MamaMancini’s Provides Investor Update

• Reports Quarter and Six-Month Financial Results.
• Company Retains Akin Bay Company and Kernick Advisory Group to Explore Strategic Options.
• Forecasts for Q3 and Q4 Sales and Profits Look Strong.
• Forecasted Cash Flow Expected to Finance Sales Increase.
• Company Completes Plant Expansion in Q2 2019.
• Company Wins Two QVC Best Consumer Choice Awards.

The correction corrects certain financial information related to the historical financial statements for the prior year quarter and six-month period ended July 31, 2017 that was incorrectly stated in the original press release dated September 17, 2018 and conforms the financial tables to the information presented in the Company’s Form 10-Q for the period ended July 31, 2018 which was filed with the Securities and Exchange Commission on September 14, 2018.

EAST RUTHERFORD, NJ, Oct. 01, 2018 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a manufacturer and 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 second quarter of fiscal year 2019, ended July 31, 2018.

Financial Highlights for the quarter and six-month period:

• Second quarter fiscal 2019 sales were $5.6 million compared to $7.0 million in the prior year period. Sales for the first half of fiscal 2019 increased 8% to $13.4 million compared to $12.4 million in the prior year six-month period.
• Net loss available to common stockholders was $(210,195), or $(0.01) per diluted share, during the second quarter of fiscal 2019, compared to net income available to common stockholders of $123,595 or $0.00 per diluted share in the same quarter last year. For the six-month period: net income available to common shareholders was $113,806 or $0.00 per diluted share, compared to $72,562 or $0.00 per diluted share, last year.
• Gross margin for the quarter was 36.6% versus 33.6% in the second quarter of last year. Gross margin for the six-month comparable periods was 36.6% this year and 34.7% last year.
• EBITDA, for the second quarter was $312,000 compared to $488,000 in the second quarter of fiscal 2018. Six-month EBITDA was $1,021,000 versus $803,000 for the comparable period; an increase of 43.4%
• Operating cash flow for the six-month period this year increased 339% to $1.44 million versus $328,000 last year.
• Other Income and Net Income in the quarter ended July 2018, was negatively affected by $112,500 in non-recurring charges related to the extension of the Manatuck Hill Partners note to May 1, 2019.

Carl Wolf, Chairman and CEO of MamaMancini's, commented, "The just completed quarter was very challenging. Sales for the quarter were negatively impacted by changes in the purchasing offices in a number of our major retailer customers - not reflective of our product quality, trade relationships or consumer acceptance. Also, during last year’s second quarter we had an extraordinarily high one-time customer inventory build with new programs that went into effect. While we are not pleased with these developments, we recognize that this is a dynamic business and we understand that we will experience ebbs and flows from time to time. It’s part and parcel of running a business, but we do not expect a significant impact on long-term trends.”

Outlook Positive for Record Sales and Strong Profits in Quarter 3 and 4:

Mr. Wolf continued, “We are off to a good start in the first two months of the third quarter ending October 31, 2018 and we have expectations of record sales and solid profitability when we report results for the full quarter. The Company expects sales to be near a $40 million annualized run rate range by the end of this fiscal year. This is due in part to our ability to grow our retail product placement spots by approximately 7,000 to 10,000 placements which would increase our current 43,300 spots to between 50,000 to 53,000 in our retail partner locations.

“Indications continue to build for our products across all categories and retailers, with a view that we will see a substantial increase in sales and profits in fiscal 2020. A factor in our forecasting is that a major national retailer has strongly indicated a start date for selling our products next spring. This would further support our view that the next 12 to 18 months will show increases in sales and profitability. The above is subject to change and the Company will periodically update its guidance on future prospects as they arise.”

Strategic Alternatives Initiative:

Mr. Wolf also commented, “We have retained Akin Bay Company in partnership with Kernick Advisory Group, to investigate strategic options for the shareholders of MamaMancini’s. Akin Bay and Kernick Advisory Group are experienced independent investment bankers in the natural and organic foods category. Given the current strong U.S. economic environment, management and the Company’s Board of Directors believe that this is an appropriate time to evaluate the Company’s market position and prospects and investigate if there are alternatives where shareholder value can be substantially enhanced. Potential options could include, but not be limited to, strategic acquisitions, a merger with, or purchase by a larger strategic food company or investors or recapitalization of the Company. There is no guarantee that any transaction will occur. However, given the positive fundamentals of the economy and MamaMancini's, we believe that our shareholders deserve a comprehensive review of our options. We intend to further comment on this process when appropriate.”

Cash Flow and Financing:

“We believe that cash flow in the second half of the year and next year will be sufficient to finance the growth of the Company going forward,” continued Mr. Wolf. “The Company has either paid in full or financed its capital improvements completed this summer. We have restructured our Senior Note with Manatuck Hill Partners, extending the maturity date to May 1, 2019 and the Company expects to pay down the Manatuck Hill note by that date. This past quarter the Company also extended its working capital financing with EGC for two additional years to October 2020 and entered into a two-year $300,000 secured note, payable in monthly installments, with EGC which partially finances the new construction just completed.”

Plant Expansion Completion:

The Company completed its plant expansion in July; expanding manufacturing capacity to $50 million to $60 million in sales, given the anticipated product mix going forward. The Company also received the prestigious SQF Level 2 (Safe Quality Food) designation by the USDA this August with a rating of 95%. 

QVC Consumer Best Choice Awards:

The Company won two prestigious consumer awards which was reported and aired live on QVC on September 12. The Company’s beef meatballs in sauce won the “Best Quick and Easy Entrée” category and the “Best Meatball” award with its cocktail sized products.

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 and mozzarella stuffed beef, turkey and chicken meatballs all with sauce, original beef and turkey meatloaves, stuffed pepper mix; sausage and peppers; chicken parmesan; pasta entrees; 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 Publix, Costco, Shop Rite, Jewel, Lunds and Byerlys, SuperValu, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Hannaford, Martins, Foodtown, Sam's Club, Topps, Kroger, Shoppers, King Kullen, Schnucks Markets, Central Markets, HEB, Stew Leonard’s, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, SUPERVALU, Monterrey Provision Co., Kehe, Burris Logistics and C&S Wholesale Grocers. In addition, the Company sells a wide variety of its products through QVC, the world's largest direct to consumer marketer, via on air presentations, auto ship programs, and direct purchases through the internet or phone.

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, 2018 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

		July 31, 2018				January 31, 2018
			(unaudited)
Assets
Current Assets:
Cash		$	347,032			$	581,322
Accounts receivable, net			1,749,977				3,084,715
Inventories			1,279,557				824,276
Prepaid expenses			318,756				261,980
Total current assets			3,695,322				4,752,293
Property and equipment, net			3,096,001				2,499,875
Deposits			20,177				20,177
Total Assets		$	6,811,500			$	7,272,345
Liabilities and Stockholders’ Deficit
Liabilities:
Current Liabilities:
Accounts payable and accrued expenses		$	3,061,229			$	3,456,918
Line of credit, net			1,984,965				2,688,764
Term loans			315,540				106,938
Capital leases payable			53,730				-
Notes payable – related party			109,844				-
Notes payable – net			1,630,625				1,403,082
Total current liabilities			7,155,933				7,655,702
Term loans - net of current			647,805				651,677
Capital leases payable – net of current			177,483				-
Note payable - net of current			-				250,000
Notes payable - related party			532,000				649,656
Total long-term liabilities			1,357,288				1,551,333
Total Liabilities			8,513,221				9,207,035
Commitments and contingencies
Stockholders’ Deficit:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of July 31, 2018 and January 31, 2018, 0 and 23,400 shares outstanding as of July 31, 2018 and January 31, 2018			-				-
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; 31,866,241 and 31,753,437 shares issued and outstanding as of July 31, 2018 and January 31, 2018, respectively			320				319
Additional paid in capital			16,463,956				16,344,794
Accumulated deficit			(18,016,497	)			(18,130,303	)
Less: Treasury stock, 230,000 shares, respectively			(149,500	)			(149,500	)
Total Stockholders’ Deficit			(1,701,721	)			(1,934,690	)
Total Liabilities and Stockholders’ Deficit		$	6,811,500			$	7,272,345

MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)

		For the Three Months Ended July 31,								For the Six Months Ended July 31,
		2018				2017				2018				2017
Sales-net of slotting fees and discounts		$	5,640,830			$	7,005,434			$	13,382,824			$	12,362,735
Costs of Sales			3,578,840				4,652,820				8,492,288				8,067,627
Gross profit			2,061,990				2,352,614				4,890,536				4,295,108
Operating expenses:
Research and development			37,083				33,333				67,179				67,331
General and administrative			1,895,081				1,953,961				4,140,018				3,664,678
Total operating expenses			1,932,164				1,987,294				4,207,197				3,732,009
Income from operations			129,826				365,320				683,339				563,099
Other expenses
Interest expense			(291,441	)			(188,230	)			(479,582	)			(372,962	)
Amortization of debt discount			(48,580	)			(8,730	)			(89,951	)			(26,010	)
Total other expenses			(340,021	)			(196,960	)			(569,533	)			(398,972	)
Net income (loss)			(210,195	)			168,360				113,806				164,127
Less: preferred dividends			-				(44,765	)			-				(91,565	)
Net income (loss) available to common stockholders		$	(210,195	)		$	123,595			$	113,806			$	72,562
Net income (loss) per common share - basic		$	(0.01	)		$	0.00			$	0.00			$	0.00
Net income (loss) per common share - diluted		$	(0.01	)		$	0.00			$	0.00			$	0.00
Weighted average common shares outstanding – basic			31,859,812				28,100,066				31,820,898				27,957,789
Weighted average common shares outstanding – diluted			31,859,812				30,817,281				32,564,932				30,675,004

MamaMancini’s Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)

		For the Six Months Ended
		July 31, 2018				July 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	113,806			$	164,127
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			337,833				240,205
Amortization of debt discount			89,951				26,011
Share-based compensation			79,163				147,499
Changes in operating assets and liabilities:
(Increase) Decrease in:
Accounts receivable			1,334,738				(1,246,756	)
Inventories			(455,281	)			(174,834	)
Prepaid expenses			(56,776	)			(545,598	)
Increase (Decrease) in:
Accounts payable and accrued expenses			(2,987	)			1,717,514
Net Cash Provided by Operating Activities			1,440,447				328,168
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets			(903,959	)			(765,740	)
Net Cash Used in Investing Activities			(903,959	)			(765,740	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable - related party			(7,812	)			-
Repayment of term loan			(95,270	)			(70,002	)
Borrowings from term loan			300,000				-
Repayment of note payable			(500,000	)			(600,000	)
Borrowings (repayments) of line of credit, net			(708,909	)			1,091,006
Proceeds from capital lease			213,250				-
Repayment of capital lease obligations			(12,037	)			-
Proceeds from exercise of options			40,000				-
Net Cash Provided by (Used in) Financing Activities			(770,778	)			421,004
Net Decrease in Cash			(234,290	)			(16,568	)
Cash - Beginning of Period			581,322				670,807
Cash - End of Period		$	347,032			$	654,239
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income taxes		$	-			$	-
Interest		$	302,034			$	212,182
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued interest on note payable reclassified to principal		$	392,702			$	-
Stock issued for Series A Preferred dividends		$	-			$	91,565
Debt issuance costs included in principal balance of note		$	-			$	52,236
Capital lease asset additions		$	30,000			$	-

Contact:

Carl Wolf
Chairman and CEO 
MamaMancini’s Holdings, Inc.
Stock Symbol: MMMB
973-985-0280

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