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