MamaMancini's Reports Second Quarter Fiscal Year 2018 Financial Results

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EAST RUTHERFORD, NJ -- (Marketwired) -- 09/13/17 -- MamaMancini's Holdings, Inc. (the "Company" or "MamaMancini's") (OTCQB: MMMB), a 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 second quarter of fiscal year 2018, ended July 30, 2017.

Second Quarter Highlights:

Six Months Highlights:

Carl Wolf, Chief Executive Officer of MamaMancini's, commented, "The second quarter was outstanding from a revenue perspective; continuing the growth trajectory of recent quarters. This growth stems directly from our strategy of focusing on selling our products into the prepared foods, ready to eat meals and sandwich shop area located on fresh foods perimeter of the retail grocery store. Progressive retail stores are looking to take advantage of the growing consumer trend toward a broad array of delicious, nutritious, all-natural and easy to prepare products. As a result, we have been able to sell into higher volume per location accounts over the traditional pre-packaged retailer merchandising. We believe this trend is accelerating as evidenced by the recent acquisition of Whole Foods by Amazon."

Mr. Wolf continued, "The rapid growth we are currently experiencing has required the acquisition of new equipment and additional processes to meet current demand; which is having a moderate impact on our gross profit and operating margins year-to-date. We expect margins to move back up to more traditional levels as we move through the second half of the year. Also during the quarter, we signed a letter of intent to acquire the primary manufacturer, of our products, Joseph Epstein Foods Enterprise ("JEFE"), on a non-cash basis. Based upon preliminary information received from JEFE (subject to completion of due diligence and audit), we estimate that the integration of our sole supplier will increase our gross profit margin and profits by $1.5 million or more in the next 12 months and believe that the acquisition will assure a reliable source of supply for the Company for years to come.

"As MamaMancini's continues on this growth trajectory, it became clear to us that the combination of the two entities would secure manufacturing capacity for the company's products and, as a result of operating efficiencies, be immediately accretive to our earnings and thereby reward our shareholders. We anticipate closing this transaction in early November 2017. This acquisition involves no cash or stock outlay." Please see the Company's SEC filing on Form 8-K on September 11, 2017 for further details.

Mr. Wolf concluded, "It is an exciting time at MamaMancini's as the strategic direction we put in place is coming to fruition. We have now reported profitability in each of the last four consecutive quarters and our revenue growth is accelerating. Looking ahead, our goal is to get to a $40 million annualized sales run rate, which is anticipated before the end of the current fiscal year. Our focus right now is execution, making sure we can deliver our products on a consistent basis and meet current customer demand. We are excited with the opportunities ahead."

Second Quarter 2018 Results
Sales, net of slotting fees and discounts, were $7.0 million for the second quarter of fiscal 2018, a 69% increase compared to $4.1 million reported in the second quarter of fiscal 2017. The Company has sold approximately 40,600 SKU's in 11,900 retail and grocery locations at July 31, 2017 as compared to approximately 36,000 SKU's in 11,400 retail and grocery locations at July 31, 2016. Gross profit for the second quarter of fiscal 2018 was $2.0 million, or 29% of sales, compared to $1.4 million, or 33% of sales, in the year ago period. Operating income for the second quarter of fiscal 2018 was $207,000, compared to an operating loss of $(109,000) in the second quarter of fiscal 2017. Net income for the second quarter of fiscal 2018 was $24,000, compared to a net loss of $(277,000) in the second quarter of fiscal 2017.

Six Months Fiscal 2018 Results
Sales, net of slotting fees and discounts, were $12.4 million for the first six months of fiscal 2018, a 53% increase compared to $8.1 million reported in the prior year period. Gross profit for the first six months of fiscal 2018 was $3.9 million, or 32% of sales, compared to $2.8 million, or 35% of sales, in the year ago period. Operating income for the first six months of fiscal 2018 was $524,000, compared to an operating loss of $(164,000) in the first six months of fiscal 2017. Net income for the first six months of fiscal 2018 was $153,000, compared to a net loss of $(503,000) in the first six months of fiscal 2017.

Non-GAAP Financial Measures
The Company uses Cash EBITDA as a non-GAAP financial measure. The Company defines Cash EBITDA as earnings before income taxes, depreciation and amortization plus any non-cash stock payments for expenses. The Company believes that the use of Cash EBITDA is useful to investors and other users of its financial statements in evaluating the Company's operating performance because it provides them with an additional tool to compare business performance across companies and across periods. The Company uses Cash EBITDA in conjunction with traditional GAAP operating performance measures as part of its overall assessment of its performance, for planning purposes, including the preparation of its annual operating budget, and to evaluate the effectiveness of its business strategies. Management does not place undue reliance on Cash EBITDA as its only measure of operating performance. Cash EBITDA should not be considered as a substitute for other measures of financial performance reported in accordance with GAAP.

Pro Forma Results including Joseph Epstein Foods Enterprise, Inc. ("JEFE")
The Pro Forma results which include the consolidation of the results of JEFE are based on preliminary financial information that the Company has received from JEFE. These financial results are subject to changes from their audit and due diligence prior to the consolidation which is expected about November 1, 2017.

Conference Call
The Company has scheduled a conference call for Thursday, September 14, 2017 at 9:00 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 10112126, through September 20, 2017.

About MamaMancini's
MamaMancini's is a marketer and distributor of a line of beef meatballs and turkey meatballs all with sauce, five cheese stuffed beef and turkey meatballs all with sauce, original beef and turkey meatloaves, chicken parmesan, stuffed peppers 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 and distributors such as Costco, Publix, Shop Rite, Jewel, Save Mart, Lucky's, Lunds and Byerlys, SuperValu, Safeway, Albertsons, SpartanNash, Bashas, Whole Foods Market, Hy-Vee, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Foodtown, Sam's Club, Kroger, Shoppers,, King Kullen, Lowes, Central Market, Weis Markets, Ingles, Food City, The Fresh Market. Sysco, Burris Foods, and C&S. The Company sells a variety of its products on air and on line on QVC, the world's largest direct to consumer marketer.

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.

Financial Tables to Follow

More news and information about MamaMancini's

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Marketwire: 21:01 GMT Wednesday 13th September 2017

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