Sales increased 30% compared to the first quarter 2015
Cash Flow from Operations improved $873K from prior year and $940K sequentially
Chief Executive Officer and Board of Directors Invest an aggregate of $850K of $1M Private Placement
Company to hold quarterly conference call on Tuesday, June 16, 2015
EAST RUTHERFORD, N.J., June 12, 2015 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (the "Company" or "MamaMancini's") (OTCQB:MMMB), a marketer of specialty pre-prepared, frozen and refrigerated all natural food products (as defined by the United States Department of Agriculture), today announced its financial results for fiscal first quarter 2016 ended April 30, 2015.
Business and Financial Highlights
- Sales increased 30% compared to fiscal first quarter 2015
- Cash Flow from Operations improved $873K from prior year and $940K sequentially
- Company conducted initial closing of $1M private placement of convertible preferred equity financing to strengthen the balance sheet, including $600K investment from Carl Wolf, Chief Executive Officer, and $250K from the Board of Directors
- Launched new Kettle Program for Bulk Pack Meatballs
- Received authorizations to ship products to major new accounts that include A&P, Food Emporium, Waldbaums, Lowes, Food City, Spartan/Nash, Shaws and Weis Supermarkets
- Expects to begin selling products on QVC in June
- Partnered with Groucho's Deli to launch "Meatball Dipper" in 27 franchised locations
Sales were $3,353,279 for the fiscal quarter ended April 30, 2015, an increase of 29.8% from $2,583,149 for the fiscal quarter ended April 30, 2014. The increase in sales is primarily related to the Company's execution of its expansion strategy. The Company has sold into approximately 37,600 retail and grocery locations as of April 30, 2015, as compared to approximately 26,000 locations at April 30, 2014.
The Company's net loss for the fiscal quarter ended April 30, 2015 was $(1,094,556) or $(0.04) per diluted share compared to a net loss of $(700,889) in the prior year or $(0.03) per diluted share. The change in net loss was mainly attributable to the increase in non operating expenses of $260,000 consisting of depreciation, debt fees and debt discount amortization, and interest and to a lesser extent $(134,000) to support the Company's growth efforts to increase brand awareness. Please refer to the Company's 10Q for the quarter ending April 30, 2015, which was filed on June 12, 2015, for more detailed information on the Company's balance sheet, operations and cash flow.
On June 11, 2015, the Company conducted the initial closing of a private placement offering of a minimum of $1,000,000 of 20 units (the "Minimum Offering") up to $10,000,000 or 200 units (the "Maximum Offering"), subject to increase of the Maximum Offering by up to $2,000,000, or an additional 40 units (the "Over-Allotment"), of the Company's Series A Convertible Preferred Stock (the "Series A Preferred") and warrants (the "Warrants") to purchase the Company's common stock to accredited investors (the "Offering"). Each Unit is comprised of (i) five hundred (500) shares of Series A Preferred (the "Unit Shares") convertible into the Company's common stock at a conversion price of $1.25 per share and (ii) one (1) Warrant to purchase 100% of the number of Conversion Shares (as defined below) initially issuable upon conversion of the Unit Shares to the purchaser at the exercise price of $1.25 per share. Each registered holder of Unit Shares shall have the right, at any time commencing after the issuance, to convert the stated value ($100 per Unit Share) of such shares, as well as accrued but unpaid declared dividends on the Series A Preferred into fully paid and non-assessable shares of Common Stock of the Company (the "Conversion Shares"). The Company is utilizing the services of Spartan Capital Securities, LLC, a FINRA registered placement agent for the Offering. Additional details of the financing are available in the 8K filed with the SEC on June 12, 2015.
Carl Wolf, Chief Executive Officer of MamaMancini's, commented, "We are excited to report another quarter of strong top line growth. With significant opportunities for expansion, we remain focused on our strategic growth initiatives while also conservatively managing our balance sheet. We were able to increase our cash flow on a year over year basis as well as sequentially with a reduction in accounts receivables and outstanding asset based loans. With a better cash flow profile and a recent $1.0 million preferred equity financing, MamaMancini's has increased capital support to grow the business. We are focused on conservatively allocating the proceeds for expansion, as we recently reduced our monthly cash expenses significantly. We are prudently marketing to build brand awareness for our all natural products that supports the burgeoning trend for healthier and fresher foods."
"With what we believe to be compelling industry demand, there are tremendous opportunities ahead of us that will support the revenue trajectory of the Company. We continue to add retailers to our large roster of clients while also expanding our reach within these same retailers. We were able to recently announce new authorizations for 105 Food City locations in the Southeast, 97 Marsh Food Stores in the Midwest and 97 Lowes Food also in the Southeast, with orders expected in the next couple of months. We are also expanding our product offerings as we see opportunity to penetrate new markets while also gradually shifting from the frozen food aisle to the fresh market and deli department within our core retailers, which offers a higher margin profile. We are making inroads in the food service industry with the Kettle Program, which represents yet another growth pillar for the Company," Mr. Wolf added.
"The growth prospects for the Company are significant and with my prior experience in the industry, we are equipped to bring the Company into the next phase of its expansion. We remain focused on shareholder value and look forward to continued success," concluded Mr. Wolf.
The Company will have its quarterly earnings call on Tuesday, June 16, 2015 at 8:30AM EDT. Interested parties may participate in the call by dialing 1-877-407-9124 (domestic) or 1-201-689-8584 (international) 5-10 minutes prior to the start time. The conference call will be available for replay starting at 12:00PM EDT on June 16, 2015 and ending on July 16, 2015 at 11:59PM EDT. For the replay, please dial 1-877-660-6853 (domestic) or 1-201-612-7415 (international) and use access code 13611395.
The call will be available via webcast on the Company's website at www.MamaMancinis.com or www.InvestorCalendar.com.
| Condensed Consolidated Statements of Operations | ||
| For the Three Months Ended | ||
| April 30, 2015 | April 30, 2014 | |
| (unaudited) | (unaudited) | |
| Sales - net of slotting fees and discounts | $ 3,353,279 | $ 2,583,149 |
| Cost of sales | 2,408,299 | 1,780,225 |
| Gross profit | 944,980 | 802,924 |
| Operating expenses | ||
| Research and development | 23,079 | 18,901 |
| General and administrative expenses | 1,783,122 | 1,468,278 |
| Total operating expenses | 1,806,201 | 1,487,179 |
| Loss from operations | (861,221) | (684,255) |
| Other expense | ||
| Interest expense | (233,335) | (16,634) |
| Total other expense | (233,335) | (16,634) |
| Net loss | $ (1,094,556) | $ (700,889) |
| Net loss per common share - basic and diluted | $ (0.04) | $ (0.03) |
| Weighted average common shares outstanding - basic and diluted | 26,057,141 | 24,711,719 |
| Condensed Consolidated Balance Sheets | ||
| April 30, 2015 | January 31, 2015 | |
| (unaudited) | ||
| Assets | ||
| Assets: | ||
| Cash | $ 399,967 | $ 854,995 |
| Accounts receivable, net | 1,265,277 | 2,233,211 |
| Inventories | 469,345 | 301,170 |
| Prepaid expenses | 112,258 | 107,242 |
| Due from manufacturer - related party | 2,205,416 | 2,213,037 |
| Deferred offering costs | 10,000 | -- |
| Total current assets | 4,462,263 | 5,709,655 |
| Property and equipment, net | 1,123,039 | 1,124,745 |
| Debt issuance costs, net | 90,052 | 101,197 |
| Total Assets | $ 5,675,354 | $ 6,935,597 |
| Liabilities and Stockholders' Equity | ||
| Liabilities: | ||
| Accounts payable and accrued expenses | $ 992,653 | $ 1,216,436 |
| Line of credit | 946,319 | 1,409,098 |
| Term loan | 120,000 | 120,000 |
| Total current liabilities | 2,058,972 | 2,745,534 |
| Term loan - net of current | 410,000 | 440,000 |
| Demand notes | 450,000 | -- |
| Convertible note - net of debt discount | 1,646,680 | 1,587,447 |
| Total long-term liabilities | 2,506,680 | 2,027,447 |
| Total Liabilities | 4,565,652 | 4,772,981 |
| Commitments and contingencies | ||
| Stockholders' Equity | ||
| Preferred stock, $0.00001 par value; 20,000,000 shares authorized; no shares issued and outstanding | -- | -- |
| Common stock, $0.00001 par value; 250,000,000 shares authorized; 26,085,916 and 26,047,376 shares issued and outstanding, respectively | 260 | 260 |
| Additional paid in capital | 12,807,758 | 12,766,116 |
| Common stock subscribed, $0.00001 par value; 66,667 and 66,667 shares, respectively | 1 | 1 |
| Accumulated deficit | (11,698,317) | (10,603,761) |
| Total Stockholders' Equity | 1,109,702 | 2,162,616 |
| Total Liabilities and Stockholders' Equity | $ 5,675,354 | $ 6,935,597 |
About MamaMancini's
MamaMancini's is a marketer and distributor of a line of all natural, beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian 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 Costco, Publix, Shop Rite, Price Chopper, A&P, Waldbaums, Food Emporium, Harris Teeter, SaveMarts, Luckys, Lunds/Byerly's, SuperValu, Raley's, BJ's, Whole Foods, Shaw's Supermarkets, Kings, Key Foods, Stop-n-Shop, Giant Stores, Giant Eagle, Food Town, Kroger, Winn Dixie Shoppers, Marsh's Supermarkets, Bi-Lo, Central Markets, Weis Markets, Ingles, and The Fresh Market.
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, 2015 and other filings made by the Company with the Securities and Exchange Commission.
To be added to the MamaMancini's email news distribution list, please email MMMB@kcsa.com with MMMB in the subject line.