MamaMancini’s Reports Fourth Quarter and Fiscal Year 2023 Financial Results

East Rutherford, New Jersey, UNITED STATES

Ongoing Margin Enhancement Initiatives Sequentially Grow Gross Margins to 28.2% with $1.8 Million in Net Income in the Fourth Quarter

Company Grows Cash Position to $4.4 Million as of January 31, 2023; Concurrently Pays Down $3.2 Million in Debt in the Second Half of Fiscal 2023

EAST RUTHERFORD, NJ, April 26, 2023 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (NASDAQ: MMMB), a leading national marketer and manufacturer of fresh Deli prepared foods, has reported its financial results for the fourth quarter and fiscal year ended January 31, 2023.

Financial Summary:

  Three Months Ended Jan. 31,  Fiscal Year Ended Jan. 31, 
$ in millions 2023  2022  % Increase  2023  2022  % Increase 
Revenues $22.8  $13.9   64% $93.2  $47.1   98%
Gross Profit $6.4  $2.6   147% $19.4  $11.9   64%
Operating Expenses $4.5  $4.0   14% $16.6  $11.8   41%
Net Income (Loss) $1.8  $(1.3)  241% $2.3  $(0.3)  1,014%
Earnings per Share (Diluted) $0.06  $(0.04)  250% $0.06  $(0.01)  700%
Adj. EBITDA (non-GAAP) $2.3  $(0.8)  374% $4.3  $1.1   282%

Key Fourth Quarter Fiscal 2023 & Subsequent Operational Highlights:

  • Hired 20-year supply chain veteran Joselina Peralta as Chief Procurement Officer and SVP of End to End Supply Chain, with the objective of optimizing procurement activities across both manufacturing facilities to further enhance the Company’s gross margin profile.
  • Strengthened corporate governance with the appointment of seasoned human resources executive Meghan Henson as well as digital-first operations executive Shirley Romig to the Board of Directors, who each bring more than 20 years of experience in their respective fields.
  • Invited to present at leading investor conferences nationally, including the 35th Annual ROTH Conference and the Diamond Equity Research Emerging Growth Invitational – in addition to hosting a successful in-person Investor Day in East Rutherford, NJ.
  • Continued to expand the breadth and depth of the business, both from new customers as well as from an average items carried perspective in existing customers, with new grocery and club store customers in the West and Midwest, including opening new regions with a major club store chain and selling additional items into another major club store chain.

Management Commentary

“The fourth quarter of fiscal 2023 was underscored by continuous improvement in our gross margin profile – which drove strong sequential net income growth, even with the seasonality we typically see in the fourth quarter,” said Adam L. Michaels, Chairman and CEO of MamaMancini’s. “These initial improvements in procurement, manufacturing and logistics are just the beginning – which when paired with our continued efforts to sell more items into our existing retailer partners through the pending buildout of our sales and marketing capabilities in the coming months – positions us to continue to gain market share in a highly profitable manner.

“Since I took the role of CEO, the team has been highly focused on the continuous foundational improvement of our 3 ‘Cs’ – namely our Cost, Controls and Culture. New approaches to cost management have driven procurement and logistics savings, driving a fourth quarter gross margin improvement of over 950 basis points year-over-year and 260 basis points sequentially – enabling us to achieve $1.8 million of net income and pay down $1.3 million in debt in the fourth quarter alone.

“Given these tailwinds, I believe we can improve our normalized gross margin profile from the mid-20% range to the upper 20% range this year. Longer term, considering the recent appointment of our new Chief Procurement Officer, the strength of our new Logistics Director, and the continuous optimization of our operations, we could return to a gross margin profile north of 30%. While we are currently targeting mid-single-digit net income margins, I firmly believe that over the long term we can improve this figure to approximately 10% with adjusted EBITDA margins in the teens percentage range.

“On the corporate governance front, we recently strengthened our Board with the appointment of two qualified independent directors. Meghan Henson’s deep knowledge and experience in the human resources field will be an invaluable asset to the Company as we evolve into a truly national platform company. Shirley Romig’s corporate governance skills and experience building and leading public companies through various stages of maturity using digital-first social media strategies further strengthens our Board and will enable us to better connect with new demographics.

“Our aspiration is to build upon this strong foundation to realize sequential increases in profitability throughout fiscal 2024 – enabled by increasing average items carried, penetrating new retailers and further strengthening our margin profile. Accomplishing this through the impending buildout of our sales and marketing organization, paired with future acquisitions to further build our in-house capabilities and product suite, will allow us to become a first-of-kind national deli solutions company – all with the goal of delivering sustainable, long-term value to my fellow shareholders,” concluded Michaels.

Fourth Quarter and Fiscal 2023 Financial Results

Revenue for the fourth quarter of fiscal 2023 increased 64% to $22.8 million, as compared to $13.9 million in the same year-ago quarter. Revenue for fiscal 2023 increased 98% to a $93.2 million, as compared to $47.1 million in the prior year. The increase is attributable to strong organic growth across all divisions – chiefly through cross selling – as well as by inorganic growth through the acquisition of T&L and Olive Branch.

Gross profit increased 147% to $6.4 million, or 28.2% of total revenues, in the fourth quarter of fiscal 2023, as compared to $2.6 million, or 18.7% of total revenues, in the same year-ago quarter. Gross profit increased 64% to $19.4 million, or 20.8% of total revenues, in fiscal 2023, as compared to $11.9 million, or 25.2% of total revenues, in the prior year. The increase in gross margin in the fourth quarter was attributable to the normalization of commodity costs, successful pricing actions and improvements in operational efficiencies across the organization. The Company continues to identify procurement and logistics efficiencies and cost savings through stronger buying power created through the acquisitions of T&L Creative Salads and Olive Branch.

Operating expenses totaled $4.5 million in the fourth quarter of fiscal 2023, as compared to $4.0 million in the same year-ago quarter. As a percentage of sales, operating expenses decreased in the fourth quarter of 2023 to 19.9% from 28.8%. Operating expenses totaled $16.6 million in fiscal 2023, as compared to $11.8 million in fiscal 2022. As a percentage of sales, operating expenses decreased in fiscal 2023 to 17.8% of sales, as compared to 25.0% in the prior year. Operating expenses, as a percentage of sales, benefited from synergies created through the acquisitions of T&L and Olive Branch.

Net income for the fourth quarter of fiscal 2023 was $1.8 million, or $0.06 per diluted share, as compared to a net loss of $1.3 million, or ($0.04) per diluted share, in the same year-ago quarter. Net income for fiscal 2023 was $2.3 million, or $0.06 per diluted share, as compared to net loss of $0.3 million, or ($0.01) per diluted share, in the prior year. The fourth quarter was impacted by a one-time book-to-tax adjustment that improved net income by approximately $0.5 million. Without this one-time benefit, net income still saw robust sequential improvement to $1.3 million, representing net income margins in the high 5% range, in-line with the Company’s expectation in the mid-single-digit range.

Adjusted EBITDA, a non-GAAP term, increased to $2.3 million for the fourth quarter of fiscal 2024, as compared to ($0.8) million in the same year-ago quarter. Adjusted EBITDA increased to $4.3 million in fiscal 2023, as compared to $1.1 million in the prior year.

Cash and cash equivalents as of January 31, 2023 were $4.4 million, as compared to $0.9 million as of January 31, 2022. The increase in cash and cash equivalents was driven by $2.3 million in cash flow from operations in the fourth quarter of fiscal 2023, $1.3 million of which was used to pay down the Company’s long-term debt, bringing the total debt retired in the second half of fiscal 2023 to $3.2 million.

Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss the Company’s fourth quarter & fiscal year 2023 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q4 & FY2023 Earnings Conference Call
Date: Wednesday, April 26, 2023
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-877-451-6152
International Dial-in: 1-201-389-0879
Conference ID: 13737915

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

A playback of the call will be available through Friday, May 26, 2023. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13737915. A webcast replay will also be available using the webcast link above.

About MamaMancini’s Holdings, Inc.

MamaMancini's Holdings, Inc. (NASDAQ: MMMB) is a leading marketer and manufacturer of prepared foods with over 45,000 product placements in grocery, mass, club and convenience stores nationally. The Company’s broad product portfolio, born from a rich history in Italian foods, now consists of a variety of high quality, fresh, clean and easy to prepare foods to address the needs of both our consumers and retailers. Our vision is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to offer a wide array of prepared foods to meet the changing demands of the modern consumer. For more information, please visit

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.


 January 31, January 31,
  2023 2022   2023 2022 
Net Income (Loss)$1,822,626  $(1,309,920) $2,268,604  $(251,926)
Depreciation 242,008   207,204   920,718   779,442 
Amortization of Debt Discount 12,451   2,437   22,121   2,437 
Amortization of Right of Use Assets 4,881   27,657   16,680   190,798 
Amortization of Intangibles 115,183   43,660   482,469   43,660 
Taxes (96,975)  94,841   (9,104)  296,472 
Interest 186,730   100,197   633,889   73,487 
Adjusted EBITDA (Non-GAAP)$2,286,904  $(833,924) $4,337,400  $1,136,392 

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, 2023 and other filings made by the Company with the Securities and Exchange Commission.

Investor Relations Contact:
Lucas A. Zimmerman
MZ Group - MZ North America
(949) 259-4987

MamaMancini’s Holdings, Inc.
Consolidated Balance Sheets

  January 31, 2023  January 31, 2022 
Current Assets:        
Cash $4,378,383  $850,598 
Accounts receivable, net  6,832,046   7,627,717 
Inventories, net  3,635,881   2,890,793 
Prepaid expenses and other current assets  828,391   269,209 
Total current assets  15,674,701   11,638,317 
Property and equipment, net  3,423,096   3,678,532 
Intangibles, net  1,502,510   1,984,979 
Goodwill  8,633,334   8,633,334 
Operating lease right of use assets, net  3,236,690   3,596,317 
Deferred tax asset  717,556-   448,501 
Equity method investment  1,343,486   - 
Deposits  53,819   52,249 
Total Assets $ 34,587,320  $30,032,229 
Liabilities and Stockholders’ Equity:        
Current Liabilities:        
Accounts payable and accrued expenses $9,065,389  $6,479,140 
Term loan, net of debt discount of $60,082 and $57,771, respectively  1,491,642   1,235,333 
Operating lease liability  391,802   292,699 
Finance leases payable  182,391   218,039 
Promissory note – related party  750,000   759,917 
Total current liabilities  11,881,224   8,985,128 
Line of credit  890,000   765,000 
Operating lease liability – net of current  2,897,205   3,339,255 
Finance leases payable – net of current  248,640   376,132 
Promissory note – related party, net of current  1,500,000   2,250,000 
Term loan – net of current  4,655,173   6,206,896 
Total long-term liabilities  10,191,018   12,937,283 
Total Liabilities  22,072,242   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 January 31, 2023 and January 31, 2022, 0 shares outstanding as of January 31, 2023 and January 31, 2022  -   - 
Series B Preferred stock, $0.00001 par value; 200,000 shares authorized; 54,600 and 0 issued and outstanding as of January 31, 2023 and January 31, 2022  -   - 
Preferred stock, $0.00001 par value; 19,680,000 shares authorized; no shares issued and outstanding  -   - 
Common stock, $0.00001 par value; 250,000,000 shares authorized; 36,317,857 and 35,758,792 shares issued and outstanding as of January 31, 2023 and January 31, 2022  364   359 
Additional paid in capital  22,724,440   20,587,789 
Accumulated deficit  (10,060,026)  (12,328,830)
Less: Treasury stock, 230,000 shares at cost  (149,500)  (149,500)
Total Stockholders’ Equity  12,515,078   8,109,818 
Total Liabilities and Stockholders’ Equity $ 34,587,320  $30,032,229 

MamaMancini’s Holdings, Inc.
Consolidated Statements of Operations

  For the Years Ended
January 31,
  2023  2022 
Sales-net of slotting fees and discounts $93,187,621  $47,083,740 
Costs of sales  73,769,359   35,229,867 
Gross profit  19,418,262   11,853,873 
Operating expenses:        
Research and development  135,141   120,692 
General and administrative  16,461,467   11,650,414 
Total operating expenses   16,596,608   11,771,106 
Income from operations   2,821,654   82,767 
Other income (expenses)        
Interest  (633,889)  (73,487)
Amortization of debt discount  (22,121)  (2,438
Other income  2,648   37,704 
Total other income (expenses)  (653,362)  (38,221)
Net income before income tax provision and income from equity method investment   2,168,292   44,546 
Income from equity method investment  143,486   - 
Income tax provision  (9,104)  (296,472)_ 
Net income (loss)  2,302,674   (251,926)
Less: series B preferred dividends  (34,070)  - 
Net income (loss) available to common stockholders   2,268,604  $(251,926)
Net income (loss) per common share        
– basic $0.06  $(0.01)
diluted $0.06  $(0.01)
Weighted average common shares outstanding        
– basic  36,093,858   35,702,197 
diluted  36,494,178   35,702,197 

MamaMancini’s Holdings, Inc.
Consolidated Statements of Cash Flows

  For the Years Ended January 31, 
  2023   2022  
Net income (loss) $2,302,674   $(251,926) 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation  920,718    779,442  
Provision for doubtful accounts  233,000    -  
Amortization of debt discount  22,121    2,437  
Amortization of right of use assets  16,680    190,798  
Amortization of intangibles  482,469    43,660  
Share-based compensation  110,006    32,918  
Change in deferred tax asset  (271,183)   296,472  
Income from equity method investment  (143,486 )  -  
Changes in operating assets and liabilities:        
Accounts receivable   562,671    (938,409 
Inventories  (745,088 )  (474,527 )
Prepaid expenses  (174,460 )  254,220  
Security deposits  (1,570   (32,072 )
Accounts payable and accrued expenses   2,191,610    1,175,677  
Operating lease liability  -    (168,849 )
Net Cash Provided by Operating Activities  5,506,162    909,841  
Cash paid for fixed assets  (593,214 )  (862,415 )
Cash paid for equity method investment  (500,000 )  -  
Acquisition of companies – net of cash acquired  -    (10,408,542 )
Net Cash (Used in) Investing Activities  (1,093,214 )  (11,270,957 )
Proceeds from preferred stock offering  1,365,000    -  
Payment of stock offering costs  (64,600 )  -  
Borrowings from term loan  -    7,500,000  
Cash paid for financing fees  -    (63,750 )
Repayment of term loan  (1,317,535 )  -  
Borrowings of line of credit, net  125,000    765,000  
Repayment of term loan - related party  (750,000 )  -  
Repayment of finance lease obligations  (235,208 )  (199,176 )
Payment of Series B Preferred dividends  (34,070 )  -  
Proceeds from exercise of options  26,250    19,080  
Net Cash (Used in) Provided by Financing Activities  (885,163   8,021,154  
Net Increase (Decrease) in Cash  3,527,785    (2,339,962 
Cash - Beginning of Period  850,598    3,190,560  
Cash - End of Period $4,378,383   $850,598  
Cash Paid During the Period for:        
Income taxes $9,170   $-  
Interest $633,827   $52,221  
Finance lease asset additions $72,068   $128,050  
Operating lease asset additions $-   $2,457,502  
Related party loan to finance acquisition $-   $3,000,000  
Non-cash consideration paid in common stock for equity method investment $700,000   $-  
Non-cash deposits on prepaid additions $384,722   $-