/EINPresswire.com/ -- EAST RUTHERFORD, NJ--(Marketwired - Dec 15, 2016) - MamaMancini's Holdings, Inc. (the "Company" or "MamaMancini's") (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated all natural food products (as defined by the United States Department of Agriculture), today announced financial results for the third quarter of fiscal year 2017, ended October 31, 2016.

Fiscal Third Quarter Highlights:

• Third quarter 2017 revenue increased 41% to $4.6 million compared to third quarter 2016 revenue of $3.2 million.
• Third quarter 2017 gross margin increased to 37% compared to 30% in the third quarter of fiscal 2016. Gross margin for full year fiscal 2017 expected to be approximately 35%.
• Total operating expenses for the third quarter increased seven percent versus the comparable quarter of fiscal 2016. As a percentage of sales, operating expenses decreased to 31.5% of net sales from 41.4% in the comparable 2016 quarter.
• Income from operations for the third quarter fiscal 2017 improved to $243,563 versus $(358,159) in the prior year third quarter; an increase of more than $600,000.
• Net income for third quarter fiscal 2017 improved to $80,603 compared to $(975,522) in the third quarter of fiscal 2016. EPS for third quarter fiscal 2017 was $0.00 compared to $(0.04) in third quarter fiscal 2016.
• Placements on grocer's shelves increased at the end of the third quarter to 37,700, up sequentially from approximately 36,000 at the end of the second quarter of this fiscal year, and up from 31,900 as of October 31, 2015.
• Cash EBITDA, a non-GAAP financial metric (please refer to Non-GAAP Financial Measures paragraph below), for the third quarter of fiscal 2017 was positive $470,959 compared with negative $(174,461) in the third fiscal quarter of 2016.
  
  

Carl Wolf, Chief Executive Officer of MamaMancini's, commented, "The third quarter of fiscal year 2017 was historic in nature as we reported our first profitable quarter. Over the past year we have achieved considerable traction on developing larger customers and exiting underperforming accounts that do not generate reasonable returns. Revenue increased 41% and 35% for the third quarter and the first nine months of fiscal year 2017, respectively. We have worked long and hard to get to this point. Although it is a modest profit for the quarter, we expect to build on these results in the quarters and the years to come."

"Gross margin for the quarter improved to 37% from 30% in last year's comparable quarter as our now more sustainable customer base, combined with manufacturing efficiencies and increased volumes drive positive results. Our operating income for the third quarter improved by more than $600,000 as we continue to develop new retail store accounts, drive revenue and operate on a more efficient basis. We are very pleased with the results of the third quarter and the fiscal year to date. We look forward to ending the fiscal year on a strong note."

Mr. Wolf added, "Having achieved an important strategic goal in breaking into profitability, we are able to be more aggressive in building upon the MamaMancini's brand. Operationally speaking, we will continue to focus our presence on the perimeter of the retail grocery store, where fresh, minimally or non-processed, healthy foods are offered and the growth opportunities lie. As we concentrate mostly on selling into the food service area of the store, we continue to develop new product offerings that will add value to the end-user customers relying on great tasting food with superior nutritional profiles and minimal prep time. We also announced earlier this week the introduction of a new advertising and marketing campaign. Our goal is to leverage different mediums to expand our reach, attract new large national accounts, and gain a substantial number of new consumers around the country."

Third Quarter 2017 Results
Sales, net of slotting fees and discounts, were $4.6 million for the third quarter of fiscal 2017, a 41% increase compared to $3.2 million reported in the third quarter of fiscal 2016. The increase in sales was primarily driven by the addition of new customers in the first half of fiscal 2017. As of October 31, 2016, the Company's products were sold in approximately 10,700 stores, with an average of 3.5 product SKUs in each store, aggregating to approximately 37,700 retail and grocery shelf placements throughout the U.S.

Gross profit for the third quarter of fiscal 2017 was $1.7 million, or 37% of sales, compared to $982,131, or 30% of sales, in the year ago period. The increase in gross margin is primarily attributed to increased revenue during the third quarter of fiscal 2017 from new retail store customers and the exiting of a substantial number of underperforming low margin accounts during the previous fiscal year.

Net income for the third quarter of fiscal 2017 was $80,603, or $0.00 per basic and diluted share, compared to a net loss of $(975,522), or ($0.04) per basic and diluted share, in the third quarter of fiscal 2016.

Nine Months Fiscal 2017 Results
Sales, net of slotting fees and discounts, were $12.6 million for the first nine months of fiscal 2017, a 36% increase compared to $9.3 million reported in the first nine months of fiscal 2016. The increase in sales was primarily driven by the addition of new customers in the first half of fiscal 2017 and in the final months of fiscal year 2016.

Gross profit for the first nine months of fiscal 2017 was $4.5 million, or 36% of sales, compared to $2.6 million, or 28% of sales, in the year ago period. The increase in gross margin is primarily attributed to increased revenue during the first half of fiscal 2017 from new retail store customers and the exiting of a substantial number of underperforming low margin accounts during the previous fiscal year.

Net loss for the first nine months of fiscal 2017 was ($422,313), or ($0.02) per basic and diluted share, compared to a net loss of $(3.1 million), or ($0.12) per basic and diluted share, in the first nine months of fiscal 2016.

Outlook
The Company's strategy of developing larger customers and exiting underperforming accounts that do not generate attractive returns is achieving improving operating results. The Company expects a continuation of revenue growth for the foreseeable future. As a result, the company is anticipating fiscal 2017 revenues for the fourth quarter to be in the range of $5.0 million to $5.5 million and $17.6 million to $18.1 million for the year, both ending January 31, 2017. In addition, the company expects its profitability to improve in the coming quarters.

Non-GAAP Financial Measures
The Company uses Cash EBITDA as a non-GAAP financial measure. The Company defines Cash EBITDA as earnings before income taxes, depreciation and amortization plus any non-cash stock payments for expenses. The Company believes that the use of Cash EBITDA is useful to investors and other users of its financial statements in evaluating the Company's operating performance because it provides them with an additional tool to compare business performance across companies and across periods. The Company uses Cash EBITDA in conjunction with traditional GAAP operating performance measures as part of its overall assessment of its performance, for planning purposes, including the preparation of its annual operating budget, and to evaluate the effectiveness of its business strategies. Management does not place undue reliance on Cash EBITDA as its only measure of operating performance. Cash EBITDA should not be considered as a substitute for other measures of financial performance reported in accordance with GAAP.

Conference Call
The Company has scheduled a conference call for today, Thursday, December 15, 2016, at 4:30 pm ET to review the results.

Interested parties may participate on the conference call by dialing (844) 889-4326 or (412) 317-9264. A replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10095668, through December 22, 2016.

About MamaMancini's
MamaMancini's is a marketer and distributor of a line of beef meatballs, turkey meatballs, and chicken meatballs all with sauce, five cheese stuffed beef, turkey and chicken meatballs all with sauce, original beef and turkey meatloaves and bacon gorgonzola beef meatloaf, and other similar Italian cuisine products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Costco, Publix, Shop Rite, Price Chopper, Jewel, SaveMarts, Luckys, Lunds/Byerly's, SuperValu, Safeway, Albertsons, Spartan Stores, Bashas, Whole Foods, Shaw's Supermarkets, Kings, Roche Brothers, Key Foods, Stop-n-Shop, Giant Stores, Giant Eagle, Food Town, Randalls, Kroger, Shoppers, Marsh's Supermarkets, King Kullen, Lowes Stores, Central Markets, Weis Markets, Ingles, and The Fresh Market.

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, 2016 and other filings made by the Company with the Securities and Exchange Commission.

Financial Tables to Follow

MamaMancini's Holdings, Inc.
Condensed Consolidated Balance Sheets
	October 31,				January 31,
	2016				2016
	(Unaudited)
Assets
Assets:
Cash	$	655,030			$	587,422
Accounts receivable, net		1,871,200				1,476,582
Inventories		459,504				252,752
Prepaid expenses		202,416				154,458
Due from manufacturer - related party		2,136,646				2,248,781
Total current assets		5,324,796				4,719,995
Property and equipment, net		1,022,050				1,047,455
Total Assets	$	6,346,846			$	5,767,450
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses	$	383,567			$	769,551
Line of credit, net		-				933,001
Term loan		140,004				120,000
Promissory notes		94,746				266,808
Notes payable - related party		-				125,000
Note payable - net		2,848,523				-
Convertible note payable - net		-				2,540,000
Total current liabilities		3,466,840				4,754,360
Term loan - net of current		548,329				320,000
Line of credit - net of current portion		1,450,480				-
Promissory notes - net of current portion		-				69,767
Notes payable - related party		117,656				-
Total long-term liabilities		2,116,465				389,767
Total Liabilities		5,583,305				5,144,127
Commitments and contingencies
Stockholders' Equity:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized;
23,400 shares issued and outstanding, respectively		-				-
Preferred stock, $0.00001 par value; 19,880,000 shares authorized;
no shares issued and outstanding		-				-
Common stock, $0.00001 par value; 250,000,000 shares authorized;
27,562,906 and 26,507,516 shares issued and outstanding, respectively		275				265
Additional paid in capital		15,675,571				14,954,928
Common stock subscribed, $0.00001 par value; 66,667 shares, respectively		1				1
Accumulated deficit		(14,762,806	)			(14,182,371	)
Less: Treasury stock, 230,000 shares, respectively		(149,500	)			(149,500	)
Total Stockholders' Equity		763,541				623,323
Total Liabilities and Stockholders' Equity	$	6,346,846			$	5,767,450

MamaMancini's Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
			For the Three Months Ended								For the Nine Months Ended
			October 31, 2016				October 31, 2015				October 31, 2016				October 31, 2015
Sales - net of slotting fees and discounts			$	4,576,225			$	3,237,780			$	12,638,482			$	9,330,259
Cost of sales				2,892,012				2,255,649				8,113,756				6,754,980
Gross profit				1,684,213				982,131				4,524,726				2,575,279
Operating expenses
	Research and development			38,529				33,877				106,316				77,435
	General and administrative expenses			1,402,121				1,306,413				4,339,234				4,480,159
		Total operating expenses		1,440,650				1,340,290				4,445,550				4,557,594
Income (loss) from operations				243,563				(358,159	)			79,176				(1,982,315	)
Other expenses
	Interest expense			(153,159	)			(145,252	)			(472,870	)			(393,314	)
	Amortization of debt discount			(9,801	)			(79,400	)			(28,620	)			(261,670	)
	Amortization of closing costs			-				(12,622	)			-				(52,996	)
	Loss on debt extinguishment			-				(380,089	)			-				(380,089	)
		Total other expenses		(162,960	)			(617,363	)			(501,490	)			(1,088,069	)
Net income (loss)				80,603				(975,522	)			(422,314	)			(3,070,384	)
Less: preferred dividends				(46,800	)			(20,000	)			(158,121	)			(30,959	)
Net income (loss) available to common stockholders			$	33,803			$	(995,522	)		$	(580,435	)		$	(3,101,343	)
Net income (loss) per common share - basic			$	0.00			$	(0.04	)		$	(0.02	)		$	(0.12	)
Net income (loss) per common share - diluted			$	0.00			$	(0.04	)		$	(0.02	)		$	(0.12	)
Weighted average common shares outstanding
	- basic			27,257,834				26,147,207				26,937,969				26,096,965
	- diluted			27,507,834				26,147,207				26,937,969				26,096,965

MamaMancini's Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
				For the Nine Months Ended
				October 31, 2016				October 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss				$	(422,314	)		$	(3,070,384	)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Depreciation			251,197				209,884
		Amortization of debt discount and debt issuance costs			28,620				314,666
		Share-based compensation			488,039				114,504
		Loss on extinguishment of debt			-				380,089
Changes in operating assets and liabilities:
	(Increase) Decrease in:
		Accounts receivable			(394,618	)			853,767
		Inventories			(206,752	)			(23,701	)
		Prepaid expenses			(42,458	)			(37,697	)
		Due from manufacturer - related party			112,135				113,252
	Increase (Decrease) in:
		Accounts payable and accrued expenses			39,532				256,306
			Net Cash Used In Operating Activities		(146,619	)			(889,314	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets					(225,792	)			(204,024	)
			Net Cash Used In Investing Activities		(225,792	)			(204,024	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock					-				560,000
Stock issuance costs					-				(266,672	)
Deferred offering costs					-				(10,021	)
Proceeds from demand notes					-				650,000
Proceeds from notes payable - related party					-				125,000
Repayment of note payable - related party					(7,344	)			-
Debt issuance costs					(50,000	)			(11,191	)
Borrowings (repayments) of line of credit, net					490,859				(331,799	)
Borrowings from term loan					340,000				-
Repayment of term loan					(91,667	)			(90,000	)
Repayment of promissory notes					(241,829	)			-
			Net Cash Provided By Financing Activities		440,019				625,317
Net Increase (Decrease) in Cash					67,608				(468,021	)
Cash - Beginning of Period					587,422				854,995
Cash - End of Period				$	655,030			$	386,974
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
	Income taxes			$	-			$	-
	Interest			$	191,423			$	363,647
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Stock issued for Series A Preferred dividends				$	225,114			$	-
Prepaid stock-based compensation				$	7,500			$	-
Accrued interest reclassified to principal balance of convertible note				$	358,523			$	220,000
Accrued dividends				$	-			$	30,959
Stock issuance costs paid in the form of warrants				$	-			$	84,547
Conversion of demand notes to preferred stock				$	-			$	650,000
Stock issued for debt discount on convertible note				$	-			$	39,600
Repurchase of common stock amendment of convertible note				$	-			$	149,500
Promissory note issued for accounts payable				$	-			$	358,832