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<SEC-DOCUMENT>0001072613-05-002643.txt : 20051115
<SEC-HEADER>0001072613-05-002643.hdr.sgml : 20051115
<ACCEPTANCE-DATETIME>20051115155520
ACCESSION NUMBER:		0001072613-05-002643
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20051114
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20051115
DATE AS OF CHANGE:		20051115

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIFEWAY FOODS INC
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		IRS NUMBER:				363442829
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17363
		FILM NUMBER:		051206623

	BUSINESS ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
		BUSINESS PHONE:		7089671010

	MAIL ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8-k_13983.txt
<DESCRIPTION>LIFEWAY FOODS, INC. FORM 8-K
<TEXT>
================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):  November 14, 2005



                               LIFEWAY FOODS, INC.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         ILLINOIS                       0-17363                  36-3442829
- --------------------------------------------------------------------------------
(State or other jurisdiction    (Commission File Number)      (I.R.S. Employer
     of incorporation)                                       Identification No.)


    6431 West Oakton St. Morton Grove, IL                        60053
- --------------------------------------------------------------------------------
  (Address of principal executive offices)                     (Zip code)


Registrant's telephone number, including area code:  (847) 967-1010

                                       N/A
- --------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[_] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))
================================================================================
<PAGE>

ITEM 7.01         REGULATION FD DISCLOSURE

     On November 14, 2005, Lifeway Foods, Inc., an Illinois corporation (the
"Company") issued a press release. A copy of the press release is attached
hereto as Exhibit 99.1.

ITEM 9.01         FINANCIAL STATEMENTS AND EXHIBITS

         EXHIBIT NO.       DESCRIPTION OF EXHIBIT
         -----------       ----------------------

         EXHIBIT 99.1      Press release dated November 14, 2005 - "Lifeway
                           Foods Reports Record Third Quarter, and Nine Months
                           Sales Results."
<PAGE>

                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated: November 15, 2005

                                       LIFEWAY FOODS, INC.


                                       By: /s/ Julie Smolyansky
                                       -----------------------------------
                                       Julie Smolyansky
                                       Chief Executive Officer, President,
                                       and Director
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh99-1_13983.txt
<DESCRIPTION>PRESS RELEASE DATED NOVEMBER 14, 2005
<TEXT>
                                                                    EXHIBIT 99.1
                                                                    ------------

LIFEWAY FOODS REPORTS RECORD THIRD QUARTER, AND NINE MONTHS SALES RESULTS

Monday November 14, 5:55 pm ET

- -- SALES FOR 3RD QUARTER 2005 ROSE 26%

- -- PRE TAX INCOME FOR 3RD QUARTER 2005 ROSE 18%

MORTON GROVE, Ill., Nov. 14 /PRNewswire-FirstCall/ -- Lifeway Foods Inc.,
(Nasdaq: LWAY - News), makers of a nutritious, milk-based cultured beverage
called kefir, announced today for the third quarter ended September 30, 2005,
sales increased 26% to $5,194,648 from $4,138,606 during the same period a year
ago. For the nine months period ended September 30, 2005, sales rose 23% to
$14,924,076, compared to $12,075,778 for the same period in 2004. Earnings
increased to $.07 per share for the third quarter 2005, from $.06 per share for
the same three-month period in 2004. For the nine months ended September 30,
2005, earnings increased to $.22 per share, from $.20 per share from the same
nine-month period in 2004.

Julie Smolyansky, CEO commented, "We are very excited about our quarterly
results. We continue to invest our funds into sales and marketing of our award
winning products, and this has shown in our revenue growth all year long. The
introduction of Lifeway Organic 'It's Pudding' was met with stellar approval by
our distributors and some major food chains such as Whole Foods and Wild Oats.
Also, in the fourth quarter, we plan to begin test marketing to a third
club-type outlet not previously serviced.

Julie Smolyansky added, "In the coming months and year, we will be introducing
numerous new and exciting products that should continue to bolster our already
strong product line and brand name, and we are very excited for 2006."

Edward Smolyansky, CFO commented, "Even though many of our costs such as
transportation, utilities, and production supplies, all increased significantly
due to the sharp rise in gas prices experienced in the third quarter, we were
able to maintain strong operating margins, and offset these costs by making
prudent investments in the energy markets. This was evident in our pre tax
income. In addition, our stockholders equity increased by $1.9 million to
$19,285,219 at September 30, 2005, compared to $17,385,071 at September 30,
2004."

About Lifeway Foods, Inc.

Lifeway, named as Forbes' 38th best small business and Fortune Small Business'
47th Fastest Growing Small Business, is America's leading supplier of the
cultured dairy product known as kefir. Kefir is a dairy beverage that contains
ten types of "friendly," active probiotic cultures. While most regular yogurt
only contains two or three of these cultures, Lifeway kefir products offer more
nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage,
Organic Kefir and SoyTreat (a soy based kefir). Lifeway also produces a line of
products marketed in US Hispanic communities, called La Fruta Drinkable Yogurt
(yogurt drinks distinct from kefir). In addition to its line of Kefir products,
the company produces a variety of cheese products and recently introduced a line
of organic pudding called It's Pudding!.

For more information, contact Lifeway Foods, Inc. at (847) 967-1010 or e- mail
at info@lifeway.net and visit http://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.
<PAGE>


                               Lifeway Foods, Inc.
                   Condensed Consolidated Statement of Income

                                           (Unaudited)
                          Three Months Ended         Nine Months Ended
                          ------------------         -----------------
                         Sept. 30,     Sept. 30,   Sept. 30,    Sept. 30,
                           2005          2004        2005         2004
                           ----          ----        ----         ----

    Sales               $5,194,648   $4,138,606  $14,924,076  $12,075,778

    Cost of Goods Sold   3,073,314    2,239,553    8,607,538    6,604,554

    Gross Profit         2,121,334    1,899,053    6,316,538    5,471,224

    Operating Expenses   1,359,171    1,157,906    3,793,394    3,089,336

    Income From
     Operations            762,163      741,147    2,523,144    2,381,888

    Total other income     197,251       70,172      500,520      411,433

    Pre-tax income         959,414      811,319    3,023,664    2,793,321

    Income taxes           400,464      296,210    1,182,479    1,080,905

    Net income             558,950      515,109    1,841,185    1,712,416


    Per Share Earnings        $.07         $.06         $.22         $.20

    Wtg. Ave. Shares     8,393,384    8,440,207    8,407,768    8,438,433



                           Consolidated Balance Sheet

                                                 (Unaudited)
                                              Nine Months Ended
                                              -----------------
                                  September 30, 2005      September 30, 2004
                                  ------------------      ------------------

    Current Assets                   $ 16,007,184           $ 15,182,890
    Property, Plant, Equip.             7,755,352              3,482,524
    Total Assets                       24,204,903             19,177,214
    Current Liabilities                 1,637,714                899,452
    Long-term Debt                      2,919,656                465,796
    Stockholders Equity               $19,285,219            $17,385,071

- ---------------------
Source: Lifeway Foods Inc.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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