Attached files
| file | filename |
|---|---|
| 8-K - TOFUTTI BRANDS INC | form8k.htm |
Exhibit
99.1
April 12,
2011
Tofutti
Press Release
Company
Contact: Steve
Kass
Chief
Financial Officer
(908)
272-2400
TOFUTTI
ANNOUNCES 2010 RESULTS
Cranford,
New Jersey -- April 12, 2011 -- TOFUTTI BRANDS INC. (NYSE AMEX
Symbol: TOF) issued its results for the fiscal year ended January 1, 2011
today.
Net sales for the fiscal year ended January 1, 2011 were $17,713,000, a decrease
of $904,000, or 5%, from the Company’s net sales of $18,617,000, for the fiscal
year ended January 2, 2010. The reduction in sales was caused by the
continuing difficult general economic conditions and the discontinuance of a
number of slower moving, less profitable products during
2010. Although the discontinuance of these slower moving items
contributed to reduced sales in fiscal 2010, it also contributed to an
improvement in the gross profit percentage for the year. Tofutti’s
gross profit percentage increased slightly to 31% in fiscal 2010 from 30% in
fiscal 2009.
For
fiscal 2010, the Company’s income before income taxes decreased to $802,000 from
$835,000 in fiscal 2009, primarily as a result of lower revenues and
gross profit, which was partially offset by a reduction in operating
expenses. Net income for fiscal 2010 decreased to $462,000 ($0.09 per share)
compared to $506,000 ($0.10 per share) for fiscal 2009, primarily as a result of
a reduction in operating profit and an increase in income taxes. Income taxes
for the 2010 fiscal period were $340,000 compared to $329,000 in fiscal 2009,
and the Company’s income tax rate was 42% for the 2010 year compared to 39% in
the 2009 fiscal year.
As of
January 1, 2011, the Company had cash and cash equivalents of approximately
$2.5
million and working capital of approximately $4.4 million compared to cash and
cash equivalents of approximately $1.4 million and working capital of
approximately $3.9 million at January 2, 2010.
“During
the last few fiscal years our industry was subject to significant pricing and
economic pressures. We worked hard to maintain the market position of our
leading products while shedding slower moving, less profitable products. As a
result, we were able to maintain our operating profitability despite a decrease
in sales. At the same time, we continued to improve our financial condition as
our cash and cash equivalents increased to $2.5 million at January 1, 2011
from $1.4 million at January 2, 2010. Our working capital also
improved to $4.4 million at January 1, 2011 from $3.9 million at January 2,
2010.
“Most
importantly, we completed the development of two new products that are expected
to be rolled out by September of this year. We are very
excited about what we believe to be the first commercially available
nondairy and gluten-free ricotta cheese product. The second new product is a
dairy-free, sugar-free, frozen dessert than incorporates Stevia as
the sweetening agent. We believe that the continued market acceptance
of our dairy-free, soy based products and the introduction of our new
products will drive the growth in our Company’s revenues and profitability in
2011 and the future,” said David Mintz, the Company's Chairman and
CEO.
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.
Statements of
Income
(in
thousands, except per share figures)
|
Fiscal
Year
ended
January
1, 2011
|
Fiscal
Year
ended
January
2, 2010
|
|||||||
|
Net
sales
|
$ | 17,713 | $ | 18,617 | ||||
|
Cost
of sales
|
12,271 | 12,995 | ||||||
|
Gross
profit
|
5,442 | 5,622 | ||||||
|
Operating
expenses
|
4,640 | 4,787 | ||||||
|
Income
before income taxes
|
802 | 835 | ||||||
|
Income
taxes
|
340 | 329 | ||||||
|
Net
income
|
$ | 462 | $ | 506 | ||||
|
Weighted
average number of
shares
outstanding:
|
||||||||
|
Basic
|
5,177 | 5,177 | ||||||
|
Diluted
|
5,177 | 5,177 | ||||||
|
Net
income per share:
|
||||||||
|
Basic
|
$ | 0.09 | $ | 0.10 | ||||
|
Diluted
|
$ | 0.09 | $ | 0.10 | ||||
TOFUTTI BRANDS
INC.
Balance
Sheets
(in
thousands, except per share figures)
|
Assets
|
January
1,
2011
|
January
2,
2010,
restated
|
||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 2,528 | $ | 1,413 | ||||
|
Accounts
receivable, net of allowance for doubtful
accounts
and sales promotions of $320 and $538, respectively
|
1,338 | 1,461 | ||||||
|
Inventories,
net
|
1,697 | 1,931 | ||||||
|
Prepaid
expenses
|
16 | 13 | ||||||
|
Refundable
income taxes
|
-- | 109 | ||||||
|
Deferred
income taxes
|
186 | 299 | ||||||
|
Total
current assets
|
5,765 | 5,226 | ||||||
|
Fixed
assets (net of accumulated amortization of
$33
and $29)
|
10 | 15 | ||||||
|
Other
assets
|
16 | 16 | ||||||
| $ | 5,791 | $ | 5,257 | |||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 260 | $ | 164 | ||||
|
Accrued
expenses
|
585 | 616 | ||||||
|
Accrued
officers’ compensation
|
500 | 500 | ||||||
|
Total
current liabilities
|
1,345 | 1,280 | ||||||
|
Commitment
and Contingencies
|
||||||||
|
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 January 1, 2011
and
5,176,678 shares at January 2, 2010
|
-- 52 | -- 52 | ||||||
|
Additional
paid-in capital
|
7 | -- | ||||||
|
Retained
earnings
|
4,387 | 3,925 | ||||||
|
Total
stockholders’ equity
|
4,446 | 3,977 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 5,791 | $ | 5,257 | ||||