Lifeway Foods Announces Record First Quarter 2013 Financial Results

Lifeway Foods Inc. - $LWAY |
 
Lifeway Foods, Inc., (Nasdaq: LWAY), a leading 
supplier of cultured dairy products known as kefir and organic kefir, today announced results for the first 
quarter ended March 31, 2013. 
(Logo: http://photos.prnewswire.com/prnh/20120119/AQ36947LOGO-b) 
First Quarter 2013 Highlights 
 Net sales increased approximately 26% to $24.4 million for the quarter 
 Gross profit increased approximately 41% and gross profit margin increased to 35% for the 
quarter 
 Record earnings per diluted share of $0.14 for the quarter 
 Cash and cash equivalents increased $1.6 million to $2.7 million for the quarter 
"We started the year off strong as our record sales increase, combined with a lower cost of milk and 
management of our expenses enabled us to see a 100% increase in earnings the first quarter of 2013," 
said Julie Smolyansky, CEO of Lifeway Foods, Inc. "We continue to add new distribution in the US and to 
expand Lifeway's kefir probiotic reach beyond dairy aisles into other areas of the store. We continue to 
focus on expanding our complementary product portfolio to appeal to the increasingly health conscious 
consumer. Looking ahead, we are prudently targeting new markets like the UK and remain optimistic 
about our future growth long-term both domestically and internationally." 
First Quarter Results 
First quarter of 2013 gross sales increased approximately 28% to $27.6 million compared to $21.6 million 
for the first quarter of 2012. This increase is primarily attributable to increased sales and awareness of 
the Company's flagship line, Kefir, as well as ProBugs® Organic Kefir for kids and BioKefir™. 
First quarter total consolidated net sales increased approximately 26% to $24.4 million from $19.4 million 
in the first quarter of 2012. Net sales are recorded as gross sales less promotional activities such as 
slotting fees paid, couponing, spoilage and promotional allowances as well as early payment terms given 
to customers. The total allowance for promotions and discounts in the first quarter of 2013 was 
approximately $3.2 million or 12% of gross sales, compared to $2.2 million or approximately 10% of gross 
sales in the same period last year. 
Cost of goods sold as a percentage of net sales, excluding depreciation expense, were approximately 
63% during the first quarter of 2013, compared to approximately 67% during the same period in 2012. 
Gross profit for the first quarter of 2012 increased 41% to approximately $8.6 million, compared to 
approximately $6.1 million in the first quarter of the prior year. The gross profit margin increased to 35% in 
the first quarter 2013 versus 31% in the first quarter of 2012. The increase was primarily attributable to 
the decreased cost of conventional milk, the Company's largest raw material. The total cost of milk was 
approximately 5% lower during the first quarter 2013 when compared to the same period in 2012. 
Operating expenses as a percentage of net sales were approximately 20% during the first quarter of 
2013, compared to approximately 22% during the same period in 2012. This was primarily attributable to 
an increase in selling related expenses, which increased approximately 3% to $2.8 million during the first 
quarter of 2013, from $2.7 million during the same period in 2012. 
The Company reported income from operations of $3.7 million during the first quarter of 2013, an 
improvement of $1.9 million from $1.9 million during the same period in 2012. rovision for income tax was $1.4 million or a 37% effective tax rate for the first quarter compared to a 
provision for income tax of $0.8 million or a 41% effective tax rate during the same period in 2012. 
Total net income was $2.4 million, or $0.14 per diluted share, for the three-month period ended March 31, 
2013 compared to $1.1 million, or $0.07 per diluted share, in the same period in 2012. 
Balance Sheet/Cash Flow Highlights 
The Company had a net increase of cash and cash equivalents of $1.6 million during the three-month 
period ended March 31, 2013 compared to the same period in 2012 and an increase of $0.5 million as 
compared to the December 31, 2012 cash and equivalent balance. The Company had cash and cash 
equivalents of $2.7 million as of March 31, 2013 compared to cash and cash equivalents of $1.2 million 
as of March 31, 2012. 
Total stockholder's equity was $41.7 million as of March 31, 2013, which is an increase of $5.4 million 
when compared to March 31, 2012. This is primarily due the increase in retained earnings of $5.7 million 
when compared to March 31, 2012. 
Conference Call 
The Company will host a conference call to discuss these results with additional comments and details 
today, Wednesday, May 15, 2013 at 4:30 p.m. ET. The call will be broadcast live over the Internet hosted 
at the Investor Relations section of Lifeway Foods' website at www.lifeway.net, and will be archived online 
through May 29, 2013. In addition, listeners may dial 877-407-3982 in North America, and international 
listeners may dial 201-493-6780. Participants from the Company will be Julie Smolyansky, President and 
Chief Executive Officer, and Edward Smolyansky, Chief Financial Officer and Chief Operating Officer. 
About Lifeway Foods 
Lifeway Foods, Inc. (Nasdaq: LWAY), recently named one of Fortune Small Business' Fastest Growing 
Companies for the fifth consecutive year, is America's leading supplier of the cultured dairy products 
known as kefir and organic kefir. Lifeway Kefir is a dairy beverage that contains 10 exclusive live and 
active probiotic cultures plus ProBoost™. In addition to its line of Kefir products, the company produces a 
variety of Frozen Kefir and probiotic cheese products. Lifeway also sells frozen kefir, kefir smoothies and 
kefir parfaits through its Starfruit™ retail stores. 
Find Lifeway Foods, Inc. on Facebook: www.facebook.com/lifewaykefir 
Follow Lifeway Foods on Twitter: http://twitter.com/lifeway_kefir 
YouTube: http://www.youtube.com/user/lifewaykefir 
Forward Looking Statements 
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. 
Contact: 
Lifeway Foods, Inc. 
Phone: 877.281.3874 
Email: info@Lifeway.net 
Investor Relations: 
ICR 
Katie Turner 
John Mills 
646.277.1228 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
LWAY Lifeway Foods Inc. 11.51 -0.20 -1.71 27,237
EVRWQ EveryWare Global Inc. Wt Exp 05/21/2018 n/a n/a n/a 0

Comments

Emerging Growth

GSV Capital Corp

GSV Capital Corp is an externally managed, non-diversified closed-end management investment company. The Company has elected to be treated as a business development company.

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

Wealthfront

Wealthfront is an automated investment service that serves as an alternative to traditional financial advisory services. The company manages a diversified, continually rebalanced portfolio of index funds on their clients’…