• MamaMancini’s Reports First Quarter Fiscal 2024 Financial Results

    Источник: Nasdaq GlobeNewswire / 13 июн 2023 16:05:00   America/New_York

    First Quarter Gross Margins Grew to 27.6% with $1.4 Million in Net Income, Driven by Continued Margin Enhancement Initiatives

    Company Sequentially Grows Cash Position to $5.3 Million and Pays Down $0.5 Million in Debt in the First Quarter, Enabled by $1.6 Million in Cash Flow from Operations

    EAST RUTHERFORD, NJ, June 13, 2023 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (NASDAQ: MMMB), a leading national marketer and manufacturer of fresh Deli prepared foods, has reported its financial results for the fiscal first quarter ended April 30, 2023.

    Financial Summary:

      Three Months Ended April 30, 
    $ in millions 2023  2022  % Increase 
    Revenues $23.1  $21.8   6%
    Gross Profit $6.4  $3.9   65%
    Operating Expenses $4.4  $3.6   23%
    Net Income (Loss) $1.4  $0.1   1,251%
    Earnings per Share (Diluted) $0.04  $0.00   - 
    Adj. EBITDA (non-GAAP) $2.5  $0.7   278%

    Key First Quarter Fiscal 2024 & Subsequent Operational Highlights:

    • Appointed former Mondelēz marketing executive Lauren Sella as Chief Marketing Officer, leveraging 16-years of experience across the Mondelēz family of brands.
    • Attended IDDBA 2023, a premier industry tradeshow with over 10,000 attendees hosted by the International Dairy Deli Bakery Association, where the Company:
      • Launched Mama’s Creations, a new international deli foods platform brand offering Asian, Tex-Mex, Indian and other incremental international cuisine opportunities.
      • Introduced an expanded line of highly incremental on-the-go snacking products – building upon the initial success of Meatballs In a Cup tests in convenience stores – with enhanced packaging that expanded shelf life from 5 days to 21 days.
      • Announced the expansion of the Company’s branded sleeve product line, offering a lunch & dinner entrée in convenient grab-and-go packaging easy for retailers to stock, with initial orders already secured from two large national grocery chains.
    • Expanded upon initial cross-selling success with a major Club chain, growing items carried from one as of last summer to ten today, while concurrently growing another Club chain from one to three regions nationally with the largest orders in the Company’s history.
    • Invited to present at leading investor conferences nationally, including the 35th Annual ROTH Conference, the 13th Annual LD Micro Invitational, the Diamond Equity Research Emerging Growth Invitational, the Planet MicroCap Showcase 2023 and the 19th Annual Taglich Brothers Investment Conference.

    Management Commentary

    “The first quarter of fiscal 2024 reflects the sustainability of our margin profile, a strong base which we expect to build upon as we continue to strengthen our business throughout the year,” said Adam L. Michaels, Chairman and CEO of MamaMancini's. “Our success in enhancing profitability has been enabled through our laser focus on being brilliant at the basics and executing upon our '3Cs' strategy – Cost, Controls, and Culture. Despite the progress we have seen to-date, there is still room for further improvement in time, and I firmly believe that gross margins could reach the 30% range in the long-term.

    “Today’s consumers are facing significant macro-economic pressures, with many eating out less and turning to prepared foods in the deli sections of their local grocery store. We remain on the forefront of this trend, acting as a one-stop-shop by enabling our grocer customers to offer consumers an incredibly wide variety of Grandma-quality, affordable and easy-to-prepare meal solutions. To that end, our successful introduction of several new highly incremental products at the IDDBA 2023 conference will allow us to capture new dining occasions – including on-the-go snacking with a new line of ‘in a cup’ products and incremental entrée opportunities with Mama’s Creations to capture a greater portion of consumer tastes.

    “Looking ahead, we see tremendous growth potential in our new brand extensions under the Mama’s Creations banner, and we are eager to leverage more 'feet on the street' through the impending build-out of our sales force – most recently with our hire of a Director of West Coast Sales – to notably grow the average number of SKUs per customer. In the spirit of this continued corporate evolution into a national one-stop-shop deli solutions provider, this summer we will seek to transition our corporate name to Mama’s Creations with a new stock ticker ‘MAMA’. In summary, we are well-positioned for continued growth, and I am confident that our ongoing initiatives will allow us to take significant market share in-time and deliver sustainable value to my fellow shareholders,” concluded Michaels.

    First Quarter Fiscal 2024 Financial Results

    Revenue for the first quarter of fiscal 2024 increased 5.9% to $23.1 million, as compared to $21.8 million in the same year-ago quarter. The increase was largely attributable to strong organic growth, driven by successful cross selling efforts.

    Gross profit increased 65% to $6.4 million, or 27.6% of total revenues, in the first quarter of fiscal 2024, as compared to $3.9 million, or 17.7% of total revenues, in the same year-ago quarter. The increase in gross margin was primarily attributable to the normalization of commodity costs, successful pricing actions and improvements in operational efficiencies across the organization. The Company continues to identify procurement and logistics efficiencies and cost savings through stronger buying power created through the acquisitions of T&L and Olive Branch.

    Operating expenses totaled $4.4 million in the first quarter of fiscal 2024, as compared to $3.6 million in the same year-ago quarter. As a percentage of sales, operating expenses increased in the first quarter of fiscal 2024 to 19.2% from 16.5%. Operating expenses, as a percentage of sales, increased due to the addition of several new key hires, who brought new and differentiated capabilities to the organization.

    Net income for the first quarter of fiscal 2024 was $1.4 million, or $0.04 per diluted share, as compared to $0.1 million, or $0.00 per diluted share, in the same year-ago quarter. This quarter’s net income totaled 6.1% of revenue, in line with our expectations in the mid-single-digit range.

    Adjusted EBITDA, a non-GAAP term, increased to $2.5 million for the first quarter of fiscal 2024, as compared to an adjusted EBITDA of $0.7 million in the same year-ago quarter.

    Cash and cash equivalents as of April 30, 2023 were $5.3 million, as compared to $4.4 million as of January 31, 2023. The increase in cash and cash equivalents was driven by $1.6 million in cash flow from operations in the first quarter of fiscal 2024, $0.5 million of which was used to pay down the Company’s debt, which now stands at just $8.8 million.

    Conference Call

    Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss the Company’s first quarter fiscal 2024 financial results, provide a corporate update, and conclude with Q&A from participants. To participate, please use the following information:

    Q1 FY2024 Earnings Conference Call
    Date: Tuesday, June 13, 2023
    Time: 4:30 p.m. Eastern time
    U.S. Dial-in: 1-877-451-6152
    International Dial-in: 1-201-389-0879
    Conference ID: 13738817
    Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1615887&tp_key=c51d5f5f90

    Please join at least five minutes before the start of the call to ensure timely participation.

    A playback of the call will be available through Thursday, July 13, 2023. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13738817. A webcast replay will also be available using the webcast link above.

    About MamaMancini’s Holdings, Inc.

    MamaMancini's Holdings, Inc. (NASDAQ: MMMB) is a leading marketer and manufacturer of prepared foods with over 45,000 product placements in grocery, mass, club and convenience stores nationally. The Company’s broad product portfolio, born from a rich history in Italian foods, now consists of a variety of high quality, fresh, clean and easy to prepare foods to address the needs of both our consumers and retailers. Our vision is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to offer a wide array of prepared foods to meet the changing demands of the modern consumer. 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, 
      2023  2022 
    Net Income (Loss) $1,400,926  $103,697 
    Depreciation  248,413   208,829 
    Amortization of Debt Discount  5,530   3,640 
    Amortization of Right of Use Assets  5,794   69,344 
    Amortization of Intangibles  101,896   113,170 
    Taxes  524,692   29,385 
    Interest  177,394   124,251 
    Adjusted EBITDA (Non-GAAP) $2,464,645  $652,316 


    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, 2023 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, 2023  January 31, 2023 
      (Unaudited)    
    Assets:        
             
    Current Assets:        
    Cash $5,259,448  $4,378,383 
    Accounts receivable, net  8,389,108   6,832,046 
    Inventories, net  2,535,831   3,635,881 
    Prepaid expenses and other current assets  1,127,631   828,391 
    Total current assets  17,312,018   15,674,701 
             
    Property and equipment, net  3,319,698   3,423,096 
    Intangibles, net  1,400,614   1,502,510 
    Goodwill  8,633,334   8,633,334 
    Operating lease right of use assets, net  3,230,896   3,236,690 
    Deferred tax asset  372,361   717,559 
    Equity method investment  1,489,244   1,343,486 
    Deposits  57,060   53,819 
    Total Assets $35,815,225  $34,585,195 
             
    Liabilities and Stockholders’ Equity:        
             
    Liabilities:        
    Current Liabilities:        
    Accounts payable and accrued expenses $9,451,772  $9,063,256 
    Term loan, net of debt discount of $54,552 and $60,082, respectively  1,497,172   1,491,642 
    Operating lease liability  408,965   391,802 
    Finance leases payable  180,685   182,391 
    Promissory note – related party  750,000   750,000 
    Total current liabilities  12,288,594   11,879,091 
             
    Line of credit  750,000   890,000 
    Operating lease liability – net of current  2,845,326   2,897,205 
    Finance leases payable – net of current  200,467   248,640 
    Promissory note – related party, net of current  1,500,000   1,500,000 
    Term loan – net of current  4,267,250   4,655,181 
    Total long-term liabilities  9,563,043   10,191,026 
             
    Total Liabilities  21,851,637   22,070,117 
             
    Commitments and contingencies (Notes 9 and 10)        
             
    Stockholders’ Equity:        
    Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of April 30, 2023 and January 31, 2023, respectively, 0 shares outstanding as of April 30, 2023 and January 31, 2023, respectively  -   - 
    Series B Preferred stock, $0.00001 par value; 200,000 shares authorized; 54,600 issued and outstanding as of April 30, 2023 and January 31, 2023 respectively  -   - 
    Preferred stock, $0.00001 par value; 19,680,000 shares authorized; no shares issued and outstanding  -   - 
    Common stock, $0.00001 par value; 250,000,000 shares authorized; 36,484,777 and 36,317,857 shares issued and outstanding as of January 31, 2023 and January 31, 2022  366   364 
    Additional paid in capital  22,799,322   22,724,440 
    Accumulated deficit  (8,686,600)  (10,060,226)
    Less: Treasury stock, 230,000 shares at cost  (149,500)  (149,500)
    Total Stockholders’ Equity  13,963,588   12,515,078 
    Total Liabilities and Stockholders’ Equity $35,815,225  $34,585,195 


    MamaMancini’s Holdings, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)

      For the Three Months Ended
    April 30,
     
      2023  2022 
           
    Sales-net of slotting fees and discounts $23,120,816  $21,830,580 
             
    Costs of sales  16,749,816   17,970,317 
             
    Gross profit  6,371,000   3,860,263 
             
    Operating expenses:        
    Research and development  71,185   26,535 
    General and administrative  4,357,031   3,572,755 
    Total operating expenses  4,428,216   3,599,290 
             
    Income from operations  1,942,784   260,973 
             
    Other income (expenses)        
    Interest  (177,394)  (124,251)
    Amortization of debt discount  (5,530)  (3,640)
    Other income  20,000   - 
    Total other income (expenses)  (162,924)  (127,891)
             
    Net income before income tax provision and income from equity method investment  1,779,860   133,082 
             
    Income from equity method investment  145,758   - 
    Income tax provision  (524,692)  (29,385)
             
    Net income  1,400,926   103,697 
             
    Less: series B preferred dividends  (27,300)  - 
             
    Net income available to common stockholders  1,373,626  $103,697 
             
    Net income per common share        
    – basic $0.04  $0.00 
    – diluted $0.04  $0.00 
             
    Weighted average common shares outstanding        
    – basic  36,394,033   35,759,244 
    – diluted  37,625,518   36,148,920 


    MamaMancini’s Holdings, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)

      For the Three Months Ended
    April 30,
     
      2023  2022 
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income $1,400,926  $103,697 
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation  248,413   208,829 
    Amortization of debt discount  5,530   3,640 
    Amortization of right of use assets  5,794   69,344 
    Amortization of intangible assets  101,896   113,170 
    Stock based compensation  55,384   - 
    Change in deferred tax asset  345,198   29,385 
    Income from equity method investment  (145,758)  - 
    Changes in operating assets and liabilities:        
    Accounts receivable  (1,557,062)  (1,370,867)
    Inventories  1,100,050   (1,277,898)
    Prepaid expenses  (607,018)  (299,864)
    Security deposits  (3,241)  - 
    Accounts payable and accrued expenses  696,294   1,095,439 
    Operating lease liability  (34,716)  (87,888)
    Net cash provided by (used in) operating activities  1,611,690   (1,343,013)
             
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Cash paid for fixed assets  (145,015)  (174,007)
    Net cash used in investing activities  (145,015)  (174,007)
             
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayment of term loan  (387,931)  (129,310)
    (Repayment) borrowings of line of credit, net  (140,000)  1,775,000 
    Repayment of finance lease obligations  (49,879)  (58,008)
    Payment of Series B Preferred dividends  (27,300)  - 
    Proceeds from exercise of options  19,500   - 
    Net cash (used in) provided by financing activities  (585,610)  1,587,682 
             
    Net increase (decrease) in cash  881,065   70,662 
             
    Cash - beginning of period  4,378,383   850,598 
             
    Cash - end of period $5,259,448  $921,260 
             
    SUPPLEMENTARY CASH FLOW INFORMATION:        
    Cash Paid During the Period for:        
    Income taxes $-  $- 
    Interest $152,468  $133,291 
             
    SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
    Non-cash deposits on prepaid additions $307,778  $- 


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