LIFEWAY FOODS (LWAY) Message Board

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Non-Tech : LIFEWAY FOODS (LWAY)

LWAY 21.85

-1.3%

Jan 16 9:30 AM EST

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To: Holly R. who wrote (224)	5/12/1998 9:31:00 AM
From: mark cox	Read Replies (1) of 352

LWAY's 10Q was released yesterday. I did a little crunching on the numbers: Revenues: +15% Net Income: +10.5% EPS: +11% (Actual) EPS: +42% (Just from the primary business of the company) Net Profit Margin: 14.2% (Love it) Cash Flows from Operations: Was only $42,449 but it was still +17.7% greater than last year's 1st Quarter. Debt/Equity Ratio: .19 The percent Revenue growth I was hoping would be somewhere in the 20's but really there haven't been any announcements yet other than the Ukraine deal which wouldn't have any impact on the 1st quarter anyway. The CEO said he was going to start more advertising in the 1st quarter so I am hoping that it will have an effect starting in the 2nd quarter. The billboard that ggbogo saw may be part of this new ad campaign. As to Net Income and EPS. I feel that it is significant to point out what I have stated in a previous post. In the 1st Quarter of last year, LWAY had "Other Income" in the amount of $74,343 from renting out the new facility. After taxes this amounted to $0.012 eps. So just from the primary business with no one time gains, they earned $0.043 eps in the 1st Quarter last year compared to $0.061 eps this year. That is an increase of +42% in EPS for this year. Under Cash Flows from Investing I see that they spent another $80,000 on new equipment. The CEO said that in the first quarter they were still in the 'gearing up' phase. The Net Profit Margin of 14.2% really surprised me. If LWAY can maintain that margin they are going to make a ton of money. Personnaly I am quite happy with the numbers. Revenues are growing at a decent rate with the new facility having been online for such a short period of time, (only 1 Quarter). The earnings and Net Profit Margin were two big surprises to me. I hope we see more distribution agreements in the next press release. It seems that no one is going to the shareholder's meeting out of all the people on the different forums. That's too bad. Mark

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