Cranford, N.J., May 17, 2022 (GLOBE NEWSWIRE) — TOFUTTI BRANDS INC. (OTCQX symbol: TOFB) today released its results for the thirteen weeks ending April 2, 2022.
Tofutti Brands said net sales for the thirteen weeks ended April 2, 2022 increased $313,000, or 10%, to $3,463,000, from net sales of $3,150,000 for the thirteen weeks ended on April 3, 2021. Sales of our vegan cheese products increased to $2,916,000 in the 2022 period from $2,720,000 in the 2021 period. Sales of our frozen desserts and frozen food products, which consist primarily of frozen dessert products, increased to $547,000 in the thirteen weeks ended April 2, 2022 from $430,000 for the thirteen weeks ended April 3, 2021. We expect dollar sales to increase over the remainder of the current year as our price increases take full effect.
Our gross margin decreased to $857,000 for the period ending April 2, 2022 from $1,001,000 for the period ending April 3, 2021. Our gross margin percentage was 25% for the period ending April 2 April 2022, compared to 32% for the period ending April 3. , 2021. The decrease in our gross margin and gross margin percentage was caused by substantial increases in certain ingredients and transportation costs.
We recorded net earnings of $205,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended April 2, 2022, compared to net earnings of $80,000, or $0.02 (basic and diluted) per share, for the thirteen weeks ended April 3, 2021.
As of April 2, 2022, we had approximately $1,589,000 in cash and our working capital was approximately $4,533,000, compared to approximately $1,698,000 in cash and working capital of $4,326,000 as of January 1 2022. The decrease in cash in the thirteen weeks ended April 2, 2022 2022 was primarily due to reduced collections from accounts receivable and increased inventory on hand.
Mr. Steven Kass, Managing Director and Chief Financial Officer of the Company, said: “We are pleased with our continued success in generating cash from operations, which has resulted in our strong cash and working capital position at April 2, 2022. We believe that the production difficulties that affected our revenues in 2021 have been resolved and we are on track to improve our revenues,” concluded Mr. Kass.
About Tofutti Brands Inc.
Founded in 1981, Tofutti Brands Inc. develops and distributes a full line of herbal products. The Company sells over twenty-five (25) non-dairy foods, including cheese products and frozen desserts. Tofutti Brands Inc. is a recognized innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available in the United States and more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy products 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
Forward-looking statements
Some of the statements contained in this press release regarding the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Actual results may vary significantly based on a number of factors, including but not limited to the impact of COVID-19 on the economy and our operations, domestic and international business conditions, competitive , changes in product line or distribution channels, resource constraints encountered in the promotion and development of 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 |
| Managing Director/Financial Director | |
| (908) 272-2400 | |
| (908) 272-9492 (fax) |
TOFUTTI BRANDS, INC.
tax returns
(in thousands, except per share figures)
| Thirteen weeks over April 2, 2022 |
Thirteen weeks over April 3, 2021 |
|||||||
| Net sales | $ | 3,463 | $ | 3,150 | ||||
| Cost of sales | 2,606 | 2,149 | ||||||
| Gross profit | 857 | 1,001 | ||||||
| Operating costs : | ||||||||
| Sale and storage | 264 | 323 | ||||||
| Marketing | 156 | 70 | ||||||
| Product development costs | 40 | 39 | ||||||
| general and administrative | 337 | 447 | ||||||
| 797 | 879 | |||||||
| Income from operations | 60 | 122 | ||||||
| Other income: | ||||||||
| SBA loan forgiveness | 165 | — | ||||||
| Earnings before interest expense and income taxes | 225 | 122 | ||||||
| Interest expense | — | 6 | ||||||
| income before taxes | 225 | 116 | ||||||
| income tax expense | 20 | 36 | ||||||
| Net revenue | $ | 205 | $ | 80 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 5,154 | 5,154 | ||||||
| Diluted | 5,154 | 5,436 | ||||||
| Earnings per ordinary share: | ||||||||
| Basic and diluted | $ | 0.04 | $ | 0.02 | ||||
| Diluted | $ | 0.04 | $ | 0.02 | ||||
TOFUTTI BRANDS INC.
Balance sheets
(in thousands, except share and figures per share)
| April 2, 2022 | January 1, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Species | $ | 1,589 | $ | 1,698 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $310 and $435, respectively | 1,402 | 1,336 | ||||||
| Inventories | 2,412 | 1,874 | ||||||
| Prepaid expenses and other current assets | 45 | 98 | ||||||
| Total current assets | 5,448 | 5,006 | ||||||
| Operating lease right-of-use assets | 175 | 203 | ||||||
| Deferred tax assets | 110 | 112 | ||||||
| other assets | 19 | 21 | ||||||
| Total assets | $ | 5,752 | $ | 5,342 | ||||
| Liabilities and equity | ||||||||
| Current liabilities: | ||||||||
| SBA loan payable | $ | — | $ | 165 | ||||
| Taxes payable on income | 62 | 46 | ||||||
| Accounts payable | 369 | 122 | ||||||
| Increased expenses | 484 | 347 | ||||||
| Total current liabilities | 915 | 680 | ||||||
| Operating lease debts | 65 | 95 | ||||||
| Total responsibilities | 980 | 775 | ||||||
| Equity: | ||||||||
| Preferred shares – par value $0.01 per share; authorized 100,000 shares, none issued and outstanding | — | — | ||||||
| Common shares – par value $0.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding | 52 | 52 | ||||||
| Premium | 207 | 207 | ||||||
| Retained earnings | 4,513 | 4,308 | ||||||
| Full shareholder equity | 4,772 | 4,567 | ||||||
| Total Liabilities and Equity | $ | 5,752 | $ | 5,342 | ||||
