TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 1, 2023
Tofutti Brands Inc. reported a decrease in net sales for the thirteen and twenty-six weeks ended July 1, 2023. Sales of vegan cheese products and frozen dessert products both decreased compared to the same periods last year. However, the gross profit increased for the thirteen week period, and the gross profit percentage improved. The company had net losses for both periods but maintains a strong cash balance and believes it is positioned for improved results.
08/15/2023 - 10:53 PM
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 b asic 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
What are the net sales for Tofutti Brands Inc. for the thirteen weeks ended July 1, 2023?
The net sales for the thirteen weeks ended July 1, 2023, were $2,719,000.
What caused the decrease in net sales for Tofutti Brands Inc. during the twenty-six week period ended July 1, 2023?
The net sales decreased by $1,234,000 or 19% compared to the same period last year.
What was the gross profit percentage for Tofutti Brands Inc. for the thirteen week period ended July 1, 2023?
The gross profit percentage was 25% for the thirteen week period ended July 1, 2023.
What were the net losses for Tofutti Brands Inc. for the thirteen and twenty-six weeks ended July 1, 2023?
The net losses were $318,000 and $420,000 for the thirteen and twenty-six weeks, respectively.
What is the cash balance of Tofutti Brands Inc. as of July 1, 2023?
The company had approximately $576,000 in cash.
What did Mr. Steven Kass, Chief Executive and Financial Officer of Tofutti Brands Inc., say about the sales performance?
Mr. Kass stated that they are disappointed in the sales performance but believe they are positioned for improved results.