Revenue and Sales Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] Profitability - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Gross profit for the same period was $9,184,000, representing a 23.1% increase compared to $7,463,000 in 2024[24] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash Flow and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, from $7,150,000 at the beginning of the period, marking a 68.5% increase[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities for the three months ended April 30, 2025, was $6,005,000, a 64.7% increase from $3,641,000 in 2024[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in 2024[24] - Research and development expenses decreased to $73,000 from $104,000 in the same period last year, a decline of 29.8%[24] Strategic Initiatives - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Balance Sheet Highlights - Total assets rose to $52,725,000 as of April 30, 2025, compared to $47,062,000 as of January 31, 2025, reflecting a 12.5% growth[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, from $22,166,000 as of January 31, 2025, indicating an 18.5% rise[22] Shareholder Information - The weighted average common shares outstanding for basic earnings per share increased to 37,597,000 from 37,259,000 in the prior year[24] Adjusted Metrics - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10]

Financial Performance - Net sales increased by approximately 18% to $35.3 million for the three months ended April 30, 2025, compared to $29.8 million for the same period in 2024[108] - Gross profit margin improved to 26% for the three months ended April 30, 2025, up from 25% in the same period of 2024[110] - Net income for the three months ended April 30, 2025, was approximately $1.2 million, compared to $0.6 million for the same period in 2024[107] Operating Expenses - Operating expenses rose by approximately $916 thousand, primarily due to increased payroll, commissions, and advertising expenses[110] Working Capital and Cash Flow - Working capital increased to approximately $5.5 million as of April 30, 2025, from approximately $4.9 million as of January 31, 2025[113] - Net cash provided by operating activities was approximately $6.0 million for the three months ended April 30, 2025, compared to $3.6 million for the same period in 2024[115] - The company had no borrowings outstanding under its Credit Agreement and approximately $2.4 million outstanding under its Term Loan Agreement as of April 30, 2025[114] Market and Growth Outlook - The increase in net sales was primarily driven by volume gains from new products and successful trade and marketing promotions[108] - The company anticipates that its cash resources will be sufficient to meet its cash requirements through at least the next twelve months, but may require additional funding for growth[120] Commodity Price Impact - A 1% increase in commodity prices would negatively impact costs of sales by approximately $193 thousand on an annualized basis[125]

Core Insights - Mama's Creations, Inc. reported strong financial performance for the first quarter of fiscal 2026, with revenues increasing by 18.2% to $35.3 million compared to $29.8 million in the same quarter of the previous year [2][8] - The company achieved a net income of $1.2 million, representing a 123.7% increase from $0.6 million in the prior year, driven by operational efficiency and strategic trade investments [11][12] - Significant trade promotion investments were made, reaching a record 6% of gross revenue, which contributed to market share gains and new customer acquisitions [4][6] Financial Performance - Revenues for the first quarter of fiscal 2026 were $35.3 million, an increase of 18.2% from $29.8 million in the same quarter of 2024 [2][8] - Gross profit rose by 23.1% to $9.2 million, with gross margin improving to 26.1% from 25.0% year-over-year [9] - Operating expenses increased to $7.6 million, but as a percentage of sales, they decreased to 21.6% from 22.4% due to improved operational efficiency [10] Operational Highlights - The company launched new chicken products and secured new customers, including Amazon Fresh, Lidl, and Sheetz, contributing to a robust growth driven by volume [4][6] - Cash and cash equivalents increased to $12 million, up from $7.2 million at the end of January 2025, primarily due to improved profitability [12][7] - The company reported a significant reduction in overtime by nearly 70% and improved yield from operational enhancements in its chicken operations [5][6] Strategic Initiatives - Mama's Creations invested 6% of gross revenue into trade promotions, significantly higher than the 2% in the previous quarter, reflecting a focus on high-ROI campaigns [4][6] - The company successfully implemented pricing increases across its customer portfolio, which were fully in effect by the start of the second fiscal quarter [5] - The management expressed confidence in the company's ability to support future acquisitions and innovation with its strengthened balance sheet and cash position [7]

Core Insights - Mama's Creations, Inc. is expanding its portfolio of fresh deli prepared foods to help retailers enhance their prepared food programs with high-quality, labor-saving solutions [1][4][6] - The company will showcase its new offerings at the IDDBA 2025 tradeshow, which is a significant event for food retailers and industry professionals [2][3] Company Overview - Mama's Creations, Inc. is a leading marketer and manufacturer of fresh deli prepared foods, available in over 10,000 grocery, mass, club, and convenience stores across the United States [6] - The company aims to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to meet modern consumer demands [6] Product Offerings - New product launches include Roasted Chicken Strips, Chicken Stuffed Meatballs, and Roasted Vegetables, all designed for convenience and quality [12] - The company is focusing on clean-ingredient deli innovation and plans to introduce a growing lineup of internationally inspired prepared foods [3][12] Industry Context - The IDDBA annual tradeshow, taking place from June 1-3, 2025, in New Orleans, is expected to attract over 10,000 attendees, providing a vital networking opportunity for industry professionals [2]

Core Viewpoint - Mama's Creations, Inc. is set to release its financial results for the fiscal first quarter on June 3, 2025, indicating ongoing growth and strategic initiatives to enhance profitability and market share [1][2][3]. Financial Results Announcement - The financial results for the fiscal first quarter ended April 31, 2025, will be released after market close on June 3, 2025 [1]. - An investor conference call is scheduled for June 3, 2025, at 4:30 p.m. Eastern time to discuss the financial results and provide a corporate update [2]. Company Growth and Strategy - The company is experiencing broad-based growth driven by high ROI trade promotions and strong macro-economic conditions that are increasing consumer interest in deli prepared foods [3]. - Mama's Creations is focused on innovation and expanding eating occasions, positioning itself for another year of strong growth in a growing category [3]. Pricing and Margin Management - In response to rising chicken prices, the company has implemented price increases and utilized fixed-price protein contracts to protect margins [4]. - The company is not only defending profitability but is also positioned to gain market share and deliver long-term value to shareholders [4]. Company Overview - Mama's Creations, Inc. is a leading marketer and manufacturer of fresh deli prepared foods, available in over 10,000 retail locations across the U.S. [6]. - The company aims to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse brand portfolio to meet modern consumer demands [6].

Core Insights - Mama's Creations, Inc. is actively participating in four major investor conferences in Spring 2025, showcasing its operational strength and strategic initiatives [1][2][3] - The company has achieved record fourth quarter revenue and margin expansion, positioning itself for sustainable growth through effective management of protein needs and operational enhancements [3][4] Company Overview - Mama's Creations, Inc. is a leading marketer and manufacturer of fresh deli prepared foods, with products available in over 10,000 grocery, mass, club, and convenience stores across the nation [5] - The company's product portfolio includes a variety of high-quality, fresh, clean, and easy-to-prepare foods, aiming to meet the evolving demands of modern consumers [5] Strategic Initiatives - The company has secured over half of its projected protein needs through fixed-price contracts and successful pricing negotiations, enhancing its resilience in a volatile commodity market [3] - Operational enhancements such as automation, procurement savings, and in-house trimming have been implemented to support the company's growth strategy [3] Investor Engagement - Adam L. Michaels, Chairman and CEO, is scheduled to host one-on-one meetings with institutional investors during the conferences to discuss the company's progress and long-term value creation [2][4] - The company aims to position itself as a consolidator in the prepared foods space, leveraging its platform for future growth [4]

Core Insights - The article discusses the author's transition to independent investment research after over 43 years in the industry, emphasizing a focus on actionable investment insights rather than adhering to external agendas [1] - The author specializes in rules and factor-based equity investing strategies, combining quantitative analysis with fundamental analysis to derive investment stories that predict future performance [1] - The author has extensive experience across various market segments, including large cap, small cap, micro cap, value, growth, and income stocks, as well as managing a high-yield fixed-income fund [1] Investment Philosophy - The investment approach prioritizes human intelligence over purely quantitative methods, using numbers to inspire narratives that illuminate future potential rather than just reflecting past performance [1] - The author critiques the limitations of statistical studies that only apply to specific time periods, advocating for a more holistic view that incorporates underlying financial theories [1] Background and Experience - The author has developed and utilized various quantitative models and has a history of editing and writing stock newsletters, notably the Forbes Low Priced Stock Report [1] - A passion for investor education is highlighted, with the author having conducted numerous seminars and authored two books on stock selection and analysis [1]

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Financial Data and Key Metrics Changes - Revenue for Q4 fiscal 2025 increased by 25.7% to $33.6 million compared to $26.7 million in the same year-ago quarter [36] - Revenue for fiscal year 2025 increased by 19.4% to $123.3 million compared to $103.3 million in the prior year [36] - Gross profit for Q4 increased by 16.1% to $9.1 million, representing 27% of total revenues, compared to $7.8 million or 29.3% in the same year-ago quarter [37] - Net income for Q4 increased to $1.6 million or $0.04 per diluted share compared to $1.4 million or $0.04 per diluted share in the same year-ago quarter [42] - Adjusted EBITDA for Q4 increased by 8.8% to $3.1 million compared to $2.9 million in the same year-ago quarter [42] Business Line Data and Key Metrics Changes - Chicken throughput in Q4 was 34% ahead of Q3 and 90% ahead of prior years [18] - The company is focusing on leveraging entire chicken breast for new products, which is expected to significantly improve gross margins [27][90] Market Data and Key Metrics Changes - The away-from-home food spending growth is projected to slide to low single digits in 2025, down from mid-single digits in 2024, indicating a shift in consumer spending habits [10] - Mama's Creations is growing at 19.4% in fiscal 2025, consistently gaining market share [10] Company Strategy and Development Direction - The company aims to emerge as a leading one-stop shop deli solution on a national scale, focusing on capturing generational changes in consumer preferences [9] - A strategic focus on cost, controls, culture, and catapulting growth has been established to improve operational efficiency [15] - The company is exploring potential M&A opportunities while maintaining a strong foundation [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the deli prepared food space, highlighting the operational headwinds from earlier in the year are now behind them [46] - The company is positioned to lead the category, not just as a participant but as a consolidator and category shaper [47] Other Important Information - The company has completed strategic capital investments in its Farmingdale facility, which has more than doubled chicken capacity [8] - The leadership team has been strengthened with new hires, enhancing operational capabilities [24] Q&A Session Summary Question: Can you break down your growth in Q4 by pricing and volume? - Management indicated that over 85% of revenue growth was volume-driven, with pricing adjustments being made continuously based on market conditions [55][56] Question: What is the expected pricing increase? - Management noted that pricing increases may need to be in the low double digits depending on commodity price movements, but they work collaboratively with customers on pricing [59][60] Question: Are you still comfortable with the guidance for fiscal year 2026? - Management expressed confidence in achieving double-digit revenue growth and EBITDA margins in the double-digit range, barring any significant commodity price fluctuations [62][65] Question: Can you provide an update on the rollout at Walmart? - Management reported that the Walmart rollout is performing well, with increased demand for more SKUs and positive feedback on sales performance [97] Question: How are trade promotions interacting with recent pricing? - Management acknowledged a decrease in trade promotions due to the need to maintain gross margins but expressed a desire to increase trade promotions as margins improve [102][103] Question: Are tariffs impacting sourcing or construction? - Management clarified that while there may be secondary impacts from tariffs, the majority of their sourcing is domestically based, and they are proactively managing procurement [105][106]

Financial Data and Key Metrics Changes - Revenue for Q4 fiscal 2025 increased by 25.7% to $33.6 million compared to $26.7 million in the same year-ago quarter [36] - Revenue for fiscal year 2025 increased by 19.4% to $123.3 million compared to $103.3 million in the prior year [36] - Gross profit for Q4 increased by 16.1% to $9.1 million, representing 27% of total revenues, compared to $7.8 million or 29.3% in the same year-ago quarter [37] - Net income for Q4 increased to $1.6 million or $0.04 per diluted share compared to $1.4 million or $0.04 per diluted share in the same year-ago quarter [42] - Adjusted EBITDA for Q4 increased by 8.8% to $3.1 million compared to $2.9 million in the same year-ago quarter [42] Business Line Data and Key Metrics Changes - Chicken throughput in Q4 was 34% ahead of Q3 and 90% ahead of prior years [18] - The company is focusing on leveraging entire chicken breast, with new products like cheese stuffed chicken meatballs and premium chicken strips [27] Market Data and Key Metrics Changes - The away-from-home food spending growth is projected to slide to low single digits in 2025, down from mid-single digits in 2024 [10] - Mama's Creations is growing at 19.4% in fiscal 2025, consistently gaining market share [10] Company Strategy and Development Direction - The company aims to emerge as a leading one-stop shop deli solution on a national scale, focusing on capturing generational changes in consumer preferences [9] - A strategic plan involving cost, controls, culture, and catapult has been implemented to improve operational efficiency [15] - The company is exploring potential M&A opportunities while maintaining a strong foundation [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the deli prepared food space, highlighting operational improvements and strong customer relationships [46][47] - The company is prepared for commodity fluctuations with over half of its expected protein needs locked in via fixed price agreements [27] Other Important Information - The company received high scores in food safety audits, indicating strong quality control measures [22] - The leadership team has been strengthened with new hires, enhancing operational capabilities [24] Q&A Session Summary Question: Can you break down your growth in Q4 by pricing and volume? - Management indicated that over 85% of revenue growth was volume-driven, with ongoing pricing adjustments based on market conditions [55][56] Question: What is the expected pricing increase? - Pricing increases may need to be in the low double digits depending on commodity price movements, with collaborative efforts with customers to implement these changes [59][60] Question: Are you still comfortable with the guidance for fiscal year 2026? - Management believes in the potential for double-digit growth and aims for EBITDA margins to be in the double-digit range, barring any significant commodity price fluctuations [62][65] Question: Can you provide an update on the rollout at Walmart? - The rollout has been successful, with the product being a top seller, and there are ongoing discussions for expanding SKU offerings [97] Question: How are trade promotions interacting with recent pricing? - Trade promotions decreased slightly due to a focus on maintaining gross margins, with plans to increase promotions as margins improve [102][103] Question: Are tariffs impacting sourcing or construction? - Currently, the company is not seeing significant impacts from tariffs on its domestic sourcing, and proactive measures are in place for equipment maintenance [106][108]