Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 22, 2021 | Mar. 05, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | BRIDGFORD FOODS CORP | |
Entity Central Index Key | 0000014177 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 22, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-29 | |
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 | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 22, 2021 | Oct. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 7,066 | $ 4,302 |
Restricted cash | 900 | 1,125 |
Accounts receivable, less allowance for doubtful accounts of $37 and $16, respectively, and promotional allowances of $3,713 and $2,550, respectively | 18,766 | 23,818 |
Inventories, net | 29,806 | 29,296 |
Refundable income taxes | 9,265 | 9,517 |
Prepaid expenses and other current assets | 1,100 | 692 |
Total current assets | 66,903 | 68,750 |
Property, plant and equipment, net of accumulated depreciation and amortization of $59,730 and $58,686, respectively | 74,978 | 73,332 |
Other non-current assets | 14,728 | 13,201 |
Total assets | 156,609 | 155,283 |
Current liabilities: | ||
Accounts payable | 10,703 | 10,502 |
Accrued payroll, advertising, and other expenses | 5,388 | 5,981 |
Income taxes payable | 94 | 94 |
Current notes payable - equipment | 4,471 | 4,430 |
Current portion of non-current liabilities | 8,380 | 5,196 |
Total current liabilities | 29,036 | 26,203 |
Long-term notes payable - equipment | 23,558 | 24,692 |
Non-current liabilities | 31,305 | 33,142 |
Total liabilities | 83,899 | 84,037 |
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 | 81,219 | 79,755 |
Accumulated other comprehensive loss | (25,941) | (25,941) |
Total shareholders' equity | 72,710 | 71,246 |
Total liabilities and shareholders' equity | $ 156,609 | $ 155,283 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 22, 2021 | Oct. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 37 | $ 16 |
Accounts receivable, allowance for promotional allowances | 3,713 | 2,550 |
Property, plant and equipment, accumulated depreciation | $ 59,730 | $ 58,686 |
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. 22, 2021 | Jan. 24, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 54,693 | $ 46,642 |
Cost of products sold | 40,142 | 31,588 |
Gross margin | 14,551 | 15,054 |
Selling, general and administrative expenses | 13,976 | 12,958 |
(Gain) on sale of property, plant, and equipment | (74) | (13) |
Operating income | 649 | 2,109 |
Other income (expense) | ||
Interest expense | (317) | (63) |
Cash surrender value gain | 1,525 | 403 |
Total other income (expense) | 1,208 | 340 |
Income before taxes | 1,857 | 2,449 |
Provision for income taxes | 393 | 590 |
Net income | $ 1,464 | $ 1,859 |
Basic earnings per share | $ 0.16 | $ 0.2 |
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. 01, 2019 | $ 9,134 | $ 8,298 | $ 72,432 | $ (23,380) | $ 66,484 |
Balance, shares at Nov. 01, 2019 | 9,076,000 | ||||
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 | 9,076,000 | ||||
Balance at Oct. 30, 2020 | $ 9,134 | 8,298 | 79,755 | (25,941) | 71,246 |
Balance, shares at Oct. 30, 2020 | 9,076,000 | ||||
Net income | 1,464 | 1,464 | |||
Balance at Jan. 22, 2021 | $ 9,134 | $ 8,298 | $ 81,219 | $ (25,941) | $ 72,710 |
Balance, shares at Jan. 22, 2021 | 9,076,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 22, 2021 | Jan. 24, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,464 | $ 1,859 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 1,486 | 1,134 |
Provision for losses on accounts receivable | 20 | 27 |
Increase (reduction) in promotional allowances | 1,163 | (776) |
Gain on sale of property, plant, and equipment | (74) | (13) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,869 | (1,482) |
Inventories | (510) | 19 |
Prepaid expenses and other current assets | (408) | (734) |
Refundable income taxes | 252 | |
Other non-current assets | (1,527) | (403) |
Accounts payable | 201 | (857) |
Accrued payroll, advertising and other expenses | (593) | (266) |
Income taxes payable | 590 | |
Current portion of non-current liabilities | 1,170 | (1,608) |
Non-current liabilities | (1,720) | (1,479) |
Net cash provided by (used in) operating activities | 4,793 | (3,989) |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 90 | 13 |
Additions to property, plant and equipment | (3,148) | (6,174) |
Net cash used in investing activities | (3,058) | (6,161) |
Cash flows from financing activities: | ||
Payment of lease and right of use obligations | (103) | (13) |
Proceeds from bank borrowings | 2,000 | 8,250 |
Repayments of bank borrowings | (1,093) | (319) |
Net cash provided by financing activities | 804 | 7,918 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 2,539 | (2,232) |
Cash and cash equivalents and restricted cash at beginning of period | 5,427 | 3,478 |
Cash and cash equivalents and restricted cash at end of period | 7,966 | 1,246 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 141 | |
Cash paid for interest | $ 317 | $ 183 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 22, 2021 | |
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 22, 2021 and January 24, 2020 have been prepared in conformity with the accounting principles described in the Company’s Annual Report on Form 10-K and Form 10-K/A for the fiscal year ended October 30, 2020 (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. We have considered the impact of federal, state, and local government actions related to the global novel coronavirus pandemic (“COVID-19” or “pandemic”) on our condensed consolidated financial statements. The business disruptions associated with the Pandemic had a significant impact on our consolidated condensed financial statements for the twelve-week period ended January 22, 2021. Due to restrictions associated with the pandemic, consumers went out less and consumed more food at home purchasing lower-margin items like groceries from essential stores that remained open during the health crisis. The Company sales increased as a result of strong consumer demand for food items during the twelve-week period ended January 22, 2021. We expect these events to have future business impacts, the extent of which is uncertain and largely subject to whether the severity worsens, or the duration of current business shutdowns continue. These impacts could include but may not be limited to risks and uncertainty related to shifts in demand between sales channels, market volatility, constraints in our supply chain, our ability to operate production facilities and worker availability. These unknowns may subject the Company to future risks related to long-lived asset impairments, increased reserves for uncollectible accounts, the price and availability of ingredients and raw materials used in our products, and adjustments to reflect the market value of our inventory. The October 30, 2020 balance sheet amounts within these interim condensed consolidated financial statements were derived from the audited fiscal year 2020 financial statements included in the Annual Report. 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 22, 2021, the Company had accounts held with nationally recognized financial institutions 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. Customer Concentration > 20% of AR or 10% of Sales * 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 22, 2021 and January 24, 2020, respectively. Wal-Mart (1) Dollar General Sales AR Sales AR January 22, 2021 36.5 % 7.3 % 13.7 % 24.1 % January 24, 2020 36.4 % 34.2 % 7.4 % 21.3 % * = No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 22, 2021 or the twelve weeks ended January 24, 2020. (1) = Wal-Mart accounts receivable represented a lower percentage of sales as of January 22, 2021 due to accelerated payments on outstanding accounts receivable. 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, common carrier, 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. 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 exists, 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 interchangeably, 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 qualifies 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 as a finance or operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are considered operating or financing. Financial statement reclassification Certain financial statement reclassifications have been recorded in 2020 to conform to the current year presentation of operating income and income before taxes. Subsequent events Management has evaluated events subsequent to January 22, 2021 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. As previously reported, on March 16, 2020, Bridgford Food Processing Corporation (“BFPC”), a wholly-owned subsidiary of the Company, entered into a Purchase and Sale Agreement with CRG Acquisition, LLC (“CRG”), pursuant to which BFPC agreed to sell to CRG, pursuant to the terms and conditions set forth in the CRG Purchase Agreement, a parcel of land including an approximate 156,000 square foot four-story industrial food processing building located at 170 N. Green Street in Chicago, Illinois (the “Property”). The purchase price for the Property is $60,000 subject to a due diligence period and certain closing adjustments and prorations, and is conditioned upon, among other customary closing conditions, CRG receiving zoning and other governmental approvals necessary for the construction and development of a mixed-use project on the Property in accordance with certain development plans to be approved by the City of Chicago. The cost basis of the Property was insignificant. On January 29, 2021, the Company executed the fifth amendment to the CRG Purchase Agreement, dated as of February 1, 2021 of the CRG Purchase Agreement. Under the original terms and conditions of the CRG Purchase Agreement, the closing of the sale of the Property to CRG would occur on the date that is thirty (30) days after CRG’s receipt of the necessary zoning approvals, but in any event no earlier than October 31, 2020 and no later than March 31, 2021. The first amendment dated as of April 10, 2020 extended the inspection period to June 1, 2020. The second amendment dated as of June 1, 2020 extended the inspection period to July 31, 2020, zoning period to February 1, 2021 and closing date to February 5, 2021. The third amendment dated July 31, 2020 further extended the inspection period to October 31, 2020, zoning period to April 30, 2021 and closing date to May 6, 2021. The fourth amendment dated November 2, 2020 further extended the inspection period to February 1, 2021, the zoning period to August 2, 2021 and closing date to August 31, 2021. The fifth amendment dated February 1, 2021 further extended the inspection period to May 1, 2021, the zoning period to November 1, 2021 and closing date to December 1, 2021. The escrow account for the transaction has received $1,350 in earnest money through January 22, 2021. We have received a total of $450 in total which is non-refundable earnest money through January 22, 2021 which is thus not part of restricted cash. An additional $200 of non-refundable earnest money had been received as of March 2, 2021, bringing that total to $650, and the total amount of earnest money deposited in the escrow account since the inception of the CRG Purchase Agreement increased to $1,650 as of February 1, 2021. On February 15, 2021, our line of credit with Wells Fargo Bank, N.A. was increased to $15,000 with an unused commitment fee of 0.25% of the available loan amount. The amended line of credit expires March 1, 2022. Under the terms of this line of credit, we may borrow up to $15,000 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 during the first quarter of fiscal 2021 and had $2,000 borrowings outstanding as of January 22, 2021. 1 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 other potentially dilutive convertible securities were outstanding as of January 22, 2021 or January 24, 2020. |
Inventories
Inventories | 3 Months Ended |
Jan. 22, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 – Inventories: Inventories are comprised of the following at the respective period ends: (unaudited) January 22, 2021 October 30, 2020 Meat, ingredients, and supplies $ 7,430 $ 6,439 Work in progress 2,025 1,860 Finished goods 20,351 20,997 $ 29,806 $ 29,296 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. 22, 2021 | |
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 Note 1 – Summary of Significant Accounting Policies, Leases. The Company performed a detailed analysis and determined that the only indication of a long-term lease was Hogshed Ventures, LLC. A right-of-use asset and corresponding liability for warehouse storage space was recorded for $1,091 for Hogshed Ventures, LLC for 40th Street in Chicago, Illinois as of October 30, 2020. We lease this space under a non-cancelable operating lease. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further this lease does not contain contingent rent provisions. This lease terminates on June 30, 2023. This lease includes both lease (e.g., fixed rent) and non-lease components (e.g., real estate taxes, insurance, common-area and other maintenance costs). The non-lease components are deemed to be executory costs and are included in the minimum lease payments used to determine the present value of the operating lease obligation and related right-of-use asset. This lease does not provide an implicit rate and we estimated our incremental interest rate to be approximately 1.6%. We used our estimated incremental borrowing rate and other information available at the lease commencement date in determining the present value of the lease payments. The following is a schedule by years of future minimum lease payments for transportation leases and right-of-use assets: Fiscal Year Financing 2021 $ 482 2022 563 2023 292 2024 102 2025 69 Later Years - Total Minimum Lease Payments(a) $ 1,508 Less: Amount representing executory costs (76 ) Less: Amount representing interest(b) (13 ) Present value of future minimum lease payments(c) $ 1,420 (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 Company’s incremental borrowing rate at the inception of the leases. (c) Reflected in Part I. Financial Information Item 1. a. Condensed Consolidated Balance Sheets as current and noncurrent obligations under capital leases of $147 and $272, and right-of-use assets of $382 and $619, respectively as of January 22, 2021. 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 on January 22, 2021. The Company does not participate in the commodity futures market or hedging to limit commodity exposure. |
Segment Information
Segment Information | 3 Months Ended |
Jan. 22, 2021 | |
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 are not attributable to each operating segment and thus have been included as “other” in the accompanying segment information. The following segment information is presented for the twelve weeks ended January 22, 2021 and January 24, 2020. Segment Information Twelve weeks Ended January 22, 2021 Frozen Food Products Snack Food Products Other Totals Sales $ 9,264 $ 45,429 $ - $ 54,693 Cost of products sold 6,440 33,702 - 40,142 Gross margin 2,824 11,727 - 14,551 SG&A 2,809 11,167 - 13,976 Gain on sale of property, plant, and equipment (33 ) (41 ) - (74 ) Operating income 48 601 - 649 Total assets $ 10,089 $ 113,810 $ 32,710 $ 156,609 Additions to PP&E $ 70 $ 3,078 $ - $ 3,148 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 3,311 9,647 - 12,958 Gain on sale of property, plant, and equipment - (13 ) - (13 ) Operating income 370 1,739 - 2,109 Total assets $ 11,025 $ 98,334 $ 20,253 $ 129,612 Additions to PP&E $ 37 $ 6,137 $ - $ 6,174 The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve weeks ended January 22, 2021 and January 24, 2020, respectively. Twelve weeks Ended January 22, 2021 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 35,692 $ - $ 35,692 Direct customer warehouse 9,737 - 9,737 Total Snack Food Products 45,429 - 45,429 Distributors 2,970 6,294 9,264 Total Frozen Food Products 2,970 6,294 9,264 Totals $ 48,399 $ 6,294 $ 54,693 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 22, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 – Income Taxes: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before January 01, 2021. In addition, the CARES Act allows NOLs incurred in taxable years beginning after December 31, 2017 and before January 01, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxesThe Company has filed a federal income tax return for tax year 2018 (fiscal year 2019) and carried back a taxable loss of $9,900 to tax years 2013 (fiscal 2014), 2014 (fiscal year 2015) and 2015 (fiscal year 2016). Furthermore, the Company generated taxable loss of $24,505 for tax year 2019 (fiscal year 2020) which can be carried back to remaining taxable income of tax year 2015 (fiscal year 2016) and taxable income of tax years 2016 (fiscal year 2017) and 2018 (fiscal year 2019). On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). Among other significant changes, the Tax Act reduced the corporate federal income tax rate from 35% to 21%. The carryback of NOLs from tax years 2018 and 2019 under the CARES Act to pre- Tax Act years generated an income tax benefit due to the differential in income tax rates which was recorded in fiscal year 2020. The effective tax rate was 21.2% and 24.1% for the first quarter of fiscal 2021 and 2020, respectively. The effective tax rate for the first quarter of fiscal year 2021 was impacted by such items as non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies and state income taxes. As of January 22, 2021, the Company has a federal net operating loss carry forward of approximately $2,818 and $4,233 state net operating loss carry forwards. Our federal income tax returns are open to audit under the statute of limitations for the fiscal years 2017 through 2019. 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 2016 through 2019. |
Equipment Notes Payable and Fin
Equipment Notes Payable and Financial Arrangements | 3 Months Ended |
Jan. 22, 2021 | |
Debt Disclosure [Abstract] | |
Equipment Notes Payable and Financial Arrangements | Note 6 – Equipment Notes Payable and Financial Arrangements: 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%. On February 15, 2021, the line of credit was extended to $15,000 with an unused commitment fee of 0.25% of the available loan amount. We borrowed $2,000 under this line of credit on December 2, 2020 which remains outstanding as of January 22, 2021. The line of credit is presented under the current portion of non-current liabilities in the Condensed Consolidated Balance Sheets. The line of credit contains various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick ratio and a fixed charge coverage ratio. The Company was in compliance with all covenants as of January 22, 2021. 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 which was amended and expanded as detailed below. Pursuant to the Wells Fargo Loan Agreement, we borrowed the following amounts. Type and Number (1) Date Funds Received Rate Original Monthly Principal and Payment Start Date Equipment Loan No. 01 12/26/18 4.13 % $ 7,500 $ 103 01/31/19 Equipment Loan No. 02 04/23/19 3.98 % 7,500 102 05/31/19 Equipment Loan No. 03 12/23/19 3.70 % 3,750 54 02/03/20 Equipment Loan No. 04 03/06/20 3.29 % 7,500 100 03/13/20 Equipment Loan No. 05 04/17/20 3.68 % 7,200 97 05/15/20 Total $ 33,450 $ 456 (1) Term: 7 years for 84 installment payments. (unaudited) (unaudited) January 22, 2021 October 30, 2020 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 28,029 $ 29,122 Less current portion of notes payable (4,471 ) (4,430 ) Total long-term notes payable - equipment $ 23,558 $ 24,692 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 22, 2021 | |
Accounting Policies [Abstract] | |
Customer Concentration | Customer Concentration > 20% of AR or 10% of Sales * 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 22, 2021 and January 24, 2020, respectively. Wal-Mart (1) Dollar General Sales AR Sales AR January 22, 2021 36.5 % 7.3 % 13.7 % 24.1 % January 24, 2020 36.4 % 34.2 % 7.4 % 21.3 % * = No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 22, 2021 or the twelve weeks ended January 24, 2020. (1) = Wal-Mart accounts receivable represented a lower percentage of sales as of January 22, 2021 due to accelerated payments on outstanding accounts receivable. |
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, common carrier, 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. 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 exists, 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 interchangeably, 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 qualifies 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 as a finance or operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are considered operating or financing. |
Financial Statement Reclassification | Financial statement reclassification Certain financial statement reclassifications have been recorded in 2020 to conform to the current year presentation of operating income and income before taxes. |
Subsequent Events | Subsequent events Management has evaluated events subsequent to January 22, 2021 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. As previously reported, on March 16, 2020, Bridgford Food Processing Corporation (“BFPC”), a wholly-owned subsidiary of the Company, entered into a Purchase and Sale Agreement with CRG Acquisition, LLC (“CRG”), pursuant to which BFPC agreed to sell to CRG, pursuant to the terms and conditions set forth in the CRG Purchase Agreement, a parcel of land including an approximate 156,000 square foot four-story industrial food processing building located at 170 N. Green Street in Chicago, Illinois (the “Property”). The purchase price for the Property is $60,000 subject to a due diligence period and certain closing adjustments and prorations, and is conditioned upon, among other customary closing conditions, CRG receiving zoning and other governmental approvals necessary for the construction and development of a mixed-use project on the Property in accordance with certain development plans to be approved by the City of Chicago. The cost basis of the Property was insignificant. On January 29, 2021, the Company executed the fifth amendment to the CRG Purchase Agreement, dated as of February 1, 2021 of the CRG Purchase Agreement. Under the original terms and conditions of the CRG Purchase Agreement, the closing of the sale of the Property to CRG would occur on the date that is thirty (30) days after CRG’s receipt of the necessary zoning approvals, but in any event no earlier than October 31, 2020 and no later than March 31, 2021. The first amendment dated as of April 10, 2020 extended the inspection period to June 1, 2020. The second amendment dated as of June 1, 2020 extended the inspection period to July 31, 2020, zoning period to February 1, 2021 and closing date to February 5, 2021. The third amendment dated July 31, 2020 further extended the inspection period to October 31, 2020, zoning period to April 30, 2021 and closing date to May 6, 2021. The fourth amendment dated November 2, 2020 further extended the inspection period to February 1, 2021, the zoning period to August 2, 2021 and closing date to August 31, 2021. The fifth amendment dated February 1, 2021 further extended the inspection period to May 1, 2021, the zoning period to November 1, 2021 and closing date to December 1, 2021. The escrow account for the transaction has received $1,350 in earnest money through January 22, 2021. We have received a total of $450 in total which is non-refundable earnest money through January 22, 2021 which is thus not part of restricted cash. An additional $100 of non-refundable earnest money was received on February 1, 2021 and total earnest money increased to 81,650. On February 15, 2021, our line of credit with Wells Fargo Bank, N.A. was increased to $15,000 with an unused commitment fee of 0.25% of the available loan amount. The amended line of credit expires March 1, 2022. Under the terms of this line of credit, we may borrow up to $15,000 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 during the first quarter of fiscal 2021 and had $2,000 borrowings outstanding as of January 22, 2021. 1 |
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 22, 2021 or January 24, 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jan. 22, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Customer Concentration | 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 22, 2021 and January 24, 2020, respectively. Wal-Mart (1) Dollar General Sales AR Sales AR January 22, 2021 36.5 % 7.3 % 13.7 % 24.1 % January 24, 2020 36.4 % 34.2 % 7.4 % 21.3 % * = No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 22, 2021 or the twelve weeks ended January 24, 2020. (1) = Wal-Mart accounts receivable represented a lower percentage of sales as of January 22, 2021 due to accelerated payments on outstanding accounts receivable. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 22, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following at the respective period ends: (unaudited) January 22, 2021 October 30, 2020 Meat, ingredients, and supplies $ 7,430 $ 6,439 Work in progress 2,025 1,860 Finished goods 20,351 20,997 $ 29,806 $ 29,296 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Jan. 22, 2021 | |
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 and right-of-use assets: Fiscal Year Financing 2021 $ 482 2022 563 2023 292 2024 102 2025 69 Later Years - Total Minimum Lease Payments(a) $ 1,508 Less: Amount representing executory costs (76 ) Less: Amount representing interest(b) (13 ) Present value of future minimum lease payments(c) $ 1,420 (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 Company’s incremental borrowing rate at the inception of the leases. (c) Reflected in Part I. Financial Information Item 1. a. Condensed Consolidated Balance Sheets as current and noncurrent obligations under capital leases of $147 and $272, and right-of-use assets of $382 and $619, respectively as of January 22, 2021. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jan. 22, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following segment information is presented for the twelve weeks ended January 22, 2021 and January 24, 2020. Segment Information Twelve weeks Ended January 22, 2021 Frozen Food Products Snack Food Products Other Totals Sales $ 9,264 $ 45,429 $ - $ 54,693 Cost of products sold 6,440 33,702 - 40,142 Gross margin 2,824 11,727 - 14,551 SG&A 2,809 11,167 - 13,976 Gain on sale of property, plant, and equipment (33 ) (41 ) - (74 ) Operating income 48 601 - 649 Total assets $ 10,089 $ 113,810 $ 32,710 $ 156,609 Additions to PP&E $ 70 $ 3,078 $ - $ 3,148 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 3,311 9,647 - 12,958 Gain on sale of property, plant, and equipment - (13 ) - (13 ) Operating income 370 1,739 - 2,109 Total assets $ 11,025 $ 98,334 $ 20,253 $ 129,612 Additions to PP&E $ 37 $ 6,137 $ - $ 6,174 |
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 22, 2021 and January 24, 2020, respectively. Twelve weeks Ended January 22, 2021 Distribution Channel Retail (a) Foodservice (b) Totals Direct store delivery $ 35,692 $ - $ 35,692 Direct customer warehouse 9,737 - 9,737 Total Snack Food Products 45,429 - 45,429 Distributors 2,970 6,294 9,264 Total Frozen Food Products 2,970 6,294 9,264 Totals $ 48,399 $ 6,294 $ 54,693 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. |
Equipment Notes Payable and F_2
Equipment Notes Payable and Financial Arrangements (Tables) | 3 Months Ended |
Jan. 22, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowing Loan | Pursuant to the Wells Fargo Loan Agreement, we borrowed the following amounts. Type and Number (1) Date Funds Received Rate Original Monthly Principal and Payment Start Date Equipment Loan No. 01 12/26/18 4.13 % $ 7,500 $ 103 01/31/19 Equipment Loan No. 02 04/23/19 3.98 % 7,500 102 05/31/19 Equipment Loan No. 03 12/23/19 3.70 % 3,750 54 02/03/20 Equipment Loan No. 04 03/06/20 3.29 % 7,500 100 03/13/20 Equipment Loan No. 05 04/17/20 3.68 % 7,200 97 05/15/20 Total $ 33,450 $ 456 (1) Term: 7 years for 84 installment payments. |
Schedule of Long Term Notes Payable | (unaudited) (unaudited) January 22, 2021 October 30, 2020 Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. $ 28,029 $ 29,122 Less current portion of notes payable (4,471 ) (4,430 ) Total long-term notes payable - equipment $ 23,558 $ 24,692 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | Feb. 15, 2021USD ($) | Mar. 16, 2020USD ($)ft² | Jan. 22, 2021USD ($)shares | Jan. 24, 2020shares | Mar. 02, 2021USD ($) | Feb. 01, 2021USD ($) |
Lease term | 12 months | |||||
Unused commitment fee percentage | 0.25% | |||||
Line of credit expiration date | Mar. 1, 2022 | |||||
Line of credit facility, maximum borrowing capacity | $ 7,500 | |||||
Line of credit | $ 15,000 | |||||
Stock Option [Member] | ||||||
Weighted average number of shares outstanding | shares | ||||||
Warrant [Member] | ||||||
Weighted average number of shares outstanding | shares | ||||||
Convertible Securities [Member] | ||||||
Weighted average number of shares outstanding | shares | ||||||
LIBOR [Member] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
CRG Acquisition, LLC [Member] | ||||||
Escrow account deposit | $ 1,350 | |||||
Non-refundable earnest money | 450 | |||||
CRG Acquisition, LLC [Member] | Subsequent Event [Member] | ||||||
Non-refundable earnest money | $ 200 | |||||
CRG Acquisition, LLC [Member] | Purchase and Sale Agreement [Member] | ||||||
Area of land | ft² | 156,000 | |||||
Purchase price | $ 60,000 | |||||
CRG Acquisition, LLC [Member] | Purchase Agreement [Member] | Subsequent Event [Member] | ||||||
Escrow account deposit | $ 1,650 | |||||
Non-refundable earnest money | $ 650 | |||||
Wells Fargo Bank N.A [Member] | Revolving Credit Facility [Member] | ||||||
Proceeds from line of credit | 2,000 | |||||
Line of credit | $ 2,000 | |||||
Wells Fargo Bank N.A [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Line of credit, additional borrowing capacity | $ 15,000 | |||||
Unused commitment fee percentage | 0.25% | |||||
Line of credit expiration date | Mar. 1, 2022 | |||||
Line of credit facility, maximum borrowing capacity | $ 15,000 | |||||
Wells Fargo Bank N.A [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
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. 22, 2021 | Jan. 24, 2020 | ||
Sales Revenue, Net [Member] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Sales Revenue, Net [Member] | Wal-Mart [Member] | |||
Concentration risk, percentage | [1],[2] | 36.50% | 36.40% |
Sales Revenue, Net [Member] | Dollar General [Member] | |||
Concentration risk, percentage | [1] | 13.70% | 7.40% |
Accounts Receivable [Member] | |||
Concentration risk, percentage | 20.00% | 20.00% | |
Accounts Receivable [Member] | Wal-Mart [Member] | |||
Concentration risk, percentage | [1],[2] | 7.30% | 34.20% |
Accounts Receivable [Member] | Dollar General [Member] | |||
Concentration risk, percentage | [1] | 24.10% | 21.30% |
[1] | No other customer accounted for more than 20% of AR or 10% of consolidated sales for the twelve weeks ended January 22, 2021 or the twelve weeks ended January 24, 2020. | ||
[2] | Wal-Mart accounts receivable represented a lower percentage of sales as of January 22, 2021 due to accelerated payments on outstanding accounts receivable. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Customer Concentration (Details) (Parenthetical) | 3 Months Ended | |
Jan. 22, 2021 | Jan. 24, 2020 | |
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. 22, 2021 | Oct. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Meat, ingredients and supplies | $ 7,430 | $ 6,439 |
Work in progress | 2,025 | 1,860 |
Finished goods | 20,351 | 20,997 |
Inventories, net | $ 29,806 | $ 29,296 |
Contingencies and Commitments_2
Contingencies and Commitments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 22, 2021 | Oct. 30, 2020 | ||
Lease liability | [1] | $ 1,420 | |
Hogshed Ventures, LLC [Member] | |||
Lease right of use asset | $ 1,091 | ||
Lease liability | $ 1,091 | ||
Operating lease description | We lease this space under a non-cancelable operating lease. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further this lease does not contain contingent rent provisions. | ||
Lease termination description | This lease terminates on June 30, 2023. | ||
Incremental interest rate | 1.60% | ||
[1] | Reflected in Part I. Financial Information Item 1. a. Condensed Consolidated Balance Sheets as current and noncurrent obligations under capital leases of $147 and $272, and right-of-use assets of $382 and $619, respectively as of January 22, 2021. |
Contingencies and Commitments -
Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jan. 22, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 482 | |
2022 | 563 | |
2023 | 292 | |
2024 | 102 | |
2025 | 69 | |
Later Years | ||
Total Minimum Lease Payments | 1,508 | [1] |
Less: Amount representing executory costs | (76) | |
Less: Amount representing interest | (13) | [2] |
Present value of future minimum lease payments | $ 1,420 | [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 Company's incremental borrowing rate at the inception of the leases. | |
[3] | Reflected in Part I. Financial Information Item 1. a. Condensed Consolidated Balance Sheets as current and noncurrent obligations under capital leases of $147 and $272, and right-of-use assets of $382 and $619, respectively as of January 22, 2021. |
Contingencies and Commitments_3
Contingencies and Commitments - Schedule of Future Minimum Lease Payments (Details) (Parenthetical) $ in Thousands | Jan. 22, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Capital lease obligation, current | $ 147 |
Capital lease obligations, noncurrent | 272 |
Right-of-use assets, current | 382 |
Right-of-use assets, non current | $ 619 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Jan. 22, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 22, 2021 | Jan. 24, 2020 | Oct. 30, 2020 | |
Sales | $ 54,693 | $ 46,642 | |
Cost of products sold | 40,142 | 31,588 | |
Gross margin | 14,551 | 15,054 | |
SG&A | 13,976 | 12,958 | |
Gain on sale of property, plant, and equipment | (74) | (13) | |
Operating income | 649 | 2,109 | |
Total assets | 156,609 | 129,612 | $ 155,283 |
Additions to PP&E | 3,148 | 6,174 | |
Frozen Food Products [Member] | |||
Sales | 9,264 | 11,354 | |
Cost of products sold | 6,440 | 7,673 | |
Gross margin | 2,824 | 3,681 | |
SG&A | 2,809 | 3,311 | |
Gain on sale of property, plant, and equipment | (33) | ||
Operating income | 48 | 370 | |
Total assets | 10,089 | 11,025 | |
Additions to PP&E | 70 | 37 | |
Snack Food Products [Member] | |||
Sales | 45,429 | 35,288 | |
Cost of products sold | 33,702 | 23,915 | |
Gross margin | 11,727 | 11,373 | |
SG&A | 11,167 | 9,647 | |
Gain on sale of property, plant, and equipment | (41) | (13) | |
Operating income | 601 | 1,739 | |
Total assets | 113,810 | 98,334 | |
Additions to PP&E | 3,078 | 6,137 | |
Other [Member] | |||
Sales | |||
Cost of products sold | |||
Gross margin | |||
SG&A | |||
Gain on sale of property, plant, and equipment | |||
Operating income | |||
Total assets | 32,710 | 20,253 | |
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. 22, 2021 | Jan. 24, 2020 | ||
Direct store delivery | $ 35,692 | $ 25,137 | |
Direct customer warehouse | 9,737 | 10,151 | |
Total Snack Food Products | 45,429 | 35,288 | |
Distributors | 9,264 | 11,354 | |
Total Frozen Food Products | 9,264 | 11,354 | |
Totals | 54,693 | 46,642 | |
Retail [Member] | |||
Direct store delivery | [1] | 35,692 | 25,137 |
Direct customer warehouse | [1] | 9,737 | 10,151 |
Total Snack Food Products | [1] | 45,429 | 35,288 |
Distributors | [1] | 2,970 | 2,721 |
Total Frozen Food Products | [1] | 2,970 | 2,721 |
Totals | [1] | 48,399 | 38,009 |
Foodservice [Member] | |||
Direct store delivery | [2] | ||
Direct customer warehouse | [2] | ||
Total Snack Food Products | [2] | ||
Distributors | [2] | 6,294 | 8,633 |
Total Frozen Food Products | [2] | 6,294 | 8,633 |
Totals | [2] | $ 6,294 | $ 8,633 |
[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 | Mar. 27, 2020 | Jan. 22, 2021 | Jan. 24, 2020 | Dec. 31, 2019 |
Income tax rate reconciliation description | On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”). Among other significant changes, the Tax Act reduced the corporate federal income tax rate from 35% to 21%. The carryback of NOLs from tax years 2018 and 2019 under the CARES Act to pre- Tax Act years generated an income tax benefit due to the differential in income tax rates which was recorded in fiscal year 2020. | |||
Federal income tax rate | 21.00% | |||
Income tax benefit | $ 393 | $ 590 | ||
Effective tax rate percentage | 21.20% | 24.10% | ||
Federal [Member] | ||||
Operating loss carry forwards | $ 2,818 | |||
State [Member] | ||||
Operating loss carry forwards | $ 4,233 | |||
CARES Act [Member] | ||||
Income tax rate reconciliation description | On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before January 01, 2021. | |||
Operating loss carry forwards | $ 9,900 | $ 24,505 |
Equipment Notes Payable and F_3
Equipment Notes Payable and Financial Arrangements (Details Narrative) - USD ($) $ in Thousands | Feb. 15, 2021 | Jan. 22, 2021 | Dec. 26, 2018 |
Line of credit, expired date | Mar. 1, 2022 | ||
Line of credit, maximum borrowing amount | $ 7,500 | ||
Line of credit, description | We borrowed $2,000 under this line of credit on December 2, 2020 which remains outstanding as of January 22, 2021. | ||
Line of credit | $ 15,000 | ||
Unused commitment fee | 0.25% | ||
Master Collateral Loan and Security Agreement [Member] | Maximum [Member] | |||
Equipment financing amount | $ 15,000 | ||
Prime Rate [Member] | |||
Variable rate | 1.50% | ||
LIBOR [Member] | |||
Variable rate | 1.50% |
Equipment Notes Payable and F_4
Equipment Notes Payable and Financial Arrangements - Schedule of Borrowing Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 22, 2021 | Feb. 15, 2021 | |
Original Principal Amount | $ 15,000 | |
Maturity Date | Mar. 1, 2022 | |
Wells Fargo Bank N.A [Member] | ||
Original Principal Amount | $ 33,450 | |
Monthly Principal Payment Amount | $ 456 | |
Equipment Loan No. 01 [Member] | Wells Fargo Bank N.A [Member] | ||
Date Funds Received | Dec. 26, 2018 | |
Rate | 4.13% | |
Original Principal Amount | $ 7,500 | |
Monthly Principal Payment Amount | $ 103 | |
Maturity Date | Jan. 31, 2019 | |
Equipment Loan No. 02 [Member] | Wells Fargo Bank N.A [Member] | ||
Date Funds Received | Apr. 23, 2019 | |
Rate | 3.98% | |
Original Principal Amount | $ 7,500 | |
Monthly Principal Payment Amount | $ 102 | |
Maturity Date | May 31, 2019 | |
Equipment Loan No. 03 [Member] | Wells Fargo Bank N.A [Member] | ||
Date Funds Received | Dec. 23, 2019 | |
Rate | 3.70% | |
Original Principal Amount | $ 3,750 | |
Monthly Principal Payment Amount | $ 54 | |
Maturity Date | Feb. 3, 2020 | |
Equipment Loan No. 04 [Member] | Wells Fargo Bank N.A [Member] | ||
Date Funds Received | Mar. 6, 2020 | |
Rate | 3.29% | |
Original Principal Amount | $ 7,500 | |
Monthly Principal Payment Amount | $ 100 | |
Maturity Date | Mar. 13, 2020 | |
Equipment Loan No. 05 [Member] | Wells Fargo Bank N.A [Member] | ||
Date Funds Received | Apr. 17, 2020 | |
Rate | 3.68% | |
Original Principal Amount | $ 7,200 | |
Monthly Principal Payment Amount | $ 97 | |
Maturity Date | May 15, 2020 |
Equipment Notes Payable and F_5
Equipment Notes Payable and Financial Arrangements - Schedule of Borrowing Loan (Details) (Parenthetical) - Wells Fargo Bank N.A [Member] | 3 Months Ended |
Jan. 22, 2021Integer | |
Equipment Loan No. 01 [Member] | |
Loan term | 7 years |
Number of Installment | 84 |
Equipment Loan No. 02 [Member] | |
Loan term | 7 years |
Number of Installment | 84 |
Equipment Loan No. 03 [Member] | |
Loan term | 7 years |
Number of Installment | 84 |
Equipment Loan No. 04 [Member] | |
Loan term | 7 years |
Number of Installment | 84 |
Equipment Loan No. 05 [Member] | |
Loan term | 7 years |
Number of Installment | 84 |
Equipment Notes Payable and F_6
Equipment Notes Payable and Financial Arrangements - Schedule of Long Term Notes Payable (Details) - USD ($) $ in Thousands | Jan. 22, 2021 | Oct. 30, 2020 |
Debt Disclosure [Abstract] | ||
Secured equipment notes payable to Wells Fargo Bank, N.A. collateralized by equipment for the new Chicago processing facility. | $ 28,029 | $ 29,122 |
Less current portion of notes payable | (4,471) | (4,430) |
Total long-term notes payable - equipment | $ 23,558 | $ 24,692 |