SOURCE: MamaMancini's Holdings, Inc.

MamaMancini's Holdings, Inc.

September 08, 2014 16:45 ET

MamaMancini's Announces Second Quarter Financial Results for the Period Ended July 31, 2014 and New Financing Facility of up to $3.1 Million Increasing the Company's Cash Balance by $904,000

EAST RUTHERFORD, NJ--(Marketwired - Sep 8, 2014) -  MamaMancini's Holdings, Inc. (the "Company" or "MamaMancini's") (OTCQB: MMMB), a manufacturer and marketer of specialty prepared, frozen and refrigerated "all natural" food products (as defined by the United States Department of Agriculture), today announced second quarter financial results for the period ended July 31, 2014.

Second Quarter 2015 Business Highlights:

  • Revenue for the second quarter of fiscal 2015 was $2.2 million, compared to $1.7 million in the comparable period of the prior year, an increase of 32%;
  • Gross margin for the quarter was 29% for the three months ended July 31, 2014 compared to the comparable period last year, a decrease of 1%;
  • The Company's products were carried on approximately 29,500 retail, supermarket, and club store shelves at July 31, 2014 as compared to approximately 17,000 at June 30, 2013;
  • The Company expanded its broker sales force, targeting national retail, supermarket and box chain stores as it continues to grow its distribution and increase existing customer orders;
  • The Company launched new products: stuffed meatballs and gluten free products which are now available for national distribution;
  • The Company continued to market and advertise its products across a number of platforms, including satellite radio and social media;
  • Our third-party production facility in East Rutherford, NJ has obtained Safe Quality Food ("SQF") Level 2 Certification for the entire production facility;
  • The most recently completed quarter represents the Company's second quarter under its new fiscal year-end of January 31.

Second Quarter Fiscal 2015 Results

Sales, net of slotting fees and discounts, increased by approximately 32% to $2,249,768 during the three months ended July 31, 2014, as compared to $1,700,388 during the three months ended June 30, 2013. The increase in sales is primarily attributable to the Company executing on its expansion strategy to grow the number of retailers carrying out products and shelf placements within these retailers.

Gross Profit margin decreased to 29% for the three months ended July 31, 2014, by approximately 1% from 30% for the three months ended June 30, 2013. This decrease is primarily attributable to a change in product mix.

Operating expenses increased by approximately 13% to $1,425,552 during the three months ended July 31, 2014, as compared to $1,266,049 for the three months ended June 30, 2013. This increase is primarily attributable to increases in spending on advertising, marketing and Selling General and Administrative expense in connection with increasing our brand awareness.

Net loss for the three months ended July 31, 2014 was $0.80 million, or $(0.03) per basic and diluted share, compared to a net loss of $0.75 million, or $(0.04) per basic and diluted share, for the three months period ended June 30, 2013.

As of July 31, 2014, the Company had working capital of $3.1 million, which will be augmented by the Company's new $3.1 million loan facility with Entrepreneur Growth Capital (discussed further below). 

Management Discussion

"We are encouraged by the continued growth across our product lines. We continue to execute our growth strategy by adding to our sales force, increasing the base of distributors that carry our products and introducing new, "all-natural", authentic Italian offerings," said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini's. "Our growth has been further driven by our introduction of new products to new and existing customers, such as gluten free beef and sauce, gluten free turkey and sauce, Mac n' Mamas, five cheese stuffed beef meatballs and sauce, as well as chicken florentine meatballs and sauce, chicken parmigiana meatballs and sauce, rigatoni with bolognese sauce, and antibiotic free turkey and beef meatballs and sauce. We believe the feedback on the new products has been positive and will open many new doors for us as each new product may appeal to different types of distributors," he continued.

Mr. Wolf concluded, "Our products are currently carried on more than 29,500 retailers' shelves throughout North America, with each store offering approximately 3.21 SKUs. We believe our strategic plans are yielding the outcomes we have envisioned and we remain steadfast in our commitment to driving sales growth through marketing and advertising. We continue to see demand for "all-natural" products and believe consumers will remain selective about the quality of ingredients in the products they consume. We believe that we will continue to grow our brand, especially with our newly introduced products."


It is important to note that quarterly revenue in the Company's business is subject to variability given that the Company works with a small number of large mass-market retailers. Each retailer has purchasing and promotion plans that become active in different months and quarters throughout the year. Consequently, from time-to-time there can be a concentration of orders in certain quarters resulting in uneven revenue results. Recognizing that revenue may not be evenly distributed on a quarterly basis, the Company's overarching goal is to achieve consistent annual revenue growth. The Company hopes to generate breakeven financial results as it approaches the end of the current fiscal year, which ends on January 31, 2015.

The Company anticipates further increases in its customer base and acceptance of new products in 2014 and 2015. The Company began its national radio advertising campaign in early August on Sirius radio and political talk radio and plans to continue the campaign through December 2014. The Company anticipates that approximately 10,000 commercials will be aired in that period.

New Financing Facility

The Company also announced today that is has entered into a new $3,100,000 financing facility (the "Facility") with Entrepreneur Growth Capital, LLC ("EGC") replacing its current $1,500,000 facility. The Facility consists of the following:

  Accounts Revolving Line of Credit:   $ 2,150,000
  Inventory Revolving Line of Credit:   $ 350,000
  Term Loan Line of Credit:   $ 600,000

As a result of the Facility, the Company increased its cash balance by $904,000. 

For more details related to the Facility please read the Company's Form 10-Q filed with the Securities and Exchange Commission today. 

About MamaMancini's

MamaMancini's is a manufacturer and distributor of a line of "all natural", beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian products. The Company's distribution channel includes major retailers such as Costco, Publix, Shop Rite, Price Chopper, A&P, Waldbaums, Food Emporium, Whole Foods, Shaw's Supermarkets, Kings, Key Foods, Giant Eagle, Stop-n-Shop, Giant Stores, Food Town, Kroger, Winn Dixie, Albertsons, Shoppers, Wal-Mart, Marsh's Supermarkets, Bashas, Bi-Lo, Central Markets, Weis Markets, Ingles, and The Fresh Market. For more information please visit the company's website at

Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's 10-K for the fiscal year ended December 31, 2013 and other filings made by the Company with the Securities and Exchange Commission.

Contact Information

  • Company Contact:
    Carl Wolf
    Chairman and CEO
    MamaMancini's LLC
    25 Branca Road
    East Rutherford, NJ 07073

    Investor Relations
    Scott Gordon
    CorProminence LLC
    377 Oak Street
    Garden City, NY 11530
    516 222 2560