Tofutti Announces Third Quarter and Nine Month Results

CRANFORD, N.J., Nov. 14, 2017 /PRNewswire/ -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) today announced its results for the thirteen and thirty-nine week periods ended September 30, 2017.

Net income for the thirteen weeks ended September 30, 2017 increased to $323,000, or $0.06 per share (basic and diluted), compared to net income of $32,000, or $0.01 per share (basic and diluted), for the thirteen weeks ended October 1, 2016.

Net sales for the thirteen weeks ended September 30, 2017 decreased to $3,326,000, a decrease of $280,000, or 8%, compared to net sales of $3,606,000 for the thirteen weeks ended October 1, 2016. Sales of vegan cheese products increased to $2,516,000 in the 2017 period from $2,423,000 in the 2016 period.  Sales of the Company's frozen dessert products were negatively impacted by production and shipping issues at its frozen dessert novelties plant due to a major physical restructuring program in process at this facility, which resulted in less inventory available for sale.

The Company's gross profit increased to $1,267,000 in the thirteen weeks ended September 30, 2017 from $1,108,000 in the thirteen weeks ended October 1, 2016, and its gross profit percentage was 38% for the thirteen weeks ending October 1, 2017 compared to 31% for the thirteen weeks ending October 1, 2016.  Gross profit percentage in the third quarter of 2017 was positively impacted by the increase in the Company's vegan cheese business, which has higher gross margins than its frozen dessert products.  

Net sales for the thirty-nine week period ended September 30, 2017 were $10,255,000, a decrease of $647,000, or 6%, compared to net sales of $10,902,000 for the thirty-nine week period ended October 1, 2016. Sales of vegan cheese products increased to $7,907,000 in the 2017 period from $7,563,000 in the 2016 period. The production and shipping issues affecting our frozen desserts sales resulted in a decrease in sales to $2,348,000 for the thirty-nine weeks ended September 30, 2017 from $3,339,000 for the thirty-nine weeks ended October 1, 2016.  The Company's gross profit and gross profit percentage for the thirty-nine week period ending September 30, 2017 were $3,454,000 and 34%, respectively, compared to $3,531,000 and 32%, respectively, for the thirty-nine week period ending October 1, 2016.  The decrease in the Company's gross profit was due primarily to the decrease in sales.

The Company's net income for the thirty-nine weeks ended September 30, 2017 was $420,000, or $0.08 per share (basic and diluted), compared to net income of $356,000, or $0.07 per share (basic and diluted), for the thirty-nine weeks ended October 1, 2016.

As of September 30, 2017, the Company had approximately $505,000 in cash and cash equivalents and its working capital was approximately $3.44 million, compared with approximately $132,000 in cash and cash equivalents and working capital of approximately $2.95 million at December 31, 2016.

Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "I am pleased with the increase in sales of our vegan cheese products during the thirteen and the thirty-nine week periods ended September 30, 2017 and our improved profitability in 2017. We achieved these improved results despite the headwinds encountered in our frozen dessert product production and sales.  Our continuing focus on reducing operating expenses and improving margins are evident in our improved gross profit margin in the thirteen weeks ended September 30, 2017. We continue to believe that we on the right track to produce consistent profitable operations in the future," concluded Mr. Mintz.

About Tofutti Brands Inc. Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of dairy-free products.  The Company sells more than 50 milk-free foods including frozen desserts, cheese products and prepared frozen dishes. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods.   Available throughout the United States and in more than 30 countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy, diabetic, kosher or vegan, as well as those who wish to have a healthier low-fat diet. Tofutti's product line includes dairy-free ice cream pints, Tofutti Cutie® sandwiches and novelty bars.  Tofutti also has  prepared food entrees including Pizza Pizzaz® and Mintz's Blintzes®, all made with Tofutti's milk-free cheeses such as Better Than Cream Cheese® and Sour Supreme®.  For more information, visit www.tofutti.com.

Forward-Looking Statements  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.  

SOURCE Tofutti Brands Inc.