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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/25/21 Lifeway Foods, Inc. 10-K 12/31/20 72:3.4M GlobalOne Filings Inc/FA |
Document/Exhibit Description Pages Size
1: 10-K Annual Report HTML 403K
2: EX-21 Subsidiaries of Lifeway Foods, Inc. HTML 19K
3: EX-23.1 Consent of Independent Registered Public HTML 18K
Accounting Firm
8: EX-99.1 Lifeway Foods, Inc. Announces Fourth Quarter and HTML 70K
Full Year Ended December 31, 2020
4: EX-31.1 Section 302 Certification of Chief Executive HTML 24K
Officer
5: EX-31.2 Section 302 Certification of Chief Financial HTML 24K
Officer
6: EX-32.1 Section 906 Certification of Chief Executive HTML 20K
Officer
7: EX-32.2 Section 906 Certification of Chief Financial HTML 20K
Officer
15: R1 Document And Entity Information HTML 58K
16: R2 Consolidated Balance Sheets HTML 112K
17: R3 Consolidated Balance Sheets (Parenthetical) HTML 41K
18: R4 Consolidated Statements of Operations HTML 98K
19: R5 Consolidated Statements of Stockholders' Equity HTML 59K
20: R6 Consolidated Statements of Cash Flows HTML 118K
21: R7 1. Basis of presentation HTML 23K
22: R8 2. Summary of Significant Accounting Policies HTML 52K
23: R9 3. Inventories, net HTML 24K
24: R10 4. Property, Plant and Equipment, net HTML 27K
25: R11 5. Goodwill and Intangible Assets HTML 32K
26: R12 6. Accrued Expenses HTML 25K
27: R13 7. Debt HTML 27K
28: R14 8. Leases HTML 28K
29: R15 9. Commitments And Contingencies HTML 25K
30: R16 10. Income taxes HTML 50K
31: R17 11. Stock-based and Other Compensation HTML 39K
32: R18 12. Segments, Products and Customers HTML 38K
33: R19 13. Share repurchase program HTML 24K
34: R20 14. Related party transactions HTML 25K
35: R21 15. Covid-19 HTML 21K
36: R22 2. Significant Accounting Policies (Policies) HTML 92K
37: R23 2. Summary Of Significant Accounting Policies HTML 26K
(Tables)
38: R24 3. Inventories, net (Tables) HTML 25K
39: R25 4. Property, Plant and Equipment, net (Tables) HTML 26K
40: R26 5. Goodwill and Intangible Assets (Tables) HTML 32K
41: R27 6. Accrued Expenses (Tables) HTML 24K
42: R28 8. Leases (Tables) HTML 24K
43: R29 10. Income taxes (Tables) HTML 55K
44: R30 11. Stock-based and Other Compensation (Tables) HTML 32K
45: R31 12. Segments, Products and Customers (Tables) HTML 29K
46: R32 2. Summary Of Significant Accounting Policies HTML 29K
(Details - Property useful lives)
47: R33 2. Summary Of Significant Accounting Policies HTML 32K
(Details - Intangible Useful lives)
48: R34 2. Summary Of Significant Accounting Policies HTML 31K
(Details Narrative)
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52: R38 5. Goodwill and Intangible Assets (Details - HTML 34K
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53: R39 6. Accrued Expenses (Details) HTML 32K
54: R40 7. Debt (Details Narrative) HTML 37K
55: R41 8. Leases (Details) HTML 34K
56: R42 8. Leases (Details Narrative) HTML 29K
57: R43 10. Income taxes (Details - Provision) HTML 35K
58: R44 10. Inccome taxes (Details - Reconciliation) HTML 69K
59: R45 10. Income taxes (Details - Deferred tax assets) HTML 50K
60: R46 10. Income taxes (Details - Tax attributes related HTML 26K
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61: R47 10. Income taxes (Details - Unrecognized tax HTML 26K
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62: R48 10. Income taxes (Details Narrative) HTML 24K
63: R49 11. Stock-based Compensation (Details - Option HTML 49K
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64: R50 11. Stock-based Compensation (Details - RSA HTML 31K
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65: R51 11. Stock-based Compensation (Details Narrative) HTML 61K
66: R52 12. Segments, Products and Customers (Details) HTML 40K
67: R53 12. Segments, Products and Customers (Details HTML 28K
Narrative)
68: R54 13. Share RepurchaseProgram (Detail Narrative) HTML 30K
69: R55 14. Related party transactions (Details Narrative) HTML 23K
71: XML IDEA XML File -- Filing Summary XML 122K
70: EXCEL IDEA Workbook of Financial Reports XLSX 77K
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Exhibit 99.1
Lifeway Foods, Inc. Announces Fourth Quarter and Full Year Ended December 31, 2020
Net Sales increase 8.9% Year-over-Year to $102 million
Morton Grove, IL — March 25, 2021— Lifeway Foods, Inc. (Nasdaq: LWAY) (“Lifeway” or “the Company”), the leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today reported financial results for the fourth quarter and full year ended December 31, 2020.
“I am very pleased to report another exciting and strong year of growth here at Lifeway, particularly in light of this difficult year defined by the COVID-19 pandemic,” commented Julie Smolyansky, CEO and President of Lifeway. “Of note, our net sales grew 8.9% to $102.0 million compared to 2019, and our net income increased from $0.5 million in 2019 to $3.2 million in 2020. The food retail environment has been majorly reshaped this year, and our decision to focus on digital engagement has paid dividends in continuing to attract more and more consumers to our multi-serve, immune supporting products. I am very encouraged by the ongoing market trends towards healthy products like Lifeway’s, and I believe this momentum will carry on far past just 2021. Our current retail partnerships are seeing gains, illustrated by our strong results, as we continue to enhance category growth, and we plan on both expanding the current and identifying new profitable relationships in the year ahead. Finally, this year we will continue to invest in customer acquisition strategies because we want more and more people to hear the Lifeway story. We are looking forward to an outstanding 2021.”
Full Year 2020 Results
Net sales were $102.0 million for the year ended December 31, 2020, an increase of $8.4 million or 8.9% versus prior year. The net sales increase was primarily driven by higher volumes of our branded drinkable kefir, partially offset by lower cream revenues associated with a decline in the market price of butter fat.
Gross profit as a percentage of net sales increased to 26.4% for the year ended December 31, 2020 from 23.6% during the same period in 2019. The increase versus the prior year was primarily due to the impact of favorable milk pricing, and to a lesser extent favorable freight costs.
Selling expenses decreased $0.9 million, or 7.8%, to $10.2 million for the year ended December 31, 2020 from $11.1 million in 2019. Selling expenses as a percentage of net sales were 10.0% in 2020 compared to 11.8% in 2019.
General and administrative expenses decreased $1.2 million, or 9.1%, to $11.7 million for the year ended December 31, 2020 from $12.8 million during the same period in 2019. The decrease is primarily a result of lower compensation expense due to organizational changes made in 2019 and lower incentive compensation, partially offset by increased professional fee expense.
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Income tax expense was $1.6 million for the year ended December 31, 2020, compared to $0.8 million during the same period in 2019. Our effective income tax rate (ETR) for the year ended December 31, 2020 was 33.1% compared to an ETR of 63.3% in the same period last year.
The Company reported net income of $3.2 million or $0.21 per basic and diluted common share for the year ended December 31, 2020 compared to a net income of $0.5 million or $0.03 per basic and diluted common share in 2019.
About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes’ Best Small Companies, is America’s leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces frozen kefir, specialty cheeses, and a ProBugs line for kids. Lifeway’s tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland and the United Kingdom, with limited distribution in additional countries. Learn how Lifeway is good for more than just you at www.lifewaykefir.com.
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, 2020, and the Company’s subsequent filings with the SEC. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Information in this release is as of the dates and time periods indicated herein, and Lifeway does not undertake to update any of the information contained in these materials, except as required by law. Accordingly, YOU SHOULD NOT RELY ON THE ACCURACY OF ANY OF THE STATEMENTS OR OTHER INFORMATION CONTAINED IN ANY ARCHIVED PRESS RELEASE.
Contact:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net
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LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
| December 31, | ||||||||
| 2020 | 2019 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,926 | $ | 3,836 | ||||
| Accounts receivable, net of allowance for doubtful accounts and discounts & allowances of $1,350 and $1,100 at December 31, 2020 and 2019, respectively | 8,002 | 6,692 | ||||||
| Inventories, net | 6,930 | 6,392 | ||||||
| Prepaid expenses and other current assets | 1,163 | 1,598 | ||||||
| Refundable income taxes | 31 | 681 | ||||||
| Total current assets | 24,052 | 19,199 | ||||||
| Property, plant and equipment, net | 21,048 | 22,274 | ||||||
| Operating lease right-of use asset | 345 | 738 | ||||||
| Intangible assets | ||||||||
| Goodwill and indefinite-lived intangibles | 12,824 | 12,824 | ||||||
| Other intangible assets, net | – | 152 | ||||||
| Total intangible assets | 12,824 | 12,976 | ||||||
| Other Assets | 1,800 | 1,800 | ||||||
| Total assets | $ | 60,069 | $ | 56,987 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,592 | $ | 5,282 | ||||
| Accrued expenses | 2,196 | 4,087 | ||||||
| Accrued income taxes | 653 | 154 | ||||||
| Total current liabilities | 8,441 | 9,523 | ||||||
| Line of credit | 2,768 | 2,745 | ||||||
| Operating lease liabilities | 165 | 488 | ||||||
| Deferred income taxes, net | 1,764 | 922 | ||||||
| Other long-term liabilities | 77 | 58 | ||||||
| Total liabilities | 13,215 | 13,736 | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding at 2020 and 2019 | – | – | ||||||
| Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,604 and 15,710 shares outstanding at 2020 and 2019 | 6,509 | 6,509 | ||||||
| Paid-in capital | 2,600 | 2,380 | ||||||
| Treasury stock, at cost | (12,450 | ) | (12,601 | ) | ||||
| Retained earnings | 50,195 | 46,963 | ||||||
| Total stockholders’ equity | 46,854 | 43,251 | ||||||
| Total liabilities and stockholders’ equity | $ | 60,069 | $ | 56,987 | ||||
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LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the three months and twelve months ended December 31, 2020 and 2019
(In thousands, except per share data)
|
Three Months Ended December 31, |
Twelve months Ended |
|||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net sales | $ | 25,585 | $ | 23,165 | $ | 102,026 | $ | 93,662 | ||||||||
| Cost of goods sold | 18,393 | 17,144 | 72,006 | 68,367 | ||||||||||||
| Depreciation expense | 761 | 911 | 3,087 | 3,146 | ||||||||||||
| Total cost of goods sold | 19,154 | 18,055 | 75,093 | 71,513 | ||||||||||||
| Gross profit | 6,431 | 5,110 | 26,933 | 22,149 | ||||||||||||
| Selling expenses | 2,786 | 2,553 | 10,197 | 11,062 | ||||||||||||
| General and administrative | 2,980 | 3,728 | 11,661 | 12,828 | ||||||||||||
| Amortization expense | 35 | 40 | 152 | 192 | ||||||||||||
| Total operating expenses | 5,801 | 6,321 | 22,010 | 24,082 | ||||||||||||
| Income (loss) income from operations | 630 | (1,211) | 4,923 | (1,933 | ) | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (22 | ) | (47 | ) | (118 | ) | (249 | ) | ||||||||
| Fair value gain on investments | – | 1,731 | – | 1,731 | ||||||||||||
| Realized gain on investments, net | – | 1,413 | 4 | 1,413 | ||||||||||||
| Loss (gain) on sale of property and equipment | – | 6 | (28 | ) | 189 | |||||||||||
| Other income | 45 | 2 | 47 | 84 | ||||||||||||
| Total other (expense) income | 23 | 3,105 | (95 | ) | 3,168 | |||||||||||
| Income before provision for income taxes | 653 | 1,894 | 4,828 | 1,235 | ||||||||||||
| Provision for income taxes | 373 | 840 | 1,596 | 782 | ||||||||||||
| Net income | $ | 280 | $ | 1,054 | $ | 3,232 | $ | 453 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.02 | $ | 0.07 | $ | 0.21 | $ | 0.03 | ||||||||
| Diluted | $ | 0.02 | $ | 0.07 | $ | 0.21 | $ | 0.03 | ||||||||
| Weighted average common shares: | ||||||||||||||||
| Basic | 15,604 | 15,709 | 15,597 | 15,748 | ||||||||||||
| Diluted | 15,797 | 15,821 | 15,766 | 15,804 | ||||||||||||
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LIFEWAY FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2020 and 2019
(In thousands)
| 2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 3,232 | $ | 453 | ||||
| Adjustments to reconcile net income to operating cash flow: | ||||||||
| Depreciation and amortization | 3,239 | 3,338 | ||||||
| Non-cash interest expense | 23 | 23 | ||||||
| Non-cash rent expense | (37 | ) | (17 | ) | ||||
| Bad debt expense | (6 | ) | 7 | |||||
| Deferred Revenue | (91 | ) | (97 | ) | ||||
| Reserve for inventory obsolescence | – | (52 | ) | |||||
| Stock-based compensation | 393 | 838 | ||||||
| Deferred income taxes | 841 | 533 | ||||||
| Fair value gain on investment | – | (1,731 | ) | |||||
| Net gain on sale of investment | – | (1,413 | ) | |||||
| (Loss) gain on sale of property and equipment | 28 | (189 | ) | |||||
| (Increase) decrease in operating assets: | ||||||||
| Accounts receivable | (1,304 | ) | (423 | ) | ||||
| Inventories | (538 | ) | (523 | ) | ||||
| Refundable income taxes | 649 | 2,067 | ||||||
| Prepaid expenses and other current assets | 423 | (526 | ) | |||||
| Increase (decrease) in operating liabilities: | ||||||||
| Accounts payable | 311 | 710 | ||||||
| Accrued expenses | (1,278 | ) | 783 | |||||
| Operating lease asset amortization/liability | – | (17 | ) | |||||
| Accrued income taxes | 500 | 47 | ||||||
| Net cash provided by operating activities | 6,385 | 3,811 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of investments | – | (15 | ) | |||||
| Proceeds from sale of investments | – | 1,509 | ||||||
| Purchases of property and equipment | (1,895 | ) | (1,178 | ) | ||||
| Proceeds from sale of property and equipment | 5 | 522 | ||||||
| Net cash (used in) provided by investing activities | (1,890 | ) | 838 | |||||
| Cash flows from financing activities: | ||||||||
| Purchase of treasury stock | (405 | ) | (538 | ) | ||||
| Repayment of line of credit | – | (3,273 | ) | |||||
| Net cash used in financing activities | (405 | ) | (3,811 | ) | ||||
| Net increase in cash and cash equivalents | 4,090 | 838 | ||||||
| Cash and cash equivalents at the beginning of the period | 3,836 | 2,998 | ||||||
| Cash and cash equivalents at the end of the period | $ | 7,926 | $ | 3,836 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for income taxes, net of (refunds) | $ | (426 | ) | $ | (1,865 | ) | ||
| Cash paid for interest | 99 | 259 | ||||||
| Non-cash investing activities | ||||||||
| Right-of-use assets recognized at ASU 2016-02 transition | – | 944 | ||||||
| Operating lease liability recognized at ASU 2016-02 transition | – | 997 | ||||||
| Increase (decrease) in right-of-use assets and operating lease obligations recognized after ASU 2016-02 transition | (44 | ) | 305 | |||||
| Non-cash financing activities | ||||||||
| Issuance of common stock under equity incentive plans | 522 | – | ||||||
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| This ‘10-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed on: | 3/25/21 | |||
| For Period end: | 12/31/20 | 10-K/A, 4 | ||
| 12/31/19 | 10-K, 10-K/A, 8-K, NT 10-K | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/30/21 Lifeway Foods, Inc. 10-K/A 12/31/20 3:402K GlobalOne Filings Inc/FA |