STATEN ISLAND, NY--(Marketwired - Sep 14, 2016) -  Coffee Holding Co., Inc. (NASDAQ: JVA) (the "Company") today announced its operating results for the three and nine months ended July 31, 2016:

Net sales totaled $17,354,533 for the three months ended July 31, 2016, a decrease of $9,685,324, or 35.8%, from $27,039,857 for the three months ended July 31, 2015. The decrease in net sales reflects reduced wholesale transactions with our largest wholesale green coffee customer during the quarter of approximately $9,379,000.

Cost of sales for the three months ended July 31, 2016 was $14,203,343, or 81.9% of net sales, as compared to $24,991,366, or 92.5% of net sales, for the three months ended July 31, 2015. Cost of sales consists primarily of the cost of green coffee and packaging materials and realized and unrealized gains or losses on hedging activity. The decrease in cost of sales reflects a more favorable inventory position during the quarter and reduced wholesale transactions with our largest wholesale green coffee customer.

Gross profit for the three months ended July 31, 2016 was $3,151,190, an increase of $1,102,699 from $2,048,491 for the three months ended July 31, 2015. Gross profit as a percentage of net sales increased to 18.1% for the three months ended July 31, 2016 from 7.5% for the three months ended July 31, 2015. The increase in gross profits was due to improved margins on our wholesale and roasted business as well as a decrease in our losses quarter to quarter on our hedging operations.

Total operating expenses decreased by $18,785 to $1,868,223 for the three months ended July 31, 2016 from $1,887,008 for the three months ended July 31, 2015. The decrease was primarily the result of a decrease of $18,785 to $1,704,373 in selling and administrative expenses for the three months ended July 31, 2016 from $1,723,158 for the three months ended July 31, 2015.

The Company had net income of $755,518 or $0.12 per share basic and diluted, for the three months ended July 31, 2016 compared to net income of $139,162, or $0.02 per share basic and diluted for the three months ended July 31, 2015. The increase in net income was due primarily to the reasons described above.

"I'm pleased to report another solid quarter to our shareholders as we earned $0.12 per share for the quarter ended July 31, 2016 versus $0.02 per share for last year's corresponding quarter. The second half of the quarter saw positive developments for the green coffee market as prices continued to rise from previous lows. These higher prices have translated into improved margins on our sales of specialty green coffee as we are able to take advantage of our favorable inventory position. This trend continues into the fourth quarter as the market is currently trading at highest level since February of 2015 and we believe this trend will be sustainable for the foreseeable future. Also, during the quarter, we completed our acquisition of the assets of Coffee Kinetics LLC, doing business as Sonofresco, a seller of electrical table top roasters and specialty green coffee. Sonofresco's financial results from the month of July are reflected in this quarter's results and going forward, will be fully integrated in our consolidated financial statements. The Sonofresco acquisition has already been accretive to both top and bottom line results and the effects of a higher green coffee market will assist in meeting our positive expectations," commented Andrew Gordon, the Company's President and Chief Executive Officer.

"As previously announced, we are excited about the rollout of our Café Caribe flagship brand, a popular Spanish style espresso roast coffee, in approximately 900 Food Lion grocery stores and our new business developments with Smart&Final and Wal-Mart. Food Lion is a prominent food retailer located in areas where we previously had limited distribution of Café Caribe and we are excited about the opportunity for expansion into this market. While we have not yet seen the impact of our Smart&Final and Wal-Mart partnerships on our financial statements as these took place late in the quarter, we look forward to these results in upcoming quarters.

"We remain upbeat that going forward we will begin to rebuild top line revenue growth in conjunction with our improved bottom line results by continuing our aggressive approach to seeking new business opportunities and sustaining our margins on both current and new business," concluded Mr. Gordon.

About Coffee Holding

Coffee Holding Co., Inc. is a leading integrated wholesale coffee roaster and dealer in the United States 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. Coffee Holding has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the 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.

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 the Company's outlook on future margin performance and its share repurchase program. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. 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. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, hedging activities, 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.

Company Contact

Coffee Holding Co., Inc. Andrew Gordon President & CEO 718-832-0800

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
JULY 31, 2016 AND OCTOBER 31, 2015
						July 31, 2016				October 31, 2015
						(Unaudited)
- ASSETS -
CURRENT ASSETS:
		Cash				$	1,830,441			$	3,853,816
		Accounts receivable, net of allowances of $144,000 for 2015 and 2014					15,819,019				10,968,237
		Inventories					12,737,022				13,862,818
		Prepaid green coffee					562,142				620,452
		Prepaid expenses and other current assets					518,909				256,202
		Prepaid income taxes					503,327				1,434,577
		Due from broker					107,731
		Deferred income tax asset					85,272				997,720
TOTAL CURRENT ASSETS							32,163,863				31,993,822
	Machinery and equipment, at cost, net of accumulated depreciation of $4,661,610 and $4,241,256 for 2016 and 2015, respectively						2,126,239				1,845,000
Customer list and relationships, net of accumulated amortization of $46,875 and $41,250 for 2016 and 2015, respectively							223,125				108,750
Trademarks							180,000				180,000
Goodwill							1,017,905				440,000
Equity method investments							95,522				96,571
Deposits and other assets							593,476				610,499
TOTAL ASSETS						$	36,400,130			$	35,274,642
- LIABILITIES AND STOCKHOLDERS' EQUITY -
CURRENT LIABILITIES:
		Accounts payable and accrued expenses				$	2,539,048			$	4,021,389
		Line of credit					7,258,375				5,554,121
			Due to broker								483,835
		Income taxes payable					925
TOTAL CURRENT LIABILITIES							9,798,348				10,059,345
Deferred income tax liabilities							70,672				92,370
Deferred rent payable							228,927				222,055
Deferred compensation payable							497,034				482,499
TOTAL LIABILITIES							10,594,981				10,856,269
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, 6,494,680 and 6,456,316 shares issued; 6,026,283 and 6,162,207 shares outstanding at July 31, 2016 and October 31, 2015, respectively					6,495				6,456
		Additional paid-in capital					16,104,074				15,904,109
		Retained earnings					11,691,828				9,665,940
		Less: Treasury stock, 468,397 and 294,109 common shares, at cost at July 31, 2016 and October 31, 2015, respectively					(2,334,639	)			(1,494,712	)
				Total Coffee Holding Co., Inc. Stockholders' Equity			25,467,758				24,081,793
		Non-controlling interest					337,391				336,580
			TOTAL EQUITY				25,805,149				24,418,373
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	36,400,130			$	35,274,642

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
				Nine Months Ended July 31,								Three Months Ended July 31,
				2016				2015				2016				2015
NET SALES				$	61,566,868			$	95,708,890			$	17,354,533			$	27,039,857
COST OF SALES (including $7.4 and $17.9 million of related party costs for the nine months ended July 31, 2016 and 2015, respectively. Including $1.9 and $3.0 million for the three months ended July 31, 2016 and 2015, respectively.)					52,455,081				92,816,224				14,203,343				24,991,366
GROSS PROFIT					9,111,787				2,892,666				3,151,190				2,048,491
OPERATING EXPENSES:
		Selling and administrative			5,170,915				5,286,993				1,704,373				1,723,158
		Officers' salaries			491,550				489,435				163,850				163,850
TOTALS					5,662,465				5,776,428				1,868,223				1,887,008
INCOME (LOSS) FROM OPERATIONS					3,449,322				(2,883,762	)			1,282,967				161,483
OTHER INCOME (EXPENSE)
	Interest income				30,889				26,302				9,890				13,074
	Loss from equity method investment				(1,049	)			(162	)			(805	)			(610	)
	Interest expense				(116,144	)			(153,768	)			(42,671	)			(35,156	)
TOTAL					(86,304	)			(127,628	)			(33,586	)			(22,692	)
INCOME (LOSS) BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST IN SUBSIDIARIES					3,363,018				(3,011,390	)			1,249,381				138,791
	Provision (benefit) for income taxes				1,236,319				(1,189,785	)			448,399				40
NET INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST IN SUBSIDIARY					2,126,699				(1,821,605	)			800,982				138,751
	Less: net income attributable to the non-controlling interest				(100,811	)			(19,992	)			(45,464	)			411
NET INCOME (LOSS) ATTRIBUTABLE TO COFFEE HOLDING CO., INC.				$	2,025,888			$	(1,841,597	)		$	755,518			$	139,162
Basic earnings (loss) per share				$	.33			$	(.30	)		$	.12			$	.02
Diluted earnings (loss) per share				$	.33			$	(.30	)		$	.12			$	.02
Weighted average common shares outstanding:
			Basic and Diluted		6,117,610				6,215,894				6,056,420				6,215,894

COFFEE HOLDING CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED JULY 31, 2016 AND 2015
(Unaudited)
						2016				2015
OPERATING ACTIVITIES:
		Net income (loss)				$	2,126,699			$	(1,821,605	)
		Adjustments to reconcile net income (loss) to net cash used in operating activities:
				Depreciation and amortization			425,977				408,436
				Unrealized gain on commodities			(591,566	)			(8,263	)
				Loss on equity method investments			1,049				162
				Deferred rent			6,872				9,311
				Deferred income taxes			890,750				(1,149,500	)
		Changes in operating assets and liabilities:
			Accounts receivable				(4,766,640	)			3,424,104
			Inventories				1,432,701				2,765,836
				Prepaid expenses and other current assets			(262,707	)			(29,039	)
				Prepaid green coffee			58,310				(547,756	)
				Prepaid and refundable income taxes			931,250				(1,433,818	)
			Deposits and other assets				31,558
			Accounts payable and accrued expenses				(1,554,385	)			(3,093,085	)
			Income taxes payable				925				(331,051	)
Net cash used in operating activities							(1,269,207	)			(1,806,268	)
	INVESTING ACTIVITIES:
			Cash paid for acquisition of business				(856,904	)
			Purchases of machinery and equipment				(661,591	)			(351,194	)
Net cash used in investing activities							(1,518,495	)			(351,194	)
FINANCING ACTIVITIES:
			Advances under bank line of credit				5,204,254				9,272,578
			Principal payments under bank line of credit				(3,500,000	)			(7,502,578	)
			Purchase of treasury stock				(839,927	)
			Payment of dividend				(100,000	)			(80,000	)
Net cash provided by financing activities							764,327				1,690,000
NET DECREASE IN CASH							(2,023,375	)			(467,462	)
CASH, BEGINNING OF PERIOD							3,853,816				3,782,639
CASH, END OF PERIOD						$	1,830,441			$	3,315,177
SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
			Interest paid			$	111,060			$	152,765
			Income taxes paid			$	26,582			$	1,647,668
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
			On June 29, 2016 Coffee Holding Co., Inc. acquired certain assets of Coffee Kinetics, LLC:
			Fair value of assets acquired							$	1,128,952
			Less: liabilities assumed								(72,045	)
			Net assets acquired:								1,056,907
Common stock, par value $.001 per share, 38,364 shares											38
Additional paid-in capital											199,965
Non-cash payment											200,003
Net cash paid										$	856,904