MamaMancini’s Reports Record Fourth Quarter and Fiscal Year 2021 Financial Results

Rhea-AI Summary

For Q4 2021, MamaMancini's Holdings (MMMB) reported a remarkable 311% increase in net income to a record $1.7 million. Revenue grew 1.4% to $10 million, driving a 20.8% annual increase to $40.8 million. Gross profit rose 15% in Q4, reaching $3.3 million, with margins improving to 32.9%. Operating expenses increased 7.7% in Q4, totaling $2.4 million. The company also secured significant retail placements and launched a major ad campaign. The positive outlook for fiscal 2022 includes the potential for further growth and acquisitions.

Positive

• Net income up 311% to $1.7 million
• Revenue increased 20.8% to $40.8 million for fiscal 2021
• Gross profit rose 27.6% year-over-year
• Secured new retailer commitments adding approximately 15,000 shelf spots
• Launched national radio campaign reaching 70 million listeners

Negative

• Operating expenses increased 7.7% in Q4 to $2.4 million
• Operating expenses as a percentage of sales rose to 23.8% in Q4

Q4 2021 Net Income Increases 311% to Record $1.7 Million

Record Results Driven by Strong Gross Margin Growth and a $0.7 Million Deferred Tax Benefit

EAST RUTHERFORD, NJ, April 20, 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 fourth quarter and fiscal year ended January 31, 2021.

Financial Summary:

	Three Months Ended Jan. 31,						Fiscal Year Ended Jan. 31,
$ in millions		2021		2020	% Increase			2021		2020	% Increase
Revenues	$	10.0	$	9.9	1.4	%	$	40.8	$	33.8	20.8	%
Gross Profit	$	3.3	$	2.9	15.0	%	$	12.7	$	10.0	27.6	%
Operating Expenses	$	2.4	$	2.2	7.7	%	$	9.3	$	7.9	17.2	%
Net Income	$	1.7	$	0.4	311.4	%	$	4.1	$	1.5	165	%
Earnings per Share (Diluted)	$	0.05	$	0.01	500	%	$	0.12	$	0.04	200	%

Key Fourth Quarter Fiscal 2021 & Subsequent Operational Highlights:

• Advanced new internal search program to target and acquire complementary food product companies that are immediately accretive and meet stringent sales as well as other criteria.
• Received new authorizations representing up to 15,000 new spots on retailer shelves from national accounts, club stores and large regional retailers for introduction in early/mid-2021, indicating significant potential uptick in economic growth in U.S. for 2021.
• Secured additional new retailer commitments including new product placements at 220 Shop Rite locations, 500 Winn Dixie locations, 600 Sam’s Club locations, a commitment for a minimum of 500 Walmart locations (previously announced, but not committed) and 300 independent chain locations through distributor Krasdale Foods.
• Launched a major new national radio campaign with SiriusXM, which reaches more than 70 million people, to air an estimated 1,000 commercials in honor of the centennial of the arrival of Ana “Mama” Mancini to the United States.
• Appointed Connor Haley and Michael Stengel, prominent business and financial leaders with nearly 50 years of financial, hospitality and food service executive leadership experience, to the Company’s Board of Directors.
• Filed initial listing application with NASDAQ; Presented at leading virtual investor conferences including the ROTH Capital Growth Conference, Proactive’s One2One Virtual Investor Forum, the Benzinga Global Small Cap Conference and the Virtual Fall Investor Summit.

Management Commentary

“Our fiscal 2021 was a record year of growth despite intense hardships at the national level, driven by a shift in consumer purchasing power from restaurants to grocery stores in light of the COVID-19 pandemic,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “We continued to supply grocers throughout the pandemic with minimal impact on operations, launching effective new advertising campaigns and securing exciting new product placements on thousands of retailer shelves nationwide, expanding both the breadth and depth of our reach as a brand.

“To further supplement our incredible growth, we advanced a significant internal effort to explore potential acquisitions, focusing on companies with complementary products in the perimeter of the supermarket as well as exceptional operational and financial metrics. The ability to realize new distribution relationships and push an existing production through our already robust distributor network, all at an attractive valuation, is our chief goal. We will remain highly selective to ensure any target is accretive, reasonably valued and highly complementary to our core business. We look forward to additional announcements on this front as potential targets move through our due diligence pipeline.

“While fiscal 2021 was a record year, there are still extremely attractive growth areas for the core business as we enter fiscal 2022. From major box retailer engagements to hot bar placements at leading groceries nationwide, our outlook on the near-term food market remains optimistic. When taken in tandem with the new acquisition strategy as well as our recent application to uplist to the Nasdaq Capital Market, I believe that fiscal 2022 will mark another record year for our shareholders,” concluded Wolf.

Fourth Quarter and Fiscal 2021 Financial Results

Revenue for the fourth quarter of fiscal 2021 increased 1.4% to a record $10.0 million, compared to $9.9 million in the same year-ago quarter. Revenue for fiscal 2021 increased 20.8% to a record $40.8 million, compared to $33.8 million in fiscal 2020. The revenue increase for the year was a result of increased volume in Club Store accounts in the Spring and through new product introductions later in the year.

Gross profit increased 15% to $3.3 million, or 32.9% of total revenues, in the fourth quarter of fiscal 2021, compared to $2.9 million, or 29.0% of total revenues, in the same year-ago quarter. Gross profit increased 27.6% to $12.7 million, or 31.3% of total revenues, in fiscal 2021, compared to $10.0 million, or 29.6% of total revenues, in fiscal 2020. The increase in gross profit in the fourth quarter is primarily due to a change in customer mix to higher margin accounts including QVC.

Operating expenses totaled $2.4 million in the fourth quarter of fiscal 2021 compared to $2.2 million in the same year-ago quarter. As a percentage of sales, operating expenses increased in the fourth quarter of 2021 to 23.8% from 22.4%. Operating expenses totaled $9.3 million in fiscal 2021, compared to $7.9 million in fiscal 2020. As a percentage of sales, operating expenses decreased in fiscal 2021 at 22.7% of sales. Operating expense in the fourth quarter increased mainly due to a higher percentage of volume in higher margin accounts with higher merchandising support in direct relation to those accounts.

Net income for the fourth quarter of fiscal 2021 grew by a significant 311% to $1.7 million, or $0.05 per diluted share, as compared to a net income of $0.4 million, or $0.01 per diluted share, in the same year-ago quarter. Net income for fiscal 2021 grew 165% to a record $4.1 million, or $0.12 per diluted share, as compared to net income of $1.5 million, or $0.04 per diluted share, in fiscal 2020. The increase in net income was attributable to increased sales, higher gross margin and lower interest expenses, and a non-recurring deferred tax benefit of $0.74 million.

Cash and cash equivalents as of January 31, 2021 was $3.2 million, as compared to $0.4 million as of January 31, 2020. The increased cash balance benefitted from $3.7 million in cash flow from operations in fiscal 2021, proceeds from warrant redemptions, and offset by a paydown of debt.

Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss the Company’s fourth quarter 2021 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q4 2021 Earnings Conference Call
Date: Tuesday, April 20, 2020
Time: 4:30 p.m. Eastern time 
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 10154331
Webcast: https://dpregister.com/sreg/10154331/e6481a195e

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 April 27, 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 10154331.

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 Sams 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, 2019 and other filings made by the Company with the Securities and Exchange Commission.

Company Contact:
Carl Wolf
Chief Executive Officer
MamaMancini’s Holdings
(973) 985-0280
carl@mamamancinis.com

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.
Consolidated Balance Sheets

		January 31, 2021				January 31, 2020
Assets
Current Assets:
Cash		$	3,190,560			$	393,683
Accounts receivable, net			3,973,793				3,727,887
Inventories			1,195,211				1,246,417
Prepaid expenses			519,887				252,268
Total current assets			8,879,451				5,620,255
Property and equipment, net			2,963,602				2,805,843
Intangibles			87,639				-
Operating lease right of use assets, net			1,352,483				1,490,794
Deferred tax asset			744,973				-
Deposits			20,177				20,177
Total Assets		$	14,048,325			$	9,937,069
Liabilities and Stockholders’ Equity
Liabilities:
Current Liabilities:
Accounts payable and accrued expenses		$	3,707,111			$	3,552,790
Term loan			-				423,799
Operating lease liability			147,684				126,516
Finance leases payable			190,554				105,126
Total current liabilities			4,045,349				4,208,231
Line of credit – net			-				2,997,348
Operating lease liability – net			1,218,487				1,372,349
Finance leases payable – net			474,743				315,234
Notes payable - related party			-				641,844
Total long-term liabilities			1,693,230				5,326,775
Total Liabilities			5,738,579				9,535,006
Commitments and contingencies
Stockholders’ Equity:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of January 31, 2021 and 2020, 0 and 0 shares outstanding as of January 31, 2021 and 2020			-				-
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; 35,603,731 and 31,991,241 shares issued and outstanding as of January 31, 2021 and 2020			357				321
Additional paid in capital			20,535,793				16,695,352
Accumulated deficit			(12,076,904	)			(16,144,110	)
Less: Treasury stock, 230,000 shares at cost, respectively			(149,500	)			(149,500	)
Total Stockholders’ Equity			8,309,746				402,063
Total Liabilities and Stockholders’ Equity		$	14,048,325			$	9,937,069

MamaMancini’s Holdings, Inc.
Consolidated Statements of Income

		For the Years Ended January 31,
		2021				2020
Sales-net of slotting fees and discounts		$	40,758,605			$	33,750,465
Costs of sales			28,019,296				23,766,137
Gross profit			12,739,309				9,984,328
Operating expenses:
Research and development			110,713				114,626
General and administrative			9,150,748				7,786,278
Total operating expenses			9,261,461				7,900,904
Income from operations			3,477,848				2,083,424
Other expenses
Interest			(137,751	)			(482,995	)
Amortization of debt discount			(17,864	)			(67,735	)
Total other expenses			(155,615	)			(550,730	)
Net income before income tax provision			3,322,233				1,532,694
Income tax benefit			744,973				-
Net income		$	4,067,206			$	1,532,694
Net income per common share
– basic		$	0.12			$	0.05
– diluted		$	0.12			$	0.04
Weighted average common shares outstanding
– basic			33,431,524				31,949,803
– diluted			33,944,897				34,339,256

MamaMancini’s Holdings, Inc.
Consolidated Statements of Cash Flows

		For the Year Ended January 31,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	4,067,206			$	1,532,694
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			663,001				640,246
Amortization of debt discount			17,864				67,735
Share-based compensation			52,895				93,862
Amortization of right of use assets			138,311				109,036
Change in deferred tax asset			(744,973	)			-
Changes in operating assets and liabilities:
Accounts receivable			(245,906	)			(1,077,063	)
Inventories			51,206				101,172
Prepaid expenses			(267,619	)			(42,886	)
Accounts payable and accrued expenses			99,249				490,858
Operating lease liability			(132,694	)			(100,965	)
Net Cash Provided by Operating Activities			3,698,540				1,814,689
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets			(419,373	)			(268,106	)
Cash paid for intangible assets			(32,567	)			-
Net Cash Used in Investing Activities			(451,940	)			(268,106	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of related party notes payable			(641,844	)			-
Repayments of term loan			(441,663	)			(2,058,337	)
Proceeds from promissory note			330,505				-
Repayment of promissory note			(330,505	)			-
Borrowings (repayments) of line of credit, net			(2,997,348	)			385,314
Repayment of capital lease obligations			(156,450	)			(89,376	)
Proceeds from exercise of options			14,400				-
Proceeds from exercise of warrants			3,773,182				-
Net Cash Used in Financing Activities			(449,723	)			(1,762,399	)
Net Increase (Decrease) in Cash			2,796,877				(215,726	)
Cash - Beginning of Period			393,683				609,409
Cash - End of Period		$	3,190,560			$	393,683
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income taxes		$	-			$	-
Interest		$	174,735			$	548,894
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Operating lease liability		$	-			$	1,599,830
Finance lease asset additions		$	401,387			$	293,479
Common stock issued for services to be rendered		$	-			$	71,875
Acquisition of software via contract liability		$	55,072			$	-

FAQ

What are MamaMancini's Holdings Q4 2021 financial results?

MamaMancini's reported Q4 2021 net income of $1.7 million, a 311% increase, with revenues of $10 million.

How much did MamaMancini's revenue increase in fiscal 2021?

MamaMancini's revenue increased by 20.8% to $40.8 million in fiscal 2021.

What was the gross profit for MamaMancini's in Q4 2021?

Gross profit for Q4 2021 was $3.3 million, representing a 15% increase.

What new retailer engagements did MamaMancini's secure?

MamaMancini's secured shelf space in 220 Shop Rite, 500 Winn Dixie, and 600 Sam's Club locations.

What is the outlook for MamaMancini's in fiscal 2022?

The company anticipates further growth driven by new product placements and potential acquisitions.