MamaMancini's Reports Fiscal Year 2018 Financial Results

East Rutherford, New Jersey, UNITED STATES

Fiscal 2018 Revenue Up 53%; Q4 Revenue Up 45%;
2018 Operating Income $1.06 million vs. $0.46 million in 2017;
2018 Gross Profit Increased 28% vs. 2017;
2018 Net Earnings $320,000 vs a Net Loss of $301,000 in 2017;
 Q4 Net Earnings $114,000; 
2018 Cash Flow from Operations $1.315 million
vs $0.357 million in 2017;
Company Pays Down Manatuck Hill Debt by $1.35m in fiscal year;
Sales per placement in food stores increases 35% from prior year.

For Immediate Release

EAST RUTHERFORD, NJ, May 15, 2018 (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 financial results for the fourth quarter and fiscal year 2018, ended January 31, 2018.

Fiscal Year Highlights:

  • Fiscal year 2018 revenue increased 53% to $27.5 million compared to fiscal 2017 revenue of $18.0 million.
  • Fiscal year 2018 gross margin was 34%, impacted by product mix to larger customers (with resulting lower operating expenses), one-time integration issues, and commodity prices, compared to 40% in 2017.
  • Total operating expenses for the fiscal year 2018 increased 21% versus the comparable fiscal 2017. As a percentage of sales, operating expenses decreased to 29.8% of net sales from 37.4% in fiscal 2017.
  • Income from operations for fiscal 2018 improved to $1.063 million versus $456,000 in the prior year; an increase of approximately $620,000.
  • Placements on grocer's shelves increased at the end of the fiscal 2018 to 43,800, up from 38,700 as of January 31, 2017.  Sales per placement per retail food shelf location increased 35% from prior year. 
  • EBITDA for fiscal 2018 was $1.601 million compared to $ 0.898 million in fiscal 2017.
  • Net Income for fiscal year 2018 was $319,740, compared with a net loss of $301,080 in fiscal 2017.
  • Net income available to common stockholders for fiscal year 2018 was $228,175   or $0.01 per diluted share, compared to a net loss of $506,001, or $(0.02) per diluted share, in fiscal 2017.
  • Cash Flow from Operations was $1,315,240 the year vs. $357,234 for the prior year.

Fourth Quarter Highlights:

  • Fourth quarter of fiscal year 2018 revenue increased 45% to $7.8 million compared to $5.4 million in prior year period.
  • Gross margin for the fourth quarter was 33%, compared to an estimated 40% for fiscal 2017.  The gross margin percentage of sales decrease in this fiscal year was mainly due to a change in product mix to larger accounts which resulted in lower marketing, merchandising, freight, sales commissions, and promotional expenses than smaller accounts.  Gross margin is expected to increase as a percentage of sales to 38% in the first quarter of fiscal 2019 due to better cost management and production efficiencies after the integration of Joseph Epstein Foods Enterprises, Inc. (JEFE).
  • Net income was $113,591 and net income available to common stockholders was $113,591, or $0.00 per diluted share, during the fourth quarter of fiscal 2018.
  • Operating results for the fourth quarter of fiscal 2017 are unaudited and subject to final review and are not included in the fourth quarter comparisons above.

Carl Wolf, Chief Executive Officer of MamaMancini's, commented, "In terms of financial and operating results, we had a very solid year in fiscal 2018. Revenue for the year increased 53% to $27.5 million versus $18 million in fiscal 2017. Income from operations increased significantly on a year-over-year basis to $1.1 million from $0.5 million in the previous fiscal year. Net income available to common shareholders for fiscal 2018 was $228,175, or $0.01 per fully diluted share, compared to a net loss of $506,001, or $(0.02) per fully diluted share, in fiscal 2017. We are pleased with the traction that we are continuing to achieve on our strategic business plan.

While product mix to larger accounts during the year and integration of the Joseph Epstein Foods Enterprises (“JEFE”) acquisition impacted our gross margin, which came in at 34% versus 40% last year, we see this as a temporary impact and expect fiscal 2019 gross margin to be more in line with our historical levels of around 38%. With the JEFE acquisition now fully integrated, we are looking forward to consistent operational efficiencies going forward.”

Mr. Wolf concluded, “As we go through fiscal 2019, we will continue to focus on selling our products into the food service area, on the perimeter of the retail grocery store, where fresh, minimally or non-processed, healthy foods are offered, and where the superior revenue and margin opportunities exist. We will continue to develop new products that will meet the needs of the rapidly growing sector of consumers that seek superior nutritional profiles, with all-natural ingredients and minimal prep time to serve their families. We believe this strategy will enable MamaMancini’s to continue to attract new large national accounts, and to gain a substantial number of new customers around the country.”

The Company’s strategy of developing larger customers and exiting underperforming accounts that do not generate attractive returns has achieved improving operating results. The Company expects some seasonality in sales growth in summer months, but a continuation of significant revenue growth on a yearly basis for the foreseeable future as it continues to develop larger accounts and introduce new product lines. As a result, the company is anticipating fiscal 2019 revenues and operating results to increase significantly over prior year and report continued increased profitability.

Conference Call
The Company has scheduled a conference call for Wednesday, May 16, 2018 at 9:00 a.m. ET, to review the results of fiscal year 2018.

Interested parties may participate on the conference call by dialing (844) 889-4326 or (412) 317-9264. A replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10119588, through May 23, 2018.

About MamaMancini's 
MamaMancini's is a marketer and distributor of a line of beef meatballs and turkey meatballs, all with sauce; five cheese-stuffed beef and turkey meatballs, all with sauce; original beef and turkey meatloaves; chicken parmesan; stuffed peppers; and other similar Italian cuisine products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers and distributors such as Costco, Publix, Shop Rite, Jewel, Sam's Club, Lunds and Byerlys, SuperValu, Safeway, Albertsons, Spartan Nash, Whole Foods Market, Hy-Vee, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Foodtown, Kroger, Shoppers, Schnucks Markets, Fresh Direct, King Kullen, Lowes, Central Market, Weis Markets, Ingles, Food City, The Fresh Market, Market Basket, Meatball Obsession, Monterrey Provisions, Porky Products, Sysco, DPI, United Natural Foods, Bozzutos, Burris Foods, and C&S. The Company sells a variety of its products on air and online on QVC, the world's largest direct-to-consumer marketer.

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 filings with the Securities and Exchange Commission.

Financial Tables to Follow

MamaMancini’s Holdings, Inc.
Consolidated Balance Sheets

  January 31, 2018  January 31, 2017 
Current Assets:        
Cash $581,322  $670,807 
Accounts receivable, net  3,084,715   1,817,820 
Inventories  824,276   806,623 
Prepaid expenses  261,980   180,260 
Total current assets  4,752,293   3,475,510 
Property and equipment, net  2,499,875   1,563,381 
Deposits  20,177   20,177 
Total Assets $7,272,345  $5,059,068 
Liabilities and Stockholders’ Deficit        
Current Liabilities:        
Accounts payable and accrued expenses $3,456,918  $2,124,880 
Line of credit, net  2,688,764   1,363,145 
Term loan  106,938   140,004 
Note payable – net  1,403,082   1,401,906 
Total current liabilities  7,655,702   5,029,935 
Term loan - net of current  651,677   513,328 
Note payable - net of current portion  250,000   1,548,819 
Notes payable - related party  649,656   649,656 
Total long-term liabilities  1,551,333   2,711,803 
Total Liabilities  9,207,035   7,741,728 
Commitments and contingencies        
Stockholders’ Deficit:        
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of January 31, 2018 and 2017, 0 and 23,400 shares outstanding as of January 31, 2018 and 2017      
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; 31,753,437 and 27,810,717 shares issued and outstanding, respectively  318   278 
Additional paid in capital  16,344,794   15,825,029 
Common stock subscribed, $0.00001 par value; 66,667 shares, respectively  1   1 
Accumulated deficit  (18,130,303)  (18,358,478)
Less: Treasury stock, 230,000 shares, respectively  (149,500)  (149,500)
Total Stockholders’ Deficit  (1,934,690  (2,682,670
Total Liabilities and Stockholders’ Deficit $7,272,345  $5,059,068 

MamaMancini’s Holdings, Inc.
 Consolidated Statements of Operations

  For the Years Ended 
  January 31, 2018  January 31, 2017 
Sales - net of slotting fees and discounts $27,543,335  $18,048,792 
Cost of sales  18,282,660   10,830,104 
Gross profit  9,260,675   7,218,688 
Operating expenses        
Research and development  138,000   153,296 
General and administrative expenses  8,059,533   6,609,409 
Total operating expenses  8,197,533   6,762,705 
Income from operations  1,063,142   455,983 
Other expenses        
Interest expense  (679,974)  (728,537)
Amortization of debt discount  (63,428)  (28,526)
Total other expenses  (743,402)  (757,063)
Net income (loss)  319,740   (301,080)
Less: preferred dividends  (91,565)  (204,921)
Net income (loss) available to common stockholders $228,175  $(506,001)
Net income (loss) per common share - basic and diluted $0.01  $(0.02)
Weighted average common shares outstanding        
- basic  29,811,521   27,100,316 
- diluted  32,205,577   27,100,316 


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

  For the Years Ended 
  January 31, 2018  January 31, 2017 
Net income (loss) $319,740  $(301,080) 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Depreciation  538,322   441,585  
Amortization of debt discount  63,428   28,526  
Share-based compensation  428,240   598,200  
Changes in operating assets and liabilities:        
(Increase) Decrease in:        
Accounts receivable  (1,266,895)  (341,238) 
Inventories  (17,653)  (248,871) 
Prepaid expenses  (81,720)  29,093  
Increase (Decrease) in:        
Accounts payable and accrued expenses  1,332,038   151,019  
Net Cash Provided by (Used in) Operating Activities  1,315,500   357,234  
Cash paid for fixed assets  (1,474,816)  (552,869) 
Net Cash Used in Investing Activities  (1,474,816)  (552,869) 
Repayment of note payable – related party  -   (7,344) 
Repayment of note payable  (1,350,000)  (486,279) 
Debt issuance costs  (24,697)  (50,000) 
Borrowings (repayments) of line of credit, net  1,339,245   403,524  
Borrowings from term loan  251,671   340,000  
Repayment of term loan  (146,388)  (126,668) 
Net Cash Provided by Financing Activities  69,831   73,233  
Net Decrease in Cash  (89,485)  (122,402 )
Cash - Beginning of Period  670,807   793,209  
Cash - End of Period $581,322  $670,807  
Cash Paid During the Period for:        
Income taxes $-  $-  
Interest $464,958  $721,821  
Stock issued for Series A Preferred dividends $91,565  $271,914  
Debt issuance costs included in principal balance of note $89,104  $358,523  


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