TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 3, 2021
Tofutti Brands Inc. (OTCQB: TOFB) reported its financial results for the thirteen and twenty-six weeks ending July 3, 2021. Net sales for the thirteen weeks were $3,027,000, down from $3,243,000 in 2020, primarily due to decreased vegan cheese and frozen dessert sales driven by manufacturing delays and product discontinuations. Gross profit decreased to $758,000, a 25% gross profit margin. Net income dropped to $28,000, or $0.01 per share. For the twenty-six weeks, net sales were $6,177,000, down from $6,469,000 with a net income of $108,000, or $0.02 per share. Cash reserves improved to $2,069,000.
- Increased cash reserves to $2,069,000, up from $1,459,000 at the start of the year.
- Operating activities generated $610,000, showing improved accounts receivable collection.
- Decrease in net sales by $216,000 for the thirteen weeks compared to 2020.
- Gross profit margin decreased from 31% to 25% for the thirteen-week period.
- Net income dropped by 80% for the thirteen weeks compared to the same period in 2020.
- Sales of vegan cheese decreased from $2,547,000 to $2,497,000 due to manufacturing delays.
Cranford, New Jersey, Aug. 17, 2021 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) today announced its results for the thirteen and twenty-six week periods ended July 3, 2021.
Tofutti Brands reported net sales for the thirteen weeks ended July 3, 2021 of
The Company’s gross profit decreased to
The Company had net income of
Net sales for the twenty-six week period ended July 3, 2021 were
The Company’s gross profit for the twenty-six week period ending July 3, 2021 was
The Company had net income of
As of July 3, 2021, the Company had approximately
Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We are pleased with our continued success in generating cash from operations which has resulted in our strong cash position at July 3, 2021. We believe that the production difficulties that impacted our revenues in 2021 have been resolved and that we are poised to achieve improved results during the remainder of this year,” 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 35 milk-free foods including cheese products, frozen desserts and prepared frozen dishes. 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 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 plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty bars. 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 the impact of COVID-19 on the economy and our operations, 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 and Financial Officer | |
| (908) 272-2400 | |
| (908) 272-9492 (Fax) |
TOFUTTI BRANDS INC.
Condensed Statements of Income
(in thousands, except per share figures)
| Thirteen weeks ended July 3, 2021 | Thirteen weeks ended June 27, 2020 | Twenty-six weeks ended July 3, 2021 | Twenty-six weeks ended June 27, 2020 | |||||||||||||
| Net sales | $ | 3,027 | $ | 3,243 | $ | 6,177 | $ | 6,469 | ||||||||
| Cost of sales | 2,269 | 2,228 | 4,418 | 4,458 | ||||||||||||
| Gross profit | 758 | 1,015 | 1,759 | 2,011 | ||||||||||||
| Operating expenses | 724 | 799 | 1,603 | 1,732 | ||||||||||||
| Income before interest expense and income taxes | 34 | 216 | 156 | 279 | ||||||||||||
| Interest expense | 6 | 7 | 12 | 13 | ||||||||||||
| Income before income tax | 28 | 209 | 144 | 266 | ||||||||||||
| Income tax expense | -- | 69 | 36 | 76 | ||||||||||||
| Net income | $ | 28 | $ | 140 | $ | 108 | $ | 190 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Diluted | 5,436 | 5,436 | 5,436 | 5,154 | ||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.04 | ||||||||
| Diluted | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.04 | ||||||||
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands, except share and per share figures)
| July 3, 2021 | January 2, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,069 | $ | 1,459 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of | 1,409 | 2,078 | ||||||
| Inventories | 2,031 | 1,997 | ||||||
| Prepaid income taxes | 29 | - | ||||||
| Prepaid expenses and other current assets | 41 | 88 | ||||||
| Total current assets | 5,579 | 5,622 | ||||||
| Equipment, net | 130 | 135 | ||||||
| Operating lease right-of-use assets | 170 | 224 | ||||||
| Deferred tax assets | 83 | 83 | ||||||
| Other assets | 24 | 19 | ||||||
| Total assets | $ | 5,986 | $ | 6,083 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| SBA loan payable | $ | 165 | $ | 112 | ||||
| Income taxes payable | - | 117 | ||||||
| Accounts payable | 360 | 219 | ||||||
| Accrued expenses | 363 | 535 | ||||||
| Total current liabilities | 888 | 983 | ||||||
| Convertible note payable-long term-related party | 500 | 500 | ||||||
| SBA loan payable, net of current portion | - | 53 | ||||||
| Operating lease liabilities | 66 | 123 | ||||||
| Total liabilities | 1,454 | 1,659 | ||||||
| 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, issued and outstanding 5,153,706 shares | 52 | 52 | ||||||
| Additional paid-in capital | 207 | 207 | ||||||
| Retained earnings | 4,273 | 4,165 | ||||||
| Total stockholders’ equity | 4,532 | 4,424 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,986 | $ | 6,083 | ||||
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