STATEN ISLAND, NY--(Marketwired - Jun 11, 2015) - Coffee Holding Co., Inc. (NASDAQ: JVA) (Coffee Holding), a leading wholesale coffee dealer and roaster, reported financial results for its fiscal second quarter ended April 30, 2015.

Fiscal Q2 2015 Financial Results

Net sales in the fiscal second quarter of 2015 increased 19% to $30.3 million compared to $25.4 million in the same year-ago quarter. The increase was due to growth across all three of the company's core business operations, which include its green coffee, private label, and branded products business.

Gross profit in the second quarter was ($1.1) million compared to $4.0 million in the year-ago quarter, primarily driven by losses from the company's hedging activities, which include options and futures contracts entered into earlier this year that were subsequently liquidated during the fiscal second quarter. The net loss from this liquidation totaled $3.3 million or ($0.53) per diluted share.

Selling and administrative and officers' salaries in the fiscal second quarter were $2.1 million compared to $1.9 million in the year-ago quarter. As a percentage of revenues, SG&A declined 50 basis points to 6.8% compared to 7.3% in the year-ago quarter.

Net loss in the fiscal second quarter was $2.1 million or ($0.33) per diluted share, compared to net income of $1.3 million or $0.19 per diluted share in the year-ago quarter. The loss was due to the aforementioned losses from the company's hedging activities.

At April 30, 2015, cash totaled $3.6 million compared to $3.8 million at October 31, 2014. Total debt was $5.8 million at April 30, 2015 compared to $2.5 million at October 31, 2014.

Management Commentary

"Despite the continued industry decline in coffee commodity prices during the second quarter, we maintained our top-line momentum with our second consecutive quarter of year-over-year revenue growth," said Andrew Gordon, President & CEO of Coffee Holding. "These results were driven by strong performance across all three of our core business operations, including specialty green coffee distribution and sales of private label and branded products.

"As part of our long-term strategic growth plan introduced in April, we have significantly reduced our hedging and trading activities to focus on our core operations. However, we realized losses during the quarter associated with certain futures contracts that we had entered into prior to initiating this plan. With these trading losses behind us, we expect to move forward with more favorable coffee prices and return to profitability."

"Just last month, we officially launched our Teton Tea offering," continued Mr. Gordon. "This collection includes an array of high quality specialty teas and proprietary blends for roasters and retailers. We've received initial strong interest and positive feedback from many of our current customers, and expect this complementary product offering to eventually provide another significant revenue stream. We have also commenced sales of our Café Caribe label into Stop & Shop, a large retail grocery chain with more than 275 locations throughout New England, New York and New Jersey. With ample room for growth through our core operations and new product offerings, we plan to capitalize on these market opportunities and drive value for our clients and shareholders alike."

Conference Call

Coffee Holding President & CEO Andrew Gordon will host the earnings call, followed by a question and answer period.

Date: Thursday, June 11, 2015 Time: 2:00 p.m. Eastern time (11:00 a.m. Pacific time) Toll-free dial-in number: 1-888-438-5525 International dial-in number: 1-719-457-1035 Conference ID: 1863312

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

A replay of the conference call will be available after 5:00 p.m. Eastern time on the same day through June 18, 2015.

Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay ID: 1863312

About Coffee Holding

Coffee Holding Co., Inc. (NASDAQ: JVA) is a leading integrated wholesale coffee dealer and roaster, and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. A family-operated business for three generations, Coffee Holding has remained profitable through varying cycles of the coffee industry and economy. The company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers. For more information, please visit www.coffeeholding.com.

Forward-Looking Statements

Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding demand and sales of Don Manuel® coffee. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, coffee prices, pricing of our products, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
APRIL 30, 2015 AND OCTOBER 31, 2014
				April 30, 2015				October 31, 2014
				(Unaudited)
- ASSETS -
CURRENT ASSETS:
	Cash			$	3,614,411			$	3,782,639
	Accounts receivable, net of allowances of $144,000 for 2015 and 2014				13,156,338				15,419,860
	Inventories				12,673,926				15,210,153
	Prepaid green coffee				121,112				467,155
	Prepaid expenses and other current assets				177,365				260,112
	Prepaid and refundable income taxes				1,388,152				759
	Due from broker				4,772				-
		Deferred income tax asset			1,438,883				343,657
		TOTAL CURRENT ASSETS			32,574,959				35,484,335
Machinery and equipment, at cost, net of accumulated depreciation of $3,975,074 and $3,704,802 for 2015 and 2014, respectively					2,062,159				1,991,094
Customer list and relationships, net of accumulated amortization of $37,500 and $33,750 for 2015 and 2014, respectively					112,500				116,250
Trademarks					180,000				180,000
Goodwill					440,000				440,000
Equity method investment					97,852				97,404
Deposits and other assets					653,727				643,549
			TOTAL ASSETS	$	36,121,197			$	38,952,632
- LIABILITIES AND STOCKHOLDERS' EQUITY -
CURRENT LIABILITIES:
	Accounts payable and accrued expenses			$	5,477,459			$	8,693,100
	Line of credit				5,771,036				2,498,458
	Due to broker				-				484,924
	Income taxes payable				-				331,051
		TOTAL CURRENT LIABILITIES			11,248,495				12,007,533
Deferred income tax liabilities					116,733				165,157
Deferred rent payable					215,846				209,640
Deferred compensation payable					525,727				515,549
		TOTAL LIABILITIES			12,106,801				12,897,879
STOCKHOLDERS' EQUITY:
	Coffee Holding Co., Inc. stockholders' equity:
	Preferred stock, par value $.001 per share; 10,000,000 shares authorized; no shares issued and outstanding				-				-
	Common stock, par value $.001 per share; 30,000,000 shares authorized, 6,456,316 shares issued; 6,215,894 shares outstanding for periods ended April 30, 2015 and October 31, 2014, respectively				6,456				6,456
	Additional paid-in capital				15,904,109				15,904,109
	Retained earnings				9,098,409				11,079,168
	Less: Treasury stock, 240,422 common shares, at cost for 2015 and 2014				(1,267,862	)			(1,267,862	)
		Total Coffee Holding Co., Inc. Stockholders' Equity			23,741,112				25,721,871
	Non-controlling interest				273,284				332,882
	TOTAL EQUITY				24,014,396				26,054,753
			TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	36,121,197			$	38,952,632

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Six Months Ended April 30,								Three Months Ended April 30,
	2015				2014				2015				2014
NET SALES	$	68,669,033			$	52,745,098			$	30,263,054			$	25,398,751
COST OF SALES (including $14.9 and $9.1 million of related party costs for the six months ended April 30, 2015 and 2014, respectively. Including $5.1 and $4.1 million for the three months ended April 30, 2015 and 2014, respectively.)		67,824,859				44,667,209				31,340,321				21,439,484
GROSS PROFIT (LOSS)		844,174				8,077,889				(1,077,267	)			3,959,267
OPERATING EXPENSES:
Selling and administrative		3,563,835				3,434,249				1,897,480				1,723,641
Officers' salaries		325,585				300,200				172,850				141,100
TOTAL		3,889,420				3,734,449				2,070,330				1,864,741
(LOSS) INCOME FROM OPERATIONS		(3,045,246	)			4,343,440				(3,147,597	)			2,094,526
OTHER INCOME (EXPENSE)
Interest income		13,228				16,796				4,930				15,913
Gain (loss) from equity method investment		448				(89	)			(267	)			93
Interest expense		(118,612	)			(26,069	)			(64,633	)			(7,981	)
TOTAL		(104,936	)			(9,362	)			(59,970	)			8,025
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARY		(3,150,182	)			4,334,078				(3,207,567	)			2,102,551
(Benefit) provision for income taxes		(1,189,825	)			1,663,953				(1,158,721	)			838,028
NET (LOSS) INCOME BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY		(1,960,357	)			2,670,125				(2,048,846	)			1,264,523
Less: Net (income) attributable to the non-controlling interest		(20,402	)			(37,165	)			(3,714	)			(3,303	)
NET (LOSS) INCOME ATTRIBUTABLE TO COFFEE HOLDING CO., INC.	$	(1,980,759	)		$	2,632,960			$	(2,052,560	)		$	1,261,220
Basic (loss) earnings per share	$	(.32	)		$	.41			$	(.33	)		$	.20
Diluted (loss) earnings per share	$	(.32	)		$	.40			$	(.33	)		$	.19
Weighted average common shares outstanding:
Basic		6,215,894				6,372,309				6,215,894				6,372,309
Diluted		6,215,894				6,639,309				6,215,894				6,639,309

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED APRIL 30, 2015 AND 2014
(Unaudited)
	2015				2014
OPERATING ACTIVITIES:
Net (loss) income	$	(1,960,357	)		$	2,670,125
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		274,022				295,723
Unrealized gain on commodities		(489,696	)			(1,173,103	)
(Gain) loss on equity method investment		(448	)			89
Deferred rent		6,206				7,981
Deferred income taxes		(1,143,650	)			1,290,800
Changes in operating assets and liabilities:
Accounts receivable		2,263,522				1,075,993
Inventories		2,536,227				(834,330	)
Prepaid expenses and other current assets		82,747				(62,557	)
Prepaid green coffee		346,043				339,290
Prepaid and refundable income taxes		(1,387,393	)			974,046
Accounts payable and accrued expenses		(3,215,641	)			(966,536	)
Income taxes payable		(331,051	)			216,658
Net cash (used in) provided by operating activities		(3,019,469	)			3,834,179
INVESTING ACTIVITIES:
Purchases of machinery and equipment		(341,337	)			(166,851	)
Net cash used in investing activities		(341,337	)			(166,851	)
FINANCING ACTIVITIES:
Advances under bank line of credit		9,272,578				48,814
Principal payments under bank line of credit		(6,000,000	)			(1,277,996	)
Payment of dividend		(80,000	)			(52,000	)
Net cash provided by (used in) financing activities		3,192,578				(1,281,182	)
NET (DECREASE) INCREASE IN CASH		(168,228	)			2,386,146
CASH, BEGINNING OF PERIOD		3,782,639				4,035,669
CASH, END OF PERIOD	$	3,614,411			$	6,421,815
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	$	112,585			$	29,836
Income taxes paid	$	1,641,197			$	8,500