CRANFORD, N.J., Aug. 17 /PRNewswire-FirstCall/ -- TOFUTTI BRANDS INC. (NYSE AMEX: TOF) today announced its results for the thirteen and twenty-six week periods ended July 3, 2010.
The Company reported net sales for the thirteen weeks ended July 3, 2010 of approximately $4.5 million compared with net sales of $5.2 million for the thirteen weeks ended June 27, 2009. Sales were negatively impacted in the thirteen weeks ended July 3, 2010 because of timing issues with respect to approximately $300,000 in orders from our largest customer which were shipped during the third quarter this year while in 2009 the orders were shipped in the second quarter. Sales were also negatively impacted due to an error of $148,000 in reporting first quarter sales. Net sales for the twenty-six week period ended July 3, 2010 decreased to approximately $9.1 million from approximately $9.4 million for the twenty-six week period ended June 27, 2009.
For the thirteen week period ended July 3, 2010, the Company reported a loss of $72,000 before an income tax benefit of $30,000 compared to income before income taxes of $164,000 for the thirteen week period ended June 27, 2009. The Company reported income before income taxes of $403,000 for the twenty-six week period ended July 3, 2010 compared to income before income taxes of $417,000 for the twenty-six week period ended June 27, 2009.
The Company recorded a net loss of $42,000 ($0.01 per share on a basic and diluted basis) for the thirteen weeks ended July 3, 2010 compared to net income of $98,000 ($0.02 per share on a basic and diluted basis) for the thirteen weeks ended June 27, 2009. Net income for the twenty-six weeks ended July 3, 2010 was $233,000 ($0.05 per share on a basic and diluted basis) compared to $250,000 ($0.05 per share on a basic and diluted basis) for the twenty-six weeks ended June 27, 2009.
As of July 3, 2010, the Company had cash and cash equivalents of approximately $1.3 million and working capital of approximately $4.3 million compared to cash and cash equivalents of approximately $1.4 million and working capital of approximately $4.1 million at January 2, 2010.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "Our second quarter results reflect the headwinds we are facing in the frozen dessert market as frozen dessert sales have come under considerable consumer pressure. Despite the difficulties in the marketplace, we are essentially holding our own and we look to improved results later this year and into 2011 based on our planned new product introductions. As announced at our annual meeting in June, we have developed three new dairy-free food products. We will soon release the first commercially available nondairy and gluten-free ricotta cheese product, which is expected to reach grocers' shelves in the fourth quarter of this year. We also intend to release what we believe will be the first dairy-free, sugar-free, frozen dessert than incorporates Stevia as the sweetening agent and a newly re-formulated frozen pizza with a dairy-free, trans fat-free cheese topping. We expect that the latter two products will be commercially available around the new 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-K.
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 3, 2010 June 27, 2009 July 3, 2010 June 27, 2009 ------------ ------------- ------------ ------------- Net sales $4,504 $5,229 $9,095 $9,407 Cost of sales 3,334 3,793 6,311 6,601 ----- ----- ----- ----- Gross profit 1,170 1,436 2,784 2,806 ----- ----- ----- ----- Operating expenses 1,242 1,272 2,381 2,389 ----- ----- ----- ----- Income (loss) before income taxes (72) 164 403 417 Income tax (benefit) expense (30) 66 170 167 --- --- --- --- Net income (loss) $(42) $98 $233 $250 ==== === ==== ==== Weighted average common shares outstanding: Basic and diluted 5,177 5,176 5,177 5,178 ===== ===== ===== ===== Net income (loss) per common share: Basic and diluted $(0.01) $0.02 $0.05 $0.05 ====== ===== ===== ===== TOFUTTI BRANDS INC. Condensed Balance Sheets (in thousands, except share figures) July 3, January 2, 2010 2010 ---- ---- (unaudited) Assets Current assets: Cash and cash equivalents $1,292 $1,413 Accounts receivable, net of allowance for doubtful 2,091 1,461 accounts and sales promotions of $418 and $538, respectively Inventories 1,825 1,931 Prepaid expenses 1 13 Refundable income taxes 91 252 Deferred income taxes 299 299 --- --- Total current assets 5,599 5,369 ----- ----- Fixed assets, net of accumulated amortization of $36 and $33 12 15 Other assets 16 16 --- --- $5,627 $5,400 ====== ====== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $549 $164 Accrued expenses 469 616 Accrued officers' compensation 250 500 --- --- Total current liabilities 1,268 1,280 ----- ----- Stockholders' equity: Preferred stock -par value $.01 per share; -- -- authorized 100,000 shares, none issued Common stock -par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,176,678 shares at July 3, 2010 52 52 and 5,176,678 shares at January 2, 2010 Retained earnings 4,307 4,068 ----- ----- Total stockholders' equity 4,359 4,120 ----- ----- Total liabilities and stockholders' equity $5,627 $5,400 ====== ======
TOFUTTI BRANDS INC.
CONTACT: Steve Kass, Chief Financial Officer, +1-908-272-2400, or
+1-908-272-9492 (Fax)
