Almost $!0 2 days ago $7.77 on GMCR will move fast on GMCR bounce STATEN ISLAND, N.Y., March 9, 2012 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. ("Coffee Holding" or the "Company") (Nasdaq:JVA - News) today announced its operating results for the three months ended January 31, 2012. In this release, the Company:
Reports sales growth of 120% which increased to net sales of $56,601,684 for the three months ended January 31, 2012 and $25,641,093 for the three months ended January 31, 2011; and
Reports net income of $1,578,345, or $0.25 per share basic and $0.24 per share diluted, for the three months ended January 31, 2012 compared to net income of $1,041,072, or $0.19 per share (basic and diluted), for the three months ended January 31, 2011.
Results of Operations
The Company had net income of $1,578,345, or $0.25 per share basic and $0.24 diluted, for the three months ended January 31, 2012 compared to net income of $1,041,072 or $0.19 per share (basic and diluted), for the three months ended January 31, 2011. The increase in net income primarily reflects increased gross profit.
Net sales totaled $56,601,684 for the three months ended January 31, 2012, an increase of $30,960,591, or 120%, from $25,641,093 for the three months ended January 31, 2011. The increase in net sales primarily reflects higher sales prices compared to the first quarter of fiscal 2011 and an increase in sales of green coffee, as well as an increase in private label and branded sales.
Cost of sales for the three months ended January 31, 2012 was $52,151,940 or 92.1% of net sales, as compared to $22,560,399 or 87.9% of net sales for the three months ended January 31, 2011. The increase in cost of sales reflects the increased cost of sales, as well as the shift in our overall business to a higher percentage of green coffee sales as compared to roasted coffee sales which tend to be less profitable on a percentage basis than our roasted products.
Total operating expenses increased by $143,396, or 8.5%, to $1,829,492 for the three months ended January 31, 2012 as compared to operating expenses of $1,686,096 for the three months ended January 31, 2011. The increase in operating expenses was due to increases in selling and administrative expense of $176,088 partially offset by a decrease in officers' salaries of $32,692.
"We are pleased to report a strong quarter in both revenues and earnings to our shareholders. We continue to see growth in all areas of our business as continued historically high coffee prices have not affected demand. Increased sales on our flagship brand, Cafe Caribe, have come through new outlets of distribution as four new major supermarket chains have taken on the product since the start of the year. Private label sales continue to grow as well, with consumers looking to save as the economy is still on the mend. In addition green coffee sales increased, as the demand for our high quality Arabicas and Organic coffees remains brisk. Although our margins remain strong, higher increases in sales of green coffee as compared to increases in private label and branded sales have impacted our overall gross margins. That said, we will always take growth as long as it is profitable," said Andrew Gordon, President & CEO.
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