CRANFORD, N.J., Aug. 15 /PRNewswire-FirstCall/ -- TOFUTTI BRANDS INC. today announced its results for the thirteen and twenty-six week periods ended July 1, 2006.
The Company reported net sales for the thirteen week period ended July 1, 2006 of $5,575,000, an increase of $484,000, or over 9%, from the sales recorded for the thirteen weeks ended July 2, 2005. Net sales for the twenty-six week period ended July 1, 2006 increased 9% to $10,162,000 compared with net sales of $9,331,000 for the twenty-six week period ended July 2, 2005. For the thirteen and twenty-six week periods ended July 1, 2006, the Company reported operating income of $486,000 and $617,000, respectively, as compared with operating income of $494,000 and $623,000 for the thirteen and twenty-six week periods in 2005. The Company's operating results continued to be negatively impacted as a result of new product start-up costs, including costs incurred at new co-packaging locations, increased marketing expenses, higher packaging and freight charges and higher warehousing costs. The Company expects that during the remainder of 2006 its operating expenses will continue to be affected by these same factors.
The Company recorded net income of $296,000 ($0.05 per share on a basic and diluted basis) for the thirteen weeks ended July 1, 2006 compared to $287,000 ($0.05 per share on a basic and diluted basis) for the thirteen weeks ended July 2, 2005. Net income for the twenty-six weeks ended July 1, 2006 was $366,000 ($0.07 per share on a basic basis and $0.06 per share on a diluted basis) compared to $363,000 ($0.06 per share on a basic and diluted basis) for the twenty-six weeks ended July 2, 2005.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "We are pleased that our efforts to introduce new products and increase sales are succeeding. Tempering our increased sales are the continuing increases in operating expenses that we and our industry are experiencing. We are continuing our efforts to improve our operating results and look forward to increased market penetration during the remainder of this year."
TOFUTTI BRANDS INC. is principally involved in the development, production and marketing of TOFUTTI brand soy-based, dairy-free frozen desserts, soy-based dairy free cheese products and other soy-based, dairy-free food products. TOFUTTI products are sold in grocery stores, supermarkets, health and convenience stores throughout the United States and in approximately twenty-five other countries.
Some of the statements in this press release concerning the Company's future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB.
TOFUTTI BRANDS INC.
Condensed Statements of Operations
(in thousands, except per share figures)
Thirteen Thirteen Twenty-six Twenty-six
weeks ended weeks ended weeks ended weeks ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
Net sales $5,575 $5,091 $10,162 $9,331
Cost of sales 4,022 3,656 7,415 6,684
Gross profit 1,553 1,435 2,747 2,647
Operating expenses 1,067 941 2,130 2,024
Operating income 486 494 617 623
Interest income -- 1 -- 3
Income before income taxes 486 495 617 626
Income taxes 190 208 251 263
Net income $296 $287 $366 $363
Net income per share:
Basic $0.05 $0.05 $0.07 $0.06
Diluted $0.05 $0.05 $0.06 $0.06
Weighted average number of
shares outstanding:
Basic 5,418 5,635 5,435 5,636
Diluted 5,972 6,219 5,993 6,219
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands)
December 31,
July 1, 2006 2005
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $737 $1,256
Accounts receivable, net of allowance
for doubtful accounts of $327 and $291,
respectively 1,982 2,643
Inventories 2,150 2,045
Prepaid expenses 6 51
Deferred income taxes 431 577
Total current assets 5,306 6,572
Fixed assets (net of accumulated
depreciation of $16 and $10, respectively) 31 34
Other assets 16 16
$5,353 $6,622
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,157 $1,442
Accrued expenses 23 479
Accrued officers' compensation -- 500
Income taxes payable 413 478
Total current liabilities 1,593 2,899
Commitments and contingencies
Stockholders' equity:
Preferred stock -- --
Common stock 54 55
Additional paid-in capital 38 --
Retained earnings 3,668 3,668
Total stockholders' equity 3,760 3,723
Total liabilities and
stockholders' equity $5,353 $6,622
