- Earnings call transcript Q3 2023

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to MamaMancini’s Third Quarter Fiscal 2023 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. Instructions]. [Operator being accompanying XX, issued this market today. is earnings and after today, closed release press conference recorded conference XXXX, December the the This call was Matt is Adam On Gruber. MamaMancini’s call CFO, Anthony today Michaels; our COO, Brown; and CEO,

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

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

the CEO, reflect availability risks management’s finally, date and may the call. related to key yours. this undertake among major obligation uncertainties in to best this time-sensitive personnel, as The At any of events, does company’s I’d that include, factors, time, floor call affected factors that like and of date from arise publicly Matters And Adam results regarding that cause company any conference contains the of actual loss call In other information information Michaels. by conference to conference not addition, the turn after call. to forward-looking be capital, circumstances to reflects update of Adam, statements to any statements litigation revise statements such future or the control. the the differ and time or management analysis company. forward-looking could this over the of this those only beyond is materially

Adam Michaels

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

As CEO of I've is MamaMancini's, wanted quarter this opportunity consumers, for and team Board to months the help prouder how company. and hear our and thrive time three sales make this family the to partners. field, team first as my in the and brands speaking using thank I'm to past to our during It proud I storied spend time is lead with portfolio. my special. leadership the you. used breadth to of inspiring them mean our the and our of pandemic, they're our more to and what even quality Thank them of customers

gaps deli believe and solutions accretive incremental third accelerating return Now existing fill expanding quarter, further leveraging building consumer-driven continued with national to for of foundations to goal brands in out back execute we the profitability, a company, strategically while and business. Throughout what delivering sustainable the innovation to near-in to a portfolio is our all the portfolio. acquisitions we our

food more ingredients at in out. a years, faced market with foods channels, last the foods pandemic-related than is shop changes plus club three for service ever to prepared and made fits fresh many approach with eating grocery, This prepared meals for convenience more a billion addressing that the well one-stop consumers with grocer focusing partners. our affordable with quick, clean lifestyle $XX vision than price Our on mass, become and the significant and better

challenges labor continue retailers counter, chain offerings. for and the labor reliable their of hot efficient, side other grab-and-go deli seeking the bar, face supply and and On are to solutions significant

As continues affordable to out us the meal focus our on. of will which feel of solutions, stronger realization for all on our forces. well recessionary and continue the consumers easy pressures expected MamaMancini's pandemic, to high evolve quality, delivers prepare macroeconomic The the offerings to of We country and MamaMancini's of position our many any been controls retailers goal and a three to ways. our culture. deli focus C our has one-stop immediate remain strategy; prepared these change shape structure has and into continue shop a to solutions My in in step term required continuous for on improvement cost, food will corporate

to capabilities. new improvements driving we and front, procurement, approaches cost have and the noticeable manufacturing designed in management, On cost management implemented logistics

mention cold tailwinds storage will quarter overtime, business. costs and reinvest efforts allowing returns, more manage logistics to efficiently in Matt later, particularly are improve significant for to our outbound Commodity our the to costs, providing as As noticeable continue margin us in profile. well, realizing labor our

first the is While believe facilities. drive efficiencies margins as there both points over to basis opportunity more half, QX across of gross our improved even compared operational we to X,XXX

On critical clear weekly brought rigor teams the and help allowing We the strong well to in teams front, financial put and as new place operations of put actionable along monthly make provide as with to build our information. decisions finance controls we we sales cadence succeed. easier, controls and agility a our help The communicate for and and the faster in are KPIs more our with operational to Gruber, new place Anthony staff. CFO, to meetings foundational in entrepreneurial spirit

scorecards new all be consumer our progress out and the goals. mutual consumer sales closer expectations We're to engagement are to broker us to bringing needs on and evolving track can clear quality Our we their rolling understand usages. so playbooks our and

company we growth, profitable pricing some a building And last, expect that and not and to already culture driving margin margin marketing to geared this costing to reinvesting and for growth. new rocket to is expansion approach are incentivizes for this enhanced of certainly serve our also Our fuel trade profit as continue capture accretive but least, while promotions. and

core often and our reinforce retaining do promoting success. we are remind hiring, and one-stop long-term all what and shop people of is reaffirm, at of of talent solution employees deli to our that to paramount Our our strategy. our speak We the vision

performed for our to upgrading our have investing We to but and only tomorrow. build talent management, support people today, talent our in full assessments for not

new is CFO just the Our beginning.

We have already started to out build finance function. the

we not and For as Controller happening needs as logistics well example, our started long It's new all in of procurement. today maturation. this require filling as And critical speak. soon will

I is enhanced our once us four win commitment being a MamaMancini's to to drove already grandma in our team’s has personal Customer Mama and made since again my one to growth strong Supported results than we ensure a sustainable XXXX goal started as as as what number and annualized have during quarter profitability seen the we in acquisitions, rate, meetings the Awards. organic good are expected. been well achieved as full previously growth to including return by million recent monthly Our short categories are made at quality unprecedented. our $XXX them, products run of Choice from time quality, earlier QVC announced favorite, realized our The sales

moving still and fourth into we while very well addition, quarter trajectory on and up shaping beyond. it's healthy a calendar are the is year 'XX preliminarily, early, In

selling customers, launched quarter, relationships. T&L into through three in half the our new which cross our drove legacy specific products digit of were new and customers into of double into we third to new wins existing Turning items

Our goal logistics find it grow fold per easier making the efficient. as to carried to for is more to several on products average our store shelf items consumers make as our well

an have Overall, incremental top quarter, of already three fourth Looking ahead existing a received future and further successfully both we items expanding bottom digit the coverage. double the breadth bright to see portfolio for from orders in and and our we customers new of line shipped into results. our and sold depth customers, new

a drive build team, that positioned in we organic strong firmly and aware calendar discuss While potential summary, become flexible in believe are organization recent are pivot our increasingly year months. we I the brilliant particularly prepared needed. is we pressures inflation, resilient, grow basics. to growth, additional we headwinds, seen we are seek building we momentum expand actively In that recessionary to and and the have as more well momentum 'XX in at believe commodity capabilities, to as significant

now we Anthony? MamaMancini's walk seek as turn case, the With I'd untapped realize Chief key recently Gruber, to As a I look evaluating of sustainable goal continue over name our reflect to for building the Officer platform fiscal to better long the third to to appointed we quarter like are over with our company from shareholders change the our call corporate details term. of financial through we Anthony potential. fill is all forward deli further value This achievements some model. Financial that, 'XX. significant to the to

Anthony Gruber

the cost and same XX.X to through the Thank in Operating Olive successful million million to back profit levels total quarter revenues X.X all compared the quarter. quarter. power X.X total million third revenues and increased expenses for across and in normalization Branch. quarter stronger based ago a procurement identify fiscal third million targeted Olive million as same to was as The XX.X% or of of you, quarter. commodity the year fiscal ago growth cross in savings to of totaled costs, Gross by strong revenue through efficiencies to as chiefly XXXX profit inorganic XX.X to acquisition compared on in compared of The buying X.X year XXXX the pricing XXXX fiscal growth. through organic created of the record selling actions in third in sales well and acquisition Revenue company T&L Branch. growth increased T&L as through of Adam. XXX% the year by third divisions, ago in increase quarter record for of X.X the driven or logistics quarter Gross as increased XX.X% and third quarter same to the continues of million the a

XX.X% were to ago of million Cash of January investment created percentage of for Branch. million Chef Operating in XXXX. in X.X equity fiscal XX, per third XXXX as X.X third as breakeven Inspirational same million quarter X.X the approximate a in quarter to the a diluted or synergies decreased fiscal through benefited year third XX.X% totaled million X.X to the Adjusted quarter. fiscal share quarter. XXXX ago term, $X.XX increased compared XXXX equivalents XX, for as at X.X as the million fiscal ago cash compared XXXX a in percentage Net non-GAAP income XXXX. of method October an As to same EBITDA, operating and third as expenses million in compared year of expenses same Olive to the year T&L from compared and sales Income the the quarter of to Foods from the as sales, X.X quarter. acquisitions of in totaled the of quarter

in liquidity an from in Matt paid which Brown, in the to I'd quarter remarks. with X the and our near-term position our comfortable This million Operating call cash in I'm line, X.X relative operations Chief tandem the flow over with quarter, Officer, update. Taken requirements. credit we completes to to down turn million now my our by prepared like for Matt? operations positive

Matthew Brown

and prices consumers Thank for passed Price were had recognize and in rise hoped the Anthony. as QX retailers fiscal in you, implemented in equally. QX proposed that along Operationally, commodity be shared and QX increases was were we had to everything planned. that

provided accentuating price the our largest fell plant in proteins prices the higher and the on Just margin as for level. went into at highs, market This from increases back effect, purchase tailwinds. the QX commodity margins

an earlier, normalize mentioned price of Sitting tasked Adam the the in fiscal cost. handling with first commodity not I option. Cs, been QX and back As was had watching three

keep up point more another XXX points and be KPIs of Our chip to to economical against of my basis pick continued savings over able management to that To at finding away was efficient cost labor representing margin us productive. team in goods sold, drive ways quarter. end, than to and greater overtimes yet the

across across overall freight This dedicated a carrier and synergies what helping operation the to We've need Another created chain. to every is business addressing advantage to success In inside is critical the the of consolidation. Adam been we aspect C mention did our take that spanning by units, XXX creating gain three fiscal efficiencies competition and QX, supply not of points New York was was New to facilities. team fiscal options focus reduce in consolidating Jersey to costs QX. able new sourcing that outbound shipping on in freight basis both inbound team successful our the

quarter during was Another consolidation party focus on storage. our third the

storage. of As others currently manufacturer is MamaMancini's and to Holdings expertise deli first recognize of and when a solutions, comes foremost marketer cold the it that leverage we we

utilized capabilities have pre-shipped our to plants. an finished raw effort locations multiple maximize in We production goods hold in to materials our and

products fitting down recognizing storage of Fiscal many creating too eliminating third value. that sites consolidating six the began However, costs to that across from QX in the locations, these strategic saying four when can not process spreading counterproductive. multiple kitchen be chefs the is parties additional were

to limited not We centralized units cold research to, continue our options, investing would facility between business control. a we that but in storage including, the

models regards of to decisions also invest help promote our mind. and make with shoppers, costing products dedicated Our perceived to top pricing fair reflect our smarter have team us the to products back not to sales retailers to to but that only value provide margin empowered keep

learning are Farmingdale models and over pricing to quarter. the Rutherford East Our complete take to hope this next nearly we

technology in in plant's came away addressed effort over and better EXPO started my weeks. Board PACK show remarks. Finally, ROI with opportunities does documents putting with took further will in be multiple increase We a Chicago walked QX, where continued I to we the find That team conclude the that to to the coming together the next efficiencies. management our International

Adam the Before like call closing back to question-and-answer to we begin remarks. for session, Adam? our some I'd turn

Adam Michaels

solutions we you, on this a outlined last to significant reflects deli quarter transition call. I earnings our saw revenue Matt. a Thank growth our vision national The company,

from commodity on and cost synergy profitability, which benefited sequential controls concurrently actions, a certainly driven keen successful significant and by pricing Our realization. was cost eye improvements

sustainable the trajectory. begin next to third to profitability operator move I'll it through growth question-and-answer of on I a MamaMancini's Operator? holiday we the marked we have over up season to our 'XX, will that, our the As return leg as on beginning and session. for prepare the to into anticipate embark the quarter turn With

Operator

Thank conducting gentlemen, you. this [Operator Ladies we a will question-and-answer and at session. be Instructions]. time,

line question. the Taglich question Halpern your Please from proceed comes Brothers. first Howard Our with with of

Howard Halpern

Great quarter. Congratulations, guys.

quarter. a great Just

Adam Michaels

Thanks, Howard. Team effort.

Howard Halpern

guess controls, of getting -- In feedback and the employees you more with you the and guess I put what information terms guess I the place inquisitive have your in becoming into seen I from evolve how customers? end productive,

Adam Michaels

think it's great. I Yes, been

think I helps. winning what's So happening is

different getting East in it's a both and you easier both that's a sell winning. in product distribution. moving it's operations Farmingdale team's lot Rutherford. you're team in obviously better the greater sort to sales have when The inspired easier when The sell Inside our they -- So team, sort offices, velocities, with see. enjoying of to actually people all so main for They're corporate are the multiple customers. products, excited. and which The opportunity they us we liked intents sell cross products to to portfolio, what in our purposes, have of doubled allows

think lot there's So best overall, is the excitement do feel I great. we that come. a and to really of I believe yet

Howard Halpern

and new Northeast to focusing are want really of terms at and your a the customers are get customer out SKUs or in there increasing know you and little the and to those and customer push and Southeast looking West, what per number Is that? products Midwest increasing store, are of existing Midwest needs or to you And per expanding? and get I bit less the West. any in just you on

Adam Michaels

of couple a so things. Yes,

one national. first the we're So is,

a national. of club we customers know were others So now. got selling I big number in that's West and Coast our customer, a actually, that

at share sold I I we orders share which the first for to at We the will next meeting. So QX, meeting. hope them. our got next

other So been question, we great national what there. a I great reputation definitely a field. perspective, the have To is has from we're in your think

and Dan We're Dan products. good of listeners. is the to about talking there's Dan service. these Mancini, many like We're good going nothing literally calls So guy MamaMancini's

are credit levels great. that his service Matt thing, The team. another and So provide we to

or quite easy have make have now really grilled going have for to or They do -- it have We some have have say quality. it's sausage customer by way, vegetables It's, paninis? our meatballs a up, hey, or We to all And our that some much it's you we deli getting our And service already to The see them. we you know it's I'm that. of than quality, So make strategy. and before? they call you fill one people customers They phone those. working. it So easier service. the the chicken and do them how have know didn't we're easier that's honestly, the the having have some the do peppers. call do to entire If see that's that's vision. in. XX they for case, That's

Howard Halpern

terms you are faster you faster even than -- year you ago? a happen labor that seeing from like you So evolve in shortage? want their they talked even supply maybe seeing or their are And what so about labor things of and than

Adam Michaels

Yes.

So in, tell being year a to going not responsive. I'm thought what that I've we're is I so ago, month come you but I what seeing in think three months a we're ago,

you So a up great brought point.

which historically some customers’ or have the allows selling in been So the we be of make work. past kits, the these labor -- to doing it

labor the allows we created on program, customer which no them for actually our One the got responsive As really we Meals and are tighter, labor side.

So different about the those provide good we're special of customers different want listeners, we're the the what think I our needs really team, customer. sales to things. beauty things, is understanding able And is

word agility team. force important our the So our equally to I to operational and sales think is

best do XX from X.X that the the meet want to hours customers. want standpoint. obviously, you a balance, the balance Matt these world, I perfect sell a In the right? time around and managing have conversations complexity, would to and that. But We customers with and we'd needs an ounce of agility the our needs grilled chicken of operational meatballs it's how day, So be all don't meeting or do our we

the efficiency operational we're our So from that with standpoint. to balance trying get that an the it's of needs customers between meeting

Howard Halpern

expense, might as it are and to with the from that where increase mark? up happy million is leverage just that And just able past G&A the you $XXX you are Okay. overall -- incrementally well

Adam Michaels

Yes.

love is I think we the the all absorption. word that office around

more growing to But revenue, the we're and line do to then I've or down equally, here us one more I top organization. little of building G&A our SG&A am capabilities. passionate to allows capabilities as allows bit. about months. So drive us that's been within three extraordinarily two things. allowing It us build a it

new I a already see our amazing who Anthony, hired with Controller. that an job. is we doing You mentioned today, CFO, just

a top the as level in capabilities leadership a basis. that drive seeing to up us So allow it on we going G&A percentage invest the have team revenue, additional actually to to is that's goal without line go

Howard Halpern

Okay. And of one Cup guess tests other initial gone for customers? Meatballs in last one. I some and have convenience How a stores with the the

Adam Michaels

Yes, it's going well.

actually it's So wonderful.

to mentioned another We that just a test we've got going. major past the it’s had in another actually major authorization, couple We in grocer So even grocer. test not actually a rollout we place. actually full a that's tests another got of of

So we're which is intentionally lot. because think we're I important, doing we're cadence, the seeing But that a learning very it's wonderful. it right equally, with

do from we've what been customers been we've is feedback able consumers. to both and So getting

we were feedback we all that those it. the didn't back a it of we longer we've able that of and out and things And to able that, wanted we a to for full solution already addressed heard identify go bore, because actually the pieces One have were way is shelf we do actually life. just

shelf much loving really to able are life, we're a now out with that. longer So go customers

have that's believe we I’d it where going going something consumers. and it to for our do the big roll intentionally be very But we it's product say out, we're I that what XXXX. do for So such right we are. to is, like

Howard Halpern

having great and Keep the in. hop up I'll team keep work. thanks. And Well, Okay. the you back

Adam Michaels

Howard. much, so Thanks

Operator

[Operator Instructions].

of next question. James. with comes with from your McCampbell Please Raymond Chris Our the line question proceed

Chris McCampbell

quarter, Congrats Adam. on the

given the a With expect the continual fourth in for improvements that sequential color you've orders growth cost, on earnings fourth quarter and quarter? in for you could the

Adam Michaels

Yes.

top the on is think fourth So line. first a quarter softer of I all, historically the quarter, just

We little do good. feel a of seasonality. bit it's So

to grow continue We customers.

to I So our rate. achieve be able run million that going goals this $XXX do we're to feel of

feel equally line. So top line, on as I feel Bottom good I good. the

points actually we his woman freight. the mentioned new a and already sold Matt job, have she's number of job earlier new Matt more been person, improvements. labor basis incredible. XXX doing We doing January an in a in They're more mentioned a amazing Freight, freight incredible hired in standpoint. coming price an improvement So operational and and of that than team's an in. the already really increases. from overtime

which single is So I still for single high staying margins the in digits line probably bottom high mid line. mid still think with XXs gross for actually said, we're -- digits what and to we

we like continue -- more do behind. to We're I could I do than see I said think I ahead seeing that. opportunity earlier,

Chris McCampbell

again. Great Thanks, job. Okay.

Adam Michaels

Thank you.

Operator

I'd There closing over are to remarks. the further questions call Michaels hand in queue. no like for the to Adam back

Adam Michaels

you of you, solution Thank one-stop on you progress and shareholders holidays to us Thank conference call. all. execute you. to to thank to look to strive as upon national and operator, our shop today's a deliver deli forward We continuing provider. value for earnings on again Happy our our to you joining vision of update each we

Operator

Ladies today's your and conclude participation. this for does you Thank teleconference. gentlemen,

your You this have may wonderful and day. lines disconnect a at time,

Mama's Creations (MAMA) 13 Dec 222023 Q3 Earnings call transcript