Bridgford Foods (BRID) 10-Q 6 Mar 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 24, 2020	Mar. 06, 2020
Deferred Tax [Member]
Entity Registrant Name	BRIDGFORD FOODS CORP
Entity Central Index Key	0000014177
Document Type	10-Q
Document Period End Date	Jan. 24, 2020
Amendment Flag	false
Current Fiscal Year End Date	--10-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,076,832
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 24, 2020	Nov. 01, 2019
Current assets:
Cash and cash equivalents	$ 1,246	$ 3,478
Accounts receivable, less allowance for doubtful accounts of $57 and $31, respectively, and promotional allowances of $3,750 and $2,974, respectively	24,106	21,875
Inventories, net	26,348	26,367
Prepaid expenses and other current assets	1,782	1,048
Total current assets	53,482	52,768
Property, plant and equipment, net of accumulated depreciation and amortization of $54,544 and $54,015, respectively	59,385	54,346
Other non-current assets	12,698	12,295
Deferred income taxes (Note 5)	4,047	4,047
Total assets	129,612	123,456
Current liabilities:
Accounts payable	7,136	7,993
Accrued payroll, advertising and other expenses	5,214	5,480
Income taxes payable	680	90
Current lease payable	99	95
Current notes payable - equipment	2,476	1,943
Line of credit	4,500
Current portion of non-current liabilities	2,730	4,339
Total current liabilities	22,835	19,940
Long-term notes payable - equipment	14,703	11,804
Long-term lease payable	343	360
Non-current liabilities	23,338	24,868
Total liabilities	61,269	56,972
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	74,291	72,432
Accumulated other comprehensive loss	(23,380)	(23,380)
Total shareholders' equity	68,343	66,484
Total liabilities and shareholders' equity	$ 129,612	$ 123,456

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 24, 2020	Nov. 01, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 57	$ 31
Accounts receivable, allowance for promotional allowances	3,750	2,974
Property, plant and equipment, accumulated depreciation	$ 54,544	$ 54,015
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
	Jan. 24, 2020	Jan. 25, 2019
Income Statement [Abstract]
Net sales	$ 46,642	$ 45,041
Cost of products sold	31,588	29,387
Gross margin	15,054	15,654
Selling, general and administrative expenses	12,618	13,087
Gain on sale of property, plant and equipment	(13)
Income before taxes	2,449	2,567
Provision for income taxes	590	691
Net income	$ 1,859	$ 1,876
Basic earnings per share	$ 0.20	$ 0.21
Shares used to compute basic earnings per share	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. 02, 2018	$ 9,134	$ 8,298	$ 65,948	$ (17,700)	$ 65,680
Balance, shares at Nov. 02, 2018	9,076
Net income			1,876		1,876
Balance at Jan. 25, 2019	$ 9,134	8,298	67,824	(17,700)	67,556
Balance, shares at Jan. 25, 2019	9,076
Balance at Nov. 01, 2019	$ 9,134	8,298	72,432	(23,380)	66,484
Balance, shares at Nov. 01, 2019	9,076
Net income			1,859		1,859
Balance at Jan. 24, 2020	$ 9,134	$ 8,298	$ 74,291	$ (23,380)	$ 68,343
Balance, shares at Jan. 24, 2020	9,076

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 24, 2020	Jan. 25, 2019
Cash flows from operating activities:
Net income	$ 1,859	$ 1,876
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	1,134	959
Provision for losses on accounts receivable	27	23
Reduction in promotional allowances	(776)	(432)
Gain on sale of property, plant and equipment	(13)
Deferred income taxes, net
Changes in operating assets and liabilities:
Accounts receivable	(1,482)	(622)
Inventories	19	1,649
Prepaid expenses and other current assets	(734)	436
Other non-current assets	(403)	10
Accounts payable	(857)	(479)
Accrued payroll, advertising and other expenses	(1,874)	(1,146)
Income taxes payable	590	723
Non-current liabilities	(1,479)	(2,284)
Net cash (used in) provided by operating activities	(3,989)	713
Cash provided by (used in) investing activities:
Proceeds from sale of property, plant and equipment	13
Additions to property, plant and equipment	(6,174)	(7,191)
Net cash used in investing activities	(6,161)	(7,191)
Cash provided by (used in) financing activities:
Payment of lease obligations	(13)
Proceeds from bank borrowings	8,250	7,500
Repayments of bank borrowings	(319)
Net cash provided by financing activities	7,918	7,500
Net (decrease) increase in cash and cash equivalents	(2,232)	1,022
Cash and cash equivalents at beginning of period	3,478	8,179
Cash and cash equivalents at end of period	1,246	9,201
Supplemental disclosure of cash flow information:
Cash paid for income taxes	141	3
Cash paid for interest	$ 183

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 24, 2020
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 weeks ended January 24, 2020 and January 25, 2019 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 1, 2019 (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 1, 2019 balance sheet amounts within these interim condensed consolidated financial statements were derived from the audited fiscal year 2019 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. Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued payroll, advertising and other expenses and notes payable. The carrying amount of these instruments approximate fair market value due to their short-term maturity or market interest rates. As of January 24, 2020, 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 twelve weeks ended January 24, 2020 and January 25, 2019, respectively. Customer Concentration > 20% of AR or 10% of Sales * Wal-Mart Dollar General Sales AR Sales AR January 24, 2020 36.4 % 34.2 % 7.4 % 21.3 % January 25, 2019 35.6 % 33.4 % 9.7 % 23.6 % * = No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 24, 2020 or the twelve weeks ended January 25, 2019. 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. The Company recognizes 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, pickup or delivery to a customer based on terms of the sale. Contracts with customers are typically short-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through a Company owned direct store delivery system. Shipping and handling that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional performance obligation. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue. We record revenue at the transaction price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed regularly until incentives or product returns are realized and the result of any such adjustments are known. Leases Leases are recognized in accordance with Accounting Standards Update (“ASU”) 2016-02 Leases (ASC 842) which requires a lessee to recognize assets and liabilities with lease terms of more than 12 months. We lease or rent property for such operations as storing inventory, packaging or processing product, renting equipment and parking vehicles. We analyze our agreements to evaluate whether or not a lease exists by determining what assets exist for which we control for a period of time in exchange for consideration. In the event a lease exits, we classify it as a finance or operating lease and record a right-of-use (“ROU”) asset and the corresponding lease liability at the inception of the lease. In the case of month-to-month lease or rental agreements with terms of 12 months or less, we made an accounting policy election to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term. The storage units rented for use by our Snack Food Product Segment direct store delivery route system are not costly to relocate, contain no significant leasehold improvements, no degree of integration over leased assets, orders can be fulfilled by another route storage unit interchangeable, no specialized assets exist, market price is paid for storage units and there is no guarantee of debt. Finance lease assets are recorded within property, plant and equipment, net of accumulated depreciation and amortization. The Company’s lease of long-haul trucks used in its Frozen Food Products Segment qualify as a finance lease. Finance lease liabilities are recorded as a separate line item on the Condensed Consolidated Balance Sheets reflecting both the current and long-term obligation. The classification of a finance or operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are part of cash flow from operations or financing arrangements. Subsequent events Management has evaluated events subsequent to January 24, 2020 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 entered into a fourth master collateral loan and security agreement with Wells Fargo Bank N.A. (the “Fourth Wells Fargo Loan Agreement) dated March 5, 2020 for $7,500 to be received during the second quarter of fiscal 2020. Based on Management’s review, no other material events were identified that require adjustment to the financial statements or additional disclosure. 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 January 24, 2020 or January 25, 2019.

Inventories

Inventories	3 Months Ended
	Jan. 24, 2020
Inventory Disclosure [Abstract]
Inventories	Note 2 – Inventories: Inventories are comprised of the following at the respective period ends: (unaudited) January 24, 2020 November 1, 2019 Meat, ingredients and supplies $ 7,237 $ 5,283 Work in progress 1,594 1,562 Finished goods 17,517 19,522 $ 26,348 $ 26,367 Inventories are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories include the cost of raw materials, labor and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete inventories to 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 must be sold at reduced prices and could result in additional reserve provisions.

Contingencies and Commitments

Contingencies and Commitments	3 Months Ended
	Jan. 24, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Note 3 – Contingencies and Commitments: The Company leases warehouse and/or office facilities throughout the United States through month-to-month rental agreements. In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term. For further information regarding our lease accounting policy, please refer to Part I, Item 1., Notes to the Condense Consolidated Financial Statements, Note 1 – Summary of Significant Accounting Policies, Leases. The Company leases three long-haul trucks received during fiscal 2019. Six-year leases for semi-trucks expire in 2025. Amortization of equipment under this finance lease was $17 during the first quarter of fiscal 2020. The following is a schedule by years of future minimum lease payments for transportation leases: Fiscal Year Financing 2021 $ 81 2022 102 2023 102 2024 102 2025 102 Later Years 75 Total Minimum Lease Payments(a) $ 564 Less: Amount representing executory costs (73 ) Less: Amount representing interest(b) (49 ) Present value of future minimum lease payments(c) $ 442 (a) Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Entity’s incremental borrowing rate at the inception of the leases. (c) Reflected in the Note 2, as current and noncurrent obligations under capital leases of $99 and $343, respectively as of January 24, 2020. 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 January 24, 2020. The Company does not participate in the commodity futures market or hedging to limit commodity exposure.

Segment Information

Segment Information	3 Months Ended
	Jan. 24, 2020
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 January 24, 2020 and January 25, 2019. Segment Information Twelve weeks Ended January 24, 2020 Frozen Food Products Snack Food Products Other Totals Sales $ 11,354 $ 35,288 $ - $ 46,642 Cost of products sold 7,673 23,915 - 31,588 Gross margin 3,681 11,373 - 15,054 SG&A 3,203 9,415 - 12,618 Gain on sale of property, plant and equipment - (13 ) - (13 ) Income before taxes 478 1,971 - 2,449 Total assets $ 11,025 $ 98,334 $ 20,253 $ 129,612 Additions to PP&E $ 37 $ 6,137 $ - $ 6,174 Twelve weeks Ended January 25, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 11,872 $ 33,169 $ - $ 45,041 Cost of products sold 7,964 21,423 - 29,387 Gross margin 3,908 11,746 - 15,654 SG&A 3,798 9,289 - 13,087 Gain on sale of property, plant and equipment - - - - Income before taxes 110 2,457 - 2,567 Total assets $ 10,505 $ 71,177 $ 26,001 $ 107,683 Additions to PP&E $ 103 $ 7,088 $ - $ 7,191 The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve weeks ended January 24, 2020 and January 25, 2019, respectively. Twelve weeks Ended January 24, 2020 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 25,137 $ - $ 25,137 Direct customer warehouse 10,151 - 10,151 Total Snack Food Products 35,288 - 35,288 Distributors 2,721 8,633 11,354 Total Frozen Food Products 2,721 8,633 11,354 Totals $ 38,009 $ 8,633 $ 46,642 (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. Twelve weeks Ended January 25, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 23,568 $ - $ 23,568 Direct customer warehouse 9,601 - 9,601 Total Snack Food Products 33,169 - 33,169 Distributors 2,266 9,606 11,872 Total Frozen Food Products 2,266 9,606 11,872 Totals $ 35,435 $ 9,606 $ 45,041 (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	3 Months Ended
	Jan. 24, 2020
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 affected the Company including, but not limited to, (1) reduced the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that allowed for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity deduction that began with our fiscal year 2019. The effective tax rate was 24.09% and 26.91% for the first quarter of fiscal 2020 and 2019, respectively. The effective tax rates for the first quarter of fiscal years 2020 and 2019 were impacted by such items as non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies and state income taxes. Under U.S. GAAP, specifically ASC Topic 740, Income Taxes, As of January 24, 2020, the Company has approximately $9,900 of federal and none state (except $800 California) net operating loss carry forwards. Our federal income tax returns are open to audit under the statute of limitations for the fiscal years 2016 through 2018. We are subject to income tax in California and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute of limitations for the fiscal years 2015 through 2018.

Equipment Notes Payable and Fin

Equipment Notes Payable and Financial Arrangements	3 Months Ended
	Jan. 24, 2020
Debt Disclosure [Abstract]
Equipment Notes Payable and Financial Arrangements	Note 6 – Equipment Notes Payable and Financial Arrangements: On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A. (the “Original Wells Fargo Loan Agreement”) for up to $15,000 in equipment financing. Pursuant to the Original Wells Fargo Loan Agreement, we borrowed $15,000, two separate receipts of $7,500 each, to purchase specific equipment for our new Chicago processing facility at a fixed rate of 4.13% and 3.98%, respectively, per annum. The loan terms are seven years and are secured by the purchased equipment. The first funding of $7,500 was received on December 28, 2018. The second funding of $7,500 was received on April 23, 2019. The Original Wells Fargo Loan Agreement contains various affirmative and negative covenants that limit the use of funds and define other provisions of the loan. On December 19, 2019, we entered into a third master collateral loan and security agreement with Wells Fargo Bank, N.A. (the “Third Wells Fargo Loan Agreement” and together with the Original Wells Fargo Loan Agreement, the “Wells Fargo Loan Agreements”) for $3,750 in equipment financing. Pursuant to the Third Wells Fargo Loan Agreement, we borrowed $3,750 to purchase specific equipment for our new Chicago processing facility at a fixed rate of 3.70% per annum. The loan term is seven years and is secured by the purchased equipment. The funds were received on December 23, 2019. The Company was in compliance with all covenants under the Wells Fargo Loan Agreements as of January 24, 2020. The first secured equipment note 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. The second secured equipment note payable is due with monthly principal and interest payments of $102 commencing on May 31, 2019 for 84 monthly installments including interest of 3.98% per annum. The third secured equipment note payable is due with monthly principal and interest payments of $54 commencing on February 3, 2020 for 84 monthly installments of 3.70% per annum. (unaudited) (unaudited) January 24, 2020 January 25, 2019 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 17,179 $ 7,500 Less current portion of notes payable (2,476 ) (944 ) Total long-term notes payable - equipment $ 14,703 $ 6,556 The Company maintains a line of credit with Wells Fargo Bank, N.A. that extends through March 1, 2022. Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%. The Company borrowed $2,000 under this line of credit on November 24, 2019 and $2,500 under the line of credit on January 24, 2020 for a combined total of $4,500.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jan. 24, 2020
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. The Company recognizes 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, pickup or delivery to a customer based on terms of the sale. Contracts with customers are typically short-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through a Company owned direct store delivery system. Shipping and handling that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional performance obligation. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue. We record revenue at the transaction price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed regularly until incentives or product returns are realized and the result of any such adjustments are known.
Leases	Leases Leases are recognized in accordance with Accounting Standards Update (“ASU”) 2016-02 Leases (ASC 842) which requires a lessee to recognize assets and liabilities with lease terms of more than 12 months. We lease or rent property for such operations as storing inventory, packaging or processing product, renting equipment and parking vehicles. We analyze our agreements to evaluate whether or not a lease exists by determining what assets exist for which we control for a period of time in exchange for consideration. In the event a lease exits, we classify it as a finance or operating lease and record a right-of-use (“ROU”) asset and the corresponding lease liability at the inception of the lease. In the case of month-to-month lease or rental agreements with terms of 12 months or less, we made an accounting policy election to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term. The storage units rented for use by our Snack Food Product Segment direct store delivery route system are not costly to relocate, contain no significant leasehold improvements, no degree of integration over leased assets, orders can be fulfilled by another route storage unit interchangeable, no specialized assets exist, market price is paid for storage units and there is no guarantee of debt. Finance lease assets are recorded within property, plant and equipment, net of accumulated depreciation and amortization. The Company’s lease of long-haul trucks used in its Frozen Food Products Segment qualify as a finance lease. Finance lease liabilities are recorded as a separate line item on the Condensed Consolidated Balance Sheets reflecting both the current and long-term obligation. The classification of a finance or operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are part of cash flow from operations or financing arrangements.
Subsequent Events	Subsequent events Management has evaluated events subsequent to January 24, 2020 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 entered into a fourth master collateral loan and security agreement with Wells Fargo Bank N.A. (the “Fourth Wells Fargo Loan Agreement) dated March 5, 2020 for $7,500 to be received during the second quarter of fiscal 2020. Based on Management’s review, no other material events were identified that require adjustment to the financial statements or additional disclosure.
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 January 24, 2020 or January 25, 2019.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jan. 24, 2020
Accounting Policies [Abstract]
Schedule of Customer Concentration	Customer Concentration > 20% of AR or 10% of Sales * Wal-Mart Dollar General Sales AR Sales AR January 24, 2020 36.4 % 34.2 % 7.4 % 21.3 % January 25, 2019 35.6 % 33.4 % 9.7 % 23.6 % * = No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 24, 2020 or the twelve weeks ended January 25, 2019.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jan. 24, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are comprised of the following at the respective period ends: (unaudited) January 24, 2020 November 1, 2019 Meat, ingredients and supplies $ 7,237 $ 5,283 Work in progress 1,594 1,562 Finished goods 17,517 19,522 $ 26,348 $ 26,367

Contingencies and Commitments (

Contingencies and Commitments (Tables)	3 Months Ended
	Jan. 24, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	The following is a schedule by years of future minimum lease payments for transportation leases: Fiscal Year Financing 2021 $ 81 2022 102 2023 102 2024 102 2025 102 Later Years 75 Total Minimum Lease Payments(a) $ 564 Less: Amount representing executory costs (73 ) Less: Amount representing interest(b) (49 ) Present value of future minimum lease payments(c) $ 442 (a) Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index. (b) Amount necessary to reduce net minimum lease payments to present value calculated at the Entity’s incremental borrowing rate at the inception of the leases. (c) Reflected in the Note 2, as current and noncurrent obligations under capital leases of $99 and $343, respectively as of January 24, 2020.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jan. 24, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following segment information is presented for the twelve weeks ended January 24, 2020 and January 25, 2019. Segment Information Twelve weeks Ended January 24, 2020 Frozen Food Products Snack Food Products Other Totals Sales $ 11,354 $ 35,288 $ - $ 46,642 Cost of products sold 7,673 23,915 - 31,588 Gross margin 3,681 11,373 - 15,054 SG&A 3,203 9,415 - 12,618 Gain on sale of property, plant and equipment - (13 ) - (13 ) Income before taxes 478 1,971 - 2,449 Total assets $ 11,025 $ 98,334 $ 20,253 $ 129,612 Additions to PP&E $ 37 $ 6,137 $ - $ 6,174 Twelve weeks Ended January 25, 2019 Frozen Food Products Snack Food Products Other Totals Sales $ 11,872 $ 33,169 $ - $ 45,041 Cost of products sold 7,964 21,423 - 29,387 Gross margin 3,908 11,746 - 15,654 SG&A 3,798 9,289 - 13,087 Gain on sale of property, plant and equipment - - - - Income before taxes 110 2,457 - 2,567 Total assets $ 10,505 $ 71,177 $ 26,001 $ 107,683 Additions to PP&E $ 103 $ 7,088 $ - $ 7,191
Schedule of Disaggregates Our Sales to Customers	The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve weeks ended January 24, 2020 and January 25, 2019, respectively. Twelve weeks Ended January 24, 2020 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 25,137 $ - $ 25,137 Direct customer warehouse 10,151 - 10,151 Total Snack Food Products 35,288 - 35,288 Distributors 2,721 8,633 11,354 Total Frozen Food Products 2,721 8,633 11,354 Totals $ 38,009 $ 8,633 $ 46,642 (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. Twelve weeks Ended January 25, 2019 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 23,568 $ - $ 23,568 Direct customer warehouse 9,601 - 9,601 Total Snack Food Products 33,169 - 33,169 Distributors 2,266 9,606 11,872 Total Frozen Food Products 2,266 9,606 11,872 Totals $ 35,435 $ 9,606 $ 45,041 (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 Notes Payable and F_2

Equipment Notes Payable and Financial Arrangements (Tables)	3 Months Ended
	Jan. 24, 2020
Debt Disclosure [Abstract]
Schedule of Long Term Notes Payable	(unaudited) (unaudited) January 24, 2020 January 25, 2019 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 17,179 $ 7,500 Less current portion of notes payable (2,476 ) (944 ) Total long-term notes payable - equipment $ 14,703 $ 6,556

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Jan. 24, 2020	Jan. 25, 2019
Lease term	12 months
Wells Fargo Bank N.A [Member] | Second Quarter of Fiscal 2020 [Member]
Collateral loan receivable	$ 7,500
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)		3 Months Ended
		Jan. 24, 2020	Jan. 25, 2019
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]	36.40%	35.60%
Wal-Mart [Member] | Accounts Receivable [Member]
Concentration risk, percentage	[1]	34.20%	33.40%
Dollar General [Member] | Sales Revenue, Net [Member]
Concentration risk, percentage	[1]	7.40%	9.70%
Dollar General [Member] | Accounts Receivable [Member]
Concentration risk, percentage	[1]	21.30%	23.60%
[1]	No other customer accounted for more than 20% of consolidated accounts receivable or 10% of consolidated sales for the twelve weeks ended January 24, 2020 or the twelve weeks ended January 25, 2019.

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Customer Concentration (Details) (Parenthetical)	3 Months Ended
	Jan. 24, 2020	Jan. 25, 2019
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	Jan. 24, 2020	Nov. 01, 2019
Inventory Disclosure [Abstract]
Meat, ingredients and supplies	$ 7,237	$ 5,283
Work in progress	1,594	1,562
Finished goods	17,517	19,522
Inventories, net	$ 26,348	$ 26,367

Contingencies and Commitments_2

Contingencies and Commitments (Details Narrative) $ in Thousands	3 Months Ended
	Jan. 24, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Lease term, description	The Company leases three long-haul trucks received during fiscal 2019. Six-year leases for semi-trucks expire in 2025.
Amortization of equipment	$ 17

Contingencies and Commitments -

Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Jan. 24, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 81
2022	102
2023	102
2024	102
2025	102
Later Years	75
Total Minimum Lease Payments	564	[1]
Less: Amount representing executory costs	(73)
Less: Amount representing interest	(49)	[2]
Present value of future minimum lease payments	$ 442	[3]
[1]	Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index.
[2]	Amount necessary to reduce net minimum lease payments to present value calculated at the Entity's incremental borrowing rate at the inception of the leases.
[3]	Reflected in the Note 2, as current and noncurrent obligations under capital leases of $99 and $343, respectively as of January 24, 2020.

Contingencies and Commitments_3

Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) (Parenthetical) - USD ($) $ in Thousands	Jan. 24, 2020	Nov. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
Capital lease obligation, current	$ 99	$ 95
Capital lease obligations, noncurrent	$ 343	$ 360

Segment Information (Details Na

Segment Information (Details Narrative)	3 Months Ended
	Jan. 24, 2020Segment
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
	Jan. 24, 2020	Jan. 25, 2019	Nov. 01, 2019
Sales	$ 46,642	$ 45,041
Cost of products sold	31,588	29,387
Gross margin	15,054	15,654
SG&A	12,618	13,087
Gain on sale of property, plant and equipment	(13)
Income before taxes	2,449	2,567
Total assets	129,612	107,683	$ 123,456
Additions to PP&E	6,174	7,191
Frozen Food Products [Member]
Sales	11,354	11,872
Cost of products sold	7,673	7,964
Gross margin	3,681	3,908
SG&A	3,203	3,798
Gain on sale of property, plant and equipment
Income before taxes	478	110
Total assets	11,025	10,505
Additions to PP&E	37	103
Snack Food Products [Member]
Sales	35,288	33,169
Cost of products sold	23,915	21,423
Gross margin	11,373	11,746
SG&A	9,415	9,289
Gain on sale of property, plant and equipment	(13)
Income before taxes	1,971	2,457
Total assets	98,334	71,177
Additions to PP&E	6,137	7,088
Other [Member]
Sales
Cost of products sold
Gross margin
SG&A
Gain on sale of property, plant and equipment
Income before taxes
Total assets	20,253	26,001
Additions to PP&E

Segment Information - Schedul_2

Segment Information - Schedule of Disaggregates Our Sales to Customers (Details) - USD ($) $ in Thousands		3 Months Ended
		Jan. 24, 2020	Jan. 25, 2019
Direct store delivery		$ 25,137	$ 23,568
Direct customer warehouse		10,151	9,601
Total Snack Food Products		35,288	33,169
Distributors		11,354	11,872
Total Frozen Food Products		11,354	11,872
Totals		46,642	45,041
Retail [Member]
Direct store delivery	[1]	25,137	23,568
Direct customer warehouse	[1]	10,151	9,601
Total Snack Food Products	[1]	35,288	33,169
Distributors	[1]	2,721	2,266
Total Frozen Food Products	[1]	2,721	2,266
Totals	[1]	38,009	35,435
Foodservice [Member]
Direct store delivery	[2]
Direct customer warehouse	[2]
Total Snack Food Products	[2]
Distributors	[2]	8,633	9,606
Total Frozen Food Products	[2]	8,633	9,606
Totals	[2]	$ 8,633	$ 9,606
[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	3 Months Ended
	Jan. 24, 2020	Jan. 25, 2019
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 affected the Company including, but not limited to, (1) reduced the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that allowed for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity deduction that began with our fiscal year 2019.
Federal income tax rate	21.00%
Effective tax rate percentage	24.09%	26.91%
Operating loss carry forwards	$ 9,900
Except California [Member]
Operating loss carry forwards	$ 800

Equipment Notes Payable and F_3

Equipment Notes Payable and Financial Arrangements (Details Narrative) - USD ($)	Feb. 03, 2020	Dec. 23, 2019	May 31, 2019	Apr. 23, 2019	Jan. 31, 2019	Dec. 28, 2018	Dec. 26, 2018	Jan. 24, 2020	Dec. 19, 2019	Nov. 24, 2019
Line of credit, expired date								Mar. 1, 2020
Line of credit, description								The Company borrowed $2,000 under this line of credit on November 24, 2019 and $2,500 under the line of credit on January 24, 2020 for a combined total of $4,500.
Line of credit, maximum borrowing amount								$ 7,500
Line of credit								4,500
Line of Credit One [Member]
Line of credit										$ 2,000
Line of Credit Two [Member]
Line of credit								$ 2,500
LIBOR [Member]
Variable rate								1.50%
Prime Rate [Member]
Variable rate								1.50%
Master Collateral Loan and Security Agreement [Member]
Loan borrowed amount							$ 15,000
Debt term							The loan terms are seven years and are secured by the purchased equipment.
Master Collateral Loan and Security Agreement [Member] | 4.13% Fixed Rate Chicago Processing Facility [Member]
Loan borrowed amount						$ 7,500
Facility fixed rate percentage					4.13%	4.13%
Debt monthly principal and interest payments					$ 103
Debt monthly term					84 months
Master Collateral Loan and Security Agreement [Member] | 3.98% Fixed Rate Chicago Processing Facility [Member]
Loan borrowed amount				$ 7,500
Facility fixed rate percentage			3.98%	3.98%
Debt monthly principal and interest payments			$ 102
Debt monthly term			84 months
Master Collateral Loan and Security Agreement [Member] | Maximum [Member]
Equipment financing amount							$ 15,000
Third Master Collateral Loan and Security Agreement [Member]
Equipment financing amount									$ 3,750
Third Master Collateral Loan and Security Agreement [Member] | 3.98% Fixed Rate Chicago Processing Facility [Member] | Subsequent Event [Member]
Facility fixed rate percentage	3.70%
Third Master Collateral Loan and Security Agreement [Member] | 3.70% Fixed Rate Chicago Processing Facility [Member]
Loan borrowed amount		$ 3,750
Debt term		The loan term is seven years and is secured by the purchased equipment.
Third Master Collateral Loan and Security Agreement [Member] | 3.70% Fixed Rate Chicago Processing Facility [Member] | Subsequent Event [Member]
Debt monthly principal and interest payments	$ 54
Debt monthly term	84 months

Equipment Notes Payable and F_4

Equipment Notes Payable and Financial Arrangements - Schedule of Long Term Notes Payable (Details) - USD ($) $ in Thousands	Jan. 24, 2020	Nov. 01, 2019	Jan. 25, 2019
Debt Disclosure [Abstract]
Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility.	$ 17,179		$ 7,500
Less current portion of notes payable	(2,476)	$ (1,943)	(944)
Total long-term notes payable - equipment	$ 14,703	$ 11,804	$ 6,556