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TOFUTTI Announces Second Quarter Results
Posted by: gurufocus (IP Logged)
Date: August 11, 2009 04:27PM

Press Release: TOFUTTI Announces Second Quarter Results

CRANFORD, N.J., Aug. 11 /PRNewswire-FirstCall/ -- TOFUTTI BRANDS INC. (Amex: TOF) today announced its results for the thirteen and twenty-six week periods ended June 27, 2009.

The Company reported net sales for the thirteen week period ended June 27, 2009 of $5,229,000, a decrease of $404,000, or 7%, from the sales recorded for the thirteen weeks ended June 28, 2008. Net sales for the twenty-six week period ended June 27, 2009 decreased 9% to $9,407,000 compared with net sales of $10,288,000 for the twenty-six week period ended June 28, 2008. Sales were negatively impacted due to the elimination of certain products that were sold in the 2008 period and the continuing effects of the deteriorating economic climate.

For the thirteen and twenty-six week periods ended June 27, 2009, the Company reported income before income taxes of $164,000 and $417,000, respectively, as compared with income before income taxes of $207,000 and $550,000 for the thirteen and twenty-six week periods in 2008. The Company\'s gross profit for the period ended June 27, 2009 was negatively impacted as a result of costs incurred due to a limited product recall in May 2009 for a product that was manufactured on behalf of the Company by a former co-packer in 2008. The costs associated with the recall were offset, in part, by savings in freight out expense from on-going operations.

The Company recorded net income of $98,000 ($0.02 per share on a basic and diluted basis) for the thirteen weeks ended June 27, 2009 compared to $127,000 ($0.02 per share on a basic and diluted basis) for the thirteen weeks ended June 28, 2008. Net income for the twenty-six weeks ended June 27, 2009 was $250,000 ($0.05 per share on a basic and diluted basis) compared to $331,000 ($0.06 per share on a basic and diluted basis) for the twenty-six weeks ended June 28, 2008.

As of June 27, 2009 the Company had cash and cash equivalents of $704,000 and working capital of approximately $3.8 million compared to cash and cash equivalents of $238,000 and working capital of $3.6 million at December 27, 2008.

Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "Our results in the second quarter of 2009 continue to impacted by the negative influence of the deteriorating economy, the elimination of certain low profit margin products that we sold in the 2008 period and the product recall. We do not believe the recall affected our net sales, and based on an uptick in sales that we experienced in June, we look forward to continued improvements in our sales and operating income during the remainder of the year. We will continue to concentrate on our core business of non-dairy frozen desserts and soy-cheese products and believe this strategy will result in increased sales and operating income in the future."

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
                                  June 27,    June 28,    June 27,   June 28,
                                    2009        2008        2009       2008
                                  --------    --------    --------   --------
    Net sales                       $5,229     $5,633     $9,407    $10,288
    Cost of sales                    3,793      4,160      6,601      7,287
                                     -----      -----      -----      -----
    Gross profit                     1,436      1,473      2,806      3,001
    Operating expenses               1,272      1,266      2,389      2,451
                                     -----      -----      -----      -----
    Income before income taxes         164        207        417        550
    Income tax expense                  66         80        167        219
                                     -----      -----      -----      -----
    Net income                         $98       $127       $250       $331
                                     =====      =====      =====      =====
    Net income per share:
        Basic                        $0.02      $0.02      $0.05      $0.06
                                     =====      =====      =====      =====
        Diluted                      $0.02      $0.02      $0.05      $0.06
                                     =====      =====      =====      =====
    Weighted average number of
     shares outstanding:
        Basic                        5,176      5,558      5,178      5,588
                                     =====      =====      =====      =====
        Diluted                      5,176      5,818      5,178      5,843
                                     =====      =====      =====      =====



                             TOFUTTI BRANDS INC.
                           Condensed Balance Sheets
                     (in thousands, except share figures)

                                                     June 27,    December 27,
                                                       2009          2008
    Assets                                             ----          ----
    Current assets:
         Cash and cash equivalents                      $704          $238
         Accounts receivable, net of
          allowance for doubtful accounts of
          $558 and $528, respectively                  2,029         1,574
         Inventories                                   2,135         2,334
         Prepaid expenses                                  2            19
         Refundable income taxes                         389           555
         Deferred income taxes                           324           324
                                                         ---           ---
                    Total current assets               5,583         5,044
                                                       -----         -----

    Fixed assets (net of accumulated
     amortization of $31 and $29)                         17            19
    Other assets                                          16            16
                                                         ---           ---
                                                      $5,616        $5,079
                                                      ======        ======

    Liabilities and Stockholders\' Equity
    Current liabilities:
         Accounts payable                               $879          $398
         Accrued expenses                                629           565
         Accrued officers\' compensation                  250           500
                                                         ---           ---
                      Total current liabilities        1,758         1,463
                                                       -----         -----

    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 June 27, 2009 and 5,189,343 shares at
          December 27, 2008                               52            52
         Retained earnings                             3,806         3,564
                                                       -----         -----
                     Total stockholders\' equity        3,858         3,616
                                                       -----         -----
                     Total liabilities and
                      stockholders\' equity            $5,616        $5,079
                                                      ======        ======

Source: PRNewsWire



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