Lifeway Foods® Announces Record Results for the First Quarter Ended March 31, 2024
Net sales of
18th consecutive quarter of year-over-year growth
Delivers 410 basis points of gross profit margin expansion
"Following our tremendous results in 2023, I am thrilled to report yet another record-breaking quarter on the topline to kick off 2024," commented
First Quarter 2024 Results
Net sales were
Gross profit as a percentage of net sales increased to 25.8% for the first quarter ended
Selling, general and administrative expenses as a percentage of net sales were 17.6% for the first quarter ended
The Company reported net income of
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About
Forward-Looking Statements
This release (and oral statements made regarding the subjects of this release) contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including the introduction of new products, or estimates or predictions of actions by customers or suppliers, (ii) statements of future economic performance, and (III) statements of assumptions underlying other statements and statements about Lifeway or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; and customer acceptance of products and services. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company's subsequent filings with the
Media:
Derek Miller
Vice President of Communications,
Email: derekm@lifeway.net
General inquiries:
Phone: 847-967-1010
Email: info@lifeway.net
LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Balance Sheets
(In thousands) |
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|
|
|
|
|
|
|
||
|
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(Unaudited) |
|
|
2023 |
|
||
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,025 |
|
|
$ |
13,198 |
|
Accounts receivable, net of allowance for credit losses and discounts & allowances of
$1,640 and |
|
|
15,064 |
|
|
|
13,875 |
|
Inventories, net |
|
|
8,130 |
|
|
|
9,104 |
|
Prepaid expenses and other current assets |
|
|
1,988 |
|
|
|
2,019 |
|
Refundable income taxes |
|
|
378 |
|
|
|
– |
|
Total current assets |
|
|
37,585 |
|
|
|
38,196 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
24,627 |
|
|
|
22,764 |
|
Operating lease right-of-use asset |
|
|
172 |
|
|
|
192 |
|
|
|
|
11,704 |
|
|
|
11,704 |
|
Intangible assets, net |
|
|
6,763 |
|
|
|
6,898 |
|
Other assets |
|
|
1,900 |
|
|
|
1,900 |
|
Total assets |
|
$ |
82,751 |
|
|
$ |
81,654 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Current portion of note payable |
|
$ |
1,250 |
|
|
$ |
1,250 |
|
Accounts payable |
|
|
10,024 |
|
|
|
9,976 |
|
Accrued expenses |
|
|
3,604 |
|
|
|
4,916 |
|
Accrued income taxes |
|
|
– |
|
|
|
474 |
|
Total current liabilities |
|
|
14,878 |
|
|
|
16,616 |
|
Note payable |
|
|
1,235 |
|
|
|
1,483 |
|
Operating lease liabilities |
|
|
102 |
|
|
|
118 |
|
Deferred income taxes, net |
|
|
3,001 |
|
|
|
3,001 |
|
Total liabilities |
|
|
19,216 |
|
|
|
21,218 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding at
March 31, 2024 and |
|
|
– |
|
|
|
– |
|
Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 14,691
outstanding at |
|
|
6,509 |
|
|
|
6,509 |
|
Paid-in capital |
|
|
5,498 |
|
|
|
4,825 |
|
|
|
|
(16,695) |
|
|
|
(16,695) |
|
Retained earnings |
|
|
68,223 |
|
|
|
65,797 |
|
Total stockholders' equity |
|
|
63,535 |
|
|
|
60,436 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
82,751 |
|
|
$ |
81,654 |
|
LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Statements of Operations
For the three months ended (In thousands, except per share data) |
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|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
|
|
$ |
44,634 |
|
|
$ |
37,904 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
32,438 |
|
|
|
29,030 |
|
Depreciation expense |
|
|
661 |
|
|
|
648 |
|
Total cost of goods sold |
|
|
33,099 |
|
|
|
29,678 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
11,535 |
|
|
|
8,226 |
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
3,700 |
|
|
|
3,519 |
|
General and administrative expense |
|
|
4,136 |
|
|
|
3,135 |
|
Amortization expense |
|
|
135 |
|
|
|
135 |
|
Total operating expenses |
|
|
7,971 |
|
|
|
6,789 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
3,564 |
|
|
|
1,437 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(51) |
|
|
|
(104) |
|
Other income (expense), net |
|
|
(5) |
|
|
|
5 |
|
Total other income (expense) |
|
|
(56) |
|
|
|
(99) |
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
3,508 |
|
|
|
1,338 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
1,082 |
|
|
|
508 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,426 |
|
|
$ |
830 |
|
|
|
|
|
|
|
|
|
|
Net earnings per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.17 |
|
|
$ |
0.06 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
14,691 |
|
|
|
14,645 |
|
Diluted |
|
|
15,222 |
|
|
|
15,030 |
|
LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
|
||||||||
|
|
Three months ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,426 |
|
|
$ |
830 |
|
Adjustments to reconcile net income to operating cash flow: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
796 |
|
|
|
783 |
|
Stock-based compensation |
|
|
673 |
|
|
|
343 |
|
Non-cash interest expense |
|
|
2 |
|
|
|
2 |
|
(Increase) decrease in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,189) |
|
|
|
(572) |
|
Inventories |
|
|
974 |
|
|
|
339 |
|
Refundable income taxes |
|
|
(378) |
|
|
|
44 |
|
Prepaid expenses and other current assets |
|
|
31 |
|
|
|
377 |
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(6) |
|
|
|
1,046 |
|
Accrued expenses |
|
|
(1,309) |
|
|
|
(581) |
|
Accrued income taxes |
|
|
(474) |
|
|
|
416 |
|
Net cash provided by operating activities |
|
|
1,546 |
|
|
|
3,027 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(2,469) |
|
|
|
(1,762) |
|
Net cash used in investing activities |
|
|
(2,469) |
|
|
|
(1,762) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repayment of note payable |
|
|
(250) |
|
|
|
(500) |
|
Net cash used in financing activities |
|
|
(250) |
|
|
|
(500) |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(1,173) |
|
|
|
765 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
|
13,198 |
|
|
|
4,444 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
$ |
12,025 |
|
|
$ |
5,209 |
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for income taxes, net of (refunds) |
|
$ |
1,934 |
|
|
$ |
47 |
|
Cash paid for interest |
|
$ |
50 |
|
|
$ |
130 |
|
|
|
|
|
|
|
|
|
|
Non-cash investing activities |
|
|
|
|
|
|
|
|
Accrued purchase of property and equipment |
|
$ |
192 |
|
|
$ |
122 |
|
Right-of-use assets obtained in exchange for lease obligations |
|
$ |
– |
|
|
$ |
19 |
|
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