Current report Tofutti Brands Inc

8-K - Current report

Published: 2014-08-12 16:26:57
Submitted: 2014-08-12
Period Ending In: 2014-08-12
tof8k.htm 2Q RESULTS PRESS RELEASE


tof8k.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

August 12, 2014
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 August 12, 2014, the registrant reported its results of operations for the thirteen and twenty-six weeks ended June 28, 2014.  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 August 12, 2014.
 

 
 

 
 




 
 
 

 
 
 
 

 


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: August 12, 2014
TOFUTTI BRANDS INC.
 
 
 
 
 
 
(Registrant)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By:
/s/Steven Kass
 
 
 
 
 
 
      Steven Kass
 
 
 
 
 
 
      Chief Financial Officer
 


ex99_1.htm


Exhibit 99.1
 
August 12, 2014
 
Tofutti Press Release
 
Company Contact:              Steve Kass
Chief Financial Officer
(908) 272-2400
(908) 272-9492 (Fax)
 

 
TOFUTTI ANNOUNCES SECOND QUARTER
 AND SIX MONTH RESULTS

Cranford, New Jersey  -- August 12, 2014 -- TOFUTTI BRANDS INC. (NYSE MKT Symbol: TOF) today announced its results for the thirteen and twenty-six week periods ended June 28, 2014.

Tofutti Brands reported net sales for the thirteen weeks ended of $3,498,000, a decrease of $764,000, or 18%, compared to net sales of $4,262,000 for the thirteen weeks ended June 29, 2013. The decrease was mainly the result of a decrease in  frozen food product sales, primarily frozen desserts, with a smaller decrease in the company’s nondairy cheese product line.  In the 2014 period the company increased promotional and allowance activity by over $100,000, which negatively affected reported sales. Net sales for the twenty-six week period ended June 28, 2014 were $7,355,000, a decrease of $346,000, or 4%, compared to net sales of $7,701,000 for the twenty-six week period ended June 29, 2013.  The decrease in sales was primarily from the decrease in sales in the second quarter, which offset the increase in sales in the first quarter.

The company’s gross profit and gross profit percentage for the thirteen week period ending June 28, 2014 were approximately $961,000 and 27%, respectively, compared to $1,489,000 and 35%, respectively, for the period ending June 29, 2013. The company’s gross profit and gross profit percentage for the twenty-six week period ending June 28, 2014 were  $2,251,000 and 31%, respectively, compared to $2,493,000 and 32%, respectively, for the period ending June 29, 2013.  The decrease in the company’s gross profit percentage was due primarily to the decrease in sales and a substantial increase in the company’s  promotional allowance programs in the thirteen weeks ended June 28, 2014.

For the thirteen week period ended June 28, 2014, the company reported a loss of $190,000, or $0.02 per share, compared to income of $181,000, or $0.04 per share, for the thirteen week period ended June 29, 2013.

 

 


 
 
 

 
 
 

 

The company reported a loss of $78,000 before an income tax expense of $6,000 for the twenty-six week period ended June 28, 2014 compared to a loss of $82,000 before an income tax expense of $6,000 for the twenty-six week period ended June 29, 2013. The company’s net loss for the twenty-six weeks ended June 28, 2014 was $84,000, or $0.02 per share, compared to a net loss of $88,000, or $0.02 per share, for the twenty-six weeks ended June 29, 2013.
 
As of June 28, 2014, the company had approximately $171,000 in cash and cash equivalents and its working capital was approximately $2.6 million, compared with approximately $214,000 in cash and cash equivalents and working capital of $2.7 million at December 28, 2013.
 
Mr.  David Mintz, Chairman and Chief Executive Officer of the company stated, “Our disappointing results for the second quarter of 2014 primarily reflect a weakness in frozen food product sales. We are focused on expanding the market for our frozen food products and non-dairy cheese products. Our introduction of new products and price increases instituted in the first and second quarters of the year should  improve our gross margins during the remainder of the year."
 
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 80 milk-free foods including frozen desserts, cheese products and prepared frozen dishes throughout the United States and in more than 30 countries. 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 a growing array of prepared foods including Pizza Pizzaz®, Mintz's Blintzes®, and a Cheese Ravioli line, all made with Tofutti's milk-free cheeses such as Better Than Cream Cheese®, Sour Supreme® and Veggie Cheese Slices.  For more information, visit
www.tofutti.com
.
 
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
June 28, 2014
 
 
Thirteen
weeks ended
June 29, 2013
 
 
Twenty-six
weeks ended
June 28, 2014
 
 
Twenty-six
weeks ended
June 29, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
3,498
 
 
$
4,262
 
 
$
7,355
 
 
$
7,701
 
Cost of sales
 
 
2,537
 
 
 
2,773
 
 
 
5,104
 
 
 
5,208
 
Gross profit
 
 
961
 
 
 
1,489
 
 
 
2,251
 
 
 
2,943
 
Operating expenses
 
 
1,151
 
 
 
1,308
 
 
 
2,329
 
 
 
2,575
 
Income (loss) before income taxes 
 
 
(190
)
 
 
181
 
 
 
(78
)
 
 
(82
)
Income tax expense
 
 
--
 
 
 
--
 
 
 
6
 
 
 
6
 
Net income (loss)
 
$
(190
)
 
$
181
 
 
$
(84
)
 
$
(88
)
Weighted average common
shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
 
5,154
 
 
 
5,154
 
 
 
5,154
 
 
 
5,154
 
Net  income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
$
(0.04
)
 
$
0.04
 
 
$
(0.02
)
 
$
(0.02
)


 
 
 

 
 
 

 

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

 
 
June 28, 2014
 
 
December 28, 2013*
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
     Cash and cash equivalents
 
$
171
 
 
$
214
 
     Accounts receivable, net of allowance for doubtful
        accounts and sales promotions of $293 and $277,
        respectively
 
 
1,887
 
 
 
1,954
 
     Inventories, net of reserves of $150 and $150, respectively
 
 
2,015
 
 
 
1,844
 
     Prepaid expenses
 
 
42
 
 
 
40
 
     Deferred costs
 
 
179
 
 
 
138
 
                Total current assets
 
 
4,294
 
 
 
4,190
 
 
 
 
 
 
 
 
 
 
Other assets
 
 
16
 
 
 
16
 
 
 
$
4,310
 
 
$
4,206
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
     Accounts payable
 
$
1,123
 
 
$
877
 
     Accrued expenses
 
 
362
 
 
 
459
 
     Deferred revenue
 
 
193
 
 
 
153
 
                  Total current liabilities
 
 
1,678
 
 
 
1,489
 
 
 
 
 
 
 
 
 
 
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 June 28, 2014,
         and 5,153,706 shares at December 28, 2013
 
 
--
     
52
 
 
 
 --
     
 52
 
     Additional paid-in capital
 
 
--
 
 
 
--
 
     Retained earnings
 
 
2,580
 
 
 
2,665
 
                 Total stockholders’ equity
 
 
2,632
 
 
 
2,717
 
                 Total liabilities and stockholders’ equity
 
$
4,310
 
 
$
4,206
 

 

 
*           Derived from audited financial information.



 


Additional Files
FileSequenceDescriptionTypeSize
0000910662-14-000128.txt   Complete submission text file   136125
$TOF

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