Cranford, New Jersey, Aug. 17, 2020 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) today announced its results for the thirteen and twenty-six week periods ended June 27, 2020.
Tofutti Brands reported net sales for the thirteen weeks ended June 27, 2020 of $3,243,000 compared to net sales of $3,143,000 for the thirteen weeks ended June 29, 2019. The Company’s gross profit increased to $1,015,000 for the thirteen weeks ended June 27, 2020 from $860,000 for the thirteen weeks ended June 29, 2019, and its gross profit percentage increased to 31% for the thirteen weeks ending June 27, 2020 compared to 27% for the thirteen weeks ending June 29, 2019. The Company had net income of $146,000, or $0.03 per share (basic and diluted), for the thirteen weeks ended June 27, 2020, compared to net income of $62,000, or $(0.01) per share (basic and diluted), for the thirteen weeks ended June 29, 2019.
Net sales for the twenty-six week period ended June 27, 2020 were $6,469,000 compared to net sales of $6,644,000 for the twenty-six week period ended June 29, 2019, a decrease of $175,000. The Company’s gross profit for the twenty-six week period ending June 27, 2020 was $2,011,000 compared to $1,843,000 for the twenty-six week period ending June 29, 2019. The Company’s gross profit percentage was 31% for the twenty-six weeks ended June 27, 2020 compared to 28% for the twenty-six week period ended June 29, 2019.
The Company had net income of $190,000, or $(0.01) per share (basic and diluted), for the twenty-six weeks ended June 27, 2020 compared to a net loss of $38,000, or $(0.01) per share (basic and diluted), for the twenty-six weeks ended June 30, 2018.
As of June 29, 2019, the Company had approximately $1,134,000 in cash and cash equivalents and its working capital was approximately $4,203,000, compared with approximately $514,000 in cash and cash equivalents and working capital of $3,840,000 at December 28, 2019. The increase in cash during the first six months of 2020 was due to $455,000 provided by operating activities and $165,000 provided by financing activities, which was offset by $29,000 used in investing activities.
Small Business Administration Loan (SBA Loan) On May 4, 2020, the Company was granted a loan of $165,000 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). A portion of the loan may be forgiven under provisions under the CARES Act based on payments for payroll, rent and utilities during the period subsequent to obtaining the loan.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, “ Despite the impediments arising from the spread of COVID-19, we were able to increase our sales and net income in the second fiscal quarter of 2020 compared to the comparable period in 2019. We are pleased with our results under the circumstances and look forward to continue to meet customer demand and generate profits for our shareholders,” concluded Mr. Mintz.
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 Financial Officer |
| (908) 272-2400 |
| (908) 272-9492 (Fax) |
TOFUTTI BRANDS INC.
Condensed Statements of Operations
(in thousands, except per share figures)
| Thirteen weeks ended June 27, 2020 | Thirteen weeks ended June 29, 2019 | Twenty-six weeks ended June 27, 2020 | Twenty-six weeks ended June 29, 2019 | |||||||||||||
| Net sales | $ | 3,243 | $ | 3,143 | $ | 6,469 | $ | 6,644 | ||||||||
| Cost of sales | 2,228 | 2,283 | 4,458 | 4,801 | ||||||||||||
| Gross profit | 1,015 | 860 | 2,011 | 1,843 | ||||||||||||
| Operating expenses | 799 | 915 | 1,732 | 1,863 | ||||||||||||
| Income (loss) from operations | 216 | (55 | ) | 279 | (20 | ) | ||||||||||
| Interest expense | 7 | 7 | 13 | 13 | ||||||||||||
| Income (loss) before income tax | 209 | (62 | ) | 266 | (33 | ) | ||||||||||
| Income tax expense | 69 | — | 76 | 6 | ||||||||||||
| Net income (loss) | ||||||||||||||||
| Basic | $ | 140 | $ | (62 | ) | $ | 190 | $ | (39 | ) | ||||||
| Diluted | $ | 146 | $ | (62 | ) | $ | 190 | $ | (39 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Diluted | 5,436 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Earnings (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | (0.01 | ) | ||||||
| Diluted | $ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | (0.01 | ) | ||||||
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands, except share and per share figures)
| June 27, 2020 | December 28, 2019 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,134 | $ | 514 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $387 and $407, respectively | 1,598 | 1,819 | ||||||
| Inventories | 2,083 | 1,929 | ||||||
| Prepaid expenses and other current assets | 94 | 120 | ||||||
| Total current assets | 4,909 | 4,382 | ||||||
| Deferred tax assets | 140 | 217 | ||||||
| Fixed assets (net of accumulated depreciation of $10 and $5, respectively) | 140 | 145 | ||||||
| Operating lease right-of-use assets | 202 | 252 | ||||||
| Other assets | 35 | 30 | ||||||
| Total assets | $ | 5,426 | $ | 5,026 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| SBA note payable | $ | 64 | $ | — | ||||
| Accounts payable | 316 | 167 | ||||||
| Accrued expenses | 326 | 375 | ||||||
| Total current liabilities | 706 | 542 | ||||||
| Convertible note payable-long term-related party | 500 | 500 | ||||||
| SBA note payable-long term | 101 | — | ||||||
| Operating lease liabilities | 101 | 156 | ||||||
| Total liabilities | 1,408 | 1,198 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued | — | — | ||||||
| Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at June 27, 2020 and December 28, 2019 | 52 | 52 | ||||||
| Additional paid-in capital | 207 | 207 | ||||||
| Retained earnings | 3,759 | 3,569 | ||||||
| Total stockholders’ equity | 4,018 | 3,828 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,426 | $ | 5,026 | ||||