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Lifeway Foods, Inc. Reports First Quarter Results -- Sales Up 19% -- Operating Income Up 50% -- Strong Margin Improvements
MORTON GROVE, Ill., May 17, 2004 /PRNewswire-FirstCall via COMTEX/ -- Lifeway
Foods, Inc. (Nasdaq: LWAY) today reported financial results for its first
quarter ended March 31, 2004.
For the quarter, Lifeway's sales climbed 19 percent to a record $3.93 million
compared to 2003 first quarter sales of $3.30 million. Gross profit in the
quarter increased 24 percent from the year ago period and operating income rose
50 percent to $953,852 from $637,980 in 2003.
Net income was $765,199, or $.09 per split adjusted share, compared to net
income of $993,273, or $.12 per split adjusted share in 2003. Contributing to
the change in net income and earnings per share was a non-recurring gain of
$1,246,287 from the disposition of real property and a change in the loss from
the sales of marketable securities approximately equal to $382,576, both of
which occurred in 2003.
"We are extremely pleased with our first quarter results," commented Edward
Smolyansky, Lifeway's controller. "We were able to post these strong results and
improve our gross margins even with a significant increase in the cost of milk.
Our milk costs, the largest component of our raw materials, were about 20
percent higher when compared to the 2003 first quarter. We feel comfortable we
can continue to maintain strong margins, even in the environment of rising milk
prices and an overall increase in the cost of doing business.
"We continue to see strong growth in our top-line sales and expect improved
product placements and visibility with our new packaging," stated Julie
Smolyansky, Lifeway's CEO. "We have already had positive feedback from our
limited test distribution of our new packaging. This new packaging, which will
incorporate our full line, will soon be ready to roll-out nationally."
Lifeway is a manufacturer of cultured, probiotic and functional food products in
the health food industry, and is America's leading supplier of the cultured
dairy product known as kefir. The Company markets 12 flavors of kefir and does a
successful business exporting its products to Canada. The Company also
participates in the organic and soy markets with Lifeway Organic(TM), Organic
Kefir and Kefir Cheese, and America's first soy kefir, called SoyTreat(R).
For more information, contact Julie Smolyansky, President, Lifeway Foods, Inc.
at (847) 967-1010 or e-mail at info@lifeway.net or visit
www.lifeway.net 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.
Lifeway Foods, Inc.