Revenues Increase 28% to Second Quarter Record of
$0.7 Million
Fortified Balance Sheet, Growing Cash Position by
Financial Summary:
Three Months Ended | Year-over-Year | |||||||||||
2020 | 2019 | % Change | ||||||||||
Revenues | $ | 10.4 million | $ | 8.1 million | 28 | % | ||||||
Gross Profit | $ | 3.2 million | $ | 2.7 million | 19 | % | ||||||
Operating Expenses | $ | 2.4 million | $ | 2.2 million | 7 | % | ||||||
Net Income | $ | 0.740 million | $ | 0.358 million | 107 | % | ||||||
Earnings per Share | $ | 0.02 | $ | 0.01 | 100 | % | ||||||
As of | As of | |||||||||||
Cash & Equivalents | $ | 1.7 million | $ | 0.4 million | 331 | % | ||||||
Working Capital | $ | 3.4 million | $ | 1.4 million | 142 | % | ||||||
Debt | $ | 2.7 million | $ | 4.1 million | (35 | )% | ||||||
Stockholder’s Equity | $ | 3.6 million | $ | 0.4 million | 791 | % |
Recent Highlights:
- Announced new customer authorizations, both in terms of new locations and expansion of existing placements, at several major nationwide retailers in
September 2020 including an expansion of locations at 1,250Publix Super Markets in the Southeast and select Sam’s Club locations nationwide. New product placements included 167 Tops Friendly Markets in the Northeast, 175Gordon Food Service Marketplace locations across the Midwest and toLipari Foods , a major distributor inMichigan servicing over 5,000 accounts. - Launched an 11 week national marketing campaign on
Sirius XM Radio to promote MamaMancini’s new Plant-Based Meatballs and Sauce, made with Beyond Beef®, a plant-based ground meat made by Beyond Meat®. - Attended multiple virtual investor conferences including the LD 500
Virtual Investor Conference onSeptember 2 nd, Proactive'sOne2One Virtual Investor Forum onJuly 28 th, the Virtual Investor Summit onJune 10 th, and Little Grapevine’sG1 Microcap Virtual Conference May 27 th . The company has also committed to present at the MicroCap Club Leadership Summit onSeptember 25 th.
Management Commentary
“We continued our pace of operational execution in the second quarter of 2021, further expanding our footprint both in terms of breadth and depth of product distribution at retail storefronts nationwide,” said
“Increase in demand in 2020 is being driven by a host of changes in the consumer market, which we are leveraging through marketing and advertising programs designed to engage purchasers adjusting to more meals at home. Many consumers have continued to obtain the majority of their food purchases from grocery stores, even as stay-at-home orders have lifted. We believe this trend will continue in the near term, and our goal is to continue to convert these enthusiastic first-time customers into repeat purchasers, creating a recurring revenue stream. Looking ahead, we plan to transition our momentum into the food service segment as that market slowly returns to normal as COVID subsides over time.
“Despite a challenging year of uncertainty for our country, I am incredibly proud of the dedication and hard work of our team. Despite stay-at-home orders and a pandemic, we were able to continue operations uninterrupted, improve plant efficiency, conduct marketing campaigns, connect with our shareholders through virtual events and improve our growth. We look forward to continued growth in the second half of the year, creating sustainable value for our shareholders over the long-term,” concluded Wolf.
Second Quarter 2021 Financial Results
Revenue in the second quarter of 2021 increased 28% to a second quarter record of
Gross profit increased to
Operating expenses totaled
Net income for the second quarter of 2021 grew significantly to
Cash and cash equivalents as of
Conference Call
Management will host an investor conference call at
Q2 2021 Earnings Conference Call
Date:
Time:
International Dial-in: 1-412-317-9264
Conference ID: 10147782
Please dial in at least five minutes before the start of the call to ensure timely participation.
A playback of the call will be available through
About MamaMancini’s
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
Investor Relations Contact:
Senior Vice President
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us
MamaMancini’s
Condensed Consolidated Balance Sheets
(unaudited) | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash | $ | 1,698,586 | $ | 393,683 | ||||
Accounts receivable, net | 2,793,527 | 3,727,887 | ||||||
Inventories | 1,758,761 | 1,246,417 | ||||||
Prepaid expenses | 256,634 | 252,268 | ||||||
Total current assets | 6,507,508 | 5,620,255 | ||||||
Property and equipment, net | 3,077,439 | 2,805,843 | ||||||
Operating lease right of use assets, net | 1,422,687 | 1,490,794 | ||||||
Deposits | 20,177 | 20,177 | ||||||
Total Assets | $ | 11,027,811 | $ | 9,937,069 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 2,570,473 | $ | 3,552,790 | ||||
Term loan | 184,497 | 423,799 | ||||||
Operating lease liability | 136,976 | 126,516 | ||||||
Finance leases payable | 184,570 | 105,126 | ||||||
Total current liabilities | 3,076,516 | 4,208,231 | ||||||
Line of credit – net | 2,497,348 | 2,997,348 | ||||||
Operating lease liability – net | 1,298,625 | 1,372,349 | ||||||
Finance leases payable – net | 573,012 | 315,234 | ||||||
Notes payable - related party | - | 641,844 | ||||||
Total long-term liabilities | 4,368,985 | 5,326,775 | ||||||
Total Liabilities | 7,445,501 | 9,535,006 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ Equity: | ||||||||
Series A Preferred stock, | - | - | ||||||
Preferred stock, | - | - | ||||||
Common stock, | 336 | 321 | ||||||
Additional paid in capital | 18,229,615 | 16,695,352 | ||||||
Accumulated deficit | (14,498,141 | ) | (16,144,110 | ) | ||||
Less: | (149,500 | ) | (149,500 | ) | ||||
Total Stockholders’ Equity | 3,582,310 | 402,063 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 11,027,811 | $ | 9,937,069 |
MamaMancini’s
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales-net of slotting fees and discounts | $ | 10,384,484 | $ | 8,099,445 | $ | 21,485,403 | $ | 15,464,269 | ||||||||
Costs of sales | 7,170,403 | 5,408,049 | 14,543,722 | 10,401,819 | ||||||||||||
Gross profit | 3,214,081 | 2,691,396 | 6,941,681 | 5,062,450 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 25,857 | 24,509 | 55,338 | 49,835 | ||||||||||||
General and administrative | 2,381,459 | 2,215,945 | 5,103,624 | 4,082,107 | ||||||||||||
Total operating expenses | 2,407,316 | 2,240,454 | 5,158,962 | 4,131,942 | ||||||||||||
Income from operations | 806,765 | 450,942 | 1,782,719 | 930,508 | ||||||||||||
Other expenses | ||||||||||||||||
Interest | (61,648 | ) | (87,284 | ) | (126,050 | ) | (203,896 | ) | ||||||||
Amortization of debt discount | (5,350 | ) | (5,350 | ) | (10,700 | ) | (12,638 | ) | ||||||||
Total other expenses | (66,998 | ) | (92,634 | ) | (136,750 | ) | (216,534 | ) | ||||||||
Net income before income tax provision | 739,767 | 358,308 | 1,645,969 | 713,974 | ||||||||||||
Income tax provision | - | - | - | - | ||||||||||||
Net income | $ | 739,767 | $ | 358,308 | $ | 1,645,969 | $ | 713,974 | ||||||||
Net income per common share | ||||||||||||||||
– basic | $ | 0.02 | $ | 0.01 | $ | 0.05 | $ | 0.02 | ||||||||
– diluted | $ | 0.02 | $ | 0.01 | $ | 0.05 | $ | 0.02 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
– basic | 32,262,375 | 31,947,763 | 32,128,298 | 31,907,676 | ||||||||||||
– diluted | 33,543,565 | 31,981,806 | 33,409,488 | 34,941,719 |
MamaMancini’s
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Six Months Ended | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,645,969 | $ | 713,974 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 319,078 | 370,052 | ||||||
Amortization of debt discount | 10,700 | 12,638 | ||||||
Share-based compensation | 49,975 | 29,943 | ||||||
Amortization of right of use assets | 68,107 | 42,958 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 934,360 | (12,770 | ) | |||||
Inventories | (512,344 | ) | (68,524 | ) | ||||
Prepaid expenses | (4,366 | ) | (159,239 | ) | ||||
Accounts payable and accrued expenses | (982,317 | ) | 3,503 | |||||
Operating lease liability | (63,264 | ) | (42,958 | ) | ||||
Net Cash Provided by Operating Activities | 1,465,898 | 889,577 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Cash paid for fixed assets | (189,287 | ) | (89,525 | ) | ||||
(189,287 | ) | (89,525 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Repayment of term loan | (250,002 | ) | (808,335 | ) | ||||
Repayments of related party notes payable | (641,844 | ) | - | |||||
Proceeds from promissory note | 330,505 | - | ||||||
Repayment of promissory note | (330,505 | ) | - | |||||
Borrowings (repayments) of line of credit, net | (500,000 | ) | 65,314 | |||||
Repayment of capital lease obligations | (64,165 | ) | (31,213 | ) | ||||
Proceeds from exercise of options | 7,200 | - | ||||||
Proceeds from exercise of warrants | 1,477,103 | - | ||||||
Net Cash Provided by (Used in) Financing Activities | 28,292 | (774,234 | ) | |||||
Net Increase in Cash | 1,304,903 | 25,818 | ||||||
Cash - Beginning of Period | 393,683 | 609,409 | ||||||
Cash - End of Period | $ | 1,698,586 | $ | 635,227 | ||||
SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
Cash Paid During the Period for: | ||||||||
Income taxes | $ | - | $ | - | ||||
Interest | $ | 128,913 | $ | 253,763 | ||||
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Operating lease liability | $ | - | $ | 1,599,830 | ||||
Finance lease asset additions | $ | 401,387 | $ | 254,166 | ||||
Common stock issued for services to be rendered | $ | - | $ | 71,875 |
Source:
2020 GlobeNewswire, Inc., source