MMMB - Earnings call transcript Q2 2020

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to MamaMancini's Fiscal Second Quarter 2020 Earnings Conference Call.

During today's presentation all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions. Instructions]. [Operator

being accompanying XX, issued this close market is earnings and after today, of release press conference today. recorded conference XXXX September the market This call was

Officer, MamaMancini's Matthew Relations Officer, Chief Firm. MamaMancini's Director Financial and and is of Chief Morgenstein; Brown; today Larry Falesnik, call President and our Chief On Investor Executive Greg Carl Officer, MZ Wolf; Operating America, Chairman Managing North

conference over about would to to I turn now disclaimer to read forward-looking the statements. like a Greg

Greg Falesnik

operator. Thank you,

read disclaimer statements to federal about I'll meaning This started call may addition regarding statements. the get in conference historical we Before MamaMancini's. the securities laws of within forward-looking contain forward-looking information, the

statements but intentions, future earnings, relating express are include, to limited activities, the events statements or beliefs, statements predictions company's strategies, conditions. that other to Forward-looking expectations, its not any or

differ and are are statements based business management. part These other and and company estimates with numerous from time on guarantees Commission. to likely the time from Securities factors assumptions to expectations, predict. report not the due actual of risks, forecasted These based projections materially outcomes made Therefore, company's about performance and forward-looking that are on involve the by may results statements or uncertainties discussed what is difficult assumptions to and in this in and Exchange to documents in the which are and expressed statements U.S. current files future

availability the statements litigation and actual risks to include forward-looking could capital the by control. factors be major and statements those that the such company. any management regarding of affected from key factors, other in differ Matters results related addition, cause personnel, loss uncertainties company's of In among beyond materially may the to

date information time conference this time contains the this analysis best addition, In only of conference as of that reflects call. and sensitive management's call

date of that obligation presentation update in forward-looking related the that this to revise materially in issues performance The undertake Further information the statements statements or events, information circumstances not can any company with periodic call. the reflect arrived contained future concerning or found forward-looking company's publicly does filings could to financial be after any to affect conference SEC. the

time, this floor Carl the over yours. and Chief Wolf, Carl, Chairman company's the turn Officer. to like call Executive At is to I'd the

Carl Wolf

Greg. you, joining Thank us I financial results second everyone call. XXXX everyone Thank to to today. you welcome for quarter like conference our

increasing [ph] of very we products highlighted continued our end, quarter quarter second $X sales as record that our nationwide. fiscal net The momentum pleased in XXXX are was we the drove million. million include] $X.X aggressively XX% To [to to with sales second with by progress a market income which

was merchandising multi-channel driven our both events marketing new continued success revenue by Our efforts. and of placements, growth effective

I a work QVC. Our and successful social include like media efforts few radio multi-pronged continued now. campaign, these to with touch of on efforts marketing

X,XXX have We found we reaching products. The a various to shares advertising our million campaign by our as as drive up evidenced all distributes which customers current the new continue to across with launch platform talk consumers, locations Day. in Labor SiriusXM an and effective channels news cost XX on fourth success to see our year campaigns, over our this MamaMancini's SiriusXM major of commercials radio and avenue to over way geographic

repeat On continue likes engaging purchases. reach we miles within geo-target social XXX,XXX likely specific of customers who live and date, a things new the locations. side robust have media five maintain retail to to we continue of consumers To encouraging and

medium presently to are using new bowls the this we an introduce in our pasta South East. As example,

air new the on traditionally period offerings scheduled we pitches of have success introduce on Day, their driving done. a to October, In we seven Our impressive notable are QVC number with efforts Dan have platform. increase week be from the live the times, been a well Labor many as from sales first and notable will Mancini

many you available is in and the QVC throughout over direct-to-consumer is world's XXX marketer largest are the aware, US. of As million homes

is the over I one Inc., announced nationwide. as on on special X,XXX recent of Super some to touch tier financials, in review locations wanted Sam's Before with and turning of customers grocery include Club, Walmart names Publix Tops to our Markets, to the also to merchandising and Markets. September such Companies Albertsons events call retailer respect well-known These placement as division Larry which successes a XX product

Notably these to third $X.X of additional XXXX. the an beginning million this, fiscal quarterly expect locations XXX,XXX we quarter in to in generate revenue

have in adding we XXXX is these addition positive. with locations six new months, of provided consumer acceptance the In retailers potential next the

Clearly this value excited a paired with effective about of to-date drive shareholder positioned us The half as efforts back are the foundation and strong for our have build is of as capabilities, forward. us move very help our a we've we forward. which move established marketing manufacturing something we we significant out firmly we with major for strong believe will XXXX, fiscal opportunities

our details Larry going quarter to further, the before Chief over from the turn to Now walk second I’d of Larry. XXXX. through Officer Morgenstein, Financial some call like to key financial

Larry Morgenstein

was of customers, Thank increase The largest you, in new with customer Carl. of quarter for as increased Revenue increase well placements. also XX% A the a event in during customer fiscal as same to sales $X.X revenue our to million compared sales. quarter quarter. the with the result one million, contributed the to primarily merchandising increased XXXX second $X.X year-ago

goods XXXX, revenue a quarter of million change XX.X% compared expense profits sales. $X.X sold a XXXX by the in compared percentage quarter prior product mix and the totaled profit second of to for quarter. depreciation of to period, due cost quarter, in negatively to comparison year-ago totaled in year impacted profits higher fiscal of Gross same which X% to of fiscal the XXXX comparable the XX.X% in quarter gross including of as second fiscal the second the million Gross $X.X year-ago in in as same

increase gross we we manufacturing As and margins to result of a efficiencies. plant grow our sales, as expect

totaled primarily in quarter. Notably, XX.X% from increased commission operating due million to fiscal the fees second and royalty expenses increases freight, the sales as $X.X Operating quarter expenses in expenses decreased to sales. same compared percentage of expenses due XX.X%. to a higher Operating to million XXXX in of $X.X and year-ago postage

income of the lower was income The debt a increase cost and net profit, sales a discount and result in $X.XX expenses. for compared quarter. share second loss and quarter Net as of amortization lower per of as totaled million XXXX year-ago or in fiscal $X.XX loss gross million or same per a of the share sales higher of interest net $X.X to $X.X of percentage operating primarily

as Cash compared $XXX,XXX July and equivalents of XXXX July totaled as XX, XXXX. cash XX, as of to $XXX,XXX

operations flow hand same We Cash XXXX not XXXX, fiscal grow. operations repaid anticipate During in million year-ago the and cash of fiscal confident do is raising we of that for to its sufficient we period as senior $X.X six-month to the $X.X sustain period. additional are was million million capital the as company debt. from on $X.X compared the

XX, XX.X a Finally, which XX.X the wrap-up as days days and at July touch before base notable January improvement payable compared seen stood to outstanding XX, XXXX. payables, July section, when XX, a days we financial at on This XXXX payable as outstanding is at I XX basis XXXX. to at consolidated want our

our to and throughout better extract from to continue fiscal We continue expect as better we the improve XXXX terms pricing and vendors. outstanding payables

my completes This comments.

over Brown, Matt. and call Let President our me turn Officer. the Chief to Matt Operating

Matt Brown

Thanks Larry.

not of to listened For fiscal speak become better but of only to the XXXX, those at in who continue in to call to have the QX call efficient for I equipment future growth. talk all and our position year-end plant ourselves you me upgrades, and sales effort more at an production, expansion

second Sales up operating as versus expenses a certainly a we just produced with Larry sales. down through plant, no quarter, shifts What the noted. percentage we XXXX of Carl are are and year QX and in additional fiscal produced those required. as proved that ago the

heard bowls as about fiscal and perfect in-store from plant. to products right was In this also products the to continued prepared of me XXXX the to showcase You've take our QX, margins kit talk other opportunity the off. the business, pasta best obtain mix

customer as a special placement new these X Markets. Publix, expand in X,XXX including tier footprint. we recently to new and With Albertsons Walmart, activity earlier nationwide, division our or of Sam’s Club, existing mentioned product locations We items Carl Tops promotional retail continued announced Companies

of spoke I our the Vice key Allen's President since. a hire from subject, ever back north in Allan another was and about with With friends our Orleans briefly busy Sabatier April. been as number new New on made the board IDDBA show contacts room. On has Development been of in of closely working Allan our brought recent Business

been to continue we region favorable and of in feedback products. the and very positive. is Canada be customers Samples our a great signs pricing very progress sent initial showing has can Canada for obtain to is

to further on commissaries, Convenience to We College continues efforts continues Store Association service will updates these National food as corporate NACS of convenience of in will stores, the working or focus provide also on which work be show, his Allen couple of the next efforts chain weeks distributors. we throughout casinos at University he with restaurants, year. and

each move win to be large stores, front us. to incredibly slowly impactful prospects for these grocery on all While this relative tend will

and products have to - have breadth complete hitting we the to products manufacturing new now in with expansion the we expansion aggregate additional in the and market Collectively this and compete our the of segment completed manufacturing shelves, share. capacity

like notes So, for at over would up final I point Carl. to some to turn before this call wrapping some Carl Q&A. back the with

Carl Wolf

and Thank Matt. Larry you,

laid As we’ve fiscal I remainder noted remarks, really opening of groundwork the my in for the XXXX. strong

look XXXX, up with continue incredible we growth, set value gear we for pleased and are marketing implement I over to long fiscal strategy the term. stage shareholder we’ve execution We to creation an the and for very As comprehensive continued operational which today. forward a

With to will that, over it operator. Operator. I the turn

Operator

Instructions]. [Operator sir. you, Thank

Halpern Brothers. first question with Howard comes from Please ahead. go The Taglich

Howard Halpern

quarter. Great guys. Congratulations

Carl Wolf

Thank you.

Howard Halpern

new sales that in the you $X.X you terms down increase that, quarter, and largest customers this of in I the your guess had maybe revenue. know between In growth the you Could you break that had? that customers, event million

Carl Wolf

than had sales. the event - a existing great new customers a quarter. of the total business in new customers X% had merchandising The The customers, extent product new existing was and less of

ramping-up this announced. into started as now and the are quarter going in customers quarter New we

prudent different it customers often to is more announce pushed or expect items is few be of cases it's placements. are number there to over we do we to because we it's customers announce not different or the new when Some them when of happen shipped, ship, found back existing doesn't and will and much what a

So to make announcements. in the hope we near additional significant very future

to their name. use very which the we like announcements also group like often to make customers you don't together, We where customers

Howard Halpern

Okay.

does that I know you your up the In terms X,XXX across announcement, locations U.S.? retail total now What number of brings retail you in guess the the recent locations. approximately over grocery to know

Carl Wolf

We’re XX,XXX still sticking of because with the the the it's increased, locations. key even type is though

get the you traditional a store into XXx be if than volume can higher So club supermarket. a

So our to volume mix is with changing customers. larger locations higher

the is not So what with that’s we're a totally a XX,XXX, totally I'm I’m say staying not – to number. and trying sure meaningful

Howard Halpern

Okay.

the two a quarters before so that what of And time? to that growth that added you a customer know type a whether location you acceptance it. X,XXX, you'll from of additional get in of terms or Is time, feel it you'll potential have know lead quarter

Carl Wolf

No, no that’s.

announced those each merchandising it's to of or we we in only program. that [inaudible] shipped ships; a We’re customers

announced haven't actual are these results. so any ships, We proposed

Howard Halpern

out I for I was new approximately more increase the to - Q and or on going guess the could quarter on or now [indiscernible], quarter two. because one little increase see In level of freight, the this is the Okay, bit the in next the time there. a be postage

was XXX,XXX. think close it I to

Carl Wolf

up went more very go freight sales it postage with sales. substantial part and the Well, up and as of will

pretty necessarily You percentage tremendous of freight are as efficient. we as for don't savings a a sales get

customers where the quarter way would liked for higher freight we than to we company. have [indiscernible] We much out few and a in lot of figured this money did ran have a a have save

in more So freight line. much be should

Howard Halpern

added looking but guess this more about are pasta Meatball and new bowls Okay, about a next and end either items okay, there I a recently of know be [indiscernible], I little fiscal talk any your new by know or that more and the into of would – year should Pie you products. talk for R&D bit bit year. in such, be terms could little about you've you

Carl Wolf

plan soon make to as that not prudent We definitive that go to on that it’s we before real, or mentioned we as and not think plant – working not will are plan something would we an announcement a way. have that again, product be information there’s have we proposed, into we would based we a be something that,

Howard Halpern

Okay.

Carl Wolf

in an really we’ll business are announcement. the make we Once

Howard Halpern

keep and great thanks, up Okay, work. the

Carl Wolf

Okay.

Operator

the over would to session. any to This for Carl conference turn concludes our Wolf remarks. like I question-and-answer closing back

Carl Wolf

Thank you. operator. Thank you

want mention several I October the note final and we that U.S. a to across in Conferences As attending will September be Investor

in These include October New in coming Summit Diamond Monday City, in the York. Investor New on We’ll and October XX September such Conference Big X Research on this Equity Rodeo on be York Micro, on Texas September as in Austin, events Summit the the XX, Fall XX, Apple Microcap The XX. LD

If House. Monday in Group that this conference like at to the to out I’d Marriott reach Also IR a MZ scheduling – interested to meeting, please arrange. on coming mention the firm Essex our is this

progress. our today. for joining forward look us on you to Thank to you continuing We update

Operator

for concluded. The Thank conference is attending today's presentation. now you

now disconnect. You may

Carl Wolf	Chairman, Chief Executive Officer
Matthew Brown	President, Chief Operating Officer
Larry Morgenstein	Chief Financial Officer
Greg Falesnik	IR, MZ North America
Howard Halpern	Taglich Brothers

Mama's Creations (MAMA) 12 Sep 192020 Q2 Earnings call transcript