TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 1, 2023
November 14, 2023 at 04:01 pm
Share
Cranford, New Jersey, Nov. 14, 2023 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six 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 basic 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)
TOFUTTI BRANDS, INC. Unaudited Condensed Statements of Operations (in thousands, except per share figures)
Thirteen weeks ended September 30, 2023
Thirteen weeks ended October 1, 2022
Thirty-nine weeks ended September 30, 2023
Thirty-nine weeks ended October 1, 2022
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
Tofutti Brands Inc. is engaged in the development, production and marketing of plant-based, dairy-free frozen desserts, cheeses and other food products. The Company's TOFUTTI brand products are vegan, dairy-free products that contain no butterfat, cholesterol or lactose and use soy and other vegetable proteins. The Company's dairy-free vegan cheese products include BETTER THAN CREAM CHEESE, TOFUTTI WHIPPED BETTER THAN CREAM CHEESE, BETTER THAN SOUR CREAM, TOFUTTI AMERICAN VEGAN CHEESE SLICES and BETTER THAN RICOTTA CHEESE. Its frozen desserts include TOFUTTI and TOFUTTI CUTIES. The Company sells products in the United States, including Atlanta, Baltimore, Boston, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Houston, Jacksonville, Kansas City, Los Angeles, Miami, Milwaukee, Minneapolis, Nashville, New York, Orlando, Philadelphia, Phoenix, Portland, Richmond, Salt Lake City, San Diego, San Francisco, Seattle, St. Louis, Tampa and Washington.