Cranford, New Jersey, Aug. 15, 2023 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended July 1, 2023 today.
Tofutti Brands reported net sales for the thirteen weeks ended July 1, 2023 decreased by $260,000, or 9%, to $2,719,000, from net sales of $2,979,000 for the thirteen weeks ended July 2, 2022. Sales of our vegan cheese products decreased to $2,283,000 for the thirteen weeks ended July 1, 2023 from $2,526,000 for the thirteen weeks ended July 2, 2022. Sales of our frozen dessert products decreased to $436,000 in the thirteen weeks ended July 1, 2023 from $453,000 for the thirteen weeks ended July 2, 2022. For the twenty-six week period ended July 1, 2023, sales decreased by $1,234,000 or 19% to $5,208,000 compared to $6,442,000 for the twenty-six week period ended July 2, 2022.
Our gross profit increased to $667,000 in the thirteen week period ended July 1, 2023 from $525,000 in the thirteen week period ended July 2, 2022. Our gross profit percentage was 25% for the thirteen week period ended July 1, 2023 compared to 18% for the thirteen week period ended July 2, 2022. Our gross profit decreased to $1,273,000 for the twenty-six week period ended July 1, 2023 from $1,382,000 for the twenty-six week period ended July 2, 2022.
We had net losses of $318,000, or $0.06 per share (basic and diluted) and $420,000 or $0.08 per share (basic and diluted), for the thirteen and twenty-six weeks, respectively, ended July 1, 2023, compared to net losses of $208,000, or $0.04 (basic and diluted) per share, and $3,000 or $0.00 basic and diluted per share for the thirteen and twenty-six weeks ended July 2, 2022, respectively.
As of July 1, 2023, we had approximately $576,000 in cash and our working capital was approximately $3,423,000 compared with approximately $1,072,000 in cash and working capital of $3,625,000 at December 31, 2022. The decrease in cash during the twenty-six weeks ended July 2, 2022 was primarily due to a decrease in payables.
Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “While we are disappointed in our sales performance during the first six months of 2023, our cash and available capital balances remain strong and we believe we are positioned for improved results,” 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 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 frozen desserts and Tofutti Cutie® sandwiches, and vegan cheese products, such as Better Than Cream Cheese® and Better Than Sour Cream®. 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 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 1, 2023 | Thirteen weeks ended July 2, 2022 | Twenty-six weeks ended July 1, 2023 | Twenty-six weeks ended July 2, 2022 | |||||||||||||
| Net sales | $ | 2,719 | $ | 2,979 | $ | 5,208 | $ | 6,442 | ||||||||
| Cost of sales | 2,052 | 2,454 | 3,935 | 5,060 | ||||||||||||
| Gross profit | 667 | 525 | 1,273 | 1,382 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and warehouse | 320 | 309 | 592 | 573 | ||||||||||||
| Marketing | 89 | 111 | 184 | 267 | ||||||||||||
| Research and development | 56 | 42 | 83 | 82 | ||||||||||||
| General and administrative | 383 | 349 | 686 | 686 | ||||||||||||
| 848 | 811 | 1,545 | 1,608 | |||||||||||||
| Loss from operations | (181 | ) | (286 | ) | (272 | ) | (226 | ) | ||||||||
| Other income: | ||||||||||||||||
| SBA loan forgiveness | — | — | — | 165 | ||||||||||||
| Loss before interest expense and income taxes | (181 | ) | (286 | ) | (272 | ) | (61 | ) | ||||||||
| Interest expense | 1 | — | 2 | — | ||||||||||||
| Loss before income tax | (182 | ) | (286 | ) | (274 | ) | (61 | ) | ||||||||
| Income tax expense (benefit) | 136 | (78 | ) | 146 | (58 | ) | ||||||||||
| Net loss | $ | (318 | ) | $ | (208 | ) | $ | (420 | ) | $ | (3 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Diluted | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Loss per common share: | ||||||||||||||||
| Basic | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.00 | ) | ||||
| Diluted | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.00 | ) | ||||
TOFUTTI BRANDS INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and per share figures)
| July 1, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 576 | $ | 1,072 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $490 and $495, respectively | 847 | 1,305 | ||||||
| Inventories | 2,419 | 2,463 | ||||||
| Prepaid expenses and other current assets | 68 | 80 | ||||||
| Total current assets | 3,910 | 4,920 | ||||||
| Operating lease right-of-use assets | 116 | 158 | ||||||
| Finance lease right-of-use asset | 43 | 53 | ||||||
| Deferred tax assets | 182 | 367 | ||||||
| Other assets | 19 | 19 | ||||||
| Total assets | $ | 4,270 | $ | 5,517 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Income taxes payable | — | 41 | ||||||
| Accounts payable | 152 | 684 | ||||||
| Accrued expenses | 320 | 555 | ||||||
| Finance lease liability, current portion | 15 | 15 | ||||||
| Total current liabilities | 487 | 1,295 | ||||||
| Financing lease liabilities, long-term | 31 | 39 | ||||||
| Operating lease liabilities | 41 | 85 | ||||||
| Total liabilities | 559 | 1,419 | ||||||
| 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 | 296 | 263 | ||||||
| Retained earnings | 3,363 | 3,783 | ||||||
| Total stockholders’ equity | 3,711 | 4,098 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,270 | $ | 5,517 | ||||
