MMMB - Earnings call transcript Q3 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to MamaMancini's Third 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 XX, was This the earnings the accompanying of Instructions] being December 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

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

acquisition The third quarter focused of XXXX fiscal effort. highly was

to acquisition. We have notably effort advanced internal significant explore potential the

the as on Our and supermarket, focus complimentary financial operational with is metrics. exceptional well in as companies of perimeter the products

first there's push ability our move We this, and of our and the major existing chief We diligence will of minimizing network anticipate like our due distribution and try seems dilution. cash-on-hand this static financing goal in our EBITDA. process. through we near-term, If dramatically any completed, financing on increase an sales as a relationships to announce acquisition acquisition new the with hope realize is our already the with and robust bank The We goal. would distribution through little attractive valuation product bit our to online.

within $XXX am the and believe the platform XX a growth our acquisition Mancini targets. as revenue MMMB, us approach company. from truly reminder, near-term front, this establishing in I We largest the million I on annual As given national months, of has a come to expectations to potential myself, our more shareholder mama sales

line believe great ready facing new line retailers, line We ship of will a we our to continue begin success. XX as soon have and labor product core will up to to this that immediate meals eat to shortages major well we the varieties. as to Due innovate

the convenience The high the efficiently has supermarket very testing the an modest exciting health attractive XX Our are grams, to attributes product opportunities. XXX calories for quarter first content the service new launch point. in potential store attractive, This Meatball-in-a-Cup product university price conscious and at of to will service consumers. protein food

We million incremental million sales. $XX have in production to capacity to annualized handle added $XX to

companies. are fresh meatballs. to Amazon be market, program representing Amazon a smaller to This our we a large ready fresh This first begin sales. from MamaMancini's upon plant-based could and first marketing over-time. be based about online cooperative believe will supply historical addition, consumer though, opportunity will with our cooperative In beyond to direct start this for account as a significant comparable We is other our

effective have a and our few efforts, growing Our with innovative included quality continue multi-pronged of to These sales and campaign, our high products efforts. like on radio work now. media of these QVC. new historically are and touch marketing I'd result a social

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

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

America's to securing you Perhaps many Best deal a of, Awards, three homes QVC of order initiatives product million of period. quarter from our by will And is approximately to sales delivery $XX.X million named and return was sales in special airtime shipping MamaMancini's $XX fiscal inclusive Sauce, lay a U.S. This million into to poised five new margin to most XXX $XX.X QVC significant $X.X Consumer margin building direct-to-consumer Meatball, throughout in in foundation million, and the coveted placements many ago, year expansion XXXX product we, As retailers notably of as throughout as hours quarter. in summary, Choice up that on the and million potential I We million, come Most QVC today's 'XX the the begin drive up maintain aware, we expected $X for is and play. the for winners December Tier-X In we were over largest value available several we Best road North year-end to customers. for marketer through near-term the improvement we believe the are believe grow several Trusted Xth, exciting spread Brand. day. to expect will XXXX. are successful believe the and fourth from this quarter this for

opportunities from acquisitions We Larry? third our through the of network I, are now store evaluating in growth made we are national leveraging the over Morgenstein, like particularly quarter. Larry retailers calendar financial Club excited potential our and I to offer the today the to by financial details some facing officer by call accounts. chief key And year walk XXXX, possible turn Tier-X

Larry Morgenstein

totaled in result major to fiscal $X.X $X.X million third to The Revenue the as increases XX.X% XXXX, to revenue price XXXX operating you, quarter. a compared result higher the $X.X for for same Thank will protein, $XX.X expenses Carl. into million, quarter the was third ago in volumes improve third as in significant to Operating quarter. as year fiscal of in gross effect. come of of quarter same end increased all increase The production gross cost quarter freight Foods or revenues to margin new by as of of third and same business efficiencies, due ago commodity XX.X% totaled year $X.X total was of cost million total $X.X profit elements compared Gross and quarter million, the year in million quarter fiscal XX.X% with profit and margin higher lower in the The of the normalize of compared expects or higher ago will year revenues, million, in Whole prices in supply. in Publix. fiscal XXXX, of Company plant quarter. third the

Matt? introductory compared expenses million, year. anticipate item expenses. Cash compared $XXX,XXX, to at quarter, core third XX.X% retailer, with in of to percentage cash from for I’d operating a were affected not which net million, We raising call and a $X.XX compared Higher per ago the hand over to year diluted of benefitted in beginning XX.X% capital same of ago additional $XXX,XXX as $X.X President new of of $X.X share, XXXX. Company’s major costs increased XX, from operations that million fees, of million, as systems This grow. of Officer. or $X year the quarter were increases XXXX the sales, including to flow quarter. totaled over the generated in do fiscal $XXX,XXX well in increased turn Director As comment. compared as operations and a cash of quarter, million demonstration year from ago as The combined share our retail third management new $X.X XXXX million last year in a cash quarter, Net expenses quarter. expenses like any sustain Operating the to we by in corporate the in logistic and million quarter. are million Operating my third this ago expenses income increased to as to and equivalents operations be in quarter January as the to for from and same October or sufficient same the fiscal in XXXX, in third in national approximately over were on NASDAQ-listing, $X.X the marketing as totaled from of now, rotational infrastructure completes increased at costs. fiscal quarter corporate as balances per $X.X Chief time, the our quarter million, $X.XX as And cash $X totaled loss confident expenses Matt new for XX, $X.X year same third diluted will cash ago each the $X.X recruiting the XXXX our handle to fiscal related Brown, and acquisitions, equity Pre-tax income management higher the quarter

Matthew Brown

We achieving the made of hired to level. workforces felt longer inflationary times without food costs will We QX challenging network in sustained structure of aggressive planned several greater provide both as remembered a where through a environments. Operations will its in skyrocketing showing with for and interruption, supply setting a some chain well customer management adding we both new fresh commodity successfully and benefits. are next great competition as have highlight I reliability, for we order and packaging, and to Director which supply and to helpful, as our be viewpoint greater period as operations interruptions. worked In preparations efficiencies structuring challenging bright examples. our operations suppliers metrics, material performance companies price team Plant now the and for Larry. accelerate managed expanded freight XXXX and in long be logistics processing Thanks, of would experience packaging prices, improvement achieve period raw to and signs in lead continuous materials future. well organizing of

completed processes professional staff, to our efficient exciting room machinery, core to we In we already of our the and meals one by space both three new preparation with product Blanco lines Our adding product making began achieved policy Jorge room, support food for room reliability off will This our of launch Consistent the ready-to-eat new of plans Director the of construction replaced impact.t plant machines, one and rolling of inefficient begin previously specifically new our month. RTE wraps this Operations, for capacity positive imminent staff to used fully new was which replacing products. assembly line, for relocating and MULTIVAC volume. new our room our our of designed the is and business or a by all depreciated

to line, busy which preparations new have stores product store snack also chains convenience finalizing and been We presenting for very we sea are our now. Meatball-in-a-Cup

includes nation. excited half-ounce cases cup. We distribute this XX, in very We a to meatballs and and which sauce microwavable the product at widely in this six sell frozen across design, are about plan

for QX, new our functions. NetSuite live preparations replacing financial management we procurement, otherwise and an manufacturing a known planning system, going resource on throughout enterprise Finally, as completed system, ERP management, inventory or Oracle’s

live on some capability while As of we the this that making expectedly benefits it’s adjustments, the new now and to the a Company. are footnote, system, we operational integrated are seeing bringing

also management I call wrapping for to cross-company to taken steps the align our with have necessary for in prepare to companies our and team final back mentioned, acquisition the turn capabilities. the management product not look over our point, notes integration expansion the with for of we plant opportunities competencies, call only vertical some believe we potential through At Carl this align Q&A. up leverages but We of to core will continue that Finally, before as towards Carl Carl? gain efficiencies.

Carl Wolf

you, Matt. and Thank Larry

the continues in all I As fire on acquisition to efforts with noted my cylinders, opening business progressing our remarks, notably.

MamaMancini’s we laid the strong public have innings firmly for We growth as fiscal in a company. in of believe early I foundation incredibly and trajectory, XXXX. are prominence growth an still trajectory increasing

forward We efforts. acquisition drive scale will to continue and our operations

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

Operator

Thank you, sir.

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

Howard Halpern

question the that color you over First accepting and margin the price gross you also relates them between I anticipate creating are to, the it, do over leverage guess, you the few add quarters? time. the If plant? the What is lag could and that time think next increases within some that you to improving

Carl Wolf

backed any think Tyson prior close as their about on this What and to you there their periods complete. average pretty around partial down have is in prices, were prices there sales protein should spike they back-down. profits I resistance, wasn’t consumer be If is the where is this quarter doubled. their quarter in that report, next down were Well, happened year had up this the XX%, and and etc. read year XX% protein

anyway, and so price resistance develop consumers, among So increases. the the didn’t

stocking So higher. went actually

So prior and upon it’s years based to accept a price was increases, projection transitory. chains were reluctant the

before. I word has someone that heard think

And thrown that and not case the chains readily. much pretty is price the accepted so and towel anyway have increases in

January the way we January. getting will are X $XXX,XXX freight. way most on about on of them in. occur a Freight was are time lot higher spending mid out, on a we late prices to So, $XXX,XXX Also but really of was through, there -- through

are So a time lot spending on that. managing of we

So both ways. us it affected

Howard Halpern

offerings geographically level? if Okay. And your next pipeline, color. acquisition to where you more just enable are in of the take close are little bit in particular, are, terms could add looking you product you your acquisitions you acquisitions to a currently that But ready-to-eat at and will to that

Carl Wolf

worth, geographically at distributed All because not proven that; we’re that nationally. first the find acquisitions but biggest companies that have close, is their private looking opportunity for we in are

manage that gives the opportunity local, growing they same of it to We products the us being area, which like them. very to store is us So rapidly. them. distribute Also in the perimeter allows

volume I high so of And think great there, have we opportunities anyway, very opportunities.

Howard Halpern

-- Okay. acquisition extra for create allow And the candidates plans offerings? capacity new to you your will current your have product for extra

Carl Wolf

Yes, it should.

Howard Halpern

Okay. And one…

Carl Wolf

into our is in to expand existing their The the bigger run opportunity short distribution. products

Howard Halpern

within system? product some you update just placements initial year of new customers, question. through placements of Have sort most could the place, And Okay. customers. an Throughout with more customers, talked about those expanding your or while initial taken expect we throughput

Carl Wolf

a high the the on customer Well, and in we raise of a also part our problem And were major with And through and had price. because that one part rotation problem, hurt marketing October. chain summer, expense. couldn’t had we also was was of that price, March and this a fixed national that introductory

can we and well where for of out tons requests that we’re it. product However, find is did extraordinarily the getting now of consumer rotation, it

product. So and it’s a branded

very So we’re happy.

new the customer mega paid on millions that for to a the the cost a yearly in we price occur. developing major and basis range So

been The other a the time is successful get of placements; paid don’t them year you more. placement in and the of get you customers have beginning we the in year. new This

However, in major a for do one the meals placement. we have ready-to-eat

major there The think first with a be will this many. orders out going And are customer. we quarter

that line strong major, this very will major First very, us. indications for are a be

Howard Halpern

question, team? are having join you come employees Okay. to And just final one finding the troubles any to MamaMancini’s

Carl Wolf

No.

We labor. on are okay

We’re more okay.

reputation. mainly workers hard we good community, very of very a have good in and working a minority have we or environment, work a who are have Hispanic We lot that

Howard Halpern

guys, great up work. Well, the Okay. keep

Carl Wolf

you. Thank

Operator

ahead. Lapp. Please go question [Operator next will Instructions] from come Bill Our

Carl Wolf

Bill. Hey,

Unidentified Analyst

Bill Lapp.

Okay, you Hi, Carl. me. recognize

Carl Wolf

Sure, I do.

Unidentified Analyst

a Yeah. little disappointed. Carl,

got I are going one you that were on take? it due analysis completing had it you’re so You’re I seems and to me. long on to you moving this slowly acquisition. far along mean How candidate, How paralysis sold your out pretty candidate? is you just diligence. you thought

Carl Wolf

We’re far along. very

sign cannot imminent, if we answer. very anything the we think is have an But, until which we So contract,

Unidentified Analyst

not Okay. a intent When a a you purchase right? see definitive contract, -- agreement, of letter

Carl Wolf

Yes.

Unidentified Analyst

Okay.

agreement that you it, before till purchase is waiting definitive announce right? you’re So

Carl Wolf

There’s a final in do lot an stages of to the acquisition.

Unidentified Analyst

know. I Yeah,

Carl Wolf

all In changeover etc. terms completing compliance the and details, of

Unidentified Analyst

that’s basically, that papering forth it shortly? when it. you’ve And So should reached you’re correct? all coming agreement, Is an be done,

Carl Wolf

have agreement. We not an signed

Unidentified Analyst

open that… I there cause could mean, No. But is are that issues any

Carl Wolf

Nothing. don’t We think so.

However, last again anything always happen can the at there things to up hour. is that come And have resolved. be that

Unidentified Analyst

Okay.

you days, knowledge XX say would subject So it’s you now based say, those… your -- to what days, on would XX

Carl Wolf

Tomorrow.

Unidentified Analyst

Tomorrow.

Okay. Well, it. you may need

Your stocks are $X.XX, $X.XX.

Carl Wolf

time buy, it? you to know good A don’t

Unidentified Analyst

Yeah.

$XXX to or -- remarks. forecast did… much was rate Now, it run I -- you in trying how the open -- I other Was what you understand million your you is thing did what did up know

Carl Wolf

a own ourselves XX we envision rate or With million within the growth Company and our others growth major being of $XXX potentially basis, acquisition potentially months.

Unidentified Analyst

$XXX million, great. a may acquisition? sales it, add would be make much any us mean but it? assuming you give that $XX feeling Within not would XX you I months, about And make How revenue? you this can million it

Carl Wolf

significant It’s very, sales. very

Unidentified Analyst

Pardon?

Carl Wolf

would very would sales. very be It sales. It be significant significant

Unidentified Analyst

Okay.

Carl Wolf

can’t say much more really about… I

Unidentified Analyst

No, trying long. a these to lot I understand. I’m of just trying I’m along been not with you’ve time. so just going takes that. things appreciate I -- It pressure. to

Carl Wolf

unusual this think, is and… I not

Unidentified Analyst

And don’t I it to understand. to it want do right, you No, wrong. want you get

Carl Wolf

private a have work. the company, do more intensive with due deal you When and you to diligence

Unidentified Analyst

Right. I that. respect

Carl Wolf

it. It’s just the of nature

Unidentified Analyst

cure. of No, Yeah. of worth because ounce an prevention is understand, I a pound

Okay.

if didn’t you profit you’ve projection? fourth a you quarter this but or don’t the is said do know quarter, -- -- make a it, So you in do I making forecast

Carl Wolf

think will. we I

will. we the still in very think But it’s quarter. I early

Unidentified Analyst

when? in end because right, quarter will That’s your

Carl Wolf

XX. January

Unidentified Analyst

Okay.

another So you XX got days, okay.

work in that are calling raise the but prices, you customers Howard you you about Did got that you did those retain were of and wanting Now mentioned Did October the talking couldn’t and that a lot the product. you this, and you you retain store? client? you with

Carl Wolf

Yes.

Unidentified Analyst

Okay.

of So a they’ve more created demand.

you store because the correct? lot So getting for of a calls they’re the Is that needs product.

Carl Wolf

part of it. that’s Well,

other heavily And upon but because year, of off the very The based of part Last supply high, very, of resisted last clients is went they year. backed then very factories price increases very it some quickly. they up prices spiked COVID. problems that and

happen of felt a will thing the lot be would that resistance. lot there a same the So that was chains again, of

as not that it everyone transitory. happen. government now, is didn’t So right And says it’s assuming our

Unidentified Analyst

are -- going just to cup, Do And that have going product much Okay. how for? much is a sell -- for? that to you this meatball you in with six new a be how sold

Carl Wolf

it’s speaking, the retail. of XX% Generally

Unidentified Analyst

Okay. And you existing have now? an for do order that

Carl Wolf

No.

We’re have packaging to we then will want issues it that dealing of with and we’re week, going and next have will with -- we we and in a -- got because that prototypes, in-house didn’t microwaved lot we the we properly. --

we didn’t So to book want anything.

that. knew very this volume we soda alternative it two protein. that and The point, turkeys. there stores, beef, protein, one is very big that, believe So so But market it’s convenience snacks and But we and well, kind for is and big and a there drinks in There’s a on unproven. forth. worked bars very for regular at markets marketplace for

serving, really beauty It’s protein. And high very a antioxidants. excellent. It’s to to that easy use. has market, It’s a that we’re out product seven-ounce and taste of is has which very hot is on appealing product. can which case, and XXX modest, very a calories universal makes it for go so that our high volume The in it which

we successful, of not market is do do it. millions we will it lot of of well could in So be yet. think How business. actually and if know place, it But in dollars a the millions there interest

Unidentified Analyst

going you awareness? to it it But -- pull going lot? to are the advertising get be how you you going How to through? Are a are

Carl Wolf

a Green quite store totally this what we And impulse. item do recognition, it’s impulse like but is an we have, item.

Unidentified Analyst

Okay.

people So microwave? take it buy so it they that, and I’m do that or they not the home into saying there, -- microwave come

Carl Wolf

choice. They a have

in sandwiches, two go grab different microwave of it put ready have store, going the breakfast a We on counter, They burger. out like are types and to it customers. to

a burger for now to get going So alternative high. you’re an to

that’s effect. is volume the So through If there, very roof. succeeds the

it’s have you it, and product it The store. and couple in counter that home microwave ready other of the and or is, for the microwave it you thing in is a microwave you Take you it take order a third and the one minutes, or the And microwave behind and home to it go. it. take it store, they

Unidentified Analyst

with the Have you beta runs sites, product? any all had or any test if at

Carl Wolf

No, no.

Unidentified Analyst

because… Okay,

Carl Wolf

No, know don’t We we know. yet.

So…

Unidentified Analyst

Okay.

this other is… So in words,

Carl Wolf

We’re excited sites. beta about the

We have issues… it our to interest whole who it, on and prospects based like or team several We’d are tweak to have out interest. in go we’re because limiting have the we case to limiting

Unidentified Analyst

Right.

got test Right. through. You to it

Carl Wolf

know In marketplace. We do is the whole attractive. the very packaging

a probably once press We’re very We’ll that soon release product. the happy with that. posting be we actual on have

Unidentified Analyst

it think do you’ll when do packaging? the to you’re going site occur? think do think you to do you the will you this So, When at have and whatever -- you’ll or test,

Carl Wolf

of the January. in Hopefully month

Unidentified Analyst

Month of January.

feeling All and hope okay. Okay. luck, you’re the right. I keep good Well, hard up and work,

Carl Wolf

Great. Thank Thank you. you.

Operator

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

Carl Wolf

thank We continuing actively I update look you. know we participating you conference want shows And declined, that on forward investor our this we everyone in restrictions to and conferences. to participate to let has COVID want Thank will call. progress. once for in

Operator

for The presentation. Thank Remarks] conference attending you is Closing [Operator today's concluded. now

disconnect. may You now

Greg Falesnik	Chief Executive Officer of MZ North America
Carl Wolf	Chairman and Chief Executive Officer
Larry Morgenstein	Chief Financial Officer
Matthew Brown	President and Chief Operating Officer
Howard Halpern	Taglich Brothers, Inc.
Jeffrey Kobylarz	Diamond Bridge Capital, L.P.

Mama's Creations (MAMA) 15 Dec 212022 Q3 Earnings call transcript