Company Fortifies Balance Sheet with Record $1.4 Million in Cash Flow from Operations; Stable Pre-Tax Net Income of $0.9 million
Sales Lower 5% Due to One-Time COVID Impact in CY2020; Sales Up 45% Over 2 Year Period
Company Expects Strong Sales Growth Late Summer with Deliveries to Major Accounts
EAST RUTHERFORD, NJ, June 14, 2021 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has reported its financial results for the first quarter ended April 30, 2021.
Financial Summary:
| Three Months Ended April 30, | Year-over- Year % Change | |||||||||||
| 2021 | 2020 | |||||||||||
| Revenues | $ | 10.3 million | $ | 10.8 million | (4.8 | )% | ||||||
| Gross Profit | $ | 3.3 million | $ | 3.5 million | (3.4 | )% | ||||||
| Operating Expenses | $ | 2.5 million | $ | 2.5 million | 0.3 | % | ||||||
| Cash Flow from Operations | $ | 1.4 million | $ | 1.2 million | 20.0 | % | ||||||
| Net Income Before Income Tax Provision | $ | 0.9 million | $ | 0.9 million | (2.9 | )% | ||||||
| Earnings per Share | $ | 0.02 | $ | 0.03 | (33.3 | )% | ||||||
First Quarter 2022 & Subsequent Operational Highlights:
- MamaMancini’s files initial listing application with NASDAQ, which upon uplisting is expected to promote brand credibility, liquidity, and capital markets visibility.
- Began active acquisition program targeting complementary food product companies with sales in the $12 to $20 million per year range, generating positive EBITDA with a product that is symbiotic to the Company’s existing retail, club store and food service distribution network. The Company hopes to make an announcement of significant progress by the end of July.
- Received new commitments from major retailers such as Walmart and Sam’s Club, expanding the Company’s reach by over 15,000 additional spots on tier-1 retailer shelves by the end of summer.
- Appointed prominent small-cap investment manager Connor Haley, and tenured hospitality industry executive Michael Stengel to the Board of Directors – bringing valuable executive leadership experience and capital markets insights to the Board.
- Attended investor conferences nationwide including the 33rd Annual ROTH Conference and the Planet MicroCap Showcase.
Management Commentary
“We saw strong core sales growth in the first quarter of fiscal 2022, achieving record cash flow from operations, further fortifying our increasingly robust balance sheet,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “While we saw a slight revenue decline due to large one-time panic ordering by grocery store customers during the onset of the pandemic in early 2020, our core momentum has trended positively as we are well positioned to grow further as new placements begin to take hold this summer.
“On the capital markets front, we are well positioned for a planned near-term uplist to Nasdaq – a senior exchange which we believe will increase our liquidity and elevate MamaMancini’s profile within the investment community. In the meantime, we continue to attend leading virtual investors conferences to improve awareness of MamaMancini’s status as a public company.
“As we push forward into the summer and beyond, I expect to make continued financial progress driven by our upcoming placements on thousands of tier-1 retailer shelves. This, when combined with our continued success in closely managing operating expenses and what I expect will be a near-term update on our acquisition efforts, has positioned MamaMancini’s for a bright future. I look forward to providing further updates on our growth initiatives to shareholders in the near future,” concluded Wolf.
First Quarter Fiscal 2022 Financial Results
Revenue for the first quarter of fiscal 2022 totaled $10.3 million, as compared to $10.8 million in the first quarter of fiscal 2021 and $7.1 million in the first quarter of fiscal 2020. The decrease in revenue for the first quarter was a result of strong prior year sales due to one-time ‘panic buying’ by large grocery chains around the onset of the COVID-19 pandemic, while sales over a two-year period increased approximately 45%.
Gross profit totaled $3.3 million, or 32.4% of total revenues, in the first quarter of fiscal 2022, as compared to $3.5 million, or 31.9% of total revenues, in the same year-ago quarter. The decrease in gross profit in the first quarter is primarily due to lower sales this year.
Operating expenses totaled $2.5 million in the first quarter of fiscal 2022, as compared to $2.5 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 24.2% in the first quarter of fiscal 2022, as compared to 22.9% in the same year-ago quarter. Operating expense in the first quarter remained approximately flat as compared to the same year-ago quarter.
Pre-Tax Net Income was comparable to prior year at $0.9 million vs $0.9 million in prior year.
Net income for the first quarter of fiscal 2022 totaled $0.6 million, or $0.02 per diluted share, as compared to a net income of $0.9 million, or $0.03 per diluted share, in the same year-ago quarter. The decrease in net income was attributable to a $250,000 non-cash amortization of an income tax benefit.
Cash and cash equivalents as of April 30, 2021 were $4.2 million, as compared to $3.2 million as of January 31, 2021. The increased cash balance benefitted from a record $1.4 million in cash flow from operations in the first quarter of fiscal 2022.
Conference Call
Management will host an investor conference call at 4:30 p.m. Eastern time on Monday, June 14, 2021 to discuss the Company’s first quarter 2022 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:
Q1 2022 Earnings Conference Call
Date: Monday, June 14, 2021
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 10157488
Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=ZPxfU8Fd
Please dial in at least five minutes before the start of the call to ensure timely participation.
A playback of the call will be available through June 21, 2021. To listen, call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally. Please use the replay pin number 10157488.
About MamaMancini’s Holdings, Inc.
MamaMancini's Holdings, Inc. (OTCQB: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Sam’s Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company also regularly maintains a direct-to-consumer presence through presentations on QVC. For more information, please visit www.mamamancinis.com.
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, 2021 and other filings made by the Company with the Securities and Exchange Commission.
Investor Relations Contact:
Lucas A. Zimmerman
Senior Vice President
MZ Group - MZ North America
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us
MamaMancini’s Holdings, Inc.
Condensed Consolidated Balance Sheets
| April 30, 2021 | January 31, 2021 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 4,243,356 | $ | 3,190,560 | ||||
| Accounts receivable, net | 3,719,745 | 3,973,793 | ||||||
| Inventories | 1,438,469 | 1,195,211 | ||||||
| Prepaid expenses | 504,434 | 519,887 | ||||||
| Total current assets | 9,906,004 | 8,879,451 | ||||||
| Property and equipment, net | 3,134,235 | 2,963,602 | ||||||
| Intangibles | 87,639 | 87,639 | ||||||
| Operating lease right of use assets, net | 1,633,577 | 1,352,483 | ||||||
| Deferred tax asset, net | 497,024 | 744,973 | ||||||
| Deposits | 20,177 | 20,177 | ||||||
| Total Assets | $ | 15,278,656 | $ | 14,048,325 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 4,046,073 | $ | 3,707,111 | ||||
| Operating lease liability | 174,612 | 147,684 | ||||||
| Finance leases payable | 185,177 | 190,554 | ||||||
| Total current liabilities | 4,405,862 | 4,045,349 | ||||||
| Operating lease liability – net | 1,478,481 | 1,218,487 | ||||||
| Finance leases payable – net | 433,462 | 474,743 | ||||||
| Total long-term liabilities | 1,911,943 | 1,693,230 | ||||||
| Total Liabilities | 6,317,805 | 5,738,579 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of April 30, 2021 and January 31, 2021, 0 and 0 shares outstanding as of April 30, 2021 and January 31, 2021 | - | - | ||||||
| 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; 35,668,874 and 35,603,731 shares issued and outstanding as of April 30, 2021 and January 31, 2021 | 358 | 357 | ||||||
| Additional paid in capital | 20,555,373 | 20,535,793 | ||||||
| Accumulated deficit | (11,445,380 | ) | (12,076,904 | ) | ||||
| Less: Treasury stock, 230,000 shares at cost, respectively | (149,500 | ) | (149,500 | ) | ||||
| Total Stockholders’ Equity | 8,960,851 | 8,309,746 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 15,278,656 | $ | 14,048,325 | ||||
MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Income
(unaudited)
| For the Three Months Ended | ||||||||
| April 30, 2021 | April 30, 2020 | |||||||
| (as revised) | ||||||||
| Sales-net of slotting fees and discounts | $ | 10,313,400 | $ | 10,834,941 | ||||
| Costs of sales | 6,969,047 | 7,373,319 | ||||||
| Gross profit | 3,344,353 | 3,461,622 | ||||||
| Operating expenses: | ||||||||
| Research and development | 23,436 | 29,481 | ||||||
| General and administrative | 2,468,718 | 2,456,187 | ||||||
| Total operating expenses | 2,492,154 | 2,485,668 | ||||||
| Income from operations | 852,199 | 975,954 | ||||||
| Other income (expenses) | ||||||||
| Interest | (10,430 | ) | (64,402 | ) | ||||
| Amortization of debt discount | - | (5,350 | ) | |||||
| Other income | 37,704 | - | ||||||
| Total other income (expenses) | 27,274 | (69,752 | ) | |||||
| Net income before income tax provision | 879,473 | 906,202 | ||||||
| Income tax provision | 247,949 | - | ||||||
| Net income | $ | 631,524 | $ | 906,202 | ||||
| Net income per common share | ||||||||
| – basic | $ | 0.02 | $ | 0.03 | ||||
| – diluted | $ | 0.02 | $ | 0.03 | ||||
| Weighted average common shares outstanding | ||||||||
| – basic | 35,622,060 | 31,991,241 | ||||||
| – diluted | 36,191,451 | 33,946,276 | ||||||
MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| For the Three Months Ended | ||||||||
| April 30, 2021 | April 30, 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 631,524 | $ | 906,202 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 183,761 | 159,793 | ||||||
| Amortization of debt discount | - | 5,350 | ||||||
| Share-based compensation | 501 | 27,105 | ||||||
| Amortization of right of use assets | 43,621 | 33,796 | ||||||
| Change in deferred tax asset | 247,949 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 254,048 | (239,379 | ) | |||||
| Inventories | (243,258 | ) | 65,764 | |||||
| Prepaid expenses | 15,453 | (9,766 | ) | |||||
| Accounts payable and accrued expenses | 338,962 | 278,175 | ||||||
| Operating lease liability | (37,793 | ) | (31,375 | ) | ||||
| Net Cash Provided by Operating Activities | 1,434,768 | 1,195,665 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash paid for fixed assets | (354,394 | ) | (105,616 | ) | ||||
| Net Cash Used in Investing Activities | (354,394 | ) | (105,616 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments of term loan | - | (125,001 | ) | |||||
| Proceeds from promissory note | - | 330,505 | ||||||
| Borrowings of line of credit, net | - | 150,000 | ||||||
| Repayment of finance lease obligations | (46,658 | ) | (25,208 | ) | ||||
| Proceeds from exercise of options | 19,080 | - | ||||||
| Net Cash Used in Financing Activities | (27,578 | ) | (330,296 | ) | ||||
| Net Increase in Cash | 1,052,796 | 1,420,345 | ||||||
| Cash - Beginning of Period | 3,190,560 | 393,683 | ||||||
| Cash - End of Period | $ | 4,243,356 | $ | 1,814,028 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash Paid During the Period for: | ||||||||
| Income taxes | $ | - | $ | - | ||||
| Interest | $ | 10,430 | $ | 67,265 | ||||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Finance lease asset additions | $ | - | $ | 223,598 | ||||