Company Reports Net Income of $80,000 in 2021 Compared to
Net Income of $50,000 in Prior Year
Cranford, New Jersey, May 24, 2021 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) issued its results for the thirteen weeks ended April 3, 2021 today.
Net sales for the thirteen weeks ended April 3, 2021 decreased by $76,000, or 2%, to $3,150,000, from net sales of $3,226,000 for the thirteen weeks ended March 28, 2020. The Company reported net income of $80,000 ($0.02 per share basic and diluted) for the thirteen weeks ended April 3, 2021 compared to net income of $50,000 ($0.01 per share, basic and diluted) for the thirteen weeks ended March 28, 2020.
Sales of our frozen dessert and frozen food products, which consist primarily of frozen dessert products, increased slightly to $430,000 in the thirteen weeks ended April 3, 2021 from $412,000 for the thirteen weeks ended March 28, 2020. Sales of vegan cheese products decreased to $2,720,000 in the 2021 period from $2,814,000 in the 2021 period resulting from production delays.
The Company’s gross profit increased slightly to $1,001,000 in the period ended April 3, 2021 from $996,000 in the period ended March 28, 2020. The Company’s gross profit percentage was 32% for the period ending April 3, 2021 compared to 31% for the period ending March 28, 2020.
As of April 3, 2021, the Company had approximately $2,446,000 in cash and our working capital was approximately $4,693,000, compared with approximately $1,459,000 in cash and working capital of $4,639,000 at January 2, 2021. The increase in cash during the first quarter of 2021 was due to the $987,000 provided by operating activities, which benefitted from improved accounts receivable collection.
To date, the effects of the pandemic have not materially affected the Company’s operations or sales.
Mr. Steven Kass, Chief Executive Officer and Chief Financial Officer of the Company stated, “We continue to be able to operate successfully, maintaining our sales and increasing our net income. We look forward to regaining our upward trajectory during the remainder of fiscal 2021,” concluded Mr. Kass.
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 35 milk-free foods including cheese products, frozen desserts and prepared frozen dishes. 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 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 bars. Tofutti also sells a prepared food entrée, Mintz’s Blintzes®, made with Tofutti’s milk-free cheeses such as Better Than Cream Cheese® and Sour Supreme®. For more information, visit www.tofutti.com.
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 Income
(in thousands, except per share figures)
| Thirteen weeks ended April 3, 2021 | Thirteen weeks ended March 28, 2020 | |||||||
| Net sales | $ | 3,150 | $ | 3,226 | ||||
| Cost of sales | 2,149 | 2,230 | ||||||
| Gross profit | 1,001 | 996 | ||||||
| Operating expenses: | 879 | 933 | ||||||
| Income before interest expense and income taxes | 122 | 63 | ||||||
| Interest expense | 6 | 6 | ||||||
| Income before income taxes | 116 | 57 | ||||||
| Income tax expense | 36 | 7 | ||||||
| Net income | $ | 80 | $ | 50 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 5,154 | 5,154 | ||||||
| Diluted | 5,436 | 5,154 | ||||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.02 | $ | 0.01 | ||||
| Diluted | $ | 0.02 | $ | 0.01 | ||||
TOFUTTI BRANDS INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and per share figures)
| April 3, 2021 | January 2, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,446 | $ | 1,459 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $472 and $457, respectively | 1,301 | 2,078 | ||||||
| Inventories | 2,045 | 1,997 | ||||||
| Prepaid expenses and other current assets | 63 | 88 | ||||||
| Total current assets | 5,855 | 5,622 | ||||||
| Equipment, net | 132 | 135 | ||||||
| Operating lease right-of-use assets | 197 | 224 | ||||||
| Deferred tax assets | 83 | 83 | ||||||
| Other assets | 39 | 19 | ||||||
| Total assets | $ | 6,306 | $ | 6,083 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| SBA loan payable | $ | 120 | $ | 112 | ||||
| Income taxes payable | 153 | 117 | ||||||
| Accounts payable | 551 | 219 | ||||||
| Accrued expenses | 338 | 535 | ||||||
| Total current liabilities | 1,162 | 983 | ||||||
| Convertible note payable-long term-related party | 500 | 500 | ||||||
| SBA loan payable, net of current portion | 45 | 53 | ||||||
| Operating lease liabilities | 95 | 123 | ||||||
| Total liabilities | 1,802 | 1,659 | ||||||
| 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, issued and outstanding 5,153,706 shares | 52 | 52 | ||||||
| Additional paid-in capital | 207 | 207 | ||||||
| Retained earnings | 4,245 | 4,165 | ||||||
| Total stockholders’ equity | 4,504 | 4,424 | ||||||
| Total liabilities and stockholders’ equity | $ | 6,306 | $ | 6,083 | ||||