Coffee Holding Company (JVA) has reported 442.91 percent jump in profit for the quarter ended Jul. 31, 2016. The company has earned $0.76 million, or $0.12 a share in the quarter, compared with $0.14 million, or $0.02 a share for the same period last year.
Revenue during the quarter plunged 35.82 percent to $17.35 million from $27.04 million in the previous year period. Gross margin for the quarter expanded 1058 basis points over the previous year period to 18.16 percent. Total expenses were 92.61 percent of quarterly revenues, down from 99.40 percent for the same period last year. This has led to an improvement of 680 basis points in operating margin to 7.39 percent.
Operating income for the quarter was $1.28 million, compared with $0.16 million in the previous year period.
"I'm pleased to report another solid quarter to our shareholders as we earned $0.12 per share for the quarter ended July 31, 2016 versus $0.02 per share for last year’s corresponding quarter. The second half of the quarter saw positive developments for the green coffee market as prices continued to rise from previous lows. These higher prices have translated into improved margins on our sales of specialty green coffee as we are able to take advantage of our favorable inventory position. This trend continues into the fourth quarter as the market is currently trading at highest level since February of 2015 and we believe this trend will be sustainable for the foreseeable future. Also, during the quarter, we completed our acquisition of the assets of Coffee Kinetics LLC, doing business as Sonofresco, a seller of electrical table top roasters and specialty green coffee. Sonofresco’s financial results from the month of July are reflected in this quarter’s results and going forward, will be fully integrated in our consolidated financial statements. The Sonofresco acquisition has already been accretive to both top and bottom line results and the effects of a higher green coffee market will assist in meeting our positive expectations," commented Andrew Gordon, the Company's president and chief executive officer.
Operating cash flow remains negativeCoffee Holding Company has spent $1.27 million cash to meet operating activities during the nine month period as against cash outgo of $1.81 million in the last year period. The company has spent $1.52 million cash to meet investing activities during the nine month period as against cash outgo of $0.35 million in the last year period.
Cash flow from financing activities was $0.76 million for the nine month period, down 54.77 percent or $0.93 million, when compared with the last year period.
Cash and cash equivalents stood at $1.83 million as on Jul. 31, 2016, down 44.79 percent or $1.48 million from $3.32 million on Jul. 31, 2015.
Working capital increases marginally
Coffee Holding Company has recorded an increase in the working capital over the last year. It stood at $22.37 million as at Jul. 31, 2016, up 3.58 percent or $0.77 million from $21.59 million on Jul. 31, 2015. Current ratio was at 3.28 as on Jul. 31, 2016, up from 3.09 on Jul. 31, 2015.
Days sales outstanding went up to 77 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 46 days for the previous year period.
Debt increases substantiallyCoffee Holding Company has witnessed an increase in total debt over the last one year. It stood at $7.26 million as on Jul. 31, 2016, up 70.05 percent or $2.99 million from $4.27 million on Jul. 31, 2015. Coffee Holding CompanyInc has witnessed an increase in short-term debt over the last one year. It stood at $7.26 million as on Jul. 31, 2016, up 70.05 percent or $2.99 million from $4.27 million on Jul. 31, 2015. Total debt was 19.94 percent of total assets as on Jul. 31, 2016, compared with 12.09 percent on Jul. 31, 2015. Debt to equity ratio was at 0.28 as on Jul. 31, 2016, up from 0.18 as on Jul. 31, 2015. Interest coverage ratio improved to 30.07 for the quarter from 4.59 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
