Current report Tofutti Brands Inc

8-K - Current report

Published: 2012-11-21 14:48:44
Submitted: 2012-11-21
Period Ending In: 2012-11-21
form8k.htm 3 Q RESULTS RELEASE


form8k.htm





UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549
__________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934

November 21, 2012
Date of  Report
(Date of earliest event reported)

TOFUTTI BRANDS INC.
(Exact name of registrant as specified in its charter)

             
Delaware
            
 
1-9009
13-3094658
(State or other jurisdiction
       of incorporation)
(Commission
File Number)
(IRS Employer Identification No.)

50 Jackson Drive Cranford, New Jersey 07016
 (Address of principal executive offices and zip code)


                           
(908)272-2400
                         
(Registrant’s telephone number, including area code)

                                    
Not Applicable
                                 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):

*
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
*
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
*
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
*
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
 

 



ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 

On November 21, 2012, the registrant reported its results of operations for the thirteen weeks and twenty six weeks ended June 30, 2012.  A copy of the press release issued by the registrant in this connection is furnished herewith as Exhibit 99.1.

The information in this Item in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.



ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS.

(c)           Exhibits
 

 
Exhibit 99.1
   
 Press Release dated November 21, 2012.
 

 
 

 
 

 
 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Date: November 21, 2012
TOFUTTI BRANDS INC.
 
 
 
 
 
 
(Registrant)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By:
/s/Steven Kass
 
 
 
 
 
 
      Steven Kass
 
 
 
 
 
 
      Chief Financial Officer
 

ex99_1.htm



Exhibit 99.1
 
November 21, 2012
 
Tofutti Press Release
 
Company Contact:              Steve Kass
Chief Financial Officer
(908) 272-2400
(908) 272-9492 (Fax)
 

 
TOFUTTI ANNOUNCES THIRD QUARTER
 AND NINE MONTH RESULTS

Cranford, New Jersey  -- November 21, 2012 -- TOFUTTI BRANDS INC. (NYSEAMEX Symbol: TOF) today announced its results for the thirteen and thirty-nine week periods ended September 29, 2012.

Tofutti Brands reported net sales for the thirteen weeks ended September 29, 2012 of  $3,498,000, a decrease of $119,000, or 3%, from $3,617,000 in net sales for the thirteen weeks ended October 1, 2011. Net sales for the thirty-nine week period ended September 29, 2012 decreased by approximately $1.6 million to $10.5 million from approximately $12.1 million for the thirty-nine week period ended October 1, 2011.  Sales in both the thirteen and thirty-nine week periods reflect the loss of sales to Trader Joe’s, formerly the company’s largest customer, after it discontinued stocking branded goods in mid-2011.

The company’s gross profit and gross profit percentage for the thirteen week period ending September 29, 2012 were approximately $882,000 and 25%, respectively, compared to $1,121,000 and 31%, respectively, for the period ending October 1, 2011. The decrease in gross profit and gross profit percentage for the thirteen week period in 2012 was due to the decrease in sales and an increase in sales promotions and allowances incurred in an effort to expand future sales.  The company’s gross profit and gross profit percentage for the thirty-nine week period ending September 29, 2012 were approximately $2,828,000 and 27%, respectively, compared to $3,436,000 and 28%, respectively, for the period ending October 1, 2011. The decrease in gross profit and gross profit percentage for the thirty-nine week period  in 2012 was due to the lower level of sales.

For the thirteen week period ended September 29, 2012, the company reported a loss of $279,000 before an income tax benefit of $62,000 compared to income before income taxes of $70,000 for the thirteen week period ended October 1, 2011. As a result, the company recorded a net loss of $217,000 ($(0.04) per share on a basic and diluted basis) for the thirteen weeks ended September 29, 2012 compared to net income of $34,000 ($0.01 per share on a basic and diluted basis) for the thirteen weeks ended October 1, 2011.   The company reported a loss of $785,000 before an income tax benefit of $259,000 for the thirty-nine week period ended September 29, 2012 compared to income before income taxes of $99,000 for the thirty-nine week period ended October 1, 2011. The company’s net loss for the thirty-nine weeks ended September 29, 2012 was $526,000 ($(0.10) per share on a basic and diluted basis) compared to net income of $52,000 ($0.01 per share on a basic and diluted basis) for the thirty-nine weeks ended October 1, 2011.

 
 

 



As of September 29, 2012, the company’s working capital was approximately $3.9 million, with approximately $0.2 million in cash and cash equivalents,  compared with working capital of $4.4 million and approximately $1.6 million in cash and cash equivalents at December 31, 2011.  The decrease in cash and cash equivalents reflects in part the buildup of inventory of our new products that were introduced during the third quarter.

Mr.  David Mintz, Chairman and Chief Executive Officer of the company stated, “Our  results for the first nine months of 2012 continue to reflect the impact of the loss of Trader Joe’s as a customer. We are working to replace those sales with aggressive promotional sales activities.  We believe that our sales and gross margins will improve during the remainder of fiscal 2012 due to the continued roll-out of our new products and price increases instituted in  the second and  third quarters of this year.

About Tofutti Brands Inc.

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.

Forwarding-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.

 
 

 


TOFUTTI BRANDS INC.
Condensed Statements of Operations
(in thousands, except per share figures)
 
 
 
 
Thirteen
weeks ended
September 29, 2012
 
 
Thirteen
weeks ended
October 1, 2011
 
 
Thirty-nine
weeks ended
September 29, 2012
 
 
Thirty-nine
weeks ended
October 1, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales                                                 
 
$
3,498
 
 
$
3,617
 
 
$
10,486
 
 
$
12,072
 
Cost of sales                                                 
 
 
2,616
 
 
 
2,496
 
 
 
7,658
 
 
 
8,636
 
Gross profit                                                 
 
 
882
 
 
 
1,121
 
 
 
2,828
 
 
 
3,436
 
Operating expenses                                                 
 
 
1,161
 
 
 
1,051
 
 
 
3,613
 
 
 
3,337
 
Income (loss) before income taxes 
 
 
(279
)
 
 
70
 
 
 
(785
)
 
 
99
 
Income tax (benefit) expense
 
 
(62
)
 
 
36
 
 
 
(259
)
 
 
47
 
Net income (loss)                                                 
 
$
(217
)
 
$
34
 
 
$
(526
)
 
$
52
 
Weighted average common
shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted                                                 
 
 
5,154
 
 
 
5,177
 
 
 
5,154
 
 
 
5,177
 
Net  income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted                                                 
 
$
(0.04
)
 
$
0.01
 
 
$
(0.10
)
 
$
0.01
 


 
 
 
 
 
 
 
 
 
 
 

 
 
 

 

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

 
 
September 29,
2012
 
 
December 31,
2011*
 
 
 
(unaudited)
 
 
 
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
     Cash and cash equivalents
 
$
213
 
 
$
1,594
 
     Accounts receivable, net of allowance for doubtful
        accounts and sales promotions of $252 and $486,
       respectively
 
 
1,963
 
 
 
1,936
 
     Inventories, net of reserve of $50 and $50, respectively
 
 
2,011
 
 
 
1,441
 
     Prepaid expenses
 
 
97
 
 
 
122
 
     Deferred costs
 
 
128
 
 
 
--
 
     Refundable income taxes
 
 
177
 
 
 
42
 
     Deferred income taxes
 
 
298
 
 
 
265
 
                Total current assets
 
 
4,887
 
 
 
5,400
 
 
 
 
 
 
 
 
 
 
Fixed assets, net of accumulated amortization of
        $47 and $44
 
 
1
 
 
 
5
 
Other assets
 
 
16
 
 
 
16
 
 
 
$
4,904
 
 
$
5,421
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
     Accounts payable
 
$
491
 
 
$
319
 
     Accrued expenses
 
 
347
 
 
 
637
 
     Deferred revenue
 
 
143
 
 
 
--
 
                  Total current liabilities
 
 
981
 
 
 
956
 
 
 
 
 
 
 
 
 
 
Commitments 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 5,153,706 shares at September 29, 2012
         and 5,162,186 shares at December 31, 2011
 
 
--
     
52
 
 
 
--
     
52
 
     Retained earnings
 
 
3,871
 
 
 
4,413
 
                 Total stockholders’ equity
 
 
3,923
 
 
 
4,465
 
                 Total liabilities and stockholders’ equity
 
$
4,904
 
 
$
5,421
 

*           Derived from audited financial information.


 


Additional Files
FileSequenceDescriptionTypeSize
0000910662-12-000329.txt   Complete submission text file   137462
$TOF

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