MamaMancini's Reports First Quarter Fiscal Year 2018 Financial
Results
Q1 Fiscal 2018 Revenue Up 37%; Q1 2018 Net Income: $128,000 vs.
Q1 2017 Net Loss of $226,000; Company reports 3rd consecutive
profitable quarter
EAST RUTHERFORD, NJ-(Marketwired - Jun 13, 2017) - 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 2018, ended April 30, 2017.
First Quarter Highlights:
First quarter of fiscal year 2018 revenue increased 37% to $5.4
million compared to $3.9 million in prior year period.
Net income for the first quarter was $128,000 versus net loss of
$(226,000) in prior year period; a $354,000 increase.
Net income available to common stockholders was $81,000, or
$0.00 per diluted share, during the first quarter of fiscal 2018,
compared to a net loss of $(290,000), or $(0.01) per diluted share
in the same quarter last year.
Cash EBITDA, a non-GAAP financial metric (please refer to
Non-GAAP Financial Measures paragraph below), for the first quarter
was $513,000 compared to $192,000 in the first quarter of fiscal
2017.
Cash flow from operating activities was $526,000 compared to
($438,000) in the year ago quarter.
Carl Wolf, Chief Executive Officer of MamaMancini's, commented,
"We are off to a good start in fiscal 2018. Our strategy of
focusing on selling our products into the food service area, on the
perimeter of the retail grocery store, continues to gain traction.
This section of the store offers fresh, minimally or non-processed,
healthy foods where superior revenue and margin opportunities
exist. This strategy has allowed us to develop larger retail store
accounts that drive revenue and permits us to operate more
efficiently. Breaking into profitability has been an important
strategic goal. We now have now achieved profitability in each of
the last three consecutive quarters. Our sites are now focused on
achieving our first full year of profitability at the conclusion of
the next quarter."
Mr. Wolf concluded, "Looking ahead, our goal is to get to a $40
million run rate by late summer of calendar 2017. This is not our
internal projection but our goal. The key to the business right now
is execution, which will cause the company to ramp up from a $20
million run rate to a $40 million run rate in less than a year. We
expect a double-digit sequential revenue increase in the upcoming
second quarter over the first quarter with similar increases in net
income and cash EBITDA. That is a major undertaking. We are excited
with the opportunities ahead."
First Quarter 2018 Results Sales, net of slotting fees and
discounts, were $5.4 million for the first quarter of fiscal 2018,
a 37% increase compared to $3.9 million reported in the first
quarter of fiscal 2017. The Company has sold into approximately
38,600 SKU's in 11,700 retail and grocery locations at April 30,
2017 as compared to approximately 35,000 SKU's in 11,400 retail and
grocery locations at April 30, 2016. Gross profit for the first
quarter of fiscal 2018 was $1.9 million, or 35% of sales, compared
to $1.5 million, or 38% of sales, in the year ago period. Net
income for the first quarter of fiscal 2018 was $128,000, compared
to a net loss of $(226,000) in the first quarter of fiscal
2017.
Outlook The Company's strategy of developing larger customers
and exiting underperforming accounts that do not generate
attractive returns has achieved improving operating results. The
Company expects a continuation of revenue growth for the
foreseeable future as it continues to develop larger accounts and
introduce new product lines. As a result, the company is
anticipating fiscal 2018 revenues to increase substantially over
prior year and report continued profitability.
Non-GAAP Financial Measures The Company uses Cash EBITDA as a
non-GAAP financial measure. The Company defines Cash EBITDA as
earnings before income taxes, depreciation and amortization plus
any non-cash stock payments for expenses. The Company believes that
the use of Cash EBITDA is useful to investors and other users of
its financial statements in evaluating the Company's operating
performance because it provides them with an additional tool to
compare business performance across companies and across periods.
The Company uses Cash EBITDA in conjunction with traditional GAAP
operating performance measures as part of its overall assessment of
its performance, for planning purposes, including the preparation
of its annual operating budget, and to evaluate the effectiveness
of its business strategies. Management does not place undue
reliance on Cash EBITDA as its only measure of operating
performance. Cash EBITDA should not be considered as a substitute
for other measures of financial performance reported in accordance
with GAAP.
Conference Call The Company has scheduled a conference call for
Wednesday, June 14, 2017, at 9:00 am ET to review the results.
Interested parties may participate on the conference call by
dialing (844) 889-4326 or (412) 317-9264. A replay of the
conference call will be available by dialing (877) 344-7529 or
(412) 317-0088, confirmation code 10103610, through March 31,
2017.
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 Publix, Shop Rite, Jewel,
Save Mart, Lucky's, Lunds and Byerlys, SUPERVALU, Safeway,
Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key
Foods, Stop & Shop, Giant, Giant Eagle, Foodtown, Sam's Club,
SpartanNash, Hy-Vee, Topps, Kroger, Shoppers, Marsh, King Kullen,
Central Markets, Weis Markets, Ingles, and The Fresh Market. The
Company sells to distributors such as Sysco, AWI, UNFI, Driscoll
Foods, SUPERVALU, Monterrey Provision Co., Burris Logistics and
C&S Wholesale Grocers. In addition, the Company sells a wide
variety of its products through QVC, the world's largest direct to
consumer marketer, via on air presentations, auto ship programs,
and direct purchases through the internet.
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, 2017
|
|
|
January 31, 2017
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
436,447
|
|
|
$
|
666,580
|
|
Accounts receivable, net
|
|
|
2,301,737
|
|
|
|
1,817,820
|
|
Inventories
|
|
|
180,929
|
|
|
|
443,623
|
|
Prepaid expenses
|
|
|
79,686
|
|
|
|
135,747
|
|
Due from manufacturer - related party
|
|
|
2,016,046
|
|
|
|
2,079,708
|
|
Total current assets
|
|
|
5,014,845
|
|
|
|
5,143,478
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,311,777
|
|
|
|
1,175,508
|
|
|
|
|
|
|
|
|
|
|
Deposit on machinery and equipment
|
|
|
423,383
|
|
|
|
-
|
|
Total Assets
|
|
$
|
6,750,005
|
|
|
$
|
6,318,986
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
770,071
|
|
|
$
|
484,752
|
|
Line of credit, net
|
|
|
1,608,191
|
|
|
|
1,363,145
|
|
Term loan
|
|
|
140,004
|
|
|
|
140,004
|
|
Note payable - net
|
|
|
1,666,950
|
|
|
|
1,401,906
|
|
Total current liabilities
|
|
|
4,185,216
|
|
|
|
3,389,807
|
|
|
|
|
|
|
|
|
|
|
Term loan - net of current
|
|
|
478,327
|
|
|
|
513,328
|
|
Note payable - net of current portion
|
|
|
751,055
|
|
|
|
1,298,819
|
|
Notes payable - related party
|
|
|
117,656
|
|
|
|
117,656
|
|
Total long-term liabilities
|
|
|
1,347,038
|
|
|
|
1,929,803
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
5,532,254
|
|
|
|
5,319,610
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Series A Preferred stock, $0.00001 par value; 120,000 shares
authorized; 23,400 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;
27,947,539 and 27,810,717 shares issued and outstanding,
respectively
|
|
|
279
|
|
|
|
278
|
|
Additional paid in capital
|
|
|
15,961,978
|
|
|
|
15,825,029
|
|
Common stock subscribed, $0.00001 par value; 66,667 shares,
respectively
|
|
|
1
|
|
|
|
1
|
|
Accumulated deficit
|
|
|
(14,595,007
|
)
|
|
|
(14,676,432
|
)
|
|
|
|
|
|
|
|
|
|
Less: Treasury stock, 230,000 shares, respectively
|
|
|
(149,500
|
)
|
|
|
(149,500
|
)
|
Total Stockholders' Equity
|
|
|
1,217,751
|
|
|
|
999,376
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
6,750,005
|
|
|
$
|
6,318,986
|
|
|
|
|
|
|
|
|
|
|
|
MamaMancini's Holdings, Inc.
|
Condensed Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
For the Three Months Ended
|
|
|
|
April 30, 2017
|
|
|
April 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Sales - net of slotting fees and discounts
|
|
$
|
5,357,301
|
|
|
$
|
3,923,977
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
3,457,723
|
|
|
|
2,448,778
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,899,578
|
|
|
|
1,475,199
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
25,588
|
|
|
|
30,562
|
|
|
General and administrative expenses
|
|
|
1,557,828
|
|
|
|
1,499,857
|
|
|
|
Total operating expenses
|
|
|
1,583,416
|
|
|
|
1,530,419
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
316,162
|
|
|
|
(55,220
|
)
|
|
|
|
|
|
|
|
|
|
Other expenses
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(170,657
|
)
|
|
|
(161,762
|
)
|
|
Amortization of debt discount
|
|
|
(17,280
|
)
|
|
|
(9,125
|
)
|
|
|
Total other expenses
|
|
|
(187,937
|
)
|
|
|
(170,887
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
128,225
|
|
|
|
(226,107
|
)
|
|
|
|
|
|
|
|
|
|
Less: preferred dividends
|
|
|
(46,800
|
)
|
|
|
(64,521
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss) available to common stockholders
|
|
$
|
81,425
|
|
|
$
|
(290,628
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic
|
|
$
|
0.00
|
|
|
$
|
(0.01
|
)
|
Net income (loss) per common share - diluted
|
|
$
|
0.00
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
- basic
|
|
|
27,810,717
|
|
|
|
26,507,516
|
|
- diluted
|
|
|
32,532,135
|
|
|
|
26,507,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MamaMancini's Holdings, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
For the Three Months Ended
|
|
|
|
April 30, 2017
|
|
|
April 30, 2016
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
128,225
|
|
|
$
|
(226,107
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
107,081
|
|
|
|
76,703
|
|
|
|
Amortization of debt discount and debt issuance costs
|
|
|
17,280
|
|
|
|
9,125
|
|
|
|
Share-based compensation
|
|
|
90,150
|
|
|
|
179,208
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
(Increase) Decrease in:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(483,917
|
)
|
|
|
(248,619
|
)
|
|
Inventories
|
|
|
262,694
|
|
|
|
(254,233
|
)
|
|
Prepaid expenses
|
|
|
56,061
|
|
|
|
(15,087
|
)
|
|
Due from manufacturer - related party
|
|
|
63,662
|
|
|
|
51,730
|
|
|
Increase (Decrease) in:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
285,319
|
|
|
|
(10,582
|
)
|
|
|
Net Cash Provided by (Used In) Operating Activities
|
|
|
526,555
|
|
|
|
(437,862
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash paid for fixed assets
|
|
|
(666,733
|
)
|
|
|
(18,650
|
)
|
|
|
Net Cash Used In Investing Activities
|
|
|
(666,733
|
)
|
|
|
(18,650
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Repayment of note payable
|
|
|
(300,000
|
)
|
|
|
-
|
|
Borrowings (repayments) of line of credit, net
|
|
|
245,046
|
|
|
|
481,039
|
|
Repayment of term loan
|
|
|
(35,001
|
)
|
|
|
(30,000
|
)
|
Repayment of promissory notes
|
|
|
-
|
|
|
|
(79,490
|
)
|
|
|
Net Cash (Used In) Provided By Financing Activities
|
|
|
(89,955
|
)
|
|
|
371,549
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash
|
|
|
(230,133
|
)
|
|
|
(84,963
|
)
|
|
|
|
|
|
|
|
|
|
Cash - Beginning of Period
|
|
|
666,580
|
|
|
|
587,422
|
|
|
|
|
|
|
|
|
|
|
Cash - End of Period
|
|
$
|
436,447
|
|
|
$
|
502,459
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash Paid During the Period for:
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Interest
|
|
$
|
66,941
|
|
|
$
|
72,311
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock issued for Series A Preferred dividends
|
|
$
|
46,800
|
|
|
$
|
131,513
|
|
Accrued dividends
|
|
$
|
46,800
|
|
|
$
|
64,521
|
|
Debt extension fee included in principal balance of note
|
|
$
|
52,236
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Contact Information
Contact: Carl Wolf Chairman and CEO MamaMancini's Holdings, Inc.
Stock Symbol: MMMB 973-985-0280 www.mamamancinis.com
carl@mamamancinis.com