Q1 Fiscal 2023 Revenues Increase 112% to Record $21.8 Million
EAST RUTHERFORD, NJ, June 15, 2022 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. MMMB, a marketer and distributor of specialty pre-prepared all-natural foods, has reported its financial results for the fiscal first quarter ended April 30, 2022.
Financial Summary:
| Three Months Ended April 30, | ||||||||||||
| $ in millions | 2022 | 2021 | % Increase | |||||||||
| Revenues | $ | 21.8 | $ | 10.3 | 111.7 | % | ||||||
| Gross Profit | $ | 3.9 | $ | 3.3 | 15.4 | % | ||||||
| Operating Expenses | $ | 3.6 | $ | 2.5 | 44.4 | % | ||||||
| Net Income (Loss) | $ | 0.1 | $ | 0.6 | -69.4 | % | ||||||
| Earnings per Share (Diluted) | $ | 0.00 | $ | 0.02 | -83.6 | % | ||||||
| Adj. EBITDA (non-GAAP) | $ | 0.7 | $ | 1.1 | -34.5 | % | ||||||
Management Commentary
"The first quarter of fiscal 2023 saw record first quarter revenues for MamaMancini's, reinforced by our recent acquisitions and bringing us significantly closer to our goal of a $100 million annualized sales run-rate by year-end," said Carl Wolf, Chairman and CEO of MamaMancini's. "As shared in our fourth quarter fiscal 2022 earnings call a few weeks ago, we have a strong, growing presence in the fresh prepared foods segment. To support these initiatives, we are focusing on product innovation based on customer feedback – creating promising favorites such as our new Original Meatballs in a Cup product – to better meet our customer's multi-faceted needs.
"On the financial front, with non-recurring acquisition related expenses behind us, we returned to profitability and are beginning to enhance margins by rapidly passing along price increases to our customers. From an industry perspective, this phenomenon is new and unique to the inflationary environment we find ourselves in – but it should serve to fortify our margin profile going forward, regardless of future commodity cost increases. In addition, as commodity costs normalize and our input costs come down, we expect to further enhance long-term margins through the defense of our recent price increases.
"In summary, we continue to grow our national footprint while concurrently innovating on the product front, driving more SKUs per store. Our positioning as a national platform company is clear and we continue to see attractive multiples for companies in the food products space, providing an exciting pipeline of potential M&A opportunities as we see fit. We are incredibly well positioned to create sustainable, long-term value for my fellow shareholders, and I look forward to a strong cadence of operational execution in the quarters ahead," concluded Wolf.
First Quarter 2023 Financial Results
Revenue for the first quarter of fiscal 2023 increased 111.7% to a record $21.8 million, as compared to $10.3 million in the same year-ago quarter. The revenue increase for the quarter was primarily a result of the first full quarter from the December 2021 acquisition of T&L Creative Salads, Inc. and Olive Branch LLC.
Gross profit increased to $3.9 million, or 17.7% of total revenues, in the first quarter of fiscal 2023, as compared to $3.3 million, or 32.4% of total revenues, in the same year-ago quarter. The margin compression was caused by inflation of raw materials, packaging and freight costs – as well as lower margins in the T&L Creative Salads and Olive Branch LLC business lines, partially offset by the low overhead of the acquired businesses. Management believes the balance between inflated raw materials costs and the Company's price increases will normalize in the second quarter, returning gross profit margins to its historical range.
Operating expenses totaled $3.6 million in the first quarter of fiscal 2023, as compared to $2.5 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 16.5% in the first quarter of fiscal 2023, as compared to 24.2% in the same year-ago quarter. Operating expenses in the first quarter increased mainly due to transportation rate increases, fuel surcharges and acquisition related expenses.
Net income for the first quarter of fiscal 2023 totaled $0.1 million, or $0.00 per diluted share, as compared to a net income of $0.6 million, or $0.02 per diluted share, in the same year-ago quarter.
Adjusted EBITDA, a non-GAAP term, totaled $0.7 million for the first quarter of fiscal 2023, as compared to $1.1 million in the same year-ago quarter.
Cash and cash equivalents as of April 30, 2022 were $0.9 million, as compared to $0.9 million at January 31, 2022.
Conference Call
Management will host an investor conference call at 8:30 a.m. Eastern time on Wednesday, June 15, 2022 to discuss the Company's first quarter fiscal 2023 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:
Q1 2023 Earnings Conference Call
Date: Wednesday, June 15, 2022
Time: 8:30 a.m. Eastern time
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 6763386
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=nRgeAaeo
Please dial in at least five minutes before the start of the call to ensure timely participation.
A telephone playback of the call will be available through June 22, 2022. To listen, please call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally and use the replay pin number 6763386.
About MamaMancini's Holdings, Inc.
MamaMancini's Holdings, Inc. MMMB is a marketer and distributor of specialty pre-prepared, all-natural foods. MamaMancini's broad product portfolio consists of meatballs, meatloaf, sausages and pasta bowls with beef, turkey, chicken and pork varieties – as well as an assortment of chicken-based dishes, olives, savory products and salads through its T&L Creative Salads and Olive Branch subsidiaries. The Company's products are sold in over 45,000 locations nationwide, including at regional delis and well-known retailers such as Sam's Club, ALDI Markets, Schnuck Markets, Whole Foods, Publix, ShopRite, Stop & Shop, Costco and Albertsons – as well as through national distributors such as Sysco and United Natural Foods. The Company also maintains a direct-to-consumer presence on QVC. For more information, please visit www.mamamancinis.com.
Use of Non-GAAP Financial Measures
This press release includes the following non-GAAP measure – adjusted EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, please see the reconciliation table shown in this press release below.
| US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| Net Income | $ | 103,697 | $ | 631,524 | ||||
| Depreciation | $ | 208,829 | $ | 183,761 | ||||
| Amortization of Debt Discount | $ | 3,640 | - | |||||
| Amortization of Right of Use Assets | $ | 69,344 | $ | 43,621 | ||||
| Amortization of Intangibles | $ | 113,170 | - | |||||
| Taxes | $ | 29,385 | $ | 247,949 | ||||
| Interest | $ | 124,251 | $ | 10,430 | ||||
| Non-Recurring Expenses (Income) | $ | 55,000 | $ | (37,704 | ) | |||
| Adjusted EBITDA | $ | 707,316 | $ | 1,079,581 | ||||
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's 10-K for the fiscal year ended January 31, 2022 and other filings made by the Company with the Securities and Exchange Commission.
Investor Relations Contact:
Lucas A. Zimmerman
Director
MZ Group - MZ North America
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us
MamaMancini's Holdings, Inc.
Condensed Consolidated Balance Sheets
| April 30, 2022 | January 31, 2021 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 921,260 | $ | 850,598 | ||||
| Accounts receivable, net | 8,998,584 | 7,627,717 | ||||||
| Inventories | 4,168,691 | 2,890,793 | ||||||
| Prepaid expenses | 498,448 | 269,209 | ||||||
| Total current assets | 14,586,983 | 11,638,317 | ||||||
| Property and equipment, net | 3,643,710 | 3,678,532 | ||||||
| Intangibles, net | 1,871,809 | 1,984,979 | ||||||
| Goodwill | 8,633,334 | 8,633,334 | ||||||
| Operating lease right of use assets, net | 3,526,973 | 3,596,317 | ||||||
| Deferred tax asset | 419,116 | 448,501 | ||||||
| Deposits | 52,249 | 52,249 | ||||||
| Total Assets | $ | 32,734,174 | $ | 30,032,229 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 7,548,460 | $ | 6,479,140 | ||||
| Term loan, net of debt discount of $54,756 and $57,771, respectively | 1,496,968 | 1,235,333 | ||||||
| Operating lease liability | 359,869 | 292,699 | ||||||
| Finance leases payable | 203,181 | 218,039 | ||||||
| Promissory note – related party | 786,036 | 759,917 | ||||||
| Total current liabilities | 10,394,514 | 8,985,128 | ||||||
| Line of credit | 2,540,000 | 765,000 | ||||||
| Operating lease liability – net of current | 3,184,197 | 3,339,255 | ||||||
| Finance leases payable – net of current | 332,982 | 376,132 | ||||||
| Promissory note – related party, net of current | 2,250,000 | 2,250,000 | ||||||
| Term loan – net of current | 5,818,966 | 6,206,896 | ||||||
| Total long-term liabilities | 14,126,145 | 12,937,283 | ||||||
| Total Liabilities | 24,520,659 | 21,922,411 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Stockholders' Equity: | ||||||||
| Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of April 30, 2022 and January 31, 2022, 0 and 0 shares outstanding as of April 30, 2022 and January 31, 2022 | - | - | ||||||
| Preferred stock, $0.00001 par value; 19,880,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock, $0.00001 par value; 250,000,000 shares authorized; 35,774,468 and 35,758,792 shares issued and outstanding as of April 30, 2022 and January 31, 2022 | 359 | 359 | ||||||
| Additional paid in capital | 20,587,789 | 20,587,789 | ||||||
| Accumulated deficit | (12,225,133 | ) | (12,328,830 | ) | ||||
| Less: Treasury stock, 230,000 shares at cost, respectively | (149,500 | ) | (149,500 | ) | ||||
| Total Stockholders' Equity | 8,213,515 | 8,109,818 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 32,734,174 | $ | 30,032,229 | ||||
MamaMancini's Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
| For the Three Months Ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| Sales-net of slotting fees and discounts | $ | 21,830,580 | $ | 10,313,400 | ||||
| Costs of sales | 17,970,317 | 6,969,047 | ||||||
| Gross profit | 3,860,263 | 3,344,353 | ||||||
| Operating expenses: | ||||||||
| Research and development | 26,535 | 23,436 | ||||||
| General and administrative | 3,572,755 | 2,468,718 | ||||||
| Total operating expenses | 3,599,290 | 2,492,154 | ||||||
| Income from operations | 260,973 | 852,199 | ||||||
| Other Income (Expense) | ||||||||
| Interest | (124,251 | ) | (10,430 | ) | ||||
| Amortization of debt discount | (3,640 | ) | - | |||||
| Other income | - | 37,704 | ||||||
| Total other income (expense) | (127,891 | ) | 27,274 | |||||
| Net income before income tax provision | 133,082 | 879,473 | ||||||
| Income tax provision | (29,385 | ) | (247,949 | ) | ||||
| Net income | $ | 103,697 | $ | 631,524 | ||||
| Net income per common share | ||||||||
| – basic | $ | 0.00 | $ | 0.02 | ||||
| – diluted | $ | 0.00 | $ | 0.02 | ||||
| Weighted average common shares outstanding | ||||||||
| – basic | 35,759,244 | 35,622,060 | ||||||
| – diluted | 36,148,920 | 36,191,451 | ||||||
MamaMancini's Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the Three Months Ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 103,697 | $ | 631,524 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 208,829 | 183,761 | ||||||
| Amortization of debt discount | 3,640 | - | ||||||
| Amortization of right of use assets | 69,344 | 43,621 | ||||||
| Amortization of intangibles | 113,170 | - | ||||||
| Share-based compensation | - | 501 | ||||||
| Change in deferred tax asset | 29,385 | 247,949 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,370,867 | ) | 254,048 | |||||
| Inventories | (1,277,898 | ) | (243,258 | ) | ||||
| Prepaid expenses | (229,864 | ) | 15,453 | |||||
| Accounts payable and accrued expenses | 1,095,439 | 338,962 | ||||||
| Operating lease liability | (87,888 | ) | (37,793 | ) | ||||
| Net Cash (Used in) Provided by Operating Activities | (1,343,013 | ) | 1,343,768 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash paid for fixed assets | (174,007 | ) | (354,394 | ) | ||||
| Net Cash Used in Investing Activities | (174,007 | ) | (354,394 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of term loan | (129,310 | ) | - | |||||
| Borrowings of line of credit, net | 1,775,000 | - | ||||||
| Repayment of capital lease obligations | (58,008 | ) | (46,658 | ) | ||||
| Proceeds from exercise of options | - | 19,080 | ||||||
| Net Cash Provided by (Used in) Financing Activities | 1,587,682 | (27,578 | ) | |||||
| Net Increase in Cash | 70,662 | 1,052,796 | ||||||
| Cash - Beginning of Period | 850,598 | 3,190,560 | ||||||
| Cash - End of Period | $ | 921,260 | $ | 4,246,356 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash Paid During the Period for: | ||||||||
| Income taxes | $ | - | $ | - | ||||
| Interest | $ | 133,291 | $ | 10,430 | ||||
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