MMMB - Earnings call transcript Q2 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to MamaMancini's Second Quarter Fiscal 2022 Earnings Conference Call.

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

Following the presentation, the conference will be open for questions. market is press today, call release at close conference and X, was This the earnings the accompanying of Instructions] being September recorded XXXX, issued [Operator today. this conference MamaMancini’s On our and Matthew America, CEO CFO, Brown; MamaMancini’s and Falesnik, Carl Morgenstein; Greg MZ Wolf; COO, and Chairman Larry of call President CEO, Investor is today North Relations firm. about to turn Greg a disclaimer to the to over like forward-looking conference now would I statements. read

Greg Falesnik

Thank you, operator.

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

risks, in materially actual other differ outcomes due factors time performance activities, but include, and or may are statements on predictions forward-looking Therefore, to expressed Exchange statements forecasted assumptions to results which likely the any files time and in based discussed conditions. Commission. uncertainties difficult the Company’s current to, beliefs, based are and management. projections on involve Company guarantees part expectations, are business Forward-looking made U.S. earnings, of numerous or statements are statements to with statements, and Company’s or what that and this predict. is from report by to to express that about These assumptions events not future documents, limited not in from relating the other These strategies, expectations, statements and estimates intentions, future are its the Securities and

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

this publicly obligation Chairman conference of does to call Officer. and that this date events, conference information Company’s undertake only circumstances to yours. future like any The call this reflect over is At reflects or forward-looking Wolf, any time the Company call. call. the floor best of or information not to contains revise the Carl of update Chief Executive and time, date that statements time-sensitive In the to Carl, as management’s I’d arise the after addition, conference this analysis turn

Carl Wolf

Greg, you, today. second joining Thank our welcome like quarter to financial thank you, fiscal results XXXX year and everyone, call. us for you conference I'd to

many rapid were quarter. revenue product compared The robust of our driven pace of and offset shareholder related to costs elevated second meeting figures ship to began a commodity temporarily our highlighted as fee quarter. quarter shipping XXXX in second These and were our growth, increase sales one-time as by previously fiscal year-ago extraordinary same by well requirements. the which listing XX% was as additional expenses the NASDAQ realizing announced by of to placements, Profits

sales expect increase to continue I and planned margin given Our our increases, go-forward year-end. by to forecasts see improvement price would

in meatballs we addressable begin rapidly the orders new sale with opportunity of retail late company store moving to on cup, and hundreds item, convenience partners a This sauce our thousands of to enormous are We Tier-X expect outlets. Grab-n-Go an trial with represents fall. in the ahead

This beyond and with believe be comparables. supply sales. initiated count significant time be first our online smaller to – a Amazon historical our based that marketing start for Fresh Fresh program upon this representing opportunity direct-to-consumer Amazon our brand will have large could MamaMancini’s we addition, cooperative our We a meatballs. at In will with plant-based

hope with XXX in We several have new we X,XXX, base up universities colleges between or to contacted of XXXX, across Boston During Eventually, program, originally upon of COVID a that purchasing the this early and and beta our days about regular last universities solicitation had are $XXX,XXX the and year, discontinue we now We winter. country fall. towards our our to we college least university out based these Italian in College. following have and and reactivated. of which XXX placement meatballs or program be placements our anticipate each customer plant-based other items. have $XXX,XXX customers per at goal will We colleges to XX at is

of in see of process The channel an campaign MamaMancini's to Radio three-pound is estimated Currently, our the X,XXX our airing talk Club to XX all SiriusXM news reaching over continue campaigns. We pack channels, in potentially family Sirius at nine-week million and announce the campaign success advertising listeners. a we availability commercials Stores. on major large are

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

Dan as Our with their have impressive well QVC on efforts live record Mancini's platform. seen success pitches sales driving

nominated Sauce Awards: X Best Consumer for Meatball, As Choice Most aware, many been have Trusted and are QVC Best you of Brand. we

milestone homes uplisting million that has years and for several completed chosen been month products featuring in in as all Canada. Meatballs is On available Beef we over U.S. throughout Sauce. making. Traditional largest July XXXX, our Turkey to our Italian of and have We North the September, is the for in QVC Capital food Market, been America's and MamaMancini’s NASDAQ XXX XX, the the X-Cheese direct-to-consumer a marketer shareholders

We weeks potential this were of few incredibly featured many liquidity. closing will our not our prouder team, be we public shareholder could our when elevate I just expand rang NASDAQ base expect ago. whom a hard-working of short improve that help the and bell profile,

off call we the internal potential growth, advance to handing effort to explore that incredible before acquisitions. continue our note supplement a to to to further significant like would Larry, I Finally,

hand valuation the attractive as metrics. an our companies If The robust exceptional completed, existing acquisition cash is all already hope as on any push products the move in announce and first this focus acquisition relationships We financing with Our through goal. on and financial of diligence as increase well new the process. our an dramatically with product would to bank the through network anticipate We perimeter of EBITDA. major sales our complimentary dilution. and to operational ability minimizing and with we realize our due supermarket, distribution distributor in our near-term goal at our as financing

placements am begin believe I over robust the shareholder we reminder, walk to are in myself, financial through Tier-X In to a details Morgenstein, from the exciting potential significant our Larry to we key shipping As near-term margin MMMB. Officer new trajectory to of I poised growth We maintained retailers return I’d expansion year-end. Chief Larry? for second with largest summary, Financial some the of second the to we quarter. XXXX. several product to call pleased and the turn like over believe a now quarter are by our that

Larry Morgenstein

due as improve for time basis Carl. XX% with were margin revenues, company year-ago new The compared in same million, year-end which costs a $X.X a prices commodity quarter of of expiration million XX.X% and normalize to as XXXX, million, revenue the the second a quarter. to increase the by you, Tier-X shipping lag of customers in profit totaled total on in the with the placement as the year-ago higher short the in months Revenue well $XX.X result second higher will initial Thank fiscal totaled $X.X Gross fixed several as of of quarter first revenues, $XX.X nationwide. passed on retailers inbound gross The or same result in as $X.X was existing million introductory or XXXX new year-ago to pricing profit and the the quarter, profit XXXX, pricing in compared margins quarter. customers. quarter same wins to introductory expects of was expenses volumes quarter. $X.X Operating for lower period in second operating The of for the and of as fiscal quarter production efficiencies, on company’s totaled of in higher the million, fiscal second commodity previously second total for as compared will quarter announced million the to part two placements. shipments plant

$X.X company’s Operating our expenses equity in sales, second were that and to quarter in XXXX anticipate fiscal comments. fiscal same affected compared the XXXX. in of the year-ago percentage on The the by quarter XX.X% capital a such completes as in $X.XX per and as Brown, diluted now XXXX, period totaled Chief will during million cash additional to provision costs $X.XX NASDAQ XX.X% year-to-date. time increased months of call same the per in fees. to million in for combined go. uplisting turn $X.X quarter As July attributed cash as ended of the income million increased like to totaled our the the additional and Officer. $X.X Pre-tax I’d July million the one-time million $X.X the the $X.X in year-ago $X.X and million, with and operations significant quarter Cash million, sustain to share January decrease second as quarter $X.X operating fiscal year-ago cash as $X.X during income compared as confident significantly cash from share, to expenses recorded shipping to as shareholder generated from Operating compared higher balance of second and million, The as net my as compared XX, core ended XXXX We operations the to fiscal XXXX raising flow of a of meeting to diluted equivalents requirements, director’s hand net of do compared $X significant second year-ago expenses quarter. quarter three-month of each Matt? quarter. income be the total operations XXXX. of the XXXX not or XX, an and cash Matt XX, for a in at benefited Net July income our tax the XX, This was three $XXX,XXX XXXX income fiscal are from second were in $X.X this million, same same totaled we quarter. President over or quarter of

Matthew Brown

production operations these ending was saw variable period the Record with well the costs met for challenges, Thanks, increased Larry. was as costs as the one commodity all could logistics. fiscal XXXX. higher Plant production inbound control packaging QX plant Despite labor. on a and shipping record

This including the costs. of percent introduced in schedules of QX a sauce. QX addition production plant personnel labor saw Sam's improved during was As XXXX. a and QX to pack family of accomplished few in expenses refrigerated and items The XXXX, as with decreased hourly use of fiscal adjustments management XXXX, to meatballs fiscal introduction better through of technology fiscal new

the tuned within kits pasta their We Safeway the to quick customers’ to was plant also products The the needs. kits meet Albertsons new stores. across to pasta launched as for our of XX fine these respond specs divisions family ever-changing specific

On months. sometime a our and the repeating, front, we Carl and worth mentioned, the along trial are R&D a in This and next cup run few as moving sauce plant technology but at meatballs anticipate at new retail, with provides exciting see it a is handheld new for into MamaMancini's avenue not us only we product opens us but SKUs. through also other store a convenience with expanding up the that project can

prepared with to began fully kits. kit outlets our prepare do as a store also have in the exploratory to We that we those refrigerated can the do pasta ability not that fiscal sell XXXX for current QX pasta in

we front, started in additional on cooking On forward QX XXXX. move that room was the CapEx fiscal project the continue to

as hoping all any to still room building the our next capacity this additional fiscal QX break While that look help R&D. room the materials, ground to give other we we is needed and before us year. currently is grow will Sauce braised and towards will are world This It in currently fiscal on XXXX. increase rice, our business hope Bolognese our products backlogged

companies Carl towards align mission to align vertical only but statement, of through also we integration as the with mentioned, our with continue our Finally, not acquisition capabilities. look plant that

to been provide ensure expand the to of our will locations us operating with these complimentary suitable part I are due East only our processes the procedures. of also that into Rutherford to process, diligence products, and that products not companies but at the production have looking As ability asset with programs work they these equipment and

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

Carl Wolf

Matt. Thank you, and Larry

my opening business the cylinders. continues fire all As I in on to noted remarks,

active we of foundation laid believe trajectory in underway, increasing half growth for incredibly We are in acquisition the innings and the strong prominence second I With have still our MamaMancini's the of a company. well growth an as the efforts year. public early firmly

journey. operations have scale capital our to begun We continue will only and markets

all I'll on the success for session. Q&A it fronts over holds our poised and for to operator Operator? are look brand. turn what that, We seeing future begin to forward our the With to

Operator

Thank you, sir.

We with question question-and-answer first Please the will from Brothers. Our Instructions] now Halpern Taglich session. begin comes Howard [Operator go ahead.

Howard Halpern

hard the work the the accomplishments all on quarter. all in Congratulations and

Carl Wolf

Thank you.

Howard Halpern

of In guess existing to a bit number products customers? can with adding – the increase you terms I the or little of products about on talk, customers products expanding shelves to those

Carl Wolf

activity That new is as right the now customers. major of part our as some well

So as Publix example, representative I'm I an use since key the can there.

So Publix when them. now we about X,XXX grown half a years three about to stores, was X,XXX ago with first has started and

bowl So planogram one for have stores has family and very it lasagna well spaghetti at limited packed per a store pasta in distribution we items. voluntary very, lot distribution. basis is full a was the into taken with and on pasta bowls is a us have of except have Shipments one rollups. and our given done just help, has and a full Publix begun, additional didn't forced just promotions Publix and meatballs, a

So surprised and has the think the in one all will volume become number next our of Publix, customer. year I us

So items. perfect example of additional that is a

started Safeway. authorized. now selling pasta Albertsons is situation bowls. We few We Another a are

I I XX and XX. the to think correct, And division anywhere six decision, makes from division. own typical each am Matt, per their we're

is a of business. key that So our part

probably and SKUs still so an XX for add about SKUs per – just chain SKUs now – we're have we'll packaging. additional we that four QVC So or for XX plus represent

Howard Halpern

within rotations stores? in kind what also terms your And progress being of Club is made Okay. of

Carl Wolf

always will stores have Club rotations. Well,

you So Matt that sleeved actually items – three-pound up pack had the our at item. branded is the pick that – mentioned Sam's, new a

rotation if be and do as to So appear look What then a you satisfactory. do satisfactory again. out you're see a they're rotation then let's do and you your you numbers, and at you very they and

to by division. and Costco, do thing than same rotations of eventually that more for hope and case So we in non-rotations, you're authorized Costco,

Howard Halpern

the product, cup, in And the couple lined a do have a the terms at point? new this trial do Okay. store convenience of in customers you to meatball of up

Carl Wolf

We do.

Howard Halpern

And move verbal… exact that without

Carl Wolf

agreed. one verbally for with waiting And actually is trial of very is That large. us. substantial they're The them, very

– approved. order. get first it's But wait to protein, and it's beauty The is easy very this it's you low have prepare branded tastes for it competitively. product You of now, calories, until your to very that high verbally priced in right is relatively and been in well us

Howard Halpern

[indiscernible] if And successful of… it's the it counter the possibly with is into stores, the the this of will product flow convenience type easily or college and deli university

Carl Wolf

deli to our top, the I'm going would So the not colleges it would sure about out. but you they more spoon be of with – just… But plan counters, universities and

Matthew Brown

I jumping this Matt Howard, jumping say, is Matt is this in. Howard, going was in. to

cup geared I quick would is be that heat serve. the concept think the that and behind towards this a

cup is that stores microwave what So the in convenience have a designed that's system, heating for.

heat the microwave – these quickly where students can and it's take class. in Yes. So up can products very universities, They good [indiscernible] to have them a idea. they in

Howard Halpern

Okay.

Carl Wolf

we're There that should number of similar for being on product convenience carbs. a in at a stores, market low very, basis to Grab-n-Go looking is very protein, mention hot than high heated we the a big sandwiches. But

Howard Halpern

machinery and part and terms of that's EBITDA, also as the taking safety about know the I acquisition, how guess get something, your important health to talked diligence, out include certification. is the level safety talked fast In your you Matt of due the does and like the the you've revenue, of about but that could operation health I –

Carl Wolf

safety already we But very have a the are unless effect. it's they too safety significant and limits applicable in really start, The standards already that big candidates wouldn't anybody and to ones only health at had risk. Absolutely. look health

Howard Halpern

– know and And you… Okay. just I

Carl Wolf

I'm going to interrupt you.

go in remember to have of one mistake can You very and cetera, today's et viral. make you world social media, it

So strikeout. it's defensive very a

Howard Halpern

[indiscernible] a Okay. a in addressed slight margins your next And of be gross comments in I year? you more incremental will and margin, quarter, then sort gross it much there of fourth but go we third into and easing know the as the opening with

Carl Wolf

aware. is the so. very, – years We're happened everyone situation least XX never in we encountered a or very a in is, last very at is What

price of of passed had freight wave of we We down And commodity packaging drivers, as wave, price drivers. the one prices will is which increases. of hikes. in commodity along. we believe increases, the a We're down come a and so a shortage second and mainly result costs will tremendous now and if some once there There's come freight more

very the not So prices now in come down. we is what it believe prices should And which words, but underlying In we – those get freight we down. happens, will then reflect price are and of our we'll or they elements the will substantial. process come and the see raising our increases other to believe higher

by say margins than prior. higher year the see the end would of actually I So we should substantially higher,

Howard Halpern

Okay. for I'll let jump else the someone [indiscernible]. Thanks. Thanks in.

Carl Wolf

Thank you.

Operator

[Operator Our comes Bridge go Jeff Capital. ahead. next Kobylarz Instructions] Diamond Please with from question

Jeffrey Kobylarz

afternoon. good Hi,

college you Just college universities, trial and curious that a a the fall? with there. this you your a efforts say about Did test, have

Carl Wolf

been significant has we and last College yet well. [shambles]. and in fall has campaign extremely not then telling interest. year, with a that and to started went of – This university two about to solicit the case late. beta around Boston and major starting XX other We it’s been years again XXXX, college been we fall, done had we've still with May Well, ago our fall, began last And they've

for to potential a probably College. a confusion to this that seven represents of definitely the addition company in area, is fall. So but right interesting we have a now, Boston There still state we'll five it tremendous few in and prospects, have

Jeffrey Kobylarz

– they're or you how just comment you It’s to Can things saying – if about expect Walmart, year. stable. progress you're kind with mentioned that right. your you and if getting largest in of Walmart generating customer be a Publix just All Okay. interesting

would… they So

Carl Wolf

Walmart is stable.

retail Walmart pack mainly Coast. in XXX with locations, begun We family have just the East a on

orders are branded coming right that's into just first – additional now, We'll is successful. into The in expand that stores.

we very are starts Sam's additional have high a which its We Sam's and Club. Club into selling and of out test selling anticipation items

middle we I'm we’re – in So Club the – that – is kitchen. the talking a Sam's have about of

different rotation at label, branded Costco, and to well. the basically are similar we retail it's is sleeve Club a in with that We at sleeves, but very product doing the sell similar very little product Sam's it's

it’s company volume cylinders nice. business it's But the think and better – the is So I on better all the is grows diversified

Jeffrey Kobylarz

Sure. It's about to your so products. Publix doing hear with well impressive

Okay. That's all much. I have. Thanks very

Carl Wolf

You're welcome.

Operator

Instructions] questions. This closing to like [Operator any would I further remarks. session. over turn I’m no back Carl our the conference to concludes for showing question-and-answer Wolf

Carl Wolf

Thank you, operator.

in meantime, once management COVID-XX in scheduling will for We attending look meeting region, investor to Group, active continue In the note, joining from of in forward MZ again virtual Zimmerman the to efforts a final will investor today. our are to shows, on top coasts and Lucas please IR basis. interested us update If non-deal you with continue U.S. a progress. reach you Thank arrange. As your road on be we subsides, when firm, out to both we a our to continuing on our marking conferences we

Operator

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

disconnect. now may You

Mama's Creations (MAMA) 10 Sep 212022 Q2 Earnings call transcript