Record Sales and Net Income in Q3
Q3 Revenue Up 12%; $8.2 million vs. $7.4 million
Operating Income More Than Doubles to $536,000 vs. $258,000
Net Income Up 12x to $356,000 vs. Net Income of $29,000
Cash Flow from Operating Activities was $1,648,000 for 9 months
EAST RUTHERFORD, NJ, Dec. 11, 2018 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a manufacturer and marketer of specialty pre-prepared, frozen and refrigerated all-natural food products (as defined by the United States Department of Agriculture), today announced financial results for the third quarter of fiscal year 2019, ended October 31, 2018.
Third Quarter and Nine Months Highlights:
- Third quarter of fiscal year 2019 revenue increased 12% to $8.2 million compared to $7.4 million in prior year period.
- Net income available to common stockholders was a record $356,000, or $0.01 per diluted share, during the third quarter of fiscal 2019, compared to net income available to common stockholders of $29,000, or $0.00 per diluted share in the same quarter last year.
- EBITDA, for the third quarter was $710,000 compared to $386,000 in the third quarter of fiscal 2018.
- For the nine months sales increased 10% to $21.6 million versus $19.7 million during the comparable period of fiscal 2018.
- Net Income available to Common Shareholders for the nine months was $470,000 vs $102,000 in prior year.
- Cash Flow from Operating Activities for the nine months was $1,648,000. .
- The Company sold into approximately 45,200 SKU’s in 12,600 retail and grocery locations for the nine months ended October 31, 2018 as compared to approximately 43,500 SKU’s in 12,200 retail and grocery locations for the comparable period last year.
Carl Wolf, chairman and chief executive officer of MamaMancini’s Holdings, said, “We turned in a solid performance in the third quarter of fiscal 2019. Revenue increased 12% versus last year’s comparable quarter and net income increased dramatically on that revenue growth. We continue to manage expenses carefully and to set the stage for future growth. In that regard, we expect a strong finish to fiscal 2019 as our sales and marketing efforts have generated important authorizations from large national retailers that we believe will commence shipping late in our upcoming fourth quarter and throughout the first and second quarters of fiscal 2020.
Strategic Alternatives Initiative:
As previously announced, the Board of Directors has retained Akin Bay Company in partnership with Kernick Advisory Group, to investigate strategic options for the shareholders of MamaMancini’s. Akin Bay and Kernick Advisory Group are experienced independent investment bankers in the natural and organic foods category. Potential options could include, but not be limited to, strategic acquisitions, a merger with, or purchase by a larger strategic food company or investors or recapitalization of the Company. There is no guarantee that any transaction will occur. The Board intends to comment on this process when appropriate.
Conference Call
The Company has scheduled a conference call for Wednesday, December 12, 2018 at 9:00 a.m. ET, to review the results. Interested parties may participate on the conference call by dialing (844) 889-4326 or (412) 317-9264. A replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10126967, through December 19, 2018.
About MamaMancini's
MamaMancini's is a marketer and distributor of a line of beef meatballs, turkey meatballs, and chicken meatballs all with sauce, five cheese and mozzarella stuffed beef, turkey and chicken meatballs all with sauce, original beef and turkey meatloaves, stuffed pepper mix; sausage and peppers; chicken parmesan; pasta entrees; and other similar Italian cuisine products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Publix, Costco, Shop Rite, Jewel, Lunds and Byerlys, SuperValu, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Hannaford, Martins, Foodtown, Sam's Club, Topps, Kroger, Shoppers, King Kullen, Schnucks Markets, Central Markets, HEB, Stew Leonard’s, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, SUPERVALU, Monterrey Provision Co., Kehe, Burris Logistics and C&S Wholesale Grocers. In addition, the Company sells a wide variety of its products through QVC, the world's largest direct to consumer marketer, via on air presentations, auto ship programs, and direct purchases through the internet or phone.
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, 2017 and other filings made by the Company with the Securities and Exchange Commission.
Contact:
Carl Wolf
Chairman and CEO
MamaMancini’s Holdings, Inc.
Stock Symbol: MMMB
973-985-0280
Financial Tables to Follow
MamaMancini’s Holdings, Inc.
Condensed Consolidated Balance Sheets
| October 31, 2018 | January 31, 2018 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 460,089 | $ | 581,322 | ||||
| Accounts receivable, net | 3,223,311 | 3,084,715 | ||||||
| Inventories | 1,004,845 | 824,276 | ||||||
| Prepaid expenses | 204,485 | 261,980 | ||||||
| Total current assets | 4,892,730 | 4,752,293 | ||||||
| Property and equipment, net | 3,044,383 | 2,499,875 | ||||||
| Deposits | 20,177 | 20,177 | ||||||
| Total Assets | $ | 7,957,290 | $ | 7,272,345 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Liabilities: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 3,763,915 | $ | 3,456,918 | ||||
| Line of credit, net | 2,206,036 | 2,688,764 | ||||||
| Term loans | 315,540 | 106,938 | ||||||
| Capital leases payable | 53,730 | - | ||||||
| Notes payable – related party | 109,844 | - | ||||||
| Notes payable – net | 1,530,625 | 1,403,082 | ||||||
| Total current liabilities | 7,979,690 | 7,655,702 | ||||||
| Term loans - net of current | 568,920 | 651,677 | ||||||
| Capital leases payable – net of current | 173,177 | - | ||||||
| Note payable - net of current | - | 250,000 | ||||||
| Notes payable - related party | 532.000 | 649,656 | ||||||
| Total long-term liabilities | 1,274,097 | 1,551,333 | ||||||
| Total Liabilities | 9,253,787 | 9,207,035 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit: | ||||||||
| Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of October 31, 2018 and January 31, 2018, 0 and 23,400 shares outstanding as of October 31, 2018 and January 31, 2018 | - | - | ||||||
| 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; 31,866,241 and 31,753,437 shares issued and outstanding as of October 31, 2018 and January 31, 2018, respectively | 320 | 319 | ||||||
| Additional paid in capital | 16,512,832 | 16,344,794 | ||||||
| Accumulated deficit | (17,660,149 | ) | (18,130,303 | ) | ||||
| Less: Treasury stock, 230,000 shares, respectively | (149,500 | ) | (149,500 | ) | ||||
| Total Stockholders’ Deficit | (1,296,497 | ) | (1,934,690 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 7,957,290 | $ | 7,272,345 | ||||
MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
| For the Three Months Ended October 31, | For the Nine Months Ended October 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Sales-net of slotting fees and discounts | $ | 8,242,847 | $ | 7,351,355 | $ | 21,625,671 | $ | 19,714,090 | ||||||||
| Costs of Sales | 5,555,359 | 4,979,504 | 14,047,647 | 13,047,131 | ||||||||||||
| Gross profit | 2,687,488 | 2,371,851 | 7,578,024 | 6,666,959 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 31,628 | 10,316 | 98,807 | 77,647 | ||||||||||||
| General and administrative | 2,119,751 | 2,103,081 | 6,259,769 | 5,767,759 | ||||||||||||
| Total operating expenses | 2,151,379 | 2,113,397 | 6,358,576 | 5,845,406 | ||||||||||||
| Income from operations | 536,109 | 258,454 | 1,219,448 | 821,553 | ||||||||||||
| Other expenses | ||||||||||||||||
| Interest expense | (160,275 | ) | (198,662 | ) | (639,857 | ) | (571,584 | ) | ||||||||
| Amortization of debt discount | (20,073 | ) | (30,447 | ) | (110,024 | ) | (56,457 | ) | ||||||||
| Total other expenses | (179,761 | ) | (229,109 | ) | (749,294 | ) | (628,041 | ) | ||||||||
| Net income | 356,348 | 29,345 | 470,154 | 193,512 | ||||||||||||
| Less: preferred dividends | - | - | - | (91,565 | ) | |||||||||||
| Net income available to common stockholders | $ | 356,348 | $ | 29,345 | $ | 470,154 | $ | 101,947 | ||||||||
| Net income per common share - basic | $ | 0.01 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||
| Net income per common share - diluted | $ | 0.01 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||
| Weighted average common shares outstanding – basic | 31,866,241 | 31,503,665 | 31,833,519 | 29,152,736 | ||||||||||||
| Weighted average common shares outstanding – diluted | 32,489,369 | 33,283,110 | 32,459,307 | 30,932,181 | ||||||||||||
MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| For the Nine Months Ended | ||||||||
| October 31, 2018 | October 31, 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 470,154 | $ | 193,512 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 511,878 | 368,604 | ||||||
| Amortization of debt discount | 110,029 | 56,457 | ||||||
| Share-based compensation | 128,039 | 229,400 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) Decrease in: | ||||||||
| Accounts receivable | (138,596 | ) | (1,041,370 | ) | ||||
| Inventories | (180,569 | ) | (288,175 | ) | ||||
| Prepaid expenses | 83,347 | 56,806 | ||||||
| Increase (Decrease) in: | ||||||||
| Accounts payable and accrued expenses | 664,143 | 1,604,562 | ||||||
| Net Cash Provided by Operating Activities | 1,648,425 | 1,179,796 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash paid for fixed assets | (1,026,386 | ) | (1,411,786 | ) | ||||
| Net Cash Used in Investing Activities | (1,026,386 | ) | (1,411,786 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of note payable - related party | (7,812 | ) | - | |||||
| Repayment of term loan | (174,155 | ) | (105,003 | ) | ||||
| Borrowings from term loan | 300,000 | 251,671 | ||||||
| Repayment of note payable | (600,000 | ) | (950,000 | ) | ||||
| Borrowings (repayments) of line of credit, net | (467,087 | ) | 940,775 | |||||
| Proceeds from capital lease | 213,250 | - | ||||||
| Repayment of capital lease obligations | (16,343 | ) | - | |||||
| Debt extension fees | (31,125 | ) | - | |||||
| Proceeds from exercise of options | 40,000 | - | ||||||
| Net Cash Provided by (Used in) Financing Activities | (743,272 | ) | 137,443 | |||||
| Net Decrease in Cash | (121,233 | ) | (94,547 | ) | ||||
| Cash - Beginning of Period | 581,322 | 670,807 | ||||||
| Cash - End of Period | $ | 460,089 | $ | 576,260 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash Paid During the Period for: | ||||||||
| Income taxes | $ | - | $ | - | ||||
| Interest | $ | 302,034 | $ | 535,685 | ||||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Accrued interest on note payable reclassified to principal | $ | 386,021 | $ | - | ||||
| Capital lease asset additions | $ | 30,000 | $ | - | ||||
| Stock issued for Series A Preferred dividends | $ | - | $ | 91,565 | ||||
| Debt issuance costs included in principal balance of note | $ | - | $ | 52,236 | ||||