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Lifeway Foods Inc. Reports Operating Results (10-Q)

August 16, 2010 | About:
10qk

10qk

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Lifeway Foods Inc. (LWAY) filed Quarterly Report for the period ended 2010-06-30.

Lifeway Foods Inc. has a market cap of $183.9 million; its shares were traded at around $11 with a P/E ratio of 31.43 and P/S ratio of 3.16. Lifeway Foods Inc. had an annual average earning growth of 20.8% over the past 10 years. GuruFocus rated Lifeway Foods Inc. the business predictability rank of 4.5-star.

Highlight of Business Operations:

Total net income was $1,184,504, or $0.07 per share, for the second quarter ended June 30, 2010 compared to $2,531,905, or $0.15 per share, for the same period in 2009. This represents a 53% decrease in net income from the second quarter 2010 when compared to the same period in 2009.

On February 6, 2009, Lifeway entered into a Loan and Security Agreement with The Private Bank & Trust (the “Loan Agreement”) which provided for (i) a term loan to Lifeway in the principal amount of $7,600,000, due on February 6, 2014 (the Term Loan”) with annual interest rate equal to either the London Inter-Bank Offer Rate (“LIBOR”), plus 2.5% or the prime lending rate, and (ii) a revolving line of credit in the principal amount of $5,000,000 (the “Line of Credit,” together with the Term Loan, the “Loans”), which originally matured February 6, 2010. The original maturity date was extended to February 6, 2011 on February 6, 2010 pursuant to a Third Modification Agreement as previously disclosed. The Line of Credit has an annual interest rate equal to either LIBOR, plus 2.5% or the prime lending rate. The Loans are secured by all of the assets of Lifeway, including a first mortgage on Lifeway s real property located in Skokie, Illinois, Niles, Illinois and Morton Grove, Illinois. A portion of the proceeds of the Loans was used to pay off previously existing mortgage loans. At December 31, 2009, the Loans had a balance of $7,135,556, and $500,000, respectively.

Lifeway had a net increase in cash and cash equivalents of $228,083 during the six months ended June 30, 2010, compared to a net increase in cash and cash equivalents of $305,518 during the same period in 2009. Lifeway had cash and cash equivalents at the end June 30, 2010 of $858,490, compared to cash and cash equivalents at the end June 30, 2009 of $582,766.

Total assets were $52,461,620 as of June 30, 2010, which is an increase of $991,777 when compared to December 31, 2009, and an increase of $1,102,952 when compared to June 30, 2009. This is primarily due to the increase in the value of the Company s property, plant and equipment was $14,890,327 as of June 30, 2010, which is an increase of $1,096,398 from June 30, 2009.

Total current liabilities were $8,674,359 as of June 30, 2010, which is an increase of $110,724 when compared to December 31, 2009. This is primarily due a $604,323 increase in accrued income taxes during the first half of 2010. Total current liabilities were $8,674,359 as of June 30, 2010, which is a decrease of $187,404 when compared to June 30, 2009. This is primarily due the Company s repayment of current notes payables of $1,787,915.

Total stockholder s equity was $34,126,686 as of June 30, 2010, which is an increase of $1,555,356 when compared to December 31, 2009. This is primarily due the increase in retained earnings of $2,953,193 as of June 30, 2010, when compared to December 31, 2009. Total stockholder s equity was $34,126,686 as of June 30, 2010, which is an increase of $3,131,368 when compared to June 30, 2009. This is primarily due the increase in retained earnings by $4,443,525 as of June 30, 2010, when compared to June 30, 2009.

Read the The complete Report

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10qk
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