Exhibit 99.1
May 18, 2010
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 18, 2010 -- TOFUTTI BRANDS INC. (NYSE AMEX
Symbol: TOF) today announced its results for the thirteen week period ended
April 3, 2010. Financial Highlights for the Quarter o Revenues for the first
quarter were approximately $4.6 million compared to $4.2 million in the first
quarter of 2009. o Operating income in the first quarter was $475,000 compared
to $253,000 in the first quarter of 2009. o Net income for the first quarter was
$275,000 compared to $152,000 in the first quarter of 2009.
The Company reported net sales for the thirteen weeks ended April 3,
2010 of approximately $4.6 million compared with net sales of $4.2 million for
the thirteen weeks ended March 28, 2009. The increase in net sales can be
attributed to the improving economic climate. Sales of the Company's soy-cheese
products improved while sales of its frozen dessert products maintained their
2009 levels.
For the thirteen weeks ended April 3, 2010, the Company reported an
increase of $222,000 in income before income taxes to $475,000 as compared with
income before income taxes of $253,000 for the comparable 2009 period. The
Company also reported that its gross profit increased to $1,614,000 in the
period ended April 3, 2010 from $1,371,000 in the period ended March 28, 2009
due to the higher level of sales. The Company's gross profit percentage
increased to 35% for the period ending April 3, 2010 compared to 33% for the
period ending March 28, 2009.
The improvement in the Company's gross profit percentage was due primarily to
the discontinuance of slower selling, lower margin products in 2009.
Net income for the thirteen weeks ended April 3, 2010 increased to
$275,000 ($0.05 per share) compared to $152,000 ($0.03 per share) for the
thirteen week period ended March 28, 2009.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company
stated, "Our improved results in the first quarter of 2010 reflect the general
improvement in the economic climate and our decision to drop certain low profit
margin products that we sold in the 2009 period. We continue to concentrate on
our core business of non-dairy frozen desserts and soy-cheese products and
believe this strategy will continue to provide positive results. We look forward
to improvements in our sales and operating income during the upcoming summer
months."
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-K.
TOFUTTI BRANDS INC.
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Condensed Statements of Operations
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(in thousands, except per share figures)
Thirteen weeks Thirteen weeks
ended ended
April 3, 2010 March 28, 2009
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Net sales................................... $4,592 $4,178
Cost of sales............................... 2,978 2,807
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Gross profit................................ 1,614 1,371
Operating expenses.......................... 1,139 1,118
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Income before income taxes ................. 475 253
Income taxes................................ 200 101
----- -----
Net income ................................. $275 $152
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Net income per common share:
Basic.............................. $0.05 $0.03
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Diluted............................ $0.05 $0.03
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Weighted average common shares
outstanding:
Basic.............................. 5,177 5,183
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Diluted............................ 5,177 5,183
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TOFUTTI BRANDS INC.
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Condensed Balance Sheets
------------------------
(in thousands, except share figures)
April 3, January 2,
2010 2010
----------- ----------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $1,771 $1,413
Accounts receivable, net of allowance
for doubtful accounts and sales promotions
of $403 and $538, respectively 1,686 1,461
Inventories 1,765 1,931
Prepaid expenses 8 13
Refundable income taxes 58 252
Deferred income taxes 299 299
--- ---
Total current assets 5,587 5,369
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Fixed assets, net of accumulated amortization of
$35 and $34 14 15
Other assets 16 16
-- --
$5,617 $5,400
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $670 $164
Accrued expenses 423 616
Accrued officers' compensation 125 500
--- ---
Total current liabilities 1,218 1,280
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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 5,176,678 shares at
April 3, 2010 and 5,176,678 shares at
January 2, 2010 52 52
Retained earnings 4,347 4,068
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Total stockholders' equity 4,399 4,120
----- -----
Total liabilities and stockholders' equity $5,617 $5,400
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