Internal Control and Compliance - Management assessed the effectiveness of internal control over financial reporting as effective as of November 3, 2023[15]. - A material weakness in internal control was identified at the end of fiscal year 2022, related to lease term reporting[44]. - Remediation steps included quarterly verbal communication with plant managers and expanded notifications to the Operating Committee[45]. - No changes in internal control over financial reporting occurred during the last quarter of fiscal year ended November 3, 2023, that materially affected controls[16]. - The company centralized most accounting and administrative functions to control costs of maintaining control systems[12]. - Disclosure controls and procedures were evaluated as effective as of the end of the reporting period[38]. - The Audit Committee regularly meets with financial management and independent registered public accounting firm to discuss internal controls[43]. - As of November 3, 2023, the company has remediated material weaknesses in internal controls, but future compliance with Section 404 of the Sarbanes-Oxley Act remains uncertain[46]. Financial Performance - Net sales in fiscal year 2023 decreased by $14,262 (5.4%) compared to the prior fiscal year, with a significant decline in the Snack Food Products segment, which saw a decrease of $15,646 (7.5%) in net sales[130][155]. - The Frozen Food Products segment experienced an increase in net sales of $1,384 (2.5%) due to higher selling prices per pound, despite a decrease in unit sales volume[130][154]. - Cost of products sold decreased by $12,558 (6.5%) during fiscal year 2023, while the gross margin increased from 27.1% to 28.0%[157]. - Selling, general and administrative expenses (SG&A) increased by $332 (0.5%) in fiscal year 2023, with notable increases in property insurance and outside storage fees[135][159]. - The effective tax rate for fiscal year 2023 was 22.7%, down from 26.6% in fiscal year 2022, reflecting changes in non-deductible expenses and state income taxes[161]. - The company recorded a tax provision of $1,021 for fiscal year 2023, significantly lower than the $16,341 recorded in fiscal year 2022[161]. - The gross margin percentage in the Frozen Food Products segment decreased from 26.9% to 25.1% during fiscal year 2023[158]. - The gross margin for the Snack Food Products segment increased from 27.1% to 28.8% during fiscal year 2023[177]. - The cost of products sold in the Snack Food Products segment decreased by $14,638 (9.6%) due to lower unit sales volume[177]. Debt and Financial Obligations - The company has no other debt or contractual obligations as of November 3, 2023[29]. - As of November 3, 2023, total long-term debt was $2,786, down from $3,824 in the previous year[170]. - The company has a new revolving line of credit allowing borrowing up to $7,500 until November 30, 2024[181]. - Total liabilities for fiscal year 2024 are projected to be $1,044 million, increasing to $1,083 million in 2025, $1,124 million in 2026, and decreasing to $580 million in 2027[197]. - The company prepaid $18,653 million in equipment loans using proceeds from a new bridge loan[195]. Market and Operational Insights - The company operates in two business segments: processing and distribution of frozen food products and snack food products[67]. - The company has not entered new markets or significant contractual relationships during the last fiscal year[56]. - The company plans to shift from company-leased long-haul vehicles to less costly transportation methods, enhancing operational efficiency[59]. - The company has focused on developing new products, particularly single-serve items, to complement existing product lines[76]. - The company’s advertising strategy includes social media presence and participation in trade shows to reach food service customers[72]. - The company’s products are distributed through various channels, emphasizing relationships with large food service distributors[57]. - The company has maintained a competitive edge through careful research and testing of products to ensure quality and market fit[76]. - The company has not been involved in any mergers or acquisitions in the past five years, maintaining a stable operational structure[55]. - Sales to Wal-Mart® comprised 29.1% of revenues in fiscal year 2023, with 26.5% of total accounts receivable due from Wal-Mart® as of November 3, 2023[80]. - Sales to Dollar General® accounted for 16.3% of revenues in fiscal year 2023, with 20.5% of total accounts receivable due from Dollar General® as of November 3, 2023[80]. - The company sold approximately 160 different snack food items through a direct-store-delivery network serving around 20,000 retail stores across 50 states during fiscal year 2023[103]. - The frozen food products division serves both food service and retail customers, selling approximately 140 unique products through about 780 wholesalers and distributors[99]. Labor and Regulatory Challenges - Labor shortages and increased turnover rates have led to higher costs, including increased overtime and wage rates, which could negatively affect operational efficiency[89]. - The company is subject to extensive inspection and regulation by the USDA and FDA, ensuring compliance with safety and sanitary operating procedures[116]. - Approximately 44% of the company's 688 employees are governed by collective bargaining agreements, which may affect labor costs and operational stability[109]. - The company has experienced a decrease in sales to key customers due to increased buying power and consolidation in the retail sector, potentially affecting profitability[119]. - Future volatility in commodity prices and labor costs may adversely affect the company's financial results and operational performance[115]. - Commodity prices for pork, beef, and flour have fluctuated significantly, impacting profitability and operational costs due to external market forces[86]. Shareholder Information - The company has 969 shareholders of record as of January 11, 2024[127]. - The company did not repurchase any shares of common stock during fiscal years 2023 and 2022, with 120,113 shares remaining authorized for repurchase[150]. - As of the end of fiscal year 2023, 120,113 shares remained authorized for repurchase under the stock repurchase program[190]. Cash Flow and Financial Ratios - For the fifty-three weeks ended November 3, 2023, net cash provided by operating activities was $3,985, an increase of $11,815 compared to the previous fiscal year[184]. - The net income for the same period was $3,474, with a reduction in accounts receivable of $6,480[184]. - The cash conversion cycle was 83 days for both the fifty-three weeks ended November 3, 2023, and the fifty-two weeks ended October 28, 2022[166]. - The company did not contribute to its defined benefit pension plan during fiscal years 2022 and 2023[184]. - The company’s Quick Ratio is required to be not less than 1.25 to 1.0 at each fiscal quarter end[196]. - The Fixed Charge Coverage Ratio must not be less than 1.25 to 1.0 at each fiscal quarter end[196].

Editor's note: Seeking Alpha is proud to welcome William Walsh as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » LauriPatterson/E+ via Getty Images Investment Thesis I assess a buy rating for Bridgford Foods Corp. (NASDAQ:BRID). BRID is trading at a deep discount, below tangible book value. Additionally, BRID has a real estate portfolio that does not come c ...

Sales Performance - Net sales decreased by $5,330 (9.0%) to $54,189 in the third twelve-week period of the 2023 fiscal year compared to the same period in fiscal year 2022[32]. - Net sales decreased by $12,270 (6.7%) to $171,321 for the thirty-six weeks ended July 7, 2023, compared to the same period in fiscal year 2022[81]. - Net sales in the Snack Food Products segment decreased by $12,870 (8.8%) to $134,165 for the thirty-six weeks ended July 7, 2023[82]. - Net sales in the Frozen Food Products segment increased by $600 (1.6%) to $37,156 for the thirty-six weeks ended July 7, 2023[81]. - Total sales for the twelve weeks ended July 7, 2023, were $54,189 million, a decrease of 8.4% from $59,519 million in the same period in 2022[214]. - For the thirty-six weeks ended July 7, 2023, total sales were $171,321 million, compared to $183,591 million for the same period in 2022, reflecting a decline of 6.7%[214]. Financial Position - Total long-term debt as of July 7, 2023, was $3,139, down from $3,824 as of October 28, 2022[48]. - The total debt as of July 7, 2023, was $4,171 million, with total long-term debt amounting to $3,139 million[165]. - The company had $68,173 of net working capital as of July 7, 2023[119]. - The company maintains a revolving line of credit with Wells Fargo Bank, N.A., with a borrowing limit of up to $15,000 million[145]. - The company is in discussions to amend its line of credit with Wells Fargo Bank, decreasing it to $7,500 from $15,000, with an expiration date of August 31, 2024[85]. Income and Expenses - As of July 7, 2023, the company reported a net income of $1,765 compared to $42,410 for the same period in 2022, reflecting a significant decrease[119]. - The company recorded a provision for income taxes of $258 for the twelve-week period ended July 7, 2023, based on the expected annual effective tax rate[80]. - The effective tax rate for the third quarter of fiscal year 2023 was 31.7%, compared to 29.0% in the same quarter of fiscal year 2022, reflecting a tax expense of $820[89]. - The company recorded a tax provision of $820 for the thirty-six-week period ended July 7, 2023, based on the expected annual effective tax rate[115]. - Operating income significantly dropped to $2.2 million for the 36 weeks ended July 7, 2023, compared to $62.6 million for the same period in 2022, reflecting a decline of approximately 96.5%[195]. - Net income for the 36 weeks ended July 7, 2023, was $1.8 million, a substantial decrease from $42.4 million in the previous year, marking a decline of about 95.8%[195]. Cost of Goods Sold - Cost of products sold in the Frozen Food Products segment increased by $57 (0.7%) to $8,809 in the third twelve-week period of fiscal year 2023 compared to the same period in fiscal year 2022[97]. - Cost of products sold in the Snack Food Products segment decreased by $3,657 (10.8%) to $30,089 in the third twelve-week period of fiscal year 2023 compared to the same period in fiscal year 2022[98]. - Cost of products sold decreased by $9,988 (7.5%) to $123,507 in the thirty-six-week period ended July 7, 2023, compared to the same period in fiscal year 2022, with gross margin increasing from 27.3% to 27.9%[108]. - The cost of products sold in the Frozen Food Products segment increased by $2,780 (10.6%) to $29,032 in the first thirty-six-week period of fiscal year 2023 compared to the same period in fiscal year 2022[132]. - The cost of products sold in the Snack Food Products segment decreased by $12,768 (11.9%) to $94,475 in the first thirty-six-week period of fiscal year 2023 compared to the same period in fiscal year 2022[133]. Customer Concentration - Walmart accounted for 29.6% of consolidated sales and 27.4% of accounts receivable as of July 7, 2023, compared to 30.8% and 19.8% respectively as of July 8, 2022[26]. - Major customers included Walmart and Dollar General, with sales percentages of 27.8% and 17.9% respectively for the period ended July 7, 2023[201]. - Dollar General represented 16.8% of sales as of July 7, 2023, down from 18.2% in the prior year[219]. Operational Challenges - The business disruptions associated with the COVID-19 pandemic had a minimal impact on the company’s financial statements for the fiscal year ended October 28, 2022, and during the twelve and thirty-six weeks ended July 7, 2023[53]. - Management expects inflation trends, including higher costs for labor, freight, and specific materials, to continue through the remainder of fiscal year 2023[166]. - The company has implemented remediation steps to address a material weakness in internal control over financial reporting, which is expected to be resolved before the end of fiscal year 2023[154]. Market Strategy - The company plans to focus on market expansion and new product development to drive future growth[215]. - The company maintains a network of independent food service and retail brokers, which is considered a valuable asset for new product opportunities[29].

Financial Performance - The net income for the twelve weeks ended April 14, 2023, was $1,081, a decrease from $1,112 for the same period in 2022, reflecting a decline of about 2.8%[244] - The provision for income taxes for the twelve weeks ended April 14, 2023, was $562, compared to $457 for the same period in 2022, representing an increase of about 22.9%[243] Sales and Promotions - For the twelve weeks ended April 14, 2023, promotional allowances deducted from sales were $4,520, compared to $3,862 for the same period in 2022, representing an increase of approximately 17%[69] Working Capital and Credit - As of April 14, 2023, the company had $67,920 in net working capital and $15,000 available under its revolving line of credit with Wells Fargo Bank, N.A.[243] - The company borrowed a total of $18,000 under its revolving line of credit, which was paid off on June 7, 2022, using proceeds from the sale of real property[243] Cash Flow and Cycle - The cash conversion cycle increased from 72 days for the twenty-four weeks ended April 15, 2022, to 80 days for the twenty-four weeks ended April 14, 2023, primarily due to higher days sales outstanding[245] Capital Expenditures - The company recorded a total of $1,132 in additions to property, plant, and equipment for the twelve weeks ended April 14, 2023, compared to $629 for the same period in 2022, indicating an increase of approximately 80%[246] Compliance and Internal Control - As of April 14, 2023, the company was in violation of the net income after taxes covenant, which was subsequently waived[250] - The company has implemented remediation steps to improve internal control over financial reporting, expecting to resolve the material weakness prior to the end of fiscal year 2023[233] Real Estate Transactions - The company received approximately $60,000 in gross proceeds from the sale of real property located at 170 N. Green Street in Chicago on June 1, 2022[243]

As of January 20, 2023, the Company has a federal NOL carry forward of approximately $0 and state NOL carry forwards of approximately $4,600 million. We maintain a revolving line of credit with Wells Fargo Bank, N.A. that extends to August 31, 2023. As of year-end October 28, 2022, under the terms of this line of credit, we could borrow up to $15,000 at an interest rate equal to the bank's prime rate or secured overnight financing rate ("SOFR") plus 2.0%. The line of credit has an unused commitment fee of 0 ...

Financial Performance - Net sales for fiscal year 2022 increased by $25,468 (10.6%) compared to the prior fiscal year, driven by an 8.5% increase in selling price per pound and a 3.0% increase in unit sales volume [388]. - In the Frozen Food Products segment, net sales increased by $14,744 (35.5%), primarily due to a 28.1% increase in unit sales volume and an 8.5% increase in selling price per pound [389]. - The Snack Food Products segment saw net sales increase by $10,724 (5.4%), attributed to an 8.5% increase in selling price per pound, despite a 2.6% decrease in unit sales volume [390]. - Cost of products sold increased by $4,791 (2.5%), with gross margin improving from 21.4% to 27.1% during fiscal year 2022 [393]. - SG&A expenses increased by $5,107 (8.5%) in fiscal year 2022, with significant increases in wages and bonus expenses, fuel expenses, and product advertising [399]. - The gross margin for the Frozen Food Products segment decreased from 28.8% to 26.9%, while the Snack Food Products segment's gross margin increased from 19.8% to 27.1% [395][396]. Tax and Compliance - The effective tax rate for fiscal year 2022 was 26.6%, up from 24.4% in fiscal year 2021, with a tax provision of $16,341 recorded [405]. - The company was in compliance with all covenants under the Wells Fargo Loan Agreements as of October 28, 2022 [424]. Liquidity and Cash Flow - The company anticipates maintaining sufficient liquidity to operate for at least the next twelve months, despite potential challenges in increasing product prices due to consumer sensitivity [407]. - For the fifty-two weeks ended October 28, 2022, net cash used in operating activities was $7,830, an increase of $1,838 compared to the previous year [409]. - The cash conversion cycle increased to 83 days for the fifty-two weeks ended October 28, 2022, compared to 74 days for the previous year [410]. - Net cash provided by investing activities was $56,345 for the fifty-two weeks ended October 28, 2022, significantly up from a net cash used of $6,469 in the previous year [412]. - The company reported proceeds from the sale of property, plant, and equipment of $60,115 for the fifty-two weeks ended October 28, 2022 [412]. - Total debt as of October 28, 2022, was $4,913, down from $37,069 as of October 29, 2021 [417]. Future Outlook and Risks - Management expects inflation trends to continue impacting operating results through fiscal year 2023 [426]. - Expected future liability related to the construction of the new Chicago processing facility is approximately $125 as of October 28, 2022 [428]. Accounting and Disclosure - The company has disclosed its policies on credit risk, revenue recognition, and the recoverability of long-lived assets in the Consolidated Financial Statements [432]. - Various accounting standard-setting bodies have been active in issuing statements and interpretations that may impact the company's financial position [433]. - The evaluation of disclosure controls indicates potential limitations in achieving stated goals under future conditions, which may lead to undetected misstatements [431]. - The company has no off-balance sheet arrangements as of October 28, 2022 [427]. Pension and Returns - The company did not contribute towards its defined benefit pension plan during fiscal years 2021 and 2022 [411]. - The company recorded a decrease in returns activity compared to the previous fiscal year, indicating improved sales performance and customer satisfaction [389].

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements reflect a substantial increase in net income and equity, driven by a significant gain on a property sale [Condensed Consolidated Balance Sheets](index=3&type=section&id=a.%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased while total liabilities decreased, primarily due to a rise in cash and a reduction in long-term debt Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | July 8, 2022 | October 29, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $99,908 | $70,257 | | **Total Assets** | $180,594 | $156,790 | | **Total Current Liabilities** | $40,225 | $25,619 | | **Total Liabilities** | $63,206 | $81,812 | | **Total Shareholders' Equity** | $117,388 | $74,978 | - Total assets increased primarily due to a rise in cash and cash equivalents, from zero to **$20.1 million**[12](index=12&type=chunk) - Total liabilities decreased significantly, driven by a reduction in long-term notes payable from **$36.0 million to $4.2 million**[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=b.%20Condensed%20Consolidated%20Statements%20of%20Operations) Profitability improved dramatically, swinging from a net loss to a significant net income due to a large gain on a property sale Statement of Operations (in thousands) | Statement of Operations (in thousands) | 36 Weeks Ended July 8, 2022 | 36 Weeks Ended July 9, 2021 | | :--- | :--- | :--- | | Net Sales | $183,591 | $161,708 | | Gross Margin | $50,096 | $37,149 | | Gain on sale of property | $57,663 | $378 | | Operating Income (Loss) | $62,630 | $(3,498) | | Net Income (Loss) | $42,410 | $(1,719) | | Basic Earnings (Loss) Per Share | $4.67 | $(0.19) | - The company's profitability dramatically improved, swinging from a net loss to a significant net income, primarily driven by a **$57.7 million gain on the sale of property**, plant, and equipment[14](index=14&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=c.%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity grew significantly, almost entirely driven by the net income recorded during the period - Total shareholders' equity increased from **$75.0 million** at the end of fiscal 2021 to **$117.4 million** as of July 8, 2022, an increase almost entirely attributable to the net income of **$42.4 million**[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=d.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) A large cash inflow from investing activities, due to a property sale, was primarily used for debt repayment in financing activities Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | 36 Weeks Ended July 8, 2022 | 36 Weeks Ended July 9, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,988) | $(571) | | Net cash provided by (used in) investing activities | $56,922 | $(6,714) | | Net cash (used in) provided by financing activities | $(32,200) | $2,458 | | Net increase (decrease) in cash | $19,734 | $(4,827) | - Investing activities provided a significant cash inflow of **$56.9 million**, primarily from the **$60.0 million** proceeds from the sale of property, with a large portion used to repay **$31.9 million** in bank borrowings[25](index=25&type=chunk)[151](index=151&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=e.%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes reveal significant customer concentration, details of a major property sale, and segment-level sales performance - The company has significant customer concentration, with Walmart and Dollar General accounting for a large portion of sales and accounts receivable[35](index=35&type=chunk) Customer Concentration (36 Weeks Ended July 8, 2022) | Customer Concentration (36 Weeks Ended July 8, 2022) | % of Sales | % of Accounts Receivable | | :--- | :--- | :--- | | Walmart | 30.8% | 19.8% | | Dollar General | 18.2% | 32.3% | - On June 1, 2022, the company completed the sale of a property in Chicago for **$60 million**, resulting in a gain of **$57.7 million**, with proceeds used to repay approximately **$18.7 million** of a bridge loan and **$18.0 million** of its revolving credit facility[83](index=83&type=chunk)[84](index=84&type=chunk) - The company operates in two segments, with the Snack Food Products segment generating **$147.0 million** in sales and the Frozen Food Products segment generating **$36.6 million** for the 36 weeks ended July 8, 2022[58](index=58&type=chunk)[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting inflationary pressures, a property sale gain, and improved liquidity from debt reduction [COVID-19 and Business Impact](index=15&type=section&id=COVID-19%20and%20Business%20Impact) The company faces ongoing pandemic-related challenges, including increased costs, supply chain issues, and a demand shift to foodservice - The company continues to face challenges from the pandemic, including increased operating costs and supply chain volatility, with commodity costs increasing by approximately **$13.0 million** in the first 36 weeks of fiscal 2022[88](index=88&type=chunk)[93](index=93&type=chunk) - A notable shift in demand from retail to foodservice channels has occurred as pandemic-related restrictions have eased, benefiting the Frozen Food Products segment[92](index=92&type=chunk) [Results of Operations for the Twelve Weeks Ended July 8, 2022](index=19&type=section&id=Results%20of%20Operations%20for%20the%20Twelve%20Weeks%20Ended%20July%208%2C%202022) Net sales increased due to higher selling prices, with significant volume recovery in the Frozen Food Products segment Consolidated Net Sales Change (12 Weeks) | Consolidated Net Sales Change (12 Weeks) | % Change | $ Change (in thousands) | | :--- | :--- | :--- | | Selling price per pound | 10.8% | $6,505 | | Unit sales volume in pounds | -4.8% | $(2,904) | | **Total Increase in Net Sales** | **5.3%** | **$2,981** | - The Frozen Food Products segment saw a substantial **40.8% increase** in net sales, driven by a **33.3% rise** in unit sales volume as the foodservice channel recovered[117](index=117&type=chunk) - The Snack Food Products segment experienced a slight **0.9% decrease** in net sales, as an **11.0% increase** in selling price was more than offset by an **11.8% decline** in sales volume[118](index=118&type=chunk) - Consolidated gross margin improved from **21.2% to 28.6%** year-over-year for the 12-week period[119](index=119&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **7.6% to $15.2 million**, primarily due to higher wages, advertising, and fuel costs[124](index=124&type=chunk) [Results of Operations for the Thirty-Six Weeks Ended July 8, 2022](index=22&type=section&id=Results%20of%20Operations%20for%20the%20Thirty-Six%20Weeks%20Ended%20July%208%2C%202022) Net sales grew significantly over 36 weeks, driven by price increases and volume growth in the Frozen Food Products segment Consolidated Net Sales Change (36 Weeks) | Consolidated Net Sales Change (36 Weeks) | % Change | $ Change (in thousands) | | :--- | :--- | :--- | | Selling price per pound | 11.8% | $20,425 | | Unit sales volume in pounds | 2.1% | $3,590 | | **Total Increase in Net Sales** | **13.5%** | **$21,883** | - The Frozen Food Products segment's net sales grew by **38.3%**, driven by a **31.4% increase** in volume and an **8.0% increase** in price[130](index=130&type=chunk) - The Snack Food Products segment's net sales increased by **8.7%**, with a **12.6% price increase** offsetting a **4.0% volume decline**[131](index=131&type=chunk) - Consolidated gross margin for the 36-week period improved to **27.3% from 23.0%** in the prior year, despite a **$13.0 million** increase in commodity costs[134](index=134&type=chunk)[135](index=135&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was substantially improved by a major property sale, enabling significant repayment of debt facilities - The company's liquidity position was significantly strengthened by the **$60 million** in proceeds from the sale of its Chicago property on June 1, 2022[143](index=143&type=chunk) - Proceeds from the sale were used to pay off the **$18.0 million** balance on the revolving credit facility and to repay and terminate an **$18.7 million** bridge loan[143](index=143&type=chunk)[84](index=84&type=chunk) Debt Summary (in thousands) | Debt Summary (in thousands) | July 8, 2022 | October 29, 2021 | | :--- | :--- | :--- | | Revolving credit facility | $0 | $12,000 | | Equipment notes & Bridge loan | $5,159 | $25,069 | | **Total Debt** | **$5,159** | **$37,069** | - As of July 8, 2022, the company had **$59.9 million** of net working capital and **$15.0 million** available under its revolving line of credit[143](index=143&type=chunk)[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is omitted as the company qualifies as a smaller reporting company - The company has omitted this section as it is not applicable to a smaller reporting company[163](index=163&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of July 8, 2022[164](index=164&type=chunk) - No changes in internal controls over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[170](index=170&type=chunk) Part II. Other Information [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors are reported, though uncertainty from the COVID-19 pandemic remains - There have been no material changes to the risk factors as previously disclosed in the Annual Report[171](index=171&type=chunk) - Potential future risks related to COVID-19 include shifts in demand, market volatility, supply chain constraints, and impacts on the ability to operate production facilities[173](index=173&type=chunk) [Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications required by the Sarbanes-Oxley Act and Inline XBRL documents - The report includes certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[175](index=175&type=chunk) - Inline XBRL instance, schema, and related linkbase documents are filed as exhibits with this report[175](index=175&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock BRID Nasdaq Global Market FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 15, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ____ Commission file number 0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 21, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ____ Commission file number 000-02396 BRIDGFORD FOODS CORPORATION (Exact name of registrant as specified in its charter) Texas 95-1778176 (State o ...

Sales Performance - Net sales for fiscal year 2021 increased by $42,460 (21.4%) compared to the prior fiscal year, driven by a 3.2% increase in selling price per pound and a 17.5% increase in unit sales volume [82]. - The Frozen Food Products segment saw a slight increase in net sales of $269 (0.7%), primarily due to higher selling prices, despite a 1.3% decrease in unit sales volume [83]. - The Snack Food Products segment experienced a significant increase in net sales of $42,191 (26.9%), attributed to a 22.6% rise in unit sales volume and a 3.1% increase in selling price per pound [84]. Cost and Expenses - Cost of products sold increased by $50,594 (36.5%), with gross margin decreasing from 30.1% to 21.4% [86]. - SG&A expenses increased by $4,961 (9.0%) in fiscal year 2021, with notable increases in product advertising and wages [90]. - The gross margin for the Snack Food Products segment decreased from 29.3% to 19.8% due to higher commodity costs, particularly in meat [89]. Tax and Cash Flow - The effective tax rate for fiscal year 2021 was 24.4%, compared to -42.7% in fiscal year 2020, influenced by non-deductible expenses and state income taxes [96]. - Net cash used in operating activities was $5,992 for the fifty-two weeks ended October 29, 2021, a decrease of $15,909 compared to the previous year [100]. - Net cash provided by operating activities was $9,917 for the fifty-two weeks ended October 30, 2020, primarily due to higher net income and an increase in accounts payable [102]. Financing and Debt - The company borrowed $12,000 under its line of credit during fiscal year 2021 to fund operations, with a book overdraft of $469 as of October 29, 2021 [97]. - Total debt as of October 29, 2021, was $37,069, an increase from $29,122 as of October 30, 2020 [108]. - The company has a line of credit with Wells Fargo Bank, N.A. allowing borrowing up to $15,000 at an interest rate equal to the bank's prime rate or LIBOR plus 2.0% [110]. Investment and Capital Expenditures - Net cash used in investing activities was $(6,469) for the fifty-two weeks ended October 29, 2021, compared to $(23,318) for the fifty-two weeks ended October 30, 2020 [103]. - Additions to property, plant, and equipment totaled $6,239 for the fifty-two weeks ended October 29, 2021, down from $24,482 for the same period in 2020 [105]. - The company expects future liabilities related to the construction of a new Chicago processing facility to be approximately $3,006 as of October 29, 2021 [120]. Compliance and Management Outlook - The company was in violation of the capital expenditure covenant and fixed charge coverage ratio, which were subsequently waived [114]. - Management believes the company's strong financial position is sufficient to provide for operating needs and capital expenditures for fiscal year 2022 [118].