TOFUTTI BRANDS INC. CRANFORD, N.J., Aug. 16, 2016 /PRNewswire/ -- TOFUTTI BRANDS INC. (NYSE MKT Symbol: TOF) today announced its results for the thirteen and twenty-six week periods ended July 2, 2016.
Tofutti Brands reported net sales for the thirteen weeks ended July 2, 2016 of $3,554,000, a decrease of $70,000, or 2%, compared to net sales of $3,624,000 for the thirteen weeks ended June 27, 2015. The Company's gross profit and gross profit percentage for the thirteen week period ending July 2, 2016 were approximately $1,184,000 and 33%, respectively, compared to $1,076,000 and 30%, respectively, for the period ending June 27, 2015. The increase in the gross profit and gross profit percentage in the 2016 thirteen week period was due primarily to the reduction in sales allowance expense. The Company had net income of $194,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended July 2, 2016, compared to a net loss of $24,000, or $0 per share (basic and diluted), for the thirteen weeks ended June 27, 2015.
Net sales for the twenty-six week period ended July 2, 2016 were $7,296,000, an increase of $529,000, or 8%, compared to net sales of $6,767,000 for the twenty-six week period ended June 27, 2015. The Company's gross profit and gross profit percentage for the twenty-six week period ending July 2, 2016 were $2,423,000 and 33%, respectively, compared to $1,822,000 and 27%, respectively, for the period ending June 27, 2015. The increase in the Company's gross profit and gross profit percentage was due primarily to the increase in sales and the decrease in the Company's promotional allowance programs in the twenty-six weeks ended July 2, 2016. The Company's net income for the twenty-six weeks ended July 2, 2016 was $324,000, or $0.06 per share (basic and diluted), compared to a net loss of $401,000, or ($0.08) per share (basic and diluted), for the twenty-six weeks ended June 27, 2015.
As of July 2, 2016, the Company had approximately $185,000 in cash and cash equivalents and its working capital was approximately $2.9 million, compared with approximately $55,000 in cash and cash equivalents and working capital of $2.0 million at January 2, 2016.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "In the second quarter of 2016, we were able to maintain profitable operations. Sales of our frozen dessert product line increased to $1,097,000 in the second quarter from $1,005,000 in the second quarter of 2015 as a result of improved frozen dessert novelty sales. Sales of soy-cheese products increased to $2,417,000 in the 2016 period from $2,378,000 in the 2015 period, primarily as a result of improved domestic sales. We are continuing to work diligently to achieve positive operating results for the remainder of 2016," concluded Mr. Mintz.
About Tofutti Brands Inc. Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of dairy-free products. The Company sells more than 80 milk-free foods including frozen desserts, cheese products and prepared frozen dishes throughout the United States and in more than 30 countries. 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 30 countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy, diabetic, kosher or vegan, as well as those who wish to have a healthier low-fat diet. Tofutti's product line includes dairy-free ice cream pints, Tofutti Cutie® sandwiches and novelty bars. Tofutti also has a growing array of prepared foods including Pizza Pizzaz® and Mintz's Blintzes®, all 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.
TOFUTTI BRANDS INC.
Condensed Statements of Operations
(in thousands, except per share figures)
Thirteen Thirteen Twenty-six Twenty-six
weeks ended weeks ended weeks ended weeks ended
July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015
------------ ------------- ------------ -------------
Net sales $3,554 $3,624 $7,296 $6,767
Cost of sales 2,370 2,548 4,873 4,945
----- ----- ----- -----
Gross profit 1,184 1,076 2,423 1,822
----- ----- ----- -----
Operating
expenses 982 1,097 2,080 2,215
--- ----- ----- -----
Income (loss)
before interest
expense 202 (21) 343 (393)
--- --- --- ----
Interest expense 6 -- 13 --
Income (loss)
before income
tax 196 (21) 330 (393)
--- --- --- ----
Income tax
expense 2 3 6 8
--- --- --- ---
Net income
(loss) $194 $(24) $324 $(401)
==== ==== ==== =====
Weighted average common
shares outstanding:
Basic and
diluted 5,154 5,154 5,154 5,154
===== ===== ===== =====
Net loss per common share:
Basic and
diluted $0.04 $(0.00) $0.06 $(0.08)
===== ====== ===== ======
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands, except share figures)
Assets July 2, January 2,
2016 2016*
---- ----
Current assets:
Cash and
cash
equivalents $185 $55
Accounts
receivable,
net of
allowance
for
doubtful 2,270 1,783
accounts and sales
promotions of $346
and $316
respectively
Inventories 1,853 1,473
Prepaid
expenses 40 74
Deferred
costs 96 101
--- ---
Total
current
assets 4,444 3,486
----- -----
Fixed assets (net of accumulated
depreciation of $11 and $8,
respectively)
18 21
Other assets 16 16
--- ---
$4,478 $3,523
====== ======
Liabilities and Stockholders'
Equity
Current liabilities:
Note
payable-
current $5 $5
Accounts
payable 1,269 1,117
Accrued
expenses 214 248
Deferred
revenue 103 113
--- ---
Total
current
liabilities 1,591 1,483
----- -----
Note
payable-
related
party 500 --
Note
payable-
long term 14 16
--- ---
Total
liabilities 2,105 1,499
----- -----
Commitments and contingencies
Stockholders' equity:
Preferred
stock -par
value $.01
per share;
authorized
100,000 -- --
shares, none issued Common stock
-par value $.01 per share;
authorized
15,000,000
shares,
issued and
outstanding 52 52
5,153,706 shares at
July 2, 2016 and
January 2, 2016
Additional
paid-in
capital 138 113
Retained
earnings 2,183 1,859
----- -----
Total
stockholders'
equity 2,373 2,024
----- -----
Total
liabilities
and
stockholders'
equity $4,478 $3,523
====== ======
* Derived from audited
financial information.
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SOURCE Tofutti Brands Inc.
