Exhibit 99.1
May 17, 2005
Tofutti Press Release
Company Contact: Steve Kass
Chief Financial Officer
(908) 272-2400
(908) 272-9492 (Fax)
TOFUTTI ANNOUNCES FIRST QUARTER RESULTS
Cranford, New Jersey -- May 17, 2005 -- TOFUTTI BRANDS INC. (AMEX
Symbol: TOF) today announced its results for the thirteen week period ended
April 2, 2005.
Net sales for the thirteen weeks ended April 2, 2005 increased 6% to
$4.2 million compared with net sales of $4.0 million for the thirteen weeks
ended March 27, 2004.
For the thirteen weeks ended April 2, 2005, the Company reported an
increase in operating income to $130,000 as compared with operating income of
$99,000 for the comparable 2004 period. The Company's operating results
continued to be negatively impacted during the thirteen week period ended April
2, 2005 as a result of new product start-up costs, including costs incurred at
new co-packaging locations, increased marketing expenses and higher packaging
and freight charges. The Company expects that during the remainder of 2005 its
operating expenses will continue to be affected by these same factors.
Net income for the thirteen weeks ended April 2, 2005 increased to
$76,000 ($0.01 per share) compared to $54,000 ($0.01 per share) for the thirteen
week period ended March 27, 2004.
Although the Company has utilized over $4.1 million since September
2000 in connection with its stock repurchase program and in the retirement of
dilutive options, its cash position remains strong with cash and cash
equivalents of over $1.9 million and working capital of $3.7 million at April 2,
2005.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company
stated, "We continue to see increasing demand for our TOFUTTI brand soy-based,
dairy-free frozen desserts and food products. Our Tofutti Cuties continue to be
one of the nation's best selling novelty desserts and our new products are
beginning to achieve market traction. We are continuing our efforts to improve
our margins in the upcoming periods and look forward to improving margins and
increased market penetration during the approaching summer months."
TOFUTTI BRANDS INC. is principally involved in the development,
production and marketing of TOFUTTI brand soy-based, dairy-free frozen desserts
and soy-based, dairy-free food products that contain no butterfat or
cholesterol. TOFUTTI products are sold in grocery stores, supermarkets, health
and convenience stores throughout the United States and in seventeen other
countries.
Some of the statements in this press release concerning the Company's
future prospects are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. Actual results may vary significantly based upon
a number of factors including, but not limited to business conditions both
domestic and international, competition, changes in product mix or distribution
channels, resource constraints encountered in promoting and developing new
products and other risk factors detailed in the Company's filings with the
Securities and Exchange Commission, including its annual report on Form 10-KSB.
TOFUTTI BRANDS INC.
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Condensed Statements of Operations
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(in thousands, except per share figures)
Thirteen Thirteen
weeks weeks
ended ended
4/2/05 3/27/04
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Net sales.......................................... $4,240 $3,992
Cost of sales...................................... 2,773 2,838
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Gross profit....................................... 1,467 1,154
Operating expenses................................. 1,337 1,055
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Operating income................................... 130 99
Interest income.................................... 1 1
----- -----
Income before income taxes ........................ 131 100
Income taxes....................................... 55 46
----- -----
Net income ........................................ $76 $54
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Net income per share:
Basic..................................... $0.01 $0.01
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Diluted................................... $0.01 $0.01
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Weighted average number of
shares outstanding:
Basic..................................... 5,637 5,758
===== =====
Diluted................................... 6,223 6,344
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TOFUTTI BRANDS INC.
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Condensed Balance Sheets
------------------------
(in thousands)
April 2, 2005 January 1, 2005
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(Unaudited) (Audited)
Assets
Current assets:
Cash and equivalents $1,978 $2,199
Accounts receivable, net of allowance for doubtful
accounts of $237 and $219, respectively 1,751 1,614
Inventories 1,024 792
Prepaid expenses 6 14
Deferred income taxes 593 593
--- ---
Total current assets 5,352 5,212
Fixed assets (net of accumulated depreciation of $11
and $10, respectively) 37 38
Other assets 16 16
--- ---
$5,405 $5,266
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $873 $691
Accrued officers' compensation 500 500
Income taxes payable 285 403
--- ---
Total current liabilities 1,658 1,594
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Commitments and contingencies
Stockholders' equity:
Preferred stock -- --
Common stock 56 56
Additional paid-in capital 162 162
Retained earnings 3,529 3,454
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Total stockholders' equity 3,747 3,672
----- -----
Total liabilities and stockholders' equity $5,405 $5,266
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