Golden Guernsey dairy plant.
Total operating expenses increased 20% or $1.0 million to $5.6 million during the third quarter of 2014, from $4.7 million during the same period in 2013. This increase was primarily attributable to an increase in general and administrative expenses.
Total operating income was $1.8 million during the third quarter of 2014, from $2.2 million during the same period in 2013.��The slight decrease in operating income is related to the decrease in gross profit and increased operating expenses.
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The Companys third quarter 2014 effective tax rate was 43% compared to 29% in the same period last year. The company expects the full year tax rate for fiscal 2014 to be comparable to the full year tax rate for fiscal 2013.
Total net income was $1.0 million, or $0.06 per diluted share, for the three-month period ended September 30, 2014 compared to $1.7 million, or $0.10 per diluted share, in the same period in 2013.
Total consolidated net sales increased by $17.6 million, or approximately 25%, to $88.8 million during the nine-month period ended September 30, 2014 from $71.3 million during the same nine-month period in 2013.�
Gross profit for the first nine-months of 2014 decreased to $22.0 million, compared to $22.8 million in the same period in the prior year. The Company's gross profit margin was 25% in the first nine-months of 2014 compared to 32% in the same period last year.
Total net income was $2.8 million, or $0.17 per share, for the nine-month period ended September 30, 2014 compared to $5.5 million, or $0.33 per share, in the same period in 2013.
Balance Sheet/Cash Flow Highlights
The Company had $2.8 million in cash and cash equivalents as of September 30, 2014 compared to $1.2 million at September 30, 2013. This increase is primarily due to the acquisition of the Golden Guernsey dairy plant in the second quarter of 2013. Total stockholders equity was $45.7 million as of September 30, 2014, which is an increase of $2.3 million when compared to September 30, 2013.
Conference Call
The Company will host a conference call to discuss these results with additional comments and details on Monday, November 10, 2014 at 4:30 p.m. ET. The call will be broadcast live over the Internet hosted at the Investor Relations section of Lifeway Foods website at www.lifeway.net, and will be archived online through November 24, 2014. In addition, listeners may dial 877-407-3982 in North America, and international listeners may dial 201-493-6780. Participants from the Company will be Julie Smolyansky, President and Chief Executive Officer, and Edward Smolyansky, Chief Financial Officer and Chief Operating Officer.
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About Lifeway Foods
Lifeway Foods, Inc. (Nasdaq: LWAY), recently named one of Fortune Small Business' Fastest Growing Companies for the sixth consecutive year, is America's leading supplier of the cultured dairy products known as kefir and organic kefir. Lifeway Kefir is a dairy beverage that contains 10 exclusive live and active probiotic cultures plus ProBoost". In addition to its line of Kefir products, the company produces a variety of Frozen Kefir and probiotic cheese products. Lifeway also sells frozen kefir, kefir smoothies and kefir parfaits through its Starfruit" retail stores.
Find Lifeway Foods, Inc. on Facebook: www.facebook.com/lifewaykefir
Follow Lifeway Foods on Twitter: http://twitter.com/lifeway_kefir
YouTube: http://www.youtube.com/user/lifewaykefir
Forward Looking Statements
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.
Contact:
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Lifeway Foods, Inc.
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Phone: 877.281.3874
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Email: [email protected]
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Investor Relations:
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ICR
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Katie Turner
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646.277.1228
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LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
September 30, 2014 and 2013 (Unaudited) and December 31, 2013
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September 30,
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December 31,
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2014
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2013
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2013
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ASSETS
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Current assets
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� | � | � | � | � | � | � | � | � | |||
Cash and cash equivalents
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� | $ | 2,795,429 | � | � | $ | 1,240,730 | � | � | $ | 3,306,608 | � |
Investments
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� | � | 3,057,214 | � | � | � | 2,506,463 | � | � | � | 2,516,380 | � |
Certificates of deposits in financial institutions
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� | � | � | � | � | 115,373 | � | � | � | 15,373 | � | |
Inventories
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� | � | 7,134,857 | � | � | � | 8,382,287 | � | � | � | 6,899,008 | � |
Accounts receivable, net of allowance for doubtful accounts and discounts ($1,300,000 and $1,350,000 and $1,050,000)
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� | � | 11,803,145 | � | � | � | 11,313,652 | � | � | � | 10,444,839 | � |
Prepaid expenses and other current assets
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� | � | 54,944 | � | � | � | 88,629 | � | � | � | 128,323 | � |
Other receivables
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� | � | 26,720 | � | � | � | 89,100 | � | � | � | 103,272 | � |
Deferred income taxes
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� | � | 360,765 | � | � | � | 394,277 | � | � | � | 322,071 | � |
Refundable income taxes
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� | � | 842,425 | � | � | � | 423,242 | � | � | � | 1,014,947 | � |
Total current assets
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� | � | 26,075,499 | � | � | � | 24,553,753 | � | � | � | 24,750,821 | � |
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Property and equipment, net
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� | � | 21,874,520 | � | � | � | 21,637,492 | � | � | � | 20,824,448 | � |
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Intangible assets
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� | � | � | � | � | � | � | � | � | � | � | � |
Goodwill
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� | � | 14,068,091 | � | � | � | 14,068,091 | � | � | � | 14,068,091 | � |
Other intangible assets, net of accumulated amortization of $5,005,117, $4,376,640 and $4,468,359 at September 30, 2014 and 2013 and at December 31, 2013, respectively
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� | � | 3,238,683 | � | � | � | 3,929,360 | � | � | � | 3,750,441 | � |
Total intangible assets
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� | � | 17,306,774 | � | � | � | 17,997,451 | � | � | � | 17,818,532 | � |
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Other Assets
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� | � | � | � | � | � | � | � | � | � | � | � |
Long-term accounts receivable, net of current portion
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� | � | 270,599 | � | � | � | 280,000 | � | � | � | 280,000 | � |
Total assets
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� | $ | 65,527,392 | � | � | $ | 64,468,696 | � | � | $ | 63,673,801 | � |
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Current maturities of notes payable
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� | $ | 877,038 | � | � | $ | 878,088 | � | � | $ | 875,002 | � |
Accounts payable
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� | � | 7,318,512 | � | � | � | 5,429,988 | � | � | � | 6,723,179 | � |
Accrued expenses
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� | � | 1,243,876 | � | � | � | 1,323,213 | � | � | � | 1,284,060 | � |
Accrued income taxes
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� | � | � | � | � | 1,292,762 | � | � | � | --- | � | |
Total current liabilities
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� | � | 9,439,426 | � | � | � | 8,924,051 | � | � | � | 8,882,241 | � |
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Notes payable
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� | � | 8,339,282 | � | � | � | 9,214,853 | � | � | � | 8,999,012 | � |
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Deferred income taxes
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� | � | 2,065,221 | � | � | � | 2,917,213 | � | � | � | 2,843,426 | � |
Total liabilities
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� | � | 19,843,929 | � | � | � | 21,056,117 | � | � | � | 20,724,679 | � |
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Stockholders' equity
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� | � | � | � | � | � | � | � | � | � | � | � |
Common stock, no par value; 40,000,000 shares authorized; 17,273,776 shares issued; 16,346,017 shares outstanding at September 30, 2014, September 30, 2013 and December 31, 2013
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� | � | 6,509,267 | � | � | � | 6,509,267 | � | � | � | 6,509,267 | � |
Paid-in-capital
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� | � | 2,032,516 | � | � | � | 2,032,516 | � | � | � | 2,032,516 | � |
Treasury stock, at cost
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� | � | (�8,187,682 | ) | � | � | (�8,187,682 | ) | � | � | (�8,187,682 | ) |
Retained earnings
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� | � | 45,367,487 | � | � | � | 43,056,422 | � | � | � | 42,587,214 | � |
Accumulated other comprehensive income (loss), net of taxes
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� | � | (�38,125 | ) | � | � | 2,056 | � | � | � | 7,807 | � |
Total stockholders' equity
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� | � | 45,683,463 | � | � | � | 43,412,579 | � | � | � | 42,949,122 | � |
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Total liabilities and stockholders' equity
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� | $ | 65,527,392 | � | � | $ | 64,468,696 | � | � | $ | 63,673,801 | � |
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LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Comprehensive Income
For the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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2013
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Sales
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� | $ | 32,704,435 | � | � | � | � | � | $ | 26,601,341 | � | � | � | � | � | $ | 97,359,630 | � | � | � | � | � | $ | 80,030,021 | � | � | � | � | ||||
Less: discounts and allowances
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� | � | (�2,594,213 | ) | � | � | � | � | � | (�2,808,811 | ) | � | � | � | � | � | (�8,552,286 | ) | � | � | � | � | � | (�8,772,576 | ) | � | � | � | ||||
Net sales
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� | � | 30,110,222 | � | � | � | 30,110,222 | � | � | � | 23,792,530 | � | � | � | 23,792,530 | � | � | � | 88,807,344 | � | � | � | 88,807,344 | � | � | � | 71,257,445 | � | � | � | 71,257,445 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Cost of goods sold
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� | � | � | � | � | � | 21,697,954 | � | � | � | � | � | � | � | 16,513,357 | � | � | � | � | � | � | � | 64,812,489 | � | � | � | � | � | � | � | 47,217,179 | � |
Depreciation expense
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� | � | � | � | � | � | 1,010,966 | � | � | � | � | � | � | � | 410,797 | � | � | � | � | � | � | � | 2,022,204 | � | � | � | � | � | � | � | 1,226,629 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Total cost of goods sold
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� | � | � | � | � | � | 22,708,920 | � | � | � | � | � | � | � | 16,924,154 | � | � | � | � | � | � | � | 66,834,693 | � | � | � | � | � | � | � | 48,443,808 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Gross profit
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� | � | � | � | � | � | 7,401,302 | � | � | � | � | � | � | � | 6,868,376 | � | � | � | � | � | � | � | 21,972,651 | � | � | � | � | � | � | � | 22,813,637 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Selling expenses
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� | � | � | � | � | � | 2,804,127 | � | � | � | � | � | � | � | 2,815,126 | � | � | � | � | � | � | � | 9,977,636 | � | � | � | � | � | � | � | 8,291,960 | � |
General and administrative
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� | � | � | � | � | � | 2,627,566 | � | � | � | � | � | � | � | 1,671,080 | � | � | � | � | � | � | � | 7,115,393 | � | � | � | � | � | � | � | 5,567,649 | � |
Amortization expense
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� | � | � | � | � | � | 178,919 | � | � | � | � | � | � | � | 178,201 | � | � | � | � | � | � | � | 536,758 | � | � | � | � | � | � | � | 533,884 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Total operating expenses
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� | � | � | � | � | � | 5,610,612 | � | � | � | � | � | � | � | 4,664,407 | � | � | � | � | � | � | � | 17,629,787 | � | � | � | � | � | � | � | 14,393,493 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Income from operations
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� | � | � | � | � | � | 1,790,690 | � | � | � | � | � | � | � | 2,203,969 | � | � | � | � | � | � | � | 4,342,864 | � | � | � | � | � | � | � | 8,420,144 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Other income (expense):
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� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Interest and dividend income
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� | � | � | � | � | � | 22,739 | � | � | � | � | � | � | � | 36,535 | � | � | � | � | � | � | � | 86,664 | � | � | � | � | � | � | � | 82,166 | � |
Rental income
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� | � | � | � | � | � | 1,201 | � | � | � | � | � | � | � | 2,231 | � | � | � | � | � | � | � | 2,900 | � | � | � | � | � | � | � | 8,889 | � |
Interest expense
|
� | � | � | � | � | � | (�62,084 | ) | � | � | � | � | � | � | (�59,887 | ) | � | � | � | � | � | � | (�194,377 | ) | � | � | � | � | � | � | (�133,610 | ) |
Gain on sale of investments, net
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
reclassified from OCI
|
� | � | � | � | � | � | (�22,940 | ) | � | � | � | � | � | � | 161 | � | � | � | � | � | � | � | 39,190 | � | � | � | � | � | � | � | 121,441 | � |
Gain on sale of equipment
|
� | � | � | � | � | � | 85,077 | � | � | � | � | � | � | � | � | � | � | � | � | � | � | 8,592 | � | � | � | � | � | � | � | � | ||
Other Income
|
� | � | � | � | � | � | � | � | � | � | � | � | � | 209,175 | � | � | � | � | � | � | � | 1,674 | � | � | � | � | � | � | � | 219,404 | � | |
Total other income (expense)
|
� | � | � | � | � | � | 23,993 | � | � | � | � | � | � | � | 188,215 | � | � | � | � | � | � | � | (55,357 | ) | � | � | � | � | � | � | 298,290 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Income before provision for income taxes
|
� | � | � | � | � | � | 1,814,683 | � | � | � | � | � | � | � | 2,392,184 | � | � | � | � | � | � | � | 4,287,507 | � | � | � | � | � | � | � | 8,718,434 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Provision for income taxes
|
� | � | � | � | � | � | 789,005 | � | � | � | � | � | � | � | 702,257 | � | � | � | � | � | � | � | 1,507,234 | � | � | � | � | � | � | � | 3,258,928 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Net income
|
� | � | � | � | � | $ | 1,025,678 | � | � | � | � | � | � | $ | 1,689,927 | � | � | � | � | � | � | $ | 2,780,273 | � | � | � | � | � | � | $ | 5,459,506 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Basic and diluted earnings per common share
|
� | � | � | � | � | � | 0.06 | � | � | � | � | � | � | � | 0.10 | � | � | � | � | � | � | � | 0.17 | � | � | � | � | � | � | � | 0.33 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Weighted average number of shares outstanding
|
� | � | � | � | � | � | 16,346,017 | � | � | � | � | � | � | � | 16,346,017 | � | � | � | � | � | � | � | 16,346,017 | � | � | � | � | � | � | � | 16,346,017 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
COMPREHENSIVE INCOME
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Net income
|
� | � | � | � | � | $ | 1,025,678 | � | � | � | � | � | � | $ | 1,689,927 | � | � | � | � | � | � | $ | 2,780,273 | � | � | � | � | � | � | $ | 5,459,506 | � |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Other comprehensive income
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
����(loss), net of tax:
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
����Unrealized gains (losses) on
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
������investments (net of tax)
|
� | � | � | � | � | � | (�93,679 | ) | � | � | � | � | � | � | 29,356 | � | � | � | � | � | � | � | (�22,524 | ) | � | � | � | � | � | � | 17,079 | � |
����Less reclassification adjustment
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
������for (gains) losses included in
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
������net income (net of taxes)
|
� | � | � | � | � | � | 13,702 | � | � | � | � | � | � | � | (�91 | ) | � | � | � | � | � | � | (23,408 | ) | � | � | � | � | � | � | (�68,614 | ) |
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
Comprehensive income
|
� | � | � | � | � | $ | 945,701 | � | � | � | � | � | � | $ | 1,719,192 | � | � | � | � | � | � | $ | 2,734,341 | � | � | � | � | � | � | $ | 5,407,971 | � |
�
�
�
LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2014 and 2013 (Unaudited)
�
� | � |
(Unaudited)
|
� | |||||
� | � |
September 30,
|
� | |||||
� | � |
2014
|
� | � |
2013
|
� | ||
� | � | � | � | � | � | � | ||
Cash flows from operating activities:
|
� | � | � | � | � | � | ||
Net income
|
� | $ | 2,780,273 | � | � | $ | 5,459,506 | � |
Adjustments to reconcile net income to net
|
� | � | � | � | � | � | � | � |
cash flows from operating activities:
|
� | � | � | � | � | � | � | � |
Depreciation and amortization
|
� | � | 2,558,962 | � | � | � | 1,760,513 | � |
Gain on sale of investments, net
|
� | � | (�39,190 | ) | � | � | (�121,441 | ) |
Deferred income taxes
|
� | � | (�783,607 | ) | � | � | (�231,218 | ) |
Bad debt expense
|
� | � | 76,049 | � | � | � | 26,819 | � |
Gain on sale of equipment
|
� | � | (8,592 | ) | � | � | (209,175 | ) |
(Increase) decrease in operating assets:
|
� | � | � | � | � | � | � | � |
Accounts receivable
|
� | � | (�1,548,110 | ) | � | � | (�2,612,905 | ) |
Other receivables
|
� | � | 76,552 | � | � | � | (�80,275 | ) |
Inventories
|
� | � | (�235,849 | ) | � | � | (�2,443,101 | ) |
Refundable income taxes
|
� | � | 172,522 | � | � | � | (338,414 | ) |
Prepaid expenses and other current assets
|
� | � | 73,379 | � | � | � | 33,509 | � |
Increase (decrease) in operating liabilities:
|
� | � | � | � | � | � | � | � |
Accounts payable
|
� | � | 595,333 | � | � | � | 1,173,263 | � |
Accrued expenses
|
� | � | (�40,184 | ) | � | � | 167,536 | � |
Income taxes payable
|
� | � | � | � | � | 1,038,451 | � | |
Net cash provided by operating activities
|
� | � | 3,677,538 | � | � | � | 3,623,068 | � |
� | � | � | � | � | � | � | � | � |
Cash flows from investing activities:
|
� | � | � | � | � | � | � | � |
Purchases of investments
|
� | � | (�2,319,742 | ) | � | � | (�2,877,968 | ) |
Proceeds from sale of investments
|
� | � | 1,736,946 | � | � | � | 2,281,792 | � |
Redemption of certificates of deposits
|
� | � | 15,000 | � | � | � | 334,627 | � |
Purchases of property and equipment
|
� | � | (�3,052,303 | ) | � | � | (�8,205,669 | ) |
Proceeds from sale of equipment
|
� | � | 89,076 | � | � | � | 537,500 | � |
Net cash used in investing activities
|
� | � | (3,531,023 | ) | � | � | (7,929,718 | ) |
� | � | � | � | � | � | � | � | � |
Cash flows from financing activities:
|
� | � | � | � | � | � | � | � |
Dividends paid
|
� | � | � | � | � | (1,307,861 | ) | |
Net proceeds from debt issuance
|
� | � | � | � | � | 4,975,000 | � | |
Repayment of notes payable
|
� | � | (�657,694 | ) | � | � | (�405,985 | ) |
Net cash used in financing activities
|
� | � | (�657,694 | ) | � | � | 3,261,154 | � |
� | � | � | � | � | � | � | � | � |
Net decrease in cash and cash equivalents
|
� | � | (511,179 | ) | � | � | (1,045,496 | ) |
� | � | � | � | � | � | � | � | � |
Cash and cash equivalents at the beginning of the period
|
� | � | 3,306,608 | � | � | � | 2,286,226 | � |
� | � | � | � | � | � | � | � | � |
Cash and cash equivalents at the end of the period
|
� | $ | 2,795,429 | � | � | $ | 1,240,730 | � |
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