MamaMancini’s Reports Record Fourth Quarter and Fiscal Year 2021 Financial Results

April 20, 2021 4:05 PM EDT

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Q4 2021 Net Income Increases 311% to Record $1.7 Million

Record Results Driven by Strong Gross Margin Growth and a $0.7 Million Deferred Tax Benefit

EAST RUTHERFORD, NJ, April 20, 2021 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has reported its financial results for the fourth quarter and fiscal year ended January 31, 2021.

Financial Summary:

 Three Months Ended Jan. 31,Fiscal Year Ended Jan. 31,
$ in millions 2021 2020% Increase  2021 2020% Increase
Revenues$10.0$9.91.4%$40.8$33.820.8%
Gross Profit$3.3$2.915.0%$12.7$10.027.6%
Operating Expenses$2.4$2.27.7%$9.3$7.917.2%
Net Income$1.7$0.4311.4%$4.1$1.5165%
Earnings per Share (Diluted)$0.05$0.01500%$0.12$0.04200%

Key Fourth Quarter Fiscal 2021 & Subsequent Operational Highlights:

  • Advanced new internal search program to target and acquire complementary food product companies that are immediately accretive and meet stringent sales as well as other criteria.
  • Received new authorizations representing up to 15,000 new spots on retailer shelves from national accounts, club stores and large regional retailers for introduction in early/mid-2021, indicating significant potential uptick in economic growth in U.S. for 2021.
  • Secured additional new retailer commitments including new product placements at 220 Shop Rite locations, 500 Winn Dixie locations, 600 Sam’s Club locations, a commitment for a minimum of 500 Walmart locations (previously announced, but not committed) and 300 independent chain locations through distributor Krasdale Foods.
  • Launched a major new national radio campaign with SiriusXM, which reaches more than 70 million people, to air an estimated 1,000 commercials in honor of the centennial of the arrival of Ana “Mama” Mancini to the United States.
  • Appointed Connor Haley and Michael Stengel, prominent business and financial leaders with nearly 50 years of financial, hospitality and food service executive leadership experience, to the Company’s Board of Directors.
  • Filed initial listing application with NASDAQ; Presented at leading virtual investor conferences including the ROTH Capital Growth Conference, Proactive’s One2One Virtual Investor Forum, the Benzinga Global Small Cap Conference and the Virtual Fall Investor Summit.

Management Commentary

“Our fiscal 2021 was a record year of growth despite intense hardships at the national level, driven by a shift in consumer purchasing power from restaurants to grocery stores in light of the COVID-19 pandemic,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “We continued to supply grocers throughout the pandemic with minimal impact on operations, launching effective new advertising campaigns and securing exciting new product placements on thousands of retailer shelves nationwide, expanding both the breadth and depth of our reach as a brand.

“To further supplement our incredible growth, we advanced a significant internal effort to explore potential acquisitions, focusing on companies with complementary products in the perimeter of the supermarket as well as exceptional operational and financial metrics. The ability to realize new distribution relationships and push an existing production through our already robust distributor network, all at an attractive valuation, is our chief goal. We will remain highly selective to ensure any target is accretive, reasonably valued and highly complementary to our core business. We look forward to additional announcements on this front as potential targets move through our due diligence pipeline.

“While fiscal 2021 was a record year, there are still extremely attractive growth areas for the core business as we enter fiscal 2022. From major box retailer engagements to hot bar placements at leading groceries nationwide, our outlook on the near-term food market remains optimistic. When taken in tandem with the new acquisition strategy as well as our recent application to uplist to the Nasdaq Capital Market, I believe that fiscal 2022 will mark another record year for our shareholders,” concluded Wolf.

Fourth Quarter and Fiscal 2021 Financial Results

Revenue for the fourth quarter of fiscal 2021 increased 1.4% to a record $10.0 million, compared to $9.9 million in the same year-ago quarter. Revenue for fiscal 2021 increased 20.8% to a record $40.8 million, compared to $33.8 million in fiscal 2020. The revenue increase for the year was a result of increased volume in Club Store accounts in the Spring and through new product introductions later in the year.

Gross profit increased 15% to $3.3 million, or 32.9% of total revenues, in the fourth quarter of fiscal 2021, compared to $2.9 million, or 29.0% of total revenues, in the same year-ago quarter. Gross profit increased 27.6% to $12.7 million, or 31.3% of total revenues, in fiscal 2021, compared to $10.0 million, or 29.6% of total revenues, in fiscal 2020. The increase in gross profit in the fourth quarter is primarily due to a change in customer mix to higher margin accounts including QVC.

Operating expenses totaled $2.4 million in the fourth quarter of fiscal 2021 compared to $2.2 million in the same year-ago quarter. As a percentage of sales, operating expenses increased in the fourth quarter of 2021 to 23.8% from 22.4%. Operating expenses totaled $9.3 million in fiscal 2021, compared to $7.9 million in fiscal 2020. As a percentage of sales, operating expenses decreased in fiscal 2021 at 22.7% of sales. Operating expense in the fourth quarter increased mainly due to a higher percentage of volume in higher margin accounts with higher merchandising support in direct relation to those accounts.

Net income for the fourth quarter of fiscal 2021 grew by a significant 311% to $1.7 million, or $0.05 per diluted share, as compared to a net income of $0.4 million, or $0.01 per diluted share, in the same year-ago quarter. Net income for fiscal 2021 grew 165% to a record $4.1 million, or $0.12 per diluted share, as compared to net income of $1.5 million, or $0.04 per diluted share, in fiscal 2020. The increase in net income was attributable to increased sales, higher gross margin and lower interest expenses, and a non-recurring deferred tax benefit of $0.74 million.

Cash and cash equivalents as of January 31, 2021 was $3.2 million, as compared to $0.4 million as of January 31, 2020. The increased cash balance benefitted from $3.7 million in cash flow from operations in fiscal 2021, proceeds from warrant redemptions, and offset by a paydown of debt.

Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss the Company’s fourth quarter 2021 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q4 2021 Earnings Conference Call Date: Tuesday, April 20, 2020Time: 4:30 p.m. Eastern time U.S. Dial-in: 1-844-889-4326International Dial-in: 1-412-317-9264Conference ID: 10154331Webcast: https://dpregister.com/sreg/10154331/e6481a195ePlease 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 April 27, 2021. To listen, call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally. Please use the replay pin number 10154331.

About MamaMancini’s Holdings, Inc.

MamaMancini's Holdings, Inc. (OTCQB: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Sams Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company also regularly maintains a direct-to-consumer presence through presentations on QVC. For more information, please visit www.mamamancinis.com.

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, 2019 and other filings made by the Company with the Securities and Exchange Commission.

Company Contact:Carl WolfChief Executive OfficerMamaMancini’s Holdings(973) 985-0280carl@mamamancinis.com

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

MamaMancini’s Holdings, Inc.Consolidated Balance Sheets

  January 31, 2021  January 31, 2020 
         
Assets        
         
Current Assets:        
Cash $3,190,560  $393,683 
Accounts receivable, net  3,973,793   3,727,887 
Inventories  1,195,211   1,246,417 
Prepaid expenses  519,887   252,268 
Total current assets  8,879,451   5,620,255 
         
Property and equipment, net  2,963,602   2,805,843 
         
Intangibles  87,639   - 
         
Operating lease right of use assets, net  1,352,483   1,490,794 
         
Deferred tax asset  744,973   - 
         
Deposits  20,177   20,177 
Total Assets $14,048,325  $9,937,069 
         
Liabilities and Stockholders’ Equity        
         
Liabilities:        
Current Liabilities:        
Accounts payable and accrued expenses $3,707,111  $3,552,790 
Term loan  -   423,799 
Operating lease liability  147,684   126,516 
Finance leases payable  190,554   105,126 
Total current liabilities  4,045,349   4,208,231 
         
Line of credit – net  -   2,997,348 
Operating lease liability – net  1,218,487   1,372,349 
Finance leases payable – net  474,743   315,234 
Notes payable - related party  -   641,844 
Total long-term liabilities  1,693,230   5,326,775 
         
Total Liabilities  5,738,579   9,535,006 
         
Commitments and contingencies        
         
Stockholders’ Equity:        
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of January 31, 2021 and 2020, 0 and 0 shares outstanding as of January 31, 2021 and 2020  -   - 
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; 35,603,731 and 31,991,241 shares issued and outstanding as of January 31, 2021 and 2020  357   321 
Additional paid in capital  20,535,793   16,695,352 
Accumulated deficit  (12,076,904)  (16,144,110)
Less: Treasury stock, 230,000 shares at cost, respectively  (149,500)  (149,500)
Total Stockholders’ Equity  8,309,746   402,063 
Total Liabilities and Stockholders’ Equity $14,048,325  $9,937,069 

MamaMancini’s Holdings, Inc.Consolidated Statements of Income

  For the Years Ended January 31, 
  2021  2020 
       
Sales-net of slotting fees and discounts $40,758,605  $33,750,465 
         
Costs of sales  28,019,296   23,766,137 
         
Gross profit  12,739,309   9,984,328 
         
Operating expenses:        
Research and development  110,713   114,626 
General and administrative  9,150,748   7,786,278 
Total operating expenses  9,261,461   7,900,904 
         
Income from operations  3,477,848   2,083,424 
         
Other expenses        
Interest  (137,751)  (482,995)
Amortization of debt discount  (17,864)  (67,735)
Total other expenses  (155,615)  (550,730)
         
Net income before income tax provision  3,322,233   1,532,694 
         
Income tax benefit  744,973   - 
         
Net income $4,067,206  $1,532,694 
         
Net income per common share        
– basic $0.12  $0.05 
– diluted $0.12  $0.04 
         
Weighted average common shares outstanding        
– basic  33,431,524   31,949,803 
– diluted  33,944,897   34,339,256 

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

  For the Year Ended January 31, 
  2021  2020 
       
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income $4,067,206  $1,532,694 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation  663,001   640,246 
Amortization of debt discount  17,864   67,735 
Share-based compensation  52,895   93,862 
Amortization of right of use assets  138,311   109,036 
Change in deferred tax asset  (744,973)  - 
Changes in operating assets and liabilities:        
Accounts receivable  (245,906)  (1,077,063)
Inventories  51,206   101,172 
Prepaid expenses  (267,619)  (42,886)
Accounts payable and accrued expenses  99,249   490,858 
Operating lease liability  (132,694)  (100,965)
Net Cash Provided by Operating Activities  3,698,540   1,814,689 
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Cash paid for fixed assets  (419,373)  (268,106)
Cash paid for intangible assets  (32,567)  - 
Net Cash Used in Investing Activities  (451,940)  (268,106)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Repayment of related party notes payable  (641,844)  - 
Repayments of term loan  (441,663)  (2,058,337)
Proceeds from promissory note  330,505   - 
Repayment of promissory note  (330,505)  - 
Borrowings (repayments) of line of credit, net  (2,997,348)  385,314 
Repayment of capital lease obligations  (156,450)  (89,376)
Proceeds from exercise of options  14,400   - 
Proceeds from exercise of warrants  3,773,182   - 
Net Cash Used in Financing Activities  (449,723)  (1,762,399)
         
Net Increase (Decrease) in Cash  2,796,877   (215,726)
         
Cash - Beginning of Period  393,683   609,409 
         
Cash - End of Period $3,190,560  $393,683 
         
SUPPLEMENTARY CASH FLOW INFORMATION:        
Cash Paid During the Period for:        
Income taxes $-  $- 
Interest $174,735  $548,894 
         
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Operating lease liability $-  $1,599,830 
Finance lease asset additions $401,387  $293,479 
Common stock issued for services to be rendered $-  $71,875 
Acquisition of software via contract liability $55,072  $- 

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Source: MamaMancini's Holdings, Inc.


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