Coffee Holding Co., Inc. · NASDAQ:JVA
Coffee — Investor Presentation (August 2015)
29 slides from Coffee's investor presentation, August 2015
Slide 1: Coffee Holding Co. Corporate Presentation August 2015
Coffee Holding Co. NASDAQ: JVA Corporate Presentation August 2015
Slide 2: Disclaimer
This document contains certain summary information regarding Coffee Holding Company Inc. (the “Company”). Statements in this document regarding the Company that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E o
Slide 3: Stock and financial snapshot
Stock Price $4.72 Net Sales (ttm) $124.8M 52 Week Low/High $4.39 - $7.40 EBITDA (ttm) $1.2M Avg. Daily Vol. (3m) 33,572 Diluted EPS (ttm) $0.05 Shares Outstanding 6.2M Total Assets (mrq) $36.1M Institutional Holdings 9% Total Liabilities (mrq) $12.1M Insider Holdings 11% Total Equity (mrq) $24.0M Ma
Slide 4: Premier wholesale coffee dealer and roaster with a strong 40-year history
Coffee Holding Co. (JVA) is a premier wholesale coffee dealer and roaster with a strong 40-year history We have 115+ specialty coffee offerings and seven proprietary/licensed brands across the entire pricing spectrum Riding strong industry growth trends Highly scalable business model with limited ca
Slide 5: Total coffee category is a ~$15B market
Total coffee category is a ~$15B World Coffee Consumption¹ market¹ In MM bags Global coffee consumption projected to (bag weighs ~132 lbs) increase ~25% over next six years¹ 176 Coffee & Tea represent the 2nd largest non-alcoholic beverage category in 145 food service² 133 Growing Hispanic-American
Slide 6: Green Mountain and the growth of specialty coffee
Green Mountain Coffee Roasters (Nasdaq: % of U.S. Adults Consuming GMCR) has revolutionized the coffee industry Specialty Coffee Daily¹ through its proprietary K-Cup system While we do not directly produce K-Cups, we have been a partner and supplier to Green Mountain for 34% 26+ years 31% 31% We exp
Slide 7: Wholesale Green Coffee
Wholesale Private Label Branded Coffee Green Coffee Sell unroasted green coffee beans to roasters Our Green Coffee Customers and coffee shop operators of all sizes throughout North America and Asia-Pacific Fastest growing category in the coffee industry 465 Over 115 different high-end Arabica specia
Slide 8: Private Label
Wholesale Private Label Branded Coffee Green Coffee Roast, blend and package coffee for ~30 different private labels that wholesalers and retailers sell as their own brand (non-coffee companies) Ideal for companies that want to sell their own coffee label without entering the coffee manufacturing bu
Slide 9: Branded Coffee
Wholesale Private Label Branded Coffee Green Coffee Includes five proprietary brands and Each brand targets a particular two exclusive license agreements consumer in the coffee market; limited cannibalization Proprietary brands Licensed brands from Del Monte • Exclusive right to use the S&W and Il C
Slide 10: More than just green coffee beans: a value-add supplier
We provide more than just green coffee beans to our wholesale customers – We’re a value-add supplier Provide guidance on coffee blending techniques and market identification to help grow their customer base Our Private Label coffee accommodates the customer, both operationally and financially Can be
Slide 11: Diverse coffee sourcing across the globe
Diverse coffee sourcing across the globe insulates us from geopolitical risk in emerging markets, as well as volatile commodity prices 50,000 sf. Facility La Junta, Colorado Corporate HQ Staten Island, NY 28,000 sf. Facility Brecksville, Ohio JVA Manufacturing Facilities & Offices Green Coffee Stora
Slide 12: Consistent growth in 10 of last 12 fiscal years
Consistent growth in 10 of last 12 fiscal years Significant commodity bubble; coffee prices $173.7 more than doubled in 18 months. We’ve now returned to normalized $146.8 levels. $MM $134.0 $124.8 $108.9 $83.5 $71.2 $74.5 $51.2 $57.4 $41.5 $28.0 $17.4 $20.2 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 13: Returning to Growth for Second Consecutive Quarter
Returning to Growth for Second Consecutive Qtr $MM $38.4 $30.3 $27.3 $25.4 Q1'14 Q1'15 Q2'14 Q2'15 13
Slide 14: Leading the Packaged Foods Industry
Leading the Packaged Foods Industry¹ $MM $2.1 $0.9 $1.0 $1.1 $0.7 ¹SmarTrend via COMTEX, May 2015 14
Slide 15: Core Business is Profitable
Core Business is Profitable $0.72 $0.68 $0.64 $0.40 $0.27 $0.19 $0.20 2009 2010 2011 2012 2013 2014 TTM Apr'15 15
Slide 16: Millions of Pounds of Coffee Sold Every Year
Millions of Pounds of Coffee Sold Every Year In lbs. 60.0M 56.3M 56.1M 53.9M 48.2M 40.1M 2010 2011 2012 2013 2014 2015F 16
Slide 17: Select Balance Sheet Items
At April 30, 2015: Select Balance Sheet Items $3.6 million cash Apr 30, Oct 31, ($ Millions) 2015 2014 $9.0 million term loan and $3.0 million revolving line of credit Total cash $3.6 $3.8 $4.5 million and $1.2 million Receivables 13.2 15.4 outstanding, respectively Inventories 12.7 15.2 $23.3 milli
Slide 18: Reducing hedging and trading to focus on core business
Sharply reducing hedging and short-term trading of coffee futures to focus on core business operations Expected to drive more consistent profitability Win new customers through expanded sales & marketing Rebranding individual green coffee SKU’s to better market our differentiated products Organic gr
Slide 19: Café Supremo and Café Caribe target the Hispanic demographic
Café Supremo and Café Caribe flavor profiles specifically target U.S.-based U.S. Hispanic Population² Hispanic demographic Hispanic-Americans consume more 87.6 coffee than any other ethnicity in the U.S.¹ 73.0 Hispanics made up more than half of total U.S. population growth from 2000- 59.7 2010² 50.
Slide 20: Launching inaugural tea initiative
Launching inaugural tea initiative May 2015 First mover advantage – no other green coffee distributor also sells tea Significant runway for growth through existing wholesale customer base Nearly all 300 of our green coffee customers also have tea offerings We become a one-stop shop for all roasters
Slide 21: Limited competition in fast-growing Chinese coffee market
Limited competition in fast-growing Chinese Chinese Coffee Consumption¹ coffee market In 000 bags Chinese coffee consumption has grown (bag weighs ~132 lbs) ~13% per year from 1998-2012¹ 2,822 Could reach 2.8 million bags by 2020 (nearly equivalent to consumption in U.K.)¹ 2,230 Marketing of S&W bra
Slide 22: Accretive acquisitions and joint ventures
We will continue to seek accretive opportunities that can be easily integrated onto our robust platform 2004 2006 2013 Acquired Premier Roasters Joint venture with Licensed Don Manuel and took over their 50,000 Caruso’s Coffee to to DTS8 Coffee Co. for sq. ft. Colorado roasting form Generations use
Slide 23: Leading coffee dealer and roaster with 40-year reputation
Leading coffee dealer and roaster with 40- year reputation of high-quality and consistent offerings Unique market position with price points and flavor profiles across the entire coffee spectrum Diverse portfolio of proprietary and licensed brands that target specific demographics Highly scalable bu
Slide 24: Contact details
3475 Victory Boulevard Staten Island, NY 10314 Andrew Gordon Liolios Group CEO & CFO Sean Mansouri or Cody Slach (718) 832-0800 (949) 574-3860 info@coffeeholding.com JVA@liolios.com 24
Slide 25: Appendix
APPENDIX
Slide 26: A family-owned and operated business for over 40 years
A family-owned and operated business for over 40 years Andrew Gordon, President and CEO Employed by Coffee Holding for over 32 years Successfully expanded Coffee Holding from a privately-held small family business into a publicly traded growth company Has published dozens of reports on the coffee co
Slide 27: Blue Chip Customer Base Across Multiple Channels
JVA has developed entrenched partnerships with leading companies Blue Chip across the coffee value chain and through multiple channels JVA is uniquely positioned to offer products across the full spectrum Customer Base of consumer tastes, preferences and price points Across Multiple In additio
Slide 28: Profitable in 5 of last 6 fiscal years
Profitable in 5 of last 6 fiscal years $0.78 $0.60 $0.44 $0.37 $0.14 $0.05 ($0.10) 2009 2010 2011 2012 2013¹ 2014 TTM Apr'15 ¹2013 fluctuations were the result of our hedging and trading program, which have been sharply reduced to focus on core business operations. 28
Slide 29: Fast Facts
Fast Facts NASDAQ: JVA aia SONAL Sennen er Coen Fun facts for coftee lovers. TOTALUS gg ust don't spill any on your keyboerd. COFFEE SALES e 87% FOOD Br.) "A Goxtie) (\ t}) That's a lot of perky people. 30% “i this coffee, please being me some tex: bul if ths § toa. please bring me some cottee.” — A