MamaMancini’s Reports Fiscal 2019 Third Quarter Financial Results

East Rutherford, New Jersey, UNITED STATES

Record Sales and Net Income in Q3
Q3 Revenue Up 12%; $8.2 million vs. $7.4 million
Operating Income More Than Doubles to $536,000 vs. $258,000
Net Income Up 12x to $356,000 vs. Net Income of $29,000
Cash Flow from Operating Activities was $1,648,000 for 9 months

EAST RUTHERFORD, NJ, Dec. 11, 2018 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a manufacturer and 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 third quarter of fiscal year 2019, ended October 31, 2018.

Third Quarter and Nine Months Highlights:

  • Third quarter of fiscal year 2019 revenue increased 12% to $8.2 million compared to $7.4 million in prior year period.
  • Net income available to common stockholders was a record $356,000, or $0.01 per diluted share, during the third quarter of fiscal 2019, compared to net income available to common stockholders of $29,000, or $0.00 per diluted share in the same quarter last year.
  • EBITDA, for the third quarter was $710,000 compared to $386,000 in the third quarter of fiscal 2018.
  • For the nine months sales increased 10% to $21.6 million versus $19.7 million during the comparable period of fiscal 2018.
  • Net Income available to Common Shareholders for the nine months was $470,000 vs $102,000 in prior year.
  • Cash Flow from Operating Activities for the nine months was $1,648,000.            .
  • The Company sold into approximately 45,200 SKU’s in 12,600 retail and grocery locations for the nine months ended October 31, 2018 as compared to approximately 43,500 SKU’s in 12,200 retail and grocery locations for the comparable period last year.

Carl Wolf, chairman and chief executive officer of MamaMancini’s Holdings, said, “We turned in a solid performance in the third quarter of fiscal 2019. Revenue increased 12% versus last year’s comparable quarter and net income increased dramatically on that revenue growth. We continue to manage expenses carefully and to set the stage for future growth. In that regard, we expect a strong finish to fiscal 2019 as our sales and marketing efforts have generated important authorizations from large national retailers that we believe will commence shipping late in our upcoming fourth quarter and throughout the first and second quarters of fiscal 2020.  

Strategic Alternatives Initiative:
As previously announced, the Board of Directors has retained Akin Bay Company in partnership with Kernick Advisory Group, to investigate strategic options for the shareholders of MamaMancini’s. Akin Bay and Kernick Advisory Group are experienced independent investment bankers in the natural and organic foods category. Potential options could include, but not be limited to, strategic acquisitions, a merger with, or purchase by a larger strategic food company or investors or recapitalization of the Company. There is no guarantee that any transaction will occur. The Board intends to comment on this process when appropriate.

Conference Call
The Company has scheduled a conference call for Wednesday, December 12, 2018 at 9:00 a.m. ET, to review the results. 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 10126967, through December 19, 2018.

About MamaMancini's
MamaMancini's is a marketer and distributor of a line of beef meatballs, turkey meatballs, and chicken meatballs all with sauce, five cheese and mozzarella stuffed beef, turkey and chicken meatballs all with sauce, original beef and turkey meatloaves, stuffed pepper mix; sausage and peppers; chicken parmesan; pasta entrees; 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 such as Publix, Costco, Shop Rite, Jewel,  Lunds and Byerlys, SuperValu, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Hannaford, Martins, Foodtown, Sam's Club, Topps, Kroger, Shoppers,  King Kullen, Schnucks Markets, Central Markets, HEB, Stew Leonard’s, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, SUPERVALU, Monterrey Provision Co., Kehe, Burris Logistics and C&S Wholesale Grocers. In addition, the Company sells a wide variety of its products through QVC, the world's largest direct to consumer marketer, via on air presentations, auto ship programs, and direct purchases through the internet or phone.

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, 2017 and other filings made by the Company with the Securities and Exchange Commission.


Carl Wolf
Chairman and CEO
MamaMancini’s Holdings, Inc.
Stock Symbol: MMMB

Financial Tables to Follow

MamaMancini’s Holdings, Inc.
Condensed Consolidated Balance Sheets

  October 31, 2018  January 31, 2018 
Current Assets:        
Cash $460,089  $581,322 
Accounts receivable, net  3,223,311   3,084,715 
Inventories  1,004,845   824,276 
Prepaid expenses  204,485   261,980 
Total current assets  4,892,730   4,752,293 
Property and equipment, net  3,044,383   2,499,875 
Deposits  20,177   20,177 
Total Assets $7,957,290  $7,272,345 
Liabilities and Stockholders’ Deficit        
Current Liabilities:        
Accounts payable and accrued expenses $3,763,915  $3,456,918 
Line of credit, net  2,206,036   2,688,764 
Term loans  315,540   106,938 
Capital leases payable  53,730   - 
Notes payable – related party  109,844   - 
Notes payable – net  1,530,625   1,403,082 
Total current liabilities  7,979,690   7,655,702 
Term loans - net of current  568,920   651,677 
Capital leases payable – net of current  173,177   - 
Note payable - net of current  -   250,000 
Notes payable - related party  532.000   649,656 
Total long-term liabilities  1,274,097   1,551,333 
Total Liabilities  9,253,787   9,207,035 
Commitments and contingencies        
Stockholders’ Deficit:        
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of October 31, 2018 and January 31, 2018, 0 and 23,400 shares outstanding as of October 31, 2018 and January 31, 2018  -   - 
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; 31,866,241 and 31,753,437 shares issued and outstanding as of October 31, 2018 and January 31, 2018, respectively  320   319 
Additional paid in capital  16,512,832   16,344,794 
Accumulated deficit  (17,660,149)  (18,130,303)
Less: Treasury stock, 230,000 shares, respectively  (149,500)  (149,500)
Total Stockholders’ Deficit  (1,296,497)  (1,934,690)
Total Liabilities and Stockholders’ Deficit $7,957,290  $7,272,345 

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

  For the Three Months Ended
October 31,
  For the Nine Months Ended
October 31,
  2018  2017  2018  2017 
Sales-net of slotting fees and discounts $8,242,847  $7,351,355  $21,625,671  $19,714,090 
Costs of Sales  5,555,359   4,979,504   14,047,647   13,047,131 
Gross profit  2,687,488   2,371,851   7,578,024   6,666,959 
Operating expenses:                
Research and development  31,628   10,316   98,807   77,647 
General and administrative  2,119,751   2,103,081   6,259,769   5,767,759 
Total operating expenses  2,151,379   2,113,397   6,358,576   5,845,406 
Income from operations  536,109   258,454   1,219,448   821,553 
Other expenses                
Interest expense  (160,275)  (198,662)  (639,857)  (571,584)
Amortization of debt discount  (20,073)  (30,447)  (110,024)  (56,457)
Total other expenses  (179,761)  (229,109)  (749,294)  (628,041)
Net income  356,348   29,345   470,154   193,512 
Less: preferred dividends  -   -   -   (91,565)
Net income available to common stockholders $356,348  $29,345  $470,154  $101,947 
Net income per common share - basic $0.01  $0.00  $0.01  $0.00 
Net income per common share - diluted $0.01  $0.00  $0.01  $0.00 
Weighted average common shares outstanding – basic  31,866,241   31,503,665   31,833,519   29,152,736 
Weighted average common shares outstanding – diluted  32,489,369   33,283,110   32,459,307   30,932,181 

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

  For the Nine Months Ended 
  October 31,
  October 31,
Net income $470,154  $193,512 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation  511,878   368,604 
Amortization of debt discount  110,029   56,457 
Share-based compensation  128,039   229,400 
Changes in operating assets and liabilities:        
(Increase) Decrease in:        
Accounts receivable  (138,596)  (1,041,370)
Inventories  (180,569)  (288,175)
Prepaid expenses  83,347   56,806 
Increase (Decrease) in:        
Accounts payable and accrued expenses  664,143   1,604,562 
Net Cash Provided by Operating Activities  1,648,425   1,179,796 
Cash paid for fixed assets  (1,026,386)  (1,411,786)
Net Cash Used in Investing Activities  (1,026,386)  (1,411,786)
Repayment of note payable - related party  (7,812)  - 
Repayment of term loan  (174,155)  (105,003)
Borrowings from term loan  300,000   251,671 
Repayment of note payable  (600,000)  (950,000)
Borrowings (repayments) of line of credit, net  (467,087)  940,775 
Proceeds from capital lease  213,250   - 
Repayment of capital lease obligations  (16,343)  - 
Debt extension fees  (31,125)  - 
Proceeds from exercise of options  40,000   - 
Net Cash Provided by (Used in) Financing Activities  (743,272)  137,443 
Net Decrease in Cash  (121,233)  (94,547)
Cash - Beginning of Period  581,322   670,807 
Cash - End of Period $460,089  $576,260 
Cash Paid During the Period for:        
Income taxes $-  $- 
Interest $302,034  $535,685 
Accrued interest on note payable reclassified to principal $386,021  $- 
Capital lease asset additions $30,000  $- 
Stock issued for Series A Preferred dividends $-  $91,565 
Debt issuance costs included in principal balance of note $-  $52,236