MamaMancini’s Reports Record Fourth Quarter and Fiscal Year 2020 Financial Results

Q4 2020 Revenues Increase 48% to Record $10.1 Million; Drives Record Net Income of
 $0.4 MillionEAST RUTHERFORD, NJ, April 23, 2020 (GLOBE NEWSWIRE) — MamaMancini’s Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has reported its financial results for the fourth quarter and fiscal year ended January 31, 2020.Financial Summary:Recent Highlights:Announced operational improvement initiatives in conjunction with a leading renowned industry consulting agency, 15/16 Group, to streamline and accelerate manufacturing operations in anticipation of future growth. As part of this initiative, the Company is creating a dashboard of Key Performance Indicators and installing the NetSuite application to improve operational controls and visibility of plant floor performance, which it expects to be ready starting summer 2020.Secured $330,000 loan through M&T Bank under Paycheck Protection Program Provision of CARES Act, which is potentially forgivable if at least 75 percent of the Loan proceeds are used by MamaMancini’s to cover payroll costs.Expanded QVC relationship to introduce Beyond Beef Meatballs & Sauce, the Company’s joint product created in partnership with Beyond Meat^®.Appointed Steven Burns as Executive Vice President to manage strategic operational and financial initiatives in support of the Company’s growth.Announced new product placements with 3,700 tier-1 retailer locations nationwide, including Whole Foods Market and Kroger (limited test), with additional placements at Winn Dixie, BI-LO and Hannaford Supermarkets.Achieved positive operating cash flow of $1.8 million, paying down $2.1 million of a $2.5 million term loan with M&T Bank in the fiscal year.Launched a new SiriusXM national radio campaign in the late fall and winter of 2019 and early 2020, which the Company aired close to 3,000 commercials on major SiriusXM radio channels including CNN, Fox, CNBC, CNBC, Bloomberg, ESPN, Howard Stern, Comedy Central and 10 additional channels.Appeared on QVC the week ending April 19, 2020 with a record of over 15,000 orders placed for MamaMancini’s Three Cheese Meatballs and Sauce.Attended investor conferences nationwide including the Benchmark Discovery 1×1 Conference in New York and the LD Micro Main Event in Los Angeles.Management Commentary
“The fourth quarter of fiscal 2020 was highlighted by our robust revenue growth, exceeding our guidance of $10 million for the quarter and positioning us for an incredible year,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “We continue to secure new placements at tier-1 retailers nationwide while enjoying a high level of success on QVC, often selling out within minutes. Our increasingly robust client base has come to associate our brand with a high level of quality and has effectively created a recurring revenue base for MamaMancini’s as a result.“Despite the challenges many have seen with respects to the COVID-19 situation, I am pleased to announce that our business has seen very strong demand growth, driven by consumers sheltering in place and making a majority of food purchases from grocery stores. We are deemed an essential business and continue to operate prudently to reflect the COVID-19 situation, keeping the safety of our employees foremost in our decisions.“We continue to make groundbreaking progress financially, forecasting record sales and profits in the first quarter of fiscal 2021. I look forward to continued shareholder value creation in the months ahead. I’d like to thank our employees for their hard work during these trying times, as they are the ones who make our incredible growth possible. We appreciate the support of our investors and look forward to providing further operational updates in the near future,” concluded Wolf.Fourth Quarter and Full Year 2020 Financial Results       
Revenue for the fourth quarter of fiscal 2020 increased 48% to a record $10.1 million, compared to $6.8 million in the same year-ago quarter. Revenue for fiscal year 2020 increased 22% to a record $34.8 million, compared to $28.5 million in fiscal year 2019. The revenue increase was primarily a result of increased volume through new product introductions.Gross profit increased significantly to $3.1 million, or 30.8% of total revenues, in the fourth quarter of fiscal 2020, compared to $2.3 million, or 33.8% of total revenues, in the same year-ago quarter. Gross profit increased 12% to $11.1 million, or 30.8% of total revenues, in fiscal year 2020, compared to $9.9 million, or 34.7% of total revenues, in fiscal year 2019. The increase in gross profit is primarily due to increased sales.Operating expenses totaled $2.5 million in the fourth quarter of fiscal 2020 compared to $2.1 million in the same year-ago quarter. As a percentage of sales, operating expenses decreased in the fourth quarter of 2020 from 30% to 24%. Operating expenses totaled $9.0 million in fiscal year 2020, compared to $8.4 million in fiscal year 2019. As a percentage of sales, operating expenses decreased in fiscal 2020 from 30% to 26%. Operating expenses increased primarily due to increases related to higher sales in freight, commissions and professional fees.Conference Call
Management will host an investor conference call at 8:30 a.m. Eastern time tomorrow, Friday, April 24, 2020 to discuss the Company’s fourth quarter and fiscal year 2020 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:Q4 and Fiscal Year 2020 Earnings Conference Call            
Date: Friday, April 24, 2020          
Time: 8:30 a.m. Eastern time      
U.S. Dial-in: 1-844-889-4326        
International Dial-in: 1-412-317-9264
Canada Toll-Free: 1-866-605-3852            
Conference ID: 10143018             
               
Please dial in at least five minutes before the start of the call to ensure timely participation.A playback of the call will be available through May 1, 2020. To listen, call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally. Please use the replay pin number 10143018.About MamaMancini’s Holdings, Inc.   
MamaMancini’s Holdings, Inc. (OTCQB: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and dinner kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Walmart, Kroger, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company has a major presence on QVC, the largest direct to consumer marketer in the world. For more information, please visit www.mamamancinis.com.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. “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 January 31, 2019 and other filings made by the Company with the Securities and Exchange Commission.Investor Relations:
Greg Falesnik
Managing Director
MZ Group – MZ North America
(949) 385-6449
MMMB@mzgroup.us
www.mzgroup.usMamaMancini’s Holdings, Inc.
Consolidated Balance SheetsSee accompanying notes to the consolidated financial statementsMamaMancini’s Holdings, Inc.
Consolidated Statements of OperationsSee accompanying notes to the consolidated financial statementsMamaMancini’s Holdings, Inc.
Consolidated Statements of Cash FlowsSee accompanying notes to the consolidated financial statements