Bridgford Foods (BRID) 10-Q 31 May 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 19, 2019	May 31, 2019
Deferred Tax [Member]
Entity Registrant Name	BRIDGFORD FOODS CORP
Entity Central Index Key	0000014177
Document Type	10-Q
Document Period End Date	Apr. 19, 2019
Amendment Flag	false
Current Fiscal Year End Date	--11-01
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		9,076,832
Trading Symbol	BRID
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 19, 2019	Nov. 02, 2018
Current assets:
Cash and cash equivalents	$ 2,798	$ 8,179
Accounts receivable, less allowance for doubtful accounts of $51 and $33, respectively, and promotional allowances of $2,848 and $2,122, respectively	21,433	20,293
Inventories, net	24,592	23,413
Prepaid expenses and other current assets	1,333	1,331
Total current assets	50,156	53,216
Property, plant and equipment, net of accumulated depreciation and amortization of $68,282 and $66,337, respectively	44,811	32,638
Other non-current assets	12,058	11,630
Deferred income taxes (Note 5)	4,010	4,010
Total assets	111,035	101,494
Current liabilities:
Accounts payable	5,468	7,655
Accrued payroll, advertising and other expenses	4,626	4,577
Income taxes payable	1,023	155
Current notes payable - equipment	712
Line of credit	2,000
Current portion of non-current liabilities	5,399	5,980
Total current liabilities	19,228	18,367
Long-term notes payable - equipment	6,556
Non-current liabilities	15,475	17,447
Total liabilities	41,259	35,814
Contingencies and commitments (Note 3)
Shareholders' equity:
Preferred stock, without par value; authorized - 1,000,000 shares; issued and outstanding - none
Common stock, $1.00 par value; authorized - 20,000,000 shares; issued and outstanding - 9,076,832 and 9,076,832 shares, respectively	9,134	9,134
Capital in excess of par value	8,298	8,298
Retained earnings	70,044	65,948
Accumulated other comprehensive loss	(17,700)	(17,700)
Total shareholders' equity	69,776	65,680
Total liabilities and shareholders' equity	$ 111,035	$ 101,494

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 19, 2019	Nov. 02, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 51	$ 33
Accounts receivable, allowance for promotional allowances	2,848	2,122
Property, plant and equipment, accumulated depreciation	$ 68,282	$ 66,337
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,076,832	9,076,832
Common stock, shares outstanding	9,076,832	9,076,832

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 19, 2019	Apr. 20, 2018	Apr. 19, 2019	Apr. 20, 2018
Income Statement [Abstract]
Net sales	$ 41,443	$ 37,900	$ 86,484	$ 79,092
Cost of products sold	27,042	25,840	56,429	53,073
Gross margin	14,401	12,060	30,055	26,019
Selling, general and administrative expenses	11,608	11,613	24,695	23,484
Gain on sale of property, plant and equipment		(5,995)		(6,002)
Income before taxes	2,793	6,442	5,360	8,537
Provision for income taxes	573	1,808	1,264	5,530
Net income	$ 2,220	$ 4,634	$ 4,096	$ 3,007
Basic earnings per share	$ 0.24	$ 0.52	$ 0.45	$ 0.35
Shares used to compute basic earnings per share	9,076,832	9,076,832	9,076,832	9,076,832

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Nov. 03, 2017	$ 9,134	$ 8,298	$ 56,902	$ (18,296)	$ 56,038
Balance, shares at Nov. 03, 2017	9,076,000
Net income			3,007		3,007
Reclassification upon early adoption of ASU 2018-02			2,529	(2,529)
Balance at Apr. 20, 2018	$ 9,134	8,298	62,438	(20,825)	59,045
Balance, shares at Apr. 20, 2018	9,076,000
Balance at Jan. 26, 2018	$ 9,134	8,298	57,804	(20,825)	54,411
Balance, shares at Jan. 26, 2018	9,076,000
Net income			4,634		4,634
Balance at Apr. 20, 2018	$ 9,134	8,298	62,438	(20,825)	59,045
Balance, shares at Apr. 20, 2018	9,076,000
Balance at Nov. 02, 2018	$ 9,134	8,298	65,948	(17,700)	65,680
Balance, shares at Nov. 02, 2018	9,076,000
Net income			4,096		4,096
Balance at Apr. 19, 2019	$ 9,134	8,298	70,044	(17,700)	69,776
Balance, shares at Apr. 19, 2019	9,076,000
Balance at Jan. 25, 2019	$ 9,134	8,298	67,824	(17,700)	67,556
Balance, shares at Jan. 25, 2019	9,076,000
Net income			2,220		2,220
Balance at Apr. 19, 2019	$ 9,134	$ 8,298	$ 70,044	$ (17,700)	$ 69,776
Balance, shares at Apr. 19, 2019	9,076,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Apr. 19, 2019	Apr. 20, 2018
Cash flows from operating activities:
Net income	$ 4,096	$ 3,007
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	1,945	1,835
Provision for losses on accounts receivable	49	152
(Reduction in) provision for promotional allowances	(316)	140
Gain on sale of property, plant and equipment		(6,002)
Deferred income taxes, net		3,200
Changes in operating assets and liabilities:
Accounts receivable	(873)	2,705
Inventories	(1,179)	(1,403)
Prepaid expenses and other current assets	(2)	727
Other non-current assets	(428)	(366)
Accounts payable	(2,187)	(1,270)
Accrued payroll, advertising and other expenses	(532)	(289)
Income taxes payable	868	986
Non-current liabilities	(1,972)	(2,815)
Net cash (used in) provided by operating activities	(531)	607
Cash (used in) provided by investing activities:
Proceeds from sale of property, plant and equipment		6,002
Additions to property, plant and equipment	(14,118)	(4,811)
Net cash (used in) provided by investing activities	(14,118)	1,191
Cash provided by (used in) financing activities:
Payment of capital lease obligations		(70)
Proceeds from bank borrowings	9,500
Repayments of bank borrowings	(232)
Net cash provided by (used in) financing activities	9,268	(70)
Net (decrease) increase in cash and cash equivalents	(5,381)	1,728
Cash and cash equivalents at beginning of period	8,179	12,109
Cash and cash equivalents at end of period	2,798	13,837
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 551	$ 1,350

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Apr. 19, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies: The unaudited condensed consolidated financial statements of Bridgford Foods Corporation (the “Company”, “we”, “our”, “us”) for the twelve and twenty-four weeks ended April 19, 2019 and April 20, 2018 have been prepared in conformity with the accounting principles described in the Company’s Annual Report on Form 10-K for the fiscal year ended November 2, 2018 (the “Annual Report”) and include all adjustments considered necessary by management for a fair presentation of the interim periods. This Report should be read in conjunction with the Annual Report. Due to seasonality and other factors, interim results are not necessarily indicative of the results for the full year. Recent accounting pronouncements and their effect on the Company are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Report. The November 2, 2018 balance sheet amounts within these interim condensed consolidated financial statements were derived from the audited fiscal year 2018 financial statements. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported revenues and expenses during the reporting periods. Some of the estimates needed to be made by management include the allowance for doubtful accounts, promotional and returns allowances, inventory reserves, the estimated useful lives of property, plant and equipment, and the valuation allowance for the Company’s deferred tax assets. Actual results could materially differ from these estimates. Amounts estimated related to liabilities for self-insured workers’ compensation, employee healthcare and pension benefits are especially subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which vary from our current estimates. Market conditions and the volatility in stock markets may cause significant changes in the measurement of our pension fund liabilities and the performance of our life insurance policies in future periods. Certain items in fiscal year 2018 have been reclassified to conform to the fiscal year 2019 presentation. Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents, accounts receivable, accounts payable and accrued payroll, advertising and other expenses. The carrying amount of these instruments approximate fair market value due to their short-term maturity. As of April 19, 2019, the Company had accounts in excess of the Federal Deposit Insurance Corporation insurance coverage limit. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk with regard to its cash and cash equivalents. The Company grants payment terms to a significant number of customers that are diversified over a wide geographic area. The Company monitors the payment histories of its customers and maintains an allowance for doubtful accounts which is reviewed for adequacy on a quarterly basis. The Company does not require collateral from its customers. The table below shows customers that accounted for more than 20% of consolidated accounts receivable (“AR”) or 10% of consolidated sales for the twenty-four weeks ended April 19, 2019 and April 20, 2018, respectively. Customer Concentration > 20% of AR or 10% of Sales * Wal-Mart Dollar General Sales AR Sales AR April 19, 2019 36.1 % 36.9 % 9.8 % 21.0 % April 20, 2018 36.3 % 34.1 % - % - % * = No other customer accounted for more than 20% of consolidated accounts receivable or 10% of consolidated sales for the twenty-four weeks ended April 19, 2019 or the twenty-four weeks ended April 20, 2018. Revenue recognition Revenues are recognized in accordance with Accounting Standards Codification (“ASC”) 606 – Contracts with Customers upon passage of title to the customer, typically upon product pick-up, shipment or delivery to customers. Products are delivered to customers primarily through our own long-haul fleet or through a Company owned direct store delivery system. We recognize revenue mainly through retail and foodservice distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year. Subsequent events Management has evaluated events subsequent to April 19, 2019 through the date that the accompanying condensed consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustments of and/or disclosure in such financial statements. The Company borrowed $2,000 under its line of credit with Wells Fargo Bank, N.A. on April 15, 2019, which was repaid on April 25, 2019 with the proceeds from a second borrowing of $7,500 under the master collateral loan and security agreement with Wells Fargo Bank, N.A that provides for up to $15,000 in equipment financing. The proceeds under the first borrowing of $7,500 were received on December 28, 2018. A total of $15,000 was borrowed for equipment financing under this agreement. Refer to Note 6 “Equipment Note Payable and Financial Arrangements” for more information on the equipment financing. Basic earnings per share Basic earnings per share are calculated based on the weighted average number of shares outstanding for all periods presented. No stock options, warrants, or convertible securities were outstanding as of April 19, 2019 or April 20, 2018.

Inventories

Inventories	6 Months Ended
	Apr. 19, 2019
Inventory Disclosure [Abstract]
Inventories	Note 2 – Inventories: Inventories are comprised of the following at the respective period ends: (unaudited) April 19, 2019 November 2, 2018 Meat, ingredients and supplies $ 7,685 $ 6,455 Work in progress 1,615 1,415 Finished goods 15,292 15,543 $ 24,592 $ 23,413 Inventories are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Costs related to warehousing, transportation and distribution to customers are considered when computing market value. Inventories include the cost of ingredients, labor and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete inventories to estimated net realizable value. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in economic conditions, production requirements, and lower than expected customer demand could result in additional obsolete or slow-moving inventory that cannot be sold or may need to be sold at reduced prices and could result in additional reserve provisions.

Contingencies and Commitments

Contingencies and Commitments	6 Months Ended
	Apr. 19, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Note 3 – Contingencies and Commitments: We continue to rent OTR (over-the-road) tractors on a month-to-month basis. We plan to invest in new capital lease arrangements later in fiscal year 2019. The Company also leases warehouse and/or office facilities throughout the United States through month-to-month rental agreements. No material changes have been made to these agreements during the twenty-four weeks ended April 19, 2019. The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations. Most flour purchases are made at market price with contracts. However, the Company may purchase bulk flour at current market prices under short-term (30 - 120 days) fixed price contracts during the normal course of business. Under these arrangements, the Company is obligated to purchase specific quantities at fixed prices, within the specified contract period. These contracts provide for potential price increases if agreed quantities are not purchased within the specified contract period. The contracts are not material. These contracts are typically settled within a month’s time and no significant contracts remain open at the close of the quarterly or annual reporting period. No significant contracts remained unfulfilled at April 19, 2019. The Company does not participate in the commodity futures market or hedging to limit commodity exposure.

Segment Information

Segment Information	6 Months Ended
	Apr. 19, 2019
Segment Reporting [Abstract]
Segment Information	Note 4 – Segment Information: The Company has two reportable operating segments: Frozen Food Products (the processing and distribution of frozen food products) and Snack Food Products (the processing and distribution of meat and other convenience foods). We evaluate each segment’s performance based on revenues and operating income. Selling, general and administrative (“SG&A”) expenses include corporate accounting, information systems, human resource management and marketing, which are managed at the corporate level. These activities are allocated to each operating segment based on revenues and/or actual usage. Assets managed at the corporate level have been included as “other” in the accompanying segment information. The following segment information is presented for the twelve weeks ended April 19, 2019 and April 20, 2018. Segment Information Twelve weeks Ended April 19, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 11,546 $ 29,897 $ - $ 41,443 Cost of products sold 7,350 19,692 - 27,042 Gross margin 4,196 10,205 - 14,401 SG&A 3,102 8,506 - 11,608 Gain on sale of property, plant and equipment - - - - Income before taxes 1,094 1,699 - 2,793 Total assets $ 11,533 $ 78,981 $ 20,521 $ 111,035 Additions to PP&E $ 174 $ 6,753 $ - $ 6,927 Twelve weeks Ended April 20, 2018 Frozen Food Products Snack Food Products Other Totals Sales $ 11,010 $ 26,890 $ - $ 37,900 Cost of products sold 6,978 18,862 - 25,840 Gross margin 4,032 8,028 - 12,060 SG&A 3,367 8,246 - 11,613 Gain on sale of property, plant and equipment - (18 ) (5,977 ) (5,995 ) Income before taxes 665 (200 ) 5,977 6,442 Total assets $ 10,828 $ 51,777 $ 34,488 $ 97,093 Additions to PP&E $ 176 $ 1,015 $ - $ 1,191 The following segment information is presented for the twenty-four weeks ended April 19, 2019 and April 20, 2018. Twenty-four weeks Ended April 19, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 23,418 $ 63,066 $ - $ 86,484 Cost of products sold 15,314 41,115 - 56,429 Gross margin 8,104 21,951 - 30,055 SG&A 6,900 17,795 - 24,695 Gain on sale of property, plant and equipment - - - - Income before taxes 1,204 4,156 - 5,360 Total assets $ 11,533 $ 78,981 $ 20,521 $ 111,035 Additions to PP&E $ 277 $ 13,841 $ - $ 14,118 Twenty-four weeks Ended April 20, 2018 Frozen Food Products Snack Food Products Other Totals Sales $ 21,601 $ 57,491 $ - $ 79,092 Cost of products sold 14,139 38,934 - 53,073 Gross margin 7,462 18,557 - 26,019 SG&A 6,757 16,727 - 23,484 Gain on sale of property, plant and equipment (6 ) (19 ) (5,977 ) (6,002 ) Income before taxes 711 1,849 5,977 8,537 Total assets $ 10,828 $ 51,777 $ 34,488 $ 97,093 Additions to PP&E $ 301 $ 4,510 $ - $ 4,811 The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve and twenty-four weeks ended April 19, 2019. Twelve weeks Ended April 19, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 22,656 $ - $ 22,656 Direct customer warehouse 7,241 - 7,241 Total Snack Food Products 29,897 - 29,897 Distributors 1,373 10,173 11,546 Total Frozen Food Products 1,373 10,173 11,546 Totals $ 31,270 $ 10,173 $ 41,443 Twenty-four weeks Ended April 19, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 46,224 $ - $ 46,224 Direct customer warehouse 16,842 - 16,842 Total Snack Food Products 63,066 - 63,066 Distributors 3,639 19,779 23,418 Total Frozen Food Products 3,639 19,779 23,418 Totals $ 66,705 $ 19,779 $ 86,484 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.

Income Taxes

Income Taxes	6 Months Ended
	Apr. 19, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 5 – Income Taxes: On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. tax code that will affect our fiscal year ending November 1, 2019, and future periods, including, but not limited to, (1) reducing the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that will allow for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity deduction beginning with our fiscal year 2020. Under U.S. GAAP, specifically ASC Topic 740, Income Taxes, The Tax Act reduced the corporate tax rate from 35% to 21%, effective January 1, 2018. This results in a blended corporate tax rate of 23.07% in fiscal year 2018 and 21% in fiscal year 2019 and thereafter. We analyzed our deferred tax balances to estimate which of those balances are expected to reverse in fiscal 2018 or thereafter, and we re-measured the deferred taxes at 23.07% or 21% accordingly. The change in deferred taxes was recorded as an adjustment to our income tax provision which resulted in a charge totaling $3,059 in fiscal year 2018. The effective tax rate was 23.6% and 64.8% for the second quarter of fiscal 2019 and 2018, respectively. The remeasurement of deferred income taxes at newly enacted tax rates resulted in a $3,200 income tax expense or a 37.5% impact on the effective tax rate for the second quarter of fiscal year 2018, and a blended 23.07% statutory federal income tax rate for fiscal 2018. The effective tax rate for the second quarter of fiscal 2018 also reflects the impact of $1,640 of income tax expense or 19.2% related to tax on the gain on sale of a land parcel in Chicago, Illinois. Additionally, the effective tax rates for the second quarter of fiscal years 2019 and 2018 were impacted by such items as the domestic production deduction, non-taxable gains and losses on life insurance policies and state income taxes. As of April 19, 2019, the Company did not have any outstanding federal or state, other than California, net operating loss carryforwards. Our federal income tax returns are open to audit under the statute of limitations for the fiscal years ended on or about October 31, 2015 through 2017. We are subject to income tax in California and various other state taxing jurisdictions. Our California state income tax returns are open to audit under the statute of limitations for the fiscal years ended on or about October 31, 2014 through 2017.

Equipment Note Payable and Fina

Equipment Note Payable and Financial Arrangements	6 Months Ended
	Apr. 19, 2019
Debt Disclosure [Abstract]
Equipment Note Payable and Financial Arrangements	Note 6 – Equipment Note Payable and Financial Arrangements On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A for up to $15,000 in equipment financing. Pursuant to the loan agreement, we borrowed $7,500 to purchase specific equipment for our new Chicago processing facility at a fixed rate of 4.13% per annum. The loan term is seven years and is secured by the purchased equipment. The funds were received on December 28, 2018. The master collateral loan and security agreement with Wells Fargo Bank, N.A. contains various affirmative and negative covenants that limit the use of funds and define other provisions of the loan. The Company was in compliance with all covenants under the master collateral loan and security agreement as of April 19, 2019. The secured equipment notes payable is due with monthly principal and interest payments of $103 commencing on January 31, 2019 for 84 monthly installments including interest of 4.13% per annum. (unaudited) (unaudited) April 19, 2019 April 20, 2018 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 7,268 $ - Less current portion of notes payable (712 ) - Total long-term notes payable $ 6,556 $ - Refer to “Subsequent events” in Note 1 above for further detail on borrowings under the master collateral loan and security agreement with Wells Fargo Bank, N.A.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Apr. 19, 2019
Accounting Policies [Abstract]
Revenue Recognition	Revenue recognition Revenues are recognized in accordance with Accounting Standards Codification (“ASC”) 606 – Contracts with Customers upon passage of title to the customer, typically upon product pick-up, shipment or delivery to customers. Products are delivered to customers primarily through our own long-haul fleet or through a Company owned direct store delivery system. We recognize revenue mainly through retail and foodservice distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year.
Subsequent Events	Subsequent events Management has evaluated events subsequent to April 19, 2019 through the date that the accompanying condensed consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustments of and/or disclosure in such financial statements. The Company borrowed $2,000 under its line of credit with Wells Fargo Bank, N.A. on April 15, 2019, which was repaid on April 25, 2019 with the proceeds from a second borrowing of $7,500 under the master collateral loan and security agreement with Wells Fargo Bank, N.A that provides for up to $15,000 in equipment financing. The proceeds under the first borrowing of $7,500 were received on December 28, 2018. A total of $15,000 was borrowed for equipment financing under this agreement. Refer to Note 6 “Equipment Note Payable and Financial Arrangements” for more information on the equipment financing.
Basic Earnings Per Share	Basic earnings per share Basic earnings per share are calculated based on the weighted average number of shares outstanding for all periods presented. No stock options, warrants, or convertible securities were outstanding as of April 19, 2019 or April 20, 2018.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Apr. 19, 2019
Accounting Policies [Abstract]
Schedule of Customer Concentration	Customer Concentration > 20% of AR or 10% of Sales * Wal-Mart Dollar General Sales AR Sales AR April 19, 2019 36.1 % 36.9 % 9.8 % 21.0 % April 20, 2018 36.3 % 34.1 % - % - % * = No other customer accounted for more than 20% of consolidated accounts receivable or 10% of consolidated sales for the twenty-four weeks ended April 19, 2019 or the twenty-four weeks ended April 20, 2018.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Apr. 19, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are comprised of the following at the respective period ends: (unaudited) April 19, 2019 November 2, 2018 Meat, ingredients and supplies $ 7,685 $ 6,455 Work in progress 1,615 1,415 Finished goods 15,292 15,543 $ 24,592 $ 23,413

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Apr. 19, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following segment information is presented for the twelve weeks ended April 19, 2019 and April 20, 2018. Segment Information Twelve weeks Ended April 19, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 11,546 $ 29,897 $ - $ 41,443 Cost of products sold 7,350 19,692 - 27,042 Gross margin 4,196 10,205 - 14,401 SG&A 3,102 8,506 - 11,608 Gain on sale of property, plant and equipment - - - - Income before taxes 1,094 1,699 - 2,793 Total assets $ 11,533 $ 78,981 $ 20,521 $ 111,035 Additions to PP&E $ 174 $ 6,753 $ - $ 6,927 Twelve weeks Ended April 20, 2018 Frozen Food Products Snack Food Products Other Totals Sales $ 11,010 $ 26,890 $ - $ 37,900 Cost of products sold 6,978 18,862 - 25,840 Gross margin 4,032 8,028 - 12,060 SG&A 3,367 8,246 - 11,613 Gain on sale of property, plant and equipment - (18 ) (5,977 ) (5,995 ) Income before taxes 665 (200 ) 5,977 6,442 Total assets $ 10,828 $ 51,777 $ 34,488 $ 97,093 Additions to PP&E $ 176 $ 1,015 $ - $ 1,191 The following segment information is presented for the twenty-four weeks ended April 19, 2019 and April 20, 2018. Twenty-four weeks Ended April 19, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 23,418 $ 63,066 $ - $ 86,484 Cost of products sold 15,314 41,115 - 56,429 Gross margin 8,104 21,951 - 30,055 SG&A 6,900 17,795 - 24,695 Gain on sale of property, plant and equipment - - - - Income before taxes 1,204 4,156 - 5,360 Total assets $ 11,533 $ 78,981 $ 20,521 $ 111,035 Additions to PP&E $ 277 $ 13,841 $ - $ 14,118 Twenty-four weeks Ended April 20, 2018 Frozen Food Products Snack Food Products Other Totals Sales $ 21,601 $ 57,491 $ - $ 79,092 Cost of products sold 14,139 38,934 - 53,073 Gross margin 7,462 18,557 - 26,019 SG&A 6,757 16,727 - 23,484 Gain on sale of property, plant and equipment (6 ) (19 ) (5,977 ) (6,002 ) Income before taxes 711 1,849 5,977 8,537 Total assets $ 10,828 $ 51,777 $ 34,488 $ 97,093 Additions to PP&E $ 301 $ 4,510 $ - $ 4,811
Schedule of Disaggregates Our Sales to Customer	The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve and twenty-four weeks ended April 19, 2019. Twelve weeks Ended April 19, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 22,656 $ - $ 22,656 Direct customer warehouse 7,241 - 7,241 Total Snack Food Products 29,897 - 29,897 Distributors 1,373 10,173 11,546 Total Frozen Food Products 1,373 10,173 11,546 Totals $ 31,270 $ 10,173 $ 41,443 Twenty-four weeks Ended April 19, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 46,224 $ - $ 46,224 Direct customer warehouse 16,842 - 16,842 Total Snack Food Products 63,066 - 63,066 Distributors 3,639 19,779 23,418 Total Frozen Food Products 3,639 19,779 23,418 Totals $ 66,705 $ 19,779 $ 86,484 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.

Equipment Note Payable and Fi_2

Equipment Note Payable and Financial Arrangements (Tables)	6 Months Ended
	Apr. 19, 2019
Debt Disclosure [Abstract]
Schedule of Long Term Notes Payable	The secured equipment notes payable is due with monthly principal and interest payments of $103 commencing on January 31, 2019 for 84 monthly installments including interest of 4.13% per annum. (unaudited) (unaudited) April 19, 2019 April 20, 2018 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 7,500 $ - Less monthly principal and interest payments (232 ) - Less current portion of notes payable (712 ) - Total long-term notes payable $ 6,556 $ -

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Dec. 28, 2018	Apr. 19, 2019	Apr. 20, 2018	Dec. 26, 2018
Maximum [Member]
Equipment financing amount				$ 15,000,000
Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member]
Proceeds from loan borrowed	$ 7,500,000
April 15, 2019 [Member] | Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member]
Line of credit facility, maximum borrowing capacity		$ 2,000,000
Proceeds from loan borrowed		7,500,000
Equipment financing amount		15,000,000
April 15, 2019 [Member] | Wells Fargo Bank N.A [Member] | Master Collateral Loan and Security Agreement [Member] | Maximum [Member]
Equipment financing amount		$ 15,000,000
Accounts Receivable [Member]
Concentration risk, percentage		20.00%	20.00%
Sales Revenue, Net [Member]
Concentration risk, percentage		10.00%	10.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Customer Concentration (Details)		6 Months Ended
		Apr. 19, 2019	Apr. 20, 2018
Sales Revenue, Net [Member]
Concentration risk, percentage		10.00%	10.00%
Accounts Receivable [Member]
Concentration risk, percentage		20.00%	20.00%
Wal-Mart [Member] | Sales Revenue, Net [Member]
Concentration risk, percentage	[1]	36.10%	36.30%
Wal-Mart [Member] | Accounts Receivable [Member]
Concentration risk, percentage	[1]	36.90%	34.10%
Dollar General [Member] | Sales Revenue, Net [Member]
Concentration risk, percentage	[1]	9.80%	0.00%
Dollar General [Member] | Accounts Receivable [Member]
Concentration risk, percentage	[1]	21.00%	0.00%
[1]	No other customer accounted for more than 20% of consolidated accounts receivable or 10% of consolidated sales for the twenty-four weeks ended April 19, 2019 or the twenty-four weeks ended April 20, 2018.

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Customer Concentration (Details) (Parenthetical)	6 Months Ended
	Apr. 19, 2019	Apr. 20, 2018
Accounts Receivable [Member]
Concentration risk, percentage	20.00%	20.00%
Sales Revenue, Net [Member]
Concentration risk, percentage	10.00%	10.00%

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Apr. 19, 2019	Nov. 02, 2018
Inventory Disclosure [Abstract]
Meat, ingredients and supplies	$ 7,685	$ 6,455
Work in progress	1,615	1,415
Finished goods	15,292	15,543
Inventories, net	$ 24,592	$ 23,413

Segment Information (Details Na

Segment Information (Details Narrative)	6 Months Ended
	Apr. 19, 2019Segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 19, 2019	Apr. 20, 2018	Apr. 19, 2019	Apr. 20, 2018	Nov. 02, 2018
Sales	$ 41,443	$ 37,900	$ 86,484	$ 79,092
Cost of products sold	27,042	25,840	56,429	53,073
Gross margin	14,401	12,060	30,055	26,019
SG&A	11,608	11,613	24,695	23,484
Gain on sale of property, plant and equipment		(5,995)		(6,002)
Income before taxes	2,793	6,442	5,360	8,537
Total assets	111,035	97,093	111,035	97,093	$ 101,494
Additions to PP&E	6,927	1,191	14,118	4,811
Frozen Food Products [Member]
Sales	11,546	11,010	23,418	21,601
Cost of products sold	7,350	6,978	15,314	14,139
Gross margin	4,196	4,032	8,104	7,462
SG&A	3,102	3,367	6,900	6,757
Gain on sale of property, plant and equipment				(6)
Income before taxes	1,094	665	1,204	711
Total assets	11,533	10,828	11,533	10,828
Additions to PP&E	174	176	277	301
Snack Food Products [Member]
Sales	29,897	26,890	63,066	57,491
Cost of products sold	19,692	18,862	41,115	38,934
Gross margin	10,205	8,028	21,951	18,557
SG&A	8,506	8,246	17,795	16,727
Gain on sale of property, plant and equipment		(18)		(19)
Income before taxes	1,699	(200)	4,156	1,849
Total assets	78,981	51,777	78,981	51,777
Additions to PP&E	6,753	1,015	13,841	4,510
Other [Member]
Sales
Cost of products sold
Gross margin
SG&A
Gain on sale of property, plant and equipment		(5,977)		(5,977)
Income before taxes		(5,977)		5,977
Total assets	20,521	$ 34,488	20,521	34,488
Additions to PP&E

Segment Information - Schedul_2

Segment Information - Schedule of Disaggregates Our Sales to Customer (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Apr. 19, 2019	Apr. 20, 2018	Apr. 19, 2019	Apr. 20, 2018
Direct store delivery		$ 22,656		$ 46,224
Direct customer warehouse		7,241		16,842
Total Snack Food Products		29,897		63,066
Distributors		11,546		23,418
Total Frozen Food Products		11,546		23,418
Totals		41,443	$ 37,900	86,484	$ 79,092
Retail [Member]
Direct store delivery	[1]	22,656		46,224
Direct customer warehouse	[1]	7,241		16,842
Total Snack Food Products	[1]	29,897		63,066
Distributors	[1]	1,373		3,639
Total Frozen Food Products	[1]	1,373		3,639
Totals	[1]	31,270		66,705
Foodservice [Member]
Direct store delivery	[2]
Direct customer warehouse	[2]
Total Snack Food Products	[2]
Distributors	[2]	10,173		19,779
Total Frozen Food Products	[2]	10,173		19,779
Totals	[2]	$ 10,173		$ 19,779
[1]	Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.
[2]	Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Apr. 19, 2019	Nov. 02, 2018
Income Tax Disclosure [Abstract]
Income tax rate reconciliation description	On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act includes significant changes to the U.S. tax code that will affect our fiscal year ending November 1, 2019, and future periods, including, but not limited to, (1) reducing the corporate federal income tax rate from 35% to 21%,
Federal income tax rate	21.00%
Blended corporate tax rate before and after the Tax Act		23.07%
Adjustment to income tax provision		$ 3,059
Efffective income tax rate	23.60%	64.80%
Deferred tax assets, reclassified from other comprehensive income to retained earnings	$ 3,200
Deferred income taxes, description	The remeasurement of deferred income taxes at newly enacted tax rates resulted in a $3,200 income tax expense or a 37.5% impact on the effective tax rate for the first quarter
Impact on income tax expenses		$ 1,640
Impact on income tax, percent		19.20%

Equipment Note Payable and Fi_3

Equipment Note Payable and Financial Arrangements (Details Narrative) - USD ($)	Jan. 31, 2019	Dec. 26, 2018
Facility fixed rate percentage	4.13%
Debt monthly principal and interest payments	$ 103,000
Debt monthly term	84 months
Loan Agreement [Member]
Purchase specific equipment amount		$ 7,500,000
Facility fixed rate percentage		4.13%
Debt term		The loan term is seven years and is secured by the purchased equipment.
Maximum [Member]
Equipment financing amount		$ 15,000,000

Equipment Note Payable and Fi_4

Equipment Note Payable and Financial Arrangements - Schedule of Long Term Notes Payable (Details) - USD ($) $ in Thousands	Apr. 19, 2019	Nov. 02, 2018	Apr. 20, 2018
Debt Disclosure [Abstract]
Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility.	$ 7,268
Less current portion of notes payable	(712)
Total long-term notes payable	$ 6,556