For Immediate Release
Lifeway Foods, Inc. Reports First Quarter Results: Sales up 18%
Morton Grove, IL, May 16, 2005 - Lifeway Foods, Inc. (Nasdaq: LWAY) today reported financial results for the first quarter ended March 31, 2005. Lifeway reported record 1st quarter revenues of $4.66 million, up 18% from last year's first quarter revenues of $3.93 million. Excluding the one-time sales to the Sav-a-Lot account, which accounted for $362,000 in sales for first quarter 2004, the sales would have increased approximately 30 percent in 2005. Gross profit increased by 13% over the same time period.
Net income was $725,391or $.09 per split-adjusted share in 2005 versus a net income of $765,199 or $.09 per split-adjusted share in 2004. Contributing to the change in net income and earnings per share was a rise in legal and regulatory costs, as well as insurance and utility costs.
Julie Smolyansky CEO states “In the first quarter we rolled out our full line of new packaging, and the results have been great as evident in our sales growth. "We feel very confident of the continued market penetration of Lifeway Kefir, Lifeway La Fruta, and our other products.”
Edward Smolyansky, CFO, commented, "We are extremely pleased with our first quarter results. The cost of milk, the largest component of our raw materials, increased approximately 25% in the first quarter 2005 from the same period a year ago. We feel comfortable we can continue to maintain strong margins even in the environment of high raw material prices, and an overall increase in the cost of doing business.”
“In addition, our cash flow from operations remains strong. We have finished our stock buyback, and our balance sheet continues to strengthen. We remained focused on creating shareholder value,” added Smolyansky
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, Cream 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.
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. Condensed Statement of Income |
||
Three Months Ended |
||
March 31, 2005 |
March 31, 2004 |
|
Sales |
$4,656,860 |
$3,935,079 |
Cost of Goods Sold |
2,577,956 |
2,099,198 |
Gross Profit |
2,078,904 |
1,835,881 |
Operating Expenses |
1,155,180 |
882,029 |
Income from Operations |
923,724 |
953,852 |
Income before taxes |
1,183,214 |
1,255,732 |
Income taxes |
457,823 |
490,533 |
Net income |
$ 725,391 |
$765,199 |
Earnings Per Share |
$.09 |
$.09 |
Wtg. Ave. Shares |
8,432,653 |
8,436,888 |
Balance Sheet Three Months Ended |
||
March 31,
2005 |
March 31,
2004 |
|
Cash and Cash Equivalents |
$5,434,032 |
$4,632,830 |
Current Assets |
$16,147,465 |
$14,587,172 |
Current Liabilities |
923,198 |
864,135 |
Stockholders Equity |
18,257,623 |
16,423,090 |
6431 W. Oakton
Morton Grove, IL 60053
847-967-1010
fax: 847-967-6558
