TOFUTTI BRANDS INC. (Amex: TOF) today announced improved results for the thirteen and twenty-six week periods ended July 1, 2000.

Net sales for the thirteen weeks ended July 1, 2000 increased 12% to $3.8 million compared with net sales of $3.4 million for the thirteen weeks ended July 3, 1999. Net sales for the twenty-six week period ended July 1, 2000 increased 13% to $6.9 million compared with net sales of $6.1 million for the twenty-seven week period ended July 3, 1999. The improved sales reflect substantial increases in both frozen dessert and food product sales. For the thirteen and twenty-six week periods ended July 1, 2000, the Company reported operating income of $527,000 and $899,000, respectively, as compared with operating income of $352,000 and $737,000 for the thirteen and twenty-seven week 1999 periods. The Company’s operating results were negatively impacted during the July 1, 2000 periods due to new product start-up costs, including costs incurred at new co-packaging locations, increased freight expenses due to fuel surcharges by carriers and additional introductory allowances payable to large chain supermarkets. The Company expects that its operating expenses during the remainder of 2000 will continue to be adversely affected by such costs.

Net income for the thirteen and twenty-six weeks ended July 1, 2000 increased to $332,000 ($0.05 per share) and $562,000 ($0.09 per share), respectively, compared to $212,000 ($0.03 per share) and $441,000 ($0.07 per share), respectively, for the thirteen and twenty-seven week periods ended July 3, 1999.

As a result of the Company’s improved operating results and proceeds from the exercise of employee stock options, the Company’s working capital increased to $3,665,000 at July 1, 2000, and it had cash and short-term investments of $1,806,000 at such date.

Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, “We are pleased with the continued improvement in our results for the second quarter. The increase in sales both on a comparable and quarter-to- quarter incremental basis reflects the growing acceptance of our soy-based, dairy-free products. We will continue to introduce new products during the remainder of the year and intend to improve our distribution with the addition of new distributors and the authorization of new products with our current distributors.”

TOFUTTI BRANDS INC. is principally involved in the development, production and marketing of TOFUTTI brand soy-based, dairy-free frozen desserts and soy- based, dairy-free food products which contain no butterfat or cholesterol. The Company markets its TOFUTTI® frozen dessert in soft serve form, hard pack pints, half gallons, and bulk cans, TOFUTTI CUTIES, TOFUTTI TOO-TOOS, TOFUTTI FRUTTI® stick novelties, TEDDY FUDGE POPS® and CHOCOLATE FUDGE TREATS, TOFUTTI CRUMB CAKE BARS and MONKEY BARS(TM), and CUTIE PIES. Frozen food items include PIZZA PIZZAZ, PIZZA BAGELS, MINTZ’S BLINTZES, POTATO PANCAKES, and QUIT BEEF’N® VEGGIE BURGERS and VEGGIE CHEESEBURGERS. The Company also produces and sells BETTER THAN CREAM CHEESE®, a non-dairy cream cheese; SOUR SUPREME®, a non-dairy sour cream; AMERICAN VEGGIE SOY CHEESE SLICES; and EGG WATCHERS®, a fat-free whole egg replacement product. The Company also has a cookie product line, Mintz’s Homemade Cookies, and a flatbread product line, SOY LAVASCH®. The Company has also launched TOFUTTI ULTRA SOY PROTEIN POWER(TM), a pure soy protein nutriceutical supplement. TOFUTTI products are sold in grocery stores, supermarkets, health and convenience stores throughout the United States and in fifteen other countries.

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Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company?s filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB.

Condensed Statements of Operations
(in thousands, except per share figures)

Thirteen Thirteen Twenty-six Twenty-seven
weeks ended weeks ended weeks ended weeks ended
7/1/00 7/3/99 7/1/00 7/3/99

Net sales $3,847 $3,412 $6,872 $6,074
Cost of sales 2,363 2,259 4,292 3,917
Gross profit 1,484 1,153 2,580 2,157
Operating expenses 957 801 1,681 1,420
Operating income 527 352 899 737
Interest income (expense) 16 (1) 31 (2)
Income before income taxes 543 351 930 735
Income taxes 211 139 368 294
Net income $332 $212 $562 $441

Net income per share:
Basic $.05 $.03 $.09 $.07
Diluted $.04 $.03 $.07 $.06

Weighted average number of
shares outstanding:
Basic 6,341 6,211 6,323 6,199
Diluted 7,833 7,392 7,751 7,056

The Company’s fiscal year is generally the fifty-two week period, which ends on the last Saturday in December. The 1999 fiscal year was a fifty-three week year, which ended on January 1, 2000. The Company included the extra week of the 1999 fiscal year in the first quarter.