MamaMancini's Reports First Quarter Fiscal Year 2017 Financial
Results
First Quarter Revenue Up 21%; Gross Margin Up to 38% vs 26%;
*Cash EBITDA of $200,691 Improves $984,000 Over Prior Year;
Forecast 50% Sales Growth in Q2 2017 Over Prior Year Quarter
EAST RUTHERFORD, NJ-(Marketwired - Jun 13, 2016) - MamaMancini's
Holdings, Inc. (the "Company" or "MamaMancini's") (OTCQB: MMMB), a
marketer of specialty pre-prepared, frozen and refrigerated all
natural food products (as defined by the United States Department
of Agriculture), today announced financial results for the first
quarter of fiscal year 2017, ended April 30, 2016.
Fiscal First Quarter Highlights:
- First quarter 2017 revenue increased 21% to $3.9 million
compared to first quarter 2016 revenue of $3.2 million.
- First quarter 2017 gross margin increased substantially to 38%
compared to 26% in the first quarter of fiscal 2016. Gross margin
for full year fiscal 2017 expected to be approximately 35%.
- Total operating expenses for the first quarter decreased nine
percent versus the comparable quarter of fiscal 2016 as the Company
continued to enhance operating efficiencies.
- Loss from Operations for the first quarter fiscal 2017 improved
94% to $(55,220) versus $(852,647) in the prior year first
quarter.
- Net loss for first quarter fiscal 2017 improved 79% to
$(226,107) compared to $(1.1 million) in the first quarter of
fiscal 2016. EPS for first quarter fiscal 2017 was $(0.01) compared
to $(0.04) in first quarter fiscal 2016.
- Initial shipments commenced in the first quarter of fiscal 2017
to several new chain customers contracted in fiscal 2016 and in the
first quarter of 2017.
- Since January 31, 2016, the Company increased its placements
with new customers from 10,100 to 11,400 store locations and
increased its placements on grocer's shelves from approximately
32,000 to 35,000.
- *Cash EBITDA, a non-GAAP financial metric, for the first
quarter of fiscal 2017 was positive $200,691 compared with negative
$(783,405) in the first fiscal quarter of 2016.
Carl Wolf, Chief Executive Officer of MamaMancini's, commented,
"We are off to a very strong start in fiscal year 2017. Revenue for
the quarter increased 21% as product deliveries commenced to many
of the new retail store chain customers developed in the latter
part of fiscal 2016 and in the just completed first quarter. Our
strategy of developing larger customers and exiting underperforming
accounts that do not generate reasonable returns has achieved
measurable results.
"During fiscal 2016 we strategically exited approximately 25% of
our account base that did not generate appropriate margins.
Consequently, our now sustainable account base generated a
significantly increased gross margin of 38% for the first quarter
of fiscal 2017 versus 26% in last year's comparable quarter; with
our expectation for gross margin for the full year to be
approximately 35% depending upon manufacturing efficiencies and
customer mix. Operating expenses for the first quarter were down
nine percent as we continue to improve operating efficiencies.
Taken together all of these operating metrics translated into a
significant positive impact on our operating and bottom-line
results during the first quarter of fiscal 2017."
"Another important initiative is to grow our presence on the
perimeter of the retail grocery stores in which our products are
sold," continued Mr. Wolf. "The perimeter of the store is where
fresh, minimally or non-processed, healthy foods are offered. On an
industry-wide basis, this outer band of the retail grocery store is
growing at an estimated 10% annual rate compared to the middle of
the store which is experiencing a one to two percent annual
decline.
"We are gaining traction with this initiative as a growing
percentage of our overall business is now taking place around the
perimeter of the store. The trend among consumers for high quality,
fresh, take-out food at their local grocery store continues to grow
as busy work and family schedules demand nutritious meals with
minimal prep time. Our products fit perfectly with the evolving
everyday life of millions of Americans."
Mr. Wolf concluded, "We are pleased with the results of the
first quarter of fiscal 2017. Although our products appeared in 10%
fewer stores and on 7% fewer shelves than last year at the end of
the first quarter, we generated significantly more revenue and
dramatically expanded our gross margin.
"Looking ahead to second quarter 2017, we expect revenue to grow
by approximately 50% compared to the first quarter of fiscal 2016
as we continue to add new customers, exit accounts that do not
generate reasonable margins and manage our business more
efficiently. We believe that the strategies now in place position
MamaMancini's Holdings for improved operational and financial
performance in the coming years."
First Quarter 2017 Results Sales, net of slotting fees and
discounts, were $3.9 million for the first quarter of fiscal 2017,
a 21% increase compared to $3.2 million reported in the first
quarter of fiscal 2016. The increase in sales was primarily driven
by the addition of new customers in the first quarter of fiscal
2017 and in the final months of fiscal year 2016. As of April 30,
2016, the Company's products were sold in approximately 11,400
stores, with an average of 3.07 product SKUs in each store,
aggregating to approximately 35,000 retail and grocery shelf
placements throughout the U.S. That compares with approximately
37,600 shelf placements as of April 30, 2015.
Gross profit for the first quarter of fiscal 2017 was $1.5
million, or 38% of sales, compared to $828,191, or 26% of sales, in
the year ago period. The increase in gross margin is primarily
attributed to increased revenue during the first quarter of fiscal
2017 and the exiting of a substantial number of underperforming low
margin accounts during the previous fiscal year.
Net loss for the first quarter of fiscal 2017 was ($226,107), or
($0.01) per basic and diluted share, compared to a net loss of
$(1.1 million), or ($0.04) per basic and diluted share, in the
first quarter of fiscal 2016.
(*Cash EBITDA = EBITDA plus any non-cash stock payments for
expenses.)
Conference Call The Company has scheduled a conference call for
Tuesday, June 14, 2016, at 10:00 am ET to review the results of the
first fiscal quarter ended April 30, 2016.
Interested parties may participate on the conference call by
dialing 1-605-562-3140; passcode 333016#. Please dial-in five
minutes prior to the start time.
About MamaMancini's MamaMancini's is a marketer and distributor
of a line of beef meatballs, turkey meatballs, and chicken
meatballs all with sauce, five cheese stuffed beef, turkey and
chicken meatballs all with sauce, original beef and turkey
meatloaves and bacon gorgonzola beef meatloaf, and other similar
Italian cuisine products. The Company's sales have been growing on
a consistent basis as the Company expands its distribution channel,
which includes major retailers such as Costco, Publix, Shop Rite,
Price Chopper, Harris Teeter, SaveMarts, Luckys, Lunds/Byerly's,
SuperValu, Safeway, Albertsons, Spartan Stores, Bashas, Whole
Foods, Shaw's Supermarkets, Kings, Roche Brothers, Key Foods,
Stop-n-Shop, Giant Stores, Giant Eagle, Food Town, Randalls,
Kroger, Shoppers, Marsh's Supermarkets, King Kullen, Lowes Stores,
Central Markets, Weis Markets, Ingles, and The Fresh Market.
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, 2017 and other filings made by the
Company with the Securities and Exchange Commission
Financial Tables to Follow
|
|
|
MamaMancini's Holdings, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
April 30, 2016
|
|
January 31, 2016
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash
|
$
|
502,459
|
|
$
|
587,422
|
|
|
Accounts receivable, net
|
|
1,725,201
|
|
|
1,476,582
|
|
|
Inventories
|
|
506,985
|
|
|
252,752
|
|
|
Prepaid expenses
|
|
169,545
|
|
|
154,458
|
|
|
Due from manufacturer - related party
|
|
2,197,051
|
|
|
2,248,781
|
|
|
Total current assets
|
|
5,101,241
|
|
|
4,719,995
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
989,402
|
|
|
1,047,455
|
|
|
Total Assets
|
$
|
6,090,643
|
|
$
|
5,767,450
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
$
|
691,977
|
|
$
|
769,551
|
|
|
Line of credit, net
|
|
1,423,165
|
|
|
933,001
|
|
|
Term loan
|
|
120,000
|
|
|
120,000
|
|
|
Promissory notes
|
|
240,761
|
|
|
266,808
|
|
|
Notes payable - related party
|
|
-
|
|
|
125,000
|
|
|
Convertible note payable, net
|
|
2,540,000
|
|
|
2,540,000
|
|
|
Total current liabilities
|
|
5,015,903
|
|
|
4,754,360
|
|
|
|
|
|
|
|
|
|
|
Term loan - net of current
|
|
290,000
|
|
|
320,000
|
|
|
Promissory notes - net of current portion
|
|
16,324
|
|
|
69,767
|
|
|
Notes payable - related party
|
|
125,000
|
|
|
-
|
|
|
Total long-term liabilities
|
|
431,324
|
|
|
389,767
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
5,447,227
|
|
|
5,144,127
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
Series A Preferred stock, $0.00001 par value; 120,000 shares
authorized; 23,400 and 0 shares issued and outstanding,
respectively
|
|
-
|
|
|
-
|
|
|
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;
26,955,503 and 26,507,516 shares issued and outstanding,
respectively
|
|
270
|
|
|
265
|
|
|
Additional paid in capital
|
|
15,265,644
|
|
|
14,954,928
|
|
|
Common stock subscribed, $0.00001 par value; 66,667 and 66,667
shares, respectively
|
|
1
|
|
|
1
|
|
|
Accumulated deficit
|
|
(14,472,999
|
)
|
|
(14,182,371
|
)
|
|
|
|
|
|
|
|
|
|
Less: Treasury stock, 230,000 and 0 shares, respectively
|
|
(149,500
|
)
|
|
(149,500
|
)
|
|
Total Stockholders' Equity
|
|
643,416
|
|
|
623,323
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
$
|
6,090,643
|
|
$
|
5,767,450
|
|
|
|
|
|
|
|
|
|
|
|
|
MamaMancini's Holdings, Inc.
|
|
Condensed Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
April 30, 2016
|
|
|
April 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales - net of slotting fees and discounts
|
|
$
|
3,923,977
|
|
|
$
|
3,236,490
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
2,448,778
|
|
|
|
2,408,299
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,475,199
|
|
|
|
828,191
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
30,562
|
|
|
|
23,079
|
|
|
General and administrative expenses
|
|
|
1,499,857
|
|
|
|
1,657,759
|
|
|
|
Total operating expenses
|
|
|
1,530,419
|
|
|
|
1,680,838
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(55,220
|
)
|
|
|
(852,647
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(161,762
|
)
|
|
|
(123,357
|
)
|
|
Amortization of debt discount
|
|
|
(9,125
|
)
|
|
|
(118,552
|
)
|
|
|
Total other expenses
|
|
|
(170,887
|
)
|
|
|
(241,909
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(226,107
|
)
|
|
|
(1,094,556
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Less: preferred dividends
|
|
|
(64,521
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to common stockholders
|
|
$
|
(290,628
|
)
|
|
$
|
(1,094,556
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted
|
|
$
|
(0.01
|
)
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding -basic and
diluted
|
|
|
26,507,516
|
|
|
|
26,057,141
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MamaMancini's Holdings, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
For the Three Months Ended
|
|
|
|
April 30, 2016
|
|
|
April 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(226,107
|
)
|
|
$
|
(1,094,556
|
)
|
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
76,703
|
|
|
|
67,200
|
|
|
|
|
Amortization of debt discount
|
|
9,125
|
|
|
|
109,978
|
|
|
|
|
Share-based compensation
|
|
179,208
|
|
|
|
2,042
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
(Increase) Decrease in:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(248,619
|
)
|
|
|
967,934
|
|
|
|
|
Inventories
|
|
(254,233
|
)
|
|
|
(168,175
|
)
|
|
|
|
Prepaid expenses
|
|
(15,087
|
)
|
|
|
(5,016
|
)
|
|
|
|
Due from manufacturer - related party
|
|
51,730
|
|
|
|
7,621
|
|
|
|
Increase (Decrease) in:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
(10,582
|
)
|
|
|
(223,783
|
)
|
|
|
|
|
Net Cash Used In Operating Activities
|
|
(437,862
|
)
|
|
|
(336,755
|
)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash paid for fixed assets
|
|
(18,650
|
)
|
|
|
(65,494
|
)
|
|
Net Cash Used In Investing Activities
|
|
(18,650
|
)
|
|
|
(65,494
|
)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Deferred offering costs
|
|
-
|
|
|
|
(10,000
|
)
|
|
Proceeds from demand notes
|
|
-
|
|
|
|
450,000
|
|
|
Borrowings (repayments) of line of credit, net
|
|
481,039
|
|
|
|
(462,779
|
)
|
|
Repayment of term loan
|
|
(30,000
|
)
|
|
|
(30,000
|
)
|
|
Repayment of promissory notes
|
|
(79,490
|
)
|
|
|
-
|
|
|
|
|
|
Net Cash Provided By (Used in) Financing Activities
|
|
371,549
|
|
|
|
(52,779
|
)
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash
|
|
(84,963
|
)
|
|
|
(455,028
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash - Beginning of Period
|
|
587,422
|
|
|
|
854,995
|
|
|
|
|
|
|
|
|
|
|
|
Cash - End of Period
|
$
|
502,459
|
|
|
$
|
399,967
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash Paid During the Period for:
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
Interest
|
$
|
72,311
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued for debt discount on convertible note
|
$
|
-
|
|
|
$
|
39,600
|
|
|
Accrued dividends
|
$
|
64,521
|
|
|
$
|
-
|
|
|
Stock issued for Series A Preferred dividends
|
$
|
131,513
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Contact Information
Contact: Carl Wolf Chairman and CEO MamaMancini's Holdings, Inc.
(OTCQB: MMMB) 973-985-0280