MamaMancini’s Reports First Quarter 2023 Financial Results

East Rutherford, New Jersey, UNITED STATES


Q1 Fiscal 2023 Revenues Increase 112% to Record $21.8 Million

EAST RUTHERFORD, NJ, June 15, 2022 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (NASDAQ: MMMB), a marketer and distributor of specialty pre-prepared all-natural foods, has reported its financial results for the fiscal first quarter ended April 30, 2022.

Financial Summary:

  Three Months Ended April 30, 
$ in millions 2022  2021  % Increase 
Revenues $21.8  $10.3   111.7%
Gross Profit $3.9  $3.3   15.4%
Operating Expenses $3.6  $2.5   44.4%
Net Income (Loss) $0.1  $0.6   -69.4%
Earnings per Share (Diluted) $0.00  $0.02   -83.6%
Adj. EBITDA (non-GAAP) $0.7  $1.1   -34.5%

Management Commentary

“The first quarter of fiscal 2023 saw record first quarter revenues for MamaMancini’s, reinforced by our recent acquisitions and bringing us significantly closer to our goal of a $100 million annualized sales run-rate by year-end,” said Carl Wolf, Chairman and CEO of MamaMancini’s. “As shared in our fourth quarter fiscal 2022 earnings call a few weeks ago, we have a strong, growing presence in the fresh prepared foods segment. To support these initiatives, we are focusing on product innovation based on customer feedback – creating promising favorites such as our new Original Meatballs in a Cup product – to better meet our customer’s multi-faceted needs.

“On the financial front, with non-recurring acquisition related expenses behind us, we returned to profitability and are beginning to enhance margins by rapidly passing along price increases to our customers. From an industry perspective, this phenomenon is new and unique to the inflationary environment we find ourselves in – but it should serve to fortify our margin profile going forward, regardless of future commodity cost increases. In addition, as commodity costs normalize and our input costs come down, we expect to further enhance long-term margins through the defense of our recent price increases.

“In summary, we continue to grow our national footprint while concurrently innovating on the product front, driving more SKUs per store. Our positioning as a national platform company is clear and we continue to see attractive multiples for companies in the food products space, providing an exciting pipeline of potential M&A opportunities as we see fit. We are incredibly well positioned to create sustainable, long-term value for my fellow shareholders, and I look forward to a strong cadence of operational execution in the quarters ahead,” concluded Wolf.

First Quarter 2023 Financial Results

Revenue for the first quarter of fiscal 2023 increased 111.7% to a record $21.8 million, as compared to $10.3 million in the same year-ago quarter. The revenue increase for the quarter was primarily a result of the first full quarter from the December 2021 acquisition of T&L Creative Salads, Inc. and Olive Branch LLC.

Gross profit increased to $3.9 million, or 17.7% of total revenues, in the first quarter of fiscal 2023, as compared to $3.3 million, or 32.4% of total revenues, in the same year-ago quarter. The margin compression was caused by inflation of raw materials, packaging and freight costs – as well as lower margins in the T&L Creative Salads and Olive Branch LLC business lines, partially offset by the low overhead of the acquired businesses. Management believes the balance between inflated raw materials costs and the Company’s price increases will normalize in the second quarter, returning gross profit margins to its historical range.

Operating expenses totaled $3.6 million in the first quarter of fiscal 2023, as compared to $2.5 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 16.5% in the first quarter of fiscal 2023, as compared to 24.2% in the same year-ago quarter. Operating expenses in the first quarter increased mainly due to transportation rate increases, fuel surcharges and acquisition related expenses.

Net income for the first quarter of fiscal 2023 totaled $0.1 million, or $0.00 per diluted share, as compared to a net income of $0.6 million, or $0.02 per diluted share, in the same year-ago quarter.

Adjusted EBITDA, a non-GAAP term, totaled $0.7 million for the first quarter of fiscal 2023, as compared to $1.1 million in the same year-ago quarter.

Cash and cash equivalents as of April 30, 2022 were $0.9 million, as compared to $0.9 million at January 31, 2022.

Conference Call

Management will host an investor conference call at 8:30 a.m. Eastern time on Wednesday, June 15, 2022 to discuss the Company’s first quarter fiscal 2023 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q1 2023 Earnings Conference Call
Date: Wednesday, June 15, 2022
Time: 8:30 a.m. Eastern time
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 6763386
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=nRgeAaeo

Please dial in at least five minutes before the start of the call to ensure timely participation.

A telephone playback of the call will be available through June 22, 2022. To listen, please call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally and use the replay pin number 6763386.

About MamaMancini’s Holdings, Inc.

MamaMancini's Holdings, Inc. (NASDAQ: MMMB) is a marketer and distributor of specialty pre-prepared, all-natural foods. MamaMancini’s broad product portfolio consists of meatballs, meatloaf, sausages and pasta bowls with beef, turkey, chicken and pork varieties – as well as an assortment of chicken-based dishes, olives, savory products and salads through its T&L Creative Salads and Olive Branch subsidiaries. The Company’s products are sold in over 45,000 locations nationwide, including at regional delis and well-known retailers such as Sam’s Club, ALDI Markets, Schnuck Markets, Whole Foods, Publix, ShopRite, Stop & Shop, Costco and Albertsons – as well as through national distributors such as Sysco and United Natural Foods. The Company also maintains a direct-to-consumer presence on QVC. For more information, please visit www.mamamancinis.com.

Use of Non-GAAP Financial Measures

This press release includes the following non-GAAP measure – adjusted EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, please see the reconciliation table shown in this press release below.

US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
       
  Three Months Ended April 30, 
  2022  2021 
Net Income $103,697  $631,524 
Depreciation $208,829  $183,761 
Amortization of Debt Discount $3,640   - 
Amortization of Right of Use Assets $69,344  $43,621 
Amortization of Intangibles $113,170   - 
Taxes $29,385  $247,949 
Interest $124,251  $10,430 
Non-Recurring Expenses (Income) $55,000  $(37,704)
Adjusted EBITDA $707,316  $1,079,581 

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, 2022 and other filings made by the Company with the Securities and Exchange Commission.

Investor Relations Contact:
Lucas A. Zimmerman
Director
MZ Group - MZ North America
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us

MamaMancini’s Holdings, Inc.
Condensed Consolidated Balance Sheets

  April 30, 2022  January 31, 2021 
  (unaudited)    
Assets        
         
Current Assets:        
Cash $921,260  $850,598 
Accounts receivable, net  8,998,584   7,627,717 
Inventories  4,168,691   2,890,793 
Prepaid expenses  498,448   269,209 
Total current assets  14,586,983   11,638,317 
         
Property and equipment, net  3,643,710   3,678,532 
Intangibles, net  1,871,809   1,984,979 
Goodwill  8,633,334   8,633,334 
Operating lease right of use assets, net  3,526,973   3,596,317 
Deferred tax asset  419,116   448,501 
Deposits  52,249   52,249 
Total Assets $32,734,174  $30,032,229 
         
Liabilities and Stockholders’ Equity        
         
Liabilities:        
Current Liabilities:        
Accounts payable and accrued expenses $7,548,460  $6,479,140 
Term loan, net of debt discount of $54,756 and $57,771, respectively  1,496,968   1,235,333 
Operating lease liability  359,869   292,699 
Finance leases payable  203,181   218,039 
Promissory note – related party  786,036   759,917 
Total current liabilities  10,394,514   8,985,128 
         
Line of credit  2,540,000   765,000 
Operating lease liability – net of current  3,184,197   3,339,255 
Finance leases payable – net of current  332,982   376,132 
Promissory note – related party, net of current  2,250,000   2,250,000 
Term loan – net of current  5,818,966   6,206,896 
Total long-term liabilities  14,126,145   12,937,283 
         
Total Liabilities  24,520,659   21,922,411 
         
Commitments and contingencies (Note 10)        
         
Stockholders’ Equity:        
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of April 30, 2022 and January 31, 2022, 0 and 0 shares outstanding as of April 30, 2022 and January 31, 2022  -   - 
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; 35,774,468 and 35,758,792 shares issued and outstanding as of April 30, 2022 and January 31, 2022  359   359 
Additional paid in capital  20,587,789   20,587,789 
Accumulated deficit  (12,225,133)  (12,328,830)
Less: Treasury stock, 230,000 shares at cost, respectively  (149,500)  (149,500)
Total Stockholders’ Equity  8,213,515   8,109,818 
Total Liabilities and Stockholders’ Equity $32,734,174  $30,032,229 


MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

       
  For the Three Months Ended April 30, 
  2022  2021 
Sales-net of slotting fees and discounts $21,830,580  $10,313,400 
         
Costs of sales  17,970,317   6,969,047 
         
Gross profit  3,860,263   3,344,353 
         
Operating expenses:        
Research and development  26,535   23,436 
General and administrative  3,572,755   2,468,718 
Total operating expenses  3,599,290   2,492,154 
         
Income from operations  260,973   852,199 
         
Other Income (Expense)        
Interest  (124,251)  (10,430)
Amortization of debt discount  (3,640)  - 
Other income  -   37,704 
Total other income (expense)  (127,891)  27,274 
         
Net income before income tax provision  133,082   879,473 
         
Income tax provision  (29,385)  (247,949)
         
Net income $103,697  $631,524 
         
Net income per common share        
– basic $0.00  $0.02 
– diluted $0.00  $0.02 
         
Weighted average common shares outstanding        
– basic  35,759,244   35,622,060 
– diluted  36,148,920   36,191,451 


MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

       
  For the Three Months Ended April 30, 
  2022  2021 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income $103,697  $631,524 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation  208,829   183,761 
Amortization of debt discount  3,640   - 
Amortization of right of use assets  69,344   43,621 
Amortization of intangibles  113,170   - 
Share-based compensation  -   501 
Change in deferred tax asset  29,385   247,949 
Changes in operating assets and liabilities:        
Accounts receivable  (1,370,867)  254,048 
Inventories  (1,277,898)  (243,258)
Prepaid expenses  (229,864)  15,453 
Accounts payable and accrued expenses  1,095,439   338,962 
Operating lease liability  (87,888)  (37,793)
Net Cash (Used in) Provided by Operating Activities  (1,343,013)  1,343,768 
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Cash paid for fixed assets  (174,007)  (354,394)
Net Cash Used in Investing Activities  (174,007)  (354,394)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Repayment of term loan  (129,310)  - 
Borrowings of line of credit, net  1,775,000   - 
Repayment of capital lease obligations  (58,008)  (46,658)
Proceeds from exercise of options  -   19,080 
Net Cash Provided by (Used in) Financing Activities  1,587,682   (27,578)
         
Net Increase in Cash  70,662   1,052,796 
         
Cash - Beginning of Period  850,598   3,190,560 
         
Cash - End of Period $921,260  $4,246,356 
         
SUPPLEMENTARY CASH FLOW INFORMATION:        
Cash Paid During the Period for:        
Income taxes $-  $- 
Interest $133,291  $10,430