MamaMancini's Reports Fiscal 2019 First Quarter Financial Results

Q1 Revenue Up 45%; $7.7 million vs. $5.4 million
Gross Profit Increases to 37% of Sales vs. 36% Prior Year
Operating Expenses Decrease to 29% of Sales vs. 33% Prior Year
Operating Income $553,000 vs. $198,000
Record Net Income of $324,000 vs. Net Loss of $(4,200)

EAST RUTHERFORD, N.J., June 13, 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 first quarter of fiscal year 2019, ended April 30, 2018.

First Quarter Highlights:

  • First quarter of fiscal year 2019 revenue increased 45% to $7.7 million compared to $5.4 million in prior year period.
  • Net income available to common stockholders was a record $324,000, or $0.01 per diluted share, during the first quarter of fiscal 2019, compared to a net loss available to common stockholders of $(51,000), or $(0.00) per diluted share in the same quarter last year.
  • EBITDA, for the first quarter was $709,000 compared to $315,000 in the first quarter of fiscal 2018.
  • Sales per customer retail location ("SKUs") increased 25% over prior year.

Carl Wolf, Chairman and CEO of MamaMancini's, commented, "We are pleased with the solid double-digit revenue increase and profitability in the first quarter. We continue to gain measurable traction with our focus on selling into the food service area on the perimeter of the retail grocery store. This continues to enable us to develop larger retail store accounts that drive revenue at superior margins."

First Quarter 2019 Results
Sales, net of slotting fees and discounts, were $7.4 million for the first quarter of fiscal 2019, a 45% increase compared to $5.4 million reported in the first quarter of fiscal 2018. The Company has sold into approximately 44,600 SKU's in retail and grocery locations at April 30, 2018 as compared to approximately 38,600 SKU's in retail and grocery locations at April 30, 2017. Gross profit for the first quarter of fiscal 2018 was $2.8 million, or 37% of sales, compared to $1.9 million, or 36% of sales, in the comparative prior year period. Record net income was for the first quarter of fiscal 2019 was $324,000, compared to a net loss of $(4,200) in the first quarter of fiscal 2018.

Outlook
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 a continuation of revenue growth 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 to increase substantially over prior year and report continued profitability.

Conference Call
The Company has scheduled a conference call for Thursday, June 14, 2018 at 8:30 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 10121136, through June 21, 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 stuffed beef, turkey and chicken meatballs all with sauce, original beef and turkey meatloaves and bacon gorgonzola beef meatloaf, 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, Shop Rite, Jewel, Save Mart, Lucky's, Lunds and Byerlys, SUPERVALU, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Foodtown, Sam's Club, SpartanNash, Hy-Vee, Topps, Kroger, Shoppers, Marsh, King Kullen, Central Markets, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, Driscoll Foods, SUPERVALU, Monterrey Provision Co., 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.

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.

Contact:

Carl Wolf
Chairman and CEO
MamaMancini's Holdings, Inc.
Stock Symbol: MMMB
973-985-0280

Financial Tables to Follow

MamaMancini's Holdings, Inc.
Condensed Consolidated Balance Sheets

   
    April 30, 2018     January 31, 2018  
      (unaudited)          
Assets                
                 
Current Assets:                
Cash   $ 479,110     $ 581,322  
Accounts receivable, net     3,781,968       3,084,715  
Inventories     1,122,595       824,276  
Prepaid expenses     188,769       261,980  
Total current assets     5,572,442       4,752,293  
                 
Property and equipment, net     2,764,853       2,499,875  
                 
Deposits     20,177       20,177  
Total Assets   $ 8,357,472     $ 7,272,345  
                 
Liabilities and Stockholders' Deficit                
                 
Liabilities:                
Current Liabilities:                
Accounts payable and accrued expenses   $ 3,959,001     $ 3,456,918  
Line of credit, net     3,174,369       2,688,764  
Term loan     106,938       106,938  
Note payable – net     1,385,687       1,403,082  
Total current liabilities     8,625,995       7,655,702  
                 
Term loan - net of current     610,292       651,677  
Note payable - net of current portion           250,000  
Notes payable - related party     649,656       649,656  
Total long-term liabilities     1,259,948       1,551,333  
                 
Total Liabilities     9,885,943       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 April 30, 2018 and January 31, 2018, 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;
31,823,993 and 31,753,437 shares issued and outstanding as of April
30, 2018 and January 31, 2018, respectively
    319       319  
Additional paid in capital     16,427,012       16,344,794  
Accumulated deficit     (17,806,302 )     (18,130,303 )
Less: Treasury stock, 230,000 shares, respectively     (149,500 )     (149,500 )
Total Stockholders' Deficit     (1,528,471 )     (1,934,690 )
Total Liabilities and Stockholders' Deficit   $ 8,357,472     $ 7,272,345  
   


MamaMancini's Holdings, Inc.

Condensed Consolidated Statements of Operations
(unaudited)

   
    For the Three Months Ended  
    April 30, 2018     April 30, 2017  
             
Sales - net of slotting fees and discounts   $ 7,741,994     $ 5,357,301  
                 
Cost of sales     4,913,448       3,414,807  
                 
Gross profit     2,828,546       1,942,494  
                 
Operating expenses                
Research and development     30,096       33,998  
General and administrative expenses     2,244,937       1,710,717  
Total operating expenses     2,275,033       1,744,715  
                 
Income from operations     553,513       197,779  
                 
Other expenses                
Interest expense     (188,141 )     (181,159 )
Amortization of debt discount     (41,371 )     (20,853 )
Total other expenses     (229,512 )     (202,012 )
                 
Net income (loss)     324,001       (4,233 )
                 
Less: preferred dividends           (46,800 )
                 
Net income (loss) available to common stockholders   $ 324,001     $ (51,033 )
                 
Net income (loss) per common share – basic and diluted   $ 0.01     $ (0.00 )
                 
Weighted average common shares outstanding                
- basic     31,780,111       27,810,717  
- diluted     34,655,399       27,810,717  
   


MamaMancini's Holdings, Inc.

Condensed Consolidated Statements of Changes in Stockholders' Deficit
For the Period from February 1, 2018 through April 30, 2018
(unaudited)

                 
    Series A Preferred Stock     Common Stock     Treasury Stock     Additional
Paid In
    Accumulated     Stockholders'  
    Shares     Amount     Shares     Amount     Shares     Amount     Capital     Deficit     Deficit  
                                                       
Balance, February 1, 2018     -     $ -       31,753,437     $ 319       (230,000 )   $ (149,500 )   $ 16,344,794     $ (18,130,303 )   $ (1,934,690 )
                                                                         
Share-based compensation     -       -       -       -       -       -       42,218       -       42,218  
                                                                         
Common stock issued for the
exercise of options
    -       -       40,000       -       -       -       40,000       -       40,000  
                                                                         
Common stock issued for the
exercise of warrants
    -       -       30,556       -       -       -       -       -       30,556  
                                                                         
Net income     -       -       -       -       -       -       -       324,001       324,001  
Balance, April 30, 2018     -     $ -       31,823,993     $ 319       (230,000 )   $ (149,500 )   $ 16,427,012     $ (17,806,302 )   $ (1,528,471 )
   


MamaMancini's Holdings, Inc.

Condensed Consolidated Statements of Cash Flows
(unaudited)

    For the Three Months Ended  
    April 30, 2018     April 30, 2017  
             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)   $ 324,001     $ (4,233 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:                
Depreciation     155,242       117,581  
Amortization of debt discount     41,371       17,280  
Share-based compensation     42,218       90,150  
Changes in operating assets and liabilities:                
(Increase) Decrease in:                
Accounts receivable     (697,253 )     (483,917 )
Inventories     (298,319 )     163,694  
Prepaid expenses     73,211       (34,239 )
Increase (Decrease) in:                
Accounts payable and accrued expenses     498,427       662,956  
Net Cash Provided by Operating Activities     138,898       529,272  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Cash paid for fixed assets     (420,220 )     (661,025 )
Net Cash Used in Investing Activities     (420,220 )     (661,025 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Repayment of note payable     (300,000 )     (300,000 )
Borrowings (repayments) of line of credit, net     480,495       245,046  
Repayment of term loan     (41,385 )     (35,001 )
Proceeds from exercise of options     40,000        
Net Cash Provided by (Used in) Financing Activities     179,110       (89,955 )
                 
Net Decrease in Cash     (102,212 )     (221,798 )
                 
Cash - Beginning of Period     581,322       670,807  
                 
Cash - End of Period   $ 479,110     $ 449,099  
                 
SUPPLEMENTARY CASH FLOW INFORMATION:                
Cash Paid During the Period for:                
Income taxes   $     $  
Interest   $ 181,204     $ 66,941  
                 
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
               
                 
Stock issued for Series A Preferred dividends   $     $ 46,800  
Debt issuance costs included in principal balance of note   $     $ 52,236  
   

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