New Zealand markets open in 5 hours 53 minutes
  • NZX 50

    10,959.45
    -106.26 (-0.96%)
     
  • NZD/USD

    0.5728
    +0.0130 (+2.33%)
     
  • ALL ORDS

    6,656.40
    -22.30 (-0.33%)
     
  • OIL

    82.86
    +3.37 (+4.24%)
     
  • GOLD

    1,694.70
    +22.70 (+1.36%)
     

TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 2, 2022

·6-min read
TOFUTTI BRANDS INC
TOFUTTI BRANDS INC

Cranford, New Jersey, Aug. 16, 2022 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended July 2, 2022 today.

Tofutti Brands reported net sales of $2,979,000 for the thirteen weeks ended July 2, 2022 compared to net sales of $3,027,000 for the thirteen weeks ended July 3, 2021. Sales of our vegan cheese products increased slightly to $2,526,000 in the thirteen weeks ended July 2, 2022 from $2,497,000 in the thirteen weeks ended July 3, 2021. Sales of our frozen dessert and frozen food products, which consist primarily of frozen dessert products, decreased to $453,000 in the thirteen weeks ended July 2, 2022 from $530,000 for the thirteen weeks ended July 3, 2021. We anticipate an increase in sales dollars over the balance of the current fiscal year as the price increases we implemented take effect.

Our gross profit decreased significantly to $525,000 for the thirteen weeks ended July 2, 2022 from $758,000 for the thirteen weeks ended July 3, 2021. Our gross profit percentage was 18% for the thirteen weeks ending July 2, 2022 compared to 25% for the thirteen weeks ending July 3, 2021. The decrease in both our gross profit and gross profit percentage were caused by the substantial increases in certain ingredients and freight expense. These substantial cost increases were due primarily to the lingering supply chain issues caused by the Covid-19 pandemic and the record high cost of petroleum. Besides causing substantial increases in our freight expenses, the high cost of petroleum has also directly impacted the costs of certain ingredients and packaging such as the plastic packaging we use for our spreadable cheese products. Our gross profit dollars and gross profit percentage were also negatively impacted by an increase in our sales promotion and allowance expenses to $403,000 in the second quarter of this year as compared to $336,000 in the second quarter of prior fiscal year. We anticipate that our gross profit dollars and gross profit percentage will continue to be negatively affected for the balance of fiscal year 2022.

We had a net loss of $208,000, or a $0.04 loss per share (basic and diluted), for the thirteen weeks ended July 2, 2022 compared to net income of $28,000, or $0.01 (basic and diluted) per share, for the thirteen weeks ended July 3, 2021.

As of July 2, 2022, we had approximately $1,176,000 in cash and our working capital was approximately $4,259,000, compared with approximately $1,698,000 in cash and working capital of $4,326,000 at January 1, 2022. The decrease in cash during the twenty-six weeks ended July 2, 2022 was primarily due to reduced accounts receivable collections and increased inventory on hand.

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We look forward to improved results in the second half of 2022 as the price increases we have announced take effect and expect that our cash position will also improve."

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty

Forward-Looking Statements

Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to the impact of COVID-19 on the economy and our operations, business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

Company Contact:

Steve Kass

 

Chief Executive/Financial Officer

 

(908) 272-2400

 

(908) 272-9492 (Fax)

 

 

TOFUTTI BRANDS, INC.
Unaudited Condensed Statements of Operations
(in thousands, except per share figures)

 

 

Thirteen
weeks ended
July 2, 2022

 

 

Thirteen
weeks ended
July 3, 2021

 

 

Twenty-six
weeks ended
July 2, 2022

 

 

Twenty-six
weeks ended
July 3, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

2,979

 

 

$

3,027

 

 

$

6,442

 

 

$

6,177

 

Cost of sales

 

 

2,454

 

 

 

2,269

 

 

 

5,060

 

 

 

4,418

 

Gross profit

 

 

525

 

 

 

758

 

 

 

1,382

 

 

 

1,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and warehouse

 

 

309

 

 

 

303

 

 

 

573

 

 

 

627

 

Marketing

 

 

111

 

 

 

66

 

 

 

267

 

 

 

135

 

Research and development

 

 

42

 

 

 

36

 

 

 

82

 

 

 

75

 

General and administrative

 

 

349

 

 

 

319

 

 

 

686

 

 

 

766

 

 

 

 

811

 

 

 

724

 

 

 

1,608

 

 

 

1,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

(286

)

 

 

34

 

 

 

(226

)

 

 

156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loan forgiveness

 

 

 

 

 

 

 

 

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest expense and income taxes

 

 

(286

)

 

 

34

 

 

 

(61

)

 

 

156

 

Interest expense

 

 

 

 

 

6

 

 

 

 

 

 

12

 

(Loss) income before income tax

 

 

(286

)

 

 

28

 

 

 

(61

)

 

 

144

 

Income tax expense

 

 

(78

)

 

 

 

 

 

(58

)

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(208

)

 

$

28

 

 

$

(3

)

 

$

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

5,154

 

 

 

5,154

 

 

 

5,154

 

 

 

5,154

 

Diluted

 

 

5,154

 

 

 

5,436

 

 

 

5,154

 

 

 

5,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

 

$

0.01

 

 

$

(0.00

)

 

$

0.02

 

Diluted

 

$

(0.04

)

 

$

0.01

 

 

$

(0.00

)

 

$

0.02

 


TOFUTTI BRANDS INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and per share figures)

 

 

July 2, 2022

 

 

January 1, 2022

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,176

 

 

$

1,698

 

Accounts receivable, net of allowance for doubtful accounts and sales promotions of $465 and $435, respectively

 

 

1,122

 

 

 

1,336

 

Inventories

 

 

2,574

 

 

 

1,874

 

Prepaid expenses and other current assets

 

 

41

 

 

 

98

 

Total current assets

 

 

4,913

 

 

 

5,006

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

147

 

 

 

203

 

Deferred tax assets

 

 

174

 

 

 

112

 

Other assets

 

 

19

 

 

 

21

 

Total assets

 

$

5,253

 

 

$

5,342

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

SBA loan payable

 

$

 

 

$

165

 

Income taxes payable

 

 

43

 

 

 

46

 

Accounts payable

 

 

231

 

 

 

122

 

Accrued expenses

 

 

380

 

 

 

347

 

Total current liabilities

 

 

654

 

 

 

680

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities

 

 

35

 

 

 

95

 

Total liabilities

 

 

689

 

 

 

775

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued and outstanding

 

 

 

 

 

 

Common stock - par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding

 

 

52

 

 

 

52

 

Additional paid-in capital

 

 

207

 

 

 

207

 

Retained earnings

 

 

4,305

 

 

 

4,308

 

Total stockholders’ equity

 

 

4,564

 

 

 

4,567

 

Total liabilities and stockholders’ equity

 

$

5,253

 

 

$

5,342