Exhibit 99.1
August 12, 2008
Tofutti Press Release
Company Contact: Steve Kass
Chief Financial Officer
(908) 272-2400
(908) 272-9492 (Fax)
TOFUTTI ANNOUNCES SECOND QUARTER RESULTS
Cranford, New Jersey -- August 12, 2008-- TOFUTTI BRANDS INC. (AMEX
Symbol: TOF) today announced its results for the thirteen and twenty-six week
periods ended June 28, 2008.
The Company reported net sales for the thirteen week period ended June
28, 2008 of $5,633,000 an increase of $873,000, or 17%, from the sales recorded
for the thirteen weeks ended June 30, 2007. Net sales for the twenty-six week
period ended June 28, 2008 increased 7% to $10,288,000 compared with net sales
of $9,642,000 for the twenty-six week period ended June 30, 2007. Sales
increased in all product and most customer categories. Sales were also
positively impacted by price increases that took effect in the second quarter of
2008.
For the thirteen and twenty-six week periods ended June 28, 2008, the
Company reported income before income taxes of $207,000 and $550,000,
respectively, as compared with income before income taxes of $375,000 and
$600,000 for the thirteen and twenty-six week periods in 2007. The Company's
operating results continued to be negatively impacted as a result of new product
start-up costs, including costs incurred at a new co-packaging location,
increased marketing expenses and higher packaging and freight charges. The
Company expects that its operating expenses will continue to be affected by
these same factors during the remainder of 2008.
The Company recorded net income of $127,000 ($0.02 per share on a basic
and diluted basis) for the thirteen weeks ended June 28, 2008 compared to
$225,000 ($0.02 per share on a basic and diluted basis) for the thirteen weeks
ended June 30, 2007. Net income for the twenty-six weeks ended June 28, 2008 was
$331,000 ($0.06 per share on a basic and diluted basis) compared to
$353,000 ($0.06 per share on a basic and diluted basis) for the twenty-six weeks
ended June 30, 2007.
As of June 28, 2008 the Company had cash and cash equivalents of
$419,000 and working capital of $4.4 million compared to cash and cash
equivalents of $1,499,000 and working capital of $4.5 million at December 29,
2007.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company
stated, " We are pleased with our second quarter revenue increase, which
reflects the continued and growing acceptance of our soy-based dairy free
products. While we are disappointed in our earnings for the quarter, our margins
continue to reflect our new product start-up costs, including costs incurred at
a new co-packaging locations, increased marketing expenses and higher packaging
and freight charges. We look forward to a stronger third quarter and a continued
growth in our top line revenues."
TOFUTTI BRANDS INC. is principally involved in the development,
production and marketing of TOFUTTI brand soy-based, dairy-free frozen desserts,
soy-based dairy free cheese products and other soy-based, dairy-free food
products. TOFUTTI products are sold in grocery stores, supermarkets, health and
convenience stores throughout the United States and in approximately twenty-five
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.
Condensed Statements of Operations
(in thousands, except per share figures)
Thirteen weeks Thirteen weeks Twenty-six weeks Twenty-six weeks
ended ended ended ended
June 28, 2008 June 30, 2007 June 28, 2008 June 30, 2007
------------- ------------- ------------- -------------
Net sales............................... $5,633 $4,796 $10,288 $9,642
Cost of sales........................... 4,160 3,395 7,287 6,545
----- ----- ----- -----
Gross profit............................ 1,473 1,401 3,001 3,097
Operating expenses...................... 1,266 1,026 2,451 2,497
----- ----- ----- -----
Income before income taxes.............. 207 375 550 600
Income taxes............................ 80 150 219 247
-- --- --- ---
Net income ............................. $127 $225 $331 $353
==== ==== ==== ====
Net income per share:
Basic.......................... $0.02 $0.04 $0.06 $0.06
===== ===== ===== =====
Diluted........................ $0.02 $0.04 $0.06 $0.06
===== ===== ===== =====
Weighted average number of shares
outstanding:
Basic.......................... 5,558 5,653 5,588 5,591
===== ===== ===== =====
Diluted........................ 5,818 5,920 5,843 5,858
===== ===== ===== =====
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands)
June 28, December 29,
2008 2007
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 419 $1,499
Accounts receivable, net of allowance for doubtful
accounts and sales promotion of $453 and $430,
respectively 2,428 1,991
Inventories 2,272 1,552
Prepaid expenses 3 46
Refundable income taxes 555 770
Deferred income taxes 298 298
--- ---
Total current assets 5,975 6,156
----- -----
Fixed assets, net of accumulated amortization
of $26 and $24 22 24
Other assets 16 16
-- --
$6,013 $6,196
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 742 $ 633
Accrued expenses 583 566
Accrued officers' compensation 200 500
Total current liabilities 1,525 1,699
----- -----
Stockholders' equity:
Preferred stock - par value $.01 per share;
authorized 100,000 shares, none issued -- --
Common stock - par value $.01 per share;
authorized 15,000,000 shares, issued and
outstanding 5,494,467 shares at June 28, 2008
and 5,653,467 shares at December 29, 2007 55 57
Additional paid-in capital -- 225
Retained earnings 4,433 4,215
----- -----
Total stockholders' equity 4,488 4,497
----- -----
Total liabilities and stockholders' equity $6,013 $6,196
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