CRANFORD, N.J., May 13 /PRNewswire-FirstCall/ -- TOFUTTI BRANDS INC. (Amex: TOF) today announced its results for the thirteen week period ended March 29, 2008.
Net sales for the thirteen weeks ended March 29, 2008 decreased 4% to $4.65 million compared with net sales of $4.85 million for the thirteen weeks ended March 31, 2007 due to the discontinuance of certain low profit margin products in the 2008 period that were available for sale in the 2007 period.
For the thirteen weeks ended March 29, 2008, the Company reported an increase in income before income taxes to $343,000 as compared with income before income taxes of $224,000 for the comparable 2007 period. The Company's operating results continued to be negatively impacted during the thirteen week period ended March 29, 2008 as a result of new product start-up costs, including costs incurred at new co-packaging locations, increased marketing expenses and higher packaging and freight charges. The Company expects that these same factors will continue to affect operating expenses during the remainder of 2008.
Net income for the thirteen weeks ended March 29, 2008 increased to $204,000 ($0.04 per share) compared to $128,000 ($0.02 per share) for the thirteen week period ended March 31, 2007. Net income for the first quarter of 2008 is greater than that of the 2007 first quarter due to a $285,000 decrease in stock compensation expense. In the thirteen weeks ended March 31, 2007, the Company incurred stock compensation expense of approximately $288,000 arising from the purchase 175,000 stock options from an officer.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "Our results in the first quarter of 2008 were masked to a degree by our decision to drop certain low profit margin products that we sold in the 2007 period. We believe that our business plan of concentrating on our core business of non-dairy frozen desserts and soy-cheese products is succeeding and will result in increased sales and operating income. We look forward to continuing improvements in our sales and operating income during the upcoming summer months."
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 weeks Thirteen weeks
ended 3/29/08 ended 3/31/07
Net sales $4,655 $4,846
Cost of sales 3,128 3,150
Gross profit 1,527 1,696
Operating expenses 1,184 1,472
Income before income taxes 343 224
Income taxes 139 96
Net income $204 $128
Net income per common share:
Basic $0.04 $0.02
Diluted $0.03 $0.02
Weighted average common shares outstanding:
Basic 5,619 5,543
Diluted 5,869 5,813
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands, except share figures)
March 29, December 29,
Cash and cash equivalents $596 $1,499
Accounts receivable, net of allowance
for doubtful accounts and sales promotion
of $438 and $430, respectively 1,862 1,991
Inventories 2,162 1,552
Prepaid expenses 23 46
Refundable income taxes 635 770
Deferred income taxes 298 298
Total current assets 5,576 6,156
Fixed assets, net of accumulated
amortization of $20 and $19 23 24
Other assets 16 16
Liabilities and Stockholders' Equity
Accounts payable $395 $633
Accrued expenses 556 566
Accrued officers' compensation 125 500
Total current liabilities 1,075 1,699
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 5,593,867 shares at March 29,
2008 and 5,653,467 shares at December 29, 2007 56 57
Additional paid-in capital 65 225
Retained earnings 4,419 4,215
Total stockholders' equity 4,540 4,497
Total liabilities and stockholders' equity $5,615 $6,196
|SOURCE TOFUTTI BRANDS INC.|
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