For Immediate Release
Lifeway Foods, Inc. Reports First Quarter Results: Sales up 19%, Operating Income Up 50%
Morton Grove, IL, May 17, 2004 - Lifeway Foods, Inc. (Nasdaq: LWAY)
today reported financial results for the first quarter ended March 31,
2004. Lifeway reported record 1st quarter revenues of $3.93 million, up
19% from last year's first quarter revenues of $3.30 million. Gross
profit increased by 24% over the same time period. Operating income
rose 50% to $953,852 in 2004, up from $637,980 in 2003.
Net income was $765,199 or $.09 per split-adjusted share in 2004 versus
a net income of $993,273 or $.12 per split-adjusted share in 2003.
Contributing to the change in net income and earnings per share was a
non-recurring gain of about $1,246,287 from the disposition of real
property and a change in the loss from the sales of marketable
securities approximately equal to $382,576, which both occurred in 2003.
Edward Smolyansky, Controller, commented, "We are extremely pleased
with our first quarter results. The cost of milk, the largest component
of our raw materials, increased approximately 20% in the first quarter
2004 from the same period a year ago, yet at the same time, our gross
margins improved. We feel comfortable we can continue to maintain
strong margins even in the environment of rising milk prices, and an
overall increase in the cost of doing business.
Julie Smolyansky added, "We have already had positive feedback from our
limited test distribution of our new packaging and will soon be ready
to go national with our full line which will incorporate the new
packaging."
Lifeway 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 does a successful business exporting its products
to Canada. The Company also participates in the organic and soy markets
with Lifeway OrganicTM, Organic Kefir and Kefir Cheese, and America’s
first soy kefir, called SoyTreatŪ.
For more information, contact Julie Smolyansky, President, Lifeway
Foods, Inc. at (847) 967-1010 or e-mail at info@lifeway.net or visit
www.lifeway.net.
Lifeway 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 does a successful business exporting its products
to Canada. 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, e-mail at info@lifeway.net or 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.
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Lifeway Foods, Inc. |
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Three Months Ended |
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| March 31, 2004 | March 31, 2003 | |
| Sales | $14,877,788 | $12,212,236 |
| Cost of Goods Sold | 7,840,782 | 6,744,086 |
| Gross Profit | 7,037,006 | 5,468,150 |
| Operating Expenses | 3,558,362 | 2,890,504 |
| Income from Operations | 3,478,644 | 2,577,646 |
| Income before taxes | 3,576,487 | 2,472,022 |
| Income taxes | 490,533 | 570,241 |
| Net income | $ 765,199 | $ 993,273 |
| Earnings Per Share | $.09 | $.12 |
| Wtg. Ave. Shares | 8,436,888 | 8,436,888 |
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Balance Sheet |
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| March 31, 2004 | March 31, 2003 | |
| Cash and Cash Equivalents | $4,632,830 | $2,787,724 |
| Current Assets | $14,857,172 | $ 11,438,210 |
| Current Liabilities | 864,135 | 1,133,811 |
| Stockholders Equity | 16,423,090 | 13,307,384 |
6431 W. Oakton
Morton Grove, IL 60053
847-967-1010
fax: 847-967-6558
