TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND THIRTY-NINE WEEKS ENDED SEPTEMBER 30, 2023
TOFUTTI BRANDS INC. (TOFB) reports a decrease in net sales for the thirteen and thirty-nine weeks ended September 30, 2023, with a significant increase in gross profit for the same period. Despite the decrease in sales, the company achieved a net income of $110,000 for the thirteen-week period, marking a return to profitable operations. The company's working capital and cash balances remain strong, positioning them for improved results.
Positive
Significant increase in gross profit for the thirteen and thirty-nine weeks ended September 30, 2023.
Return to profitable operations in the thirteen-week period ended September 30, 2023.
Strong working capital and cash balances as of November 9, 2023.
Negative
Decrease in net sales for the thirteen and thirty-nine weeks ended September 30, 2023.
11/14/2023 - 04:53 PM
Cranford, New Jersey, Nov. 14, 2023 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and thirty-nine weeks ended September 30, 2023, today.
Net sales for the thirteen weeks ended September 30, 2023 decreased by $381,000 , or 13% , to $2,515,000 , from net sales of $2,896,000 for the thirteen weeks ended October 1, 2022. Sales of our vegan cheese products decreased to $2,110,000 in the thirteen weeks ended September 30, 2023 from $2,344,000 in the thirteen weeks ended October 1, 2022. Sales of our frozen dessert products decreased to $406,000 in the thirteen weeks ended September 30, 2023, compared to $562,000 for the thirteen weeks ended October 1, 2022. For the thirty-nine-week period ended September 30, 2023, net sales decreased by $1,614,000 , or 17% , to $7,724,000 , compared to net sales of $9,338,000 for the thirty-nine weeks ended October 1, 2022.
Our gross profit increased to $786,000 for the thirteen weeks ended September 30, 2023 from $427,000 for the thirteen weeks ended October 1, 2022. Our gross profit percentage was 31% for the thirteen weeks ending September 30, 2023, compared to 15% for the thirteen weeks ending October 1, 2022. Our gross profit increased to $2,059,000 for the thirty-nine weeks ended September 30, 2023 from $1,812,000 for the thirty-nine weeks ended October 1, 2022.
We had net income of $110,000 , or $0.02 per share (basic and diluted) for the thirteen-weeks ended September 30, 2023 and a net loss of $310,000 or $0.06 per share (basic and diluted), for the thirty-nine weeks ended September 30, 2023, compared to net losses of $192,000 , or $0.04 (basic and diluted) per share, and $195,000 or $0.04 b asic and diluted per share for the thirteen and thirty-nine weeks ended October 1, 2022, respectively.
As of November 9, 2023, we had approximately $747,000 in cash and our working capital was approximately $3,533,000 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 thirty-nine weeks ended September 30, 2023 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 nine months of 2023, our cash and available capital balances remain strong and we are pleased by our return to profitable operations in the thirteen week period ended September 30, 2023. We believe that 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)
Unaudited Condensed Statements of Operations (in thousands, except per share figures)
Thirteen Thirteen Thirty-nine Thirty-nine Net sales $ 2,515 $ 2,896 $ 7,724 $ 9,338 Cost of sales 1,729 2,469 5,665 7,526 Gross profit 786 427 2,059 1,812 Operating expenses: Selling and warehouse 210 261 802 834 Marketing 103 103 287 370 Research and development 28 26 111 108 General and administrative 333 298 1,018 987 674 688 2,218 2,299 Income (loss) from operations 112 (261 ) (159 ) (487 ) Other income: SBA loan forgiveness - - - 165 Income (loss) before interest expense and income taxes 112 (261 ) (159 ) (322 ) Interest expense 1 - 3 - Loss before income tax 111 (261 ) (162 ) (322 ) Income tax expense (benefit) 1 (69 ) 148 (127 ) Net income (loss) $ 110 $ (192 ) $ (310 ) $ (195 ) Weighted average common shares outstanding: Basic 5,154 5,154 5,154 5,154 Diluted 5,154 5,154 5,154 5,154 Income (loss) per common share: Basic $ .02 $ (.04 ) $ (.06 ) $ (.04 ) Diluted $ .02 $ (.04 ) $ (.06 ) $ (.04 )
TOFUTTI BRANDS INC. Unaudited Condensed Balance Sheets (in thousands, except share and per share figures)
September 30, 2023 December 31, 2022 Assets Current assets: Cash $ 727 $ 1,072 Accounts receivable, net of allowance for doubtful accounts and sales promotions of $510 and $495 , respectively 986 1,305 Inventories 2,547 2,463 Prepaid expenses and other current assets 87 80 Total current assets 4,347 4,920 Operating lease right-of-use assets 100 158 Finance lease right-of-use asset 40 53 Deferred tax assets 183 367 Other assets 19 19 Total assets $ 4,689 $ 5,517 Liabilities and Stockholders’ Equity Current liabilities: Income taxes payable $ — $ 41 Accounts payable 491 684 Accrued expenses 294 555 Finance lease liability, current portion 15 15 Total current liabilities 800 1,295 Financing lease liabilities, long-term 27 39 Operating lease liabilities 27 85 Total liabilities 854 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 310 263 Retained earnings 3,473 3,783 Total stockholders’ equity 3,835 4,098 Total liabilities and stockholders’ equity $ 4,689 $ 5,517
TOFUTTI BRANDS INC.'s net sales for the thirteen weeks ended September 30, 2023 decreased by $381,000, or 13%, to $2,515,000, from net sales of $2,896,000 for the thirteen weeks ended October 1, 2022.
The gross profit percentage was 31% for the thirteen weeks ending September 30, 2023, compared to 15% for the thirteen weeks ending October 1, 2022.
TOFUTTI BRANDS INC. achieved a net income of $110,000 for the thirteen-weeks ended September 30, 2023.
As of November 9, 2023, TOFUTTI BRANDS INC. had working capital of approximately $3,533,000.
