For Immediate Release
Lifeway Foods Reports Second Quarter and Six Month Results
Sales increased six percent in the second quarter
and 12 percent for the six months ended June 30, 2004.
Morton Grove, IL. August 16, 2004 – Lifeway Foods, Inc. (Nasdaq: LWAY)
announced its financial results for the second quarter and six months
period ended June 30, 2004.
For the second quarter, revenues rose six percent to a record $4.002
million compared to $3.78 million in the same quarter a year ago. Net
income was $432,109, or $0.05 per share, compared to $691,082, or $0.08
per share, for the second quarter of 2003. This decrease was primarily
attributable to the sharp, temporary second quarter spike in milk
prices.
For the six month period ended June 30, 2004, revenues increased approximately 12 percent to $7.94 million from $7.08 million, in the same period last year. Net income was $1.20 million, or $0.14 per share, compared to net income of $1.68 million, or $0.20 per share, in the same period a year ago.
“We are pleased with our continued growth and record revenues in the
second quarter,” Julie Smolyansky, Lifeway Foods’ President stated.
“Our second quarter revenue growth is especially encouraging because it
comes on top of a large initial stocking order by Sav-A-Lot stores in
the 2003 second quarter. We continue to see a positive response in all
our markets to our new packaging, as well as to the introduction last
week of Slim 6Ô, America’s first and only no sugar added, low carb
kefir. We also look forward to further strengthening our presence on
the East Coast with our recent acquisition of Ilya’s Farms.
“The decrease in net income for this quarter was a direct result of an
increase in milk prices of more than 100 percent. However, we do not
anticipate a similar impact to our margins in the third quarter due to
a 50 percent reduction in milk prices and to a price increase
implemented by Lifeway in the beginning of June,” Smolyansky said.
Lifeway, named as Chicago’s 25th fastest-growing public firms by
Crain’s Chicago Business this week, is a manufacturer of cultured,
probiotic and functional food products in the health food industry, and
is America's leading supplier of the cultured dairy product known as
kefir. The Company markets 12 flavors of kefir, and America’s first and
only no sugar added, low carb kefir, Slim 6Ô The Company also
participates in the organic and soy markets with Lifeway Organic™,
Organic Kefir and Kefir Cheese, and America’s first soy kefir called
SoyTreat™.
For more information, contact Julie Smolyansky, President, Lifeway
Foods Inc. at (847) 967-1010 or e-mail at info@lifeway.net and visit
www.lifeway.net.
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.
|
|
Lifeway Foods, Inc. |
|||
| Three Months Ended | Six Months Ended | |||
|
June 30,2004 |
June 30,2003 |
June 30,2004 |
June 30,2003 |
|
|
Sales |
$4,002,093 |
$3,775,853 |
$7,937,172 |
$7,084,410 |
|
Cost of Goods Sold |
2,265,802 |
1,733,935 |
4,365,000 |
3,559,891 |
|
Gross Profit |
1,736,291 |
2,041,918 |
3,572,172 |
3,524,519 |
| Operating Expenses |
1,049,402 |
938,160 |
1,931,431 |
1,782,776 |
|
Income From Operations |
686,889 |
1,103,758 |
1,640,741 |
1,741,743 |
| Total other income | 39,382 | 44,801 | 341,262 | 970,331 |
|
Pre-tax income |
726,271 |
1,148,559 |
1,982,003 |
2,712,074 |
|
Income taxes |
294,162 |
457,477 |
784,695 |
1,027,718 |
|
Net income |
432,109 |
691,082 |
1,197,308 |
1,684,356 |
|
Per Share Earnings |
$.05 |
$.08 |
$.14 |
$.20 |
|
Wtg.Ave. Shares |
8,437,544 |
8,436,888 |
8,437,544 |
8,436,888 |
|
Consolidated Balance Sheet |
||
| June 30, 2004 | June 30, 2003 | |
| Current Assets | $15,219,589 | $12,777,581 |
| Current Liabilities | 991,900 | 1,555,489 |
| Working Capital | 14,227,689 | 11,222,083 |
| Long-term debt | 447,084 | 485,789 |
| Stockholders Equity | 16,877,624 | 14,219,314 |
6431 W. Oakton
Morton Grove, IL 60053
847-967-1010
fax: 847-967-6558
