Mama's Creations (MAMA) 2025 Investor Day February 12, 2025 12:30 PM ET Company Participants Adam Michaels - CEO & ChairmanChris Darling - Chief Commercial OfficerLauren Sella - Chief Marketing OfficerSkip Tappan - Chief Operating OfficerAnthony Gruber - CFO Conference Call Participants Ryan Meyers - Senior Research AnalystEric Des Lauriers - Research Analyst Adam Michaels Welcome team. Hopefully everybody is well fed now. So first, I want to share a big thank you, big thank you for coming out here today. I ...

Core Viewpoint - Mama's Creations, Inc. will host a virtual investor day on February 12, 2025, to discuss its business strategy and future plans, aiming to enhance shareholder value [1][4]. Group 1: Event Details - The virtual investor day is scheduled for February 12, 2025, at 12:30 p.m. Eastern time [3]. - A webcast link will be provided for participants to access the presentation [3]. - Attendees are encouraged to join at least 5 minutes early to ensure timely participation [3]. Group 2: Management Participation - Key executives participating in the event include Chairman & CEO Adam L. Michaels, CFO Anthony Gruber, CMO Lauren Sella, CCO Chris Darling, and COO Skip Tappan [2]. - The presentation will include a corporate update, discussion of the go-forward strategy, and a question-and-answer session [2]. Group 3: 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. [5]. - 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 [5].

Core Insights - Mama's Creations, Inc. will host a virtual investor day presentation on February 12, 2025, at 12:30 p.m. Eastern time to provide a business and financial update [1][3] - The presentation will include a corporate update, discussion of management's go-forward strategy, and a question-and-answer session [2][4] - The company aims to drive significant shareholder value creation over the long term through its strategy for fiscal 2026 [4] 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 nation [5] - The company's product portfolio includes a variety of high-quality, fresh, clean, and easy-to-prepare foods, reflecting its rich history in Italian foods [5] - The vision of the company is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to meet modern consumer demands [5]

Core Viewpoint - Mama's Creations, Inc. is actively engaging with investors through participation in two major conferences in early 2025, aiming to showcase its growth strategies and operational improvements [1][2][3]. Group 1: Conference Participation - Mama's Creations will host a presentation and one-on-one meetings at the ICR Conference 2025 on January 14, 2025, in Orlando, FL [2][3]. - The company will also participate in one-on-one meetings at the 37th Annual Roth Conference from March 16 to 18, 2025, in Dana Point, CA [3]. Group 2: Management Insights - Adam L. Michaels, Chairman and CEO, expressed enthusiasm about the company's operational improvements and new sales wins, which are expected to drive robust growth and profitability in fiscal 2026 [3]. - The company is focused on identifying potential acquisition opportunities to enhance its business and solidify its position as a leading deli solutions provider [3]. Group 3: Company Overview - Mama's Creations is a prominent marketer and manufacturer of fresh deli prepared foods, available in over 10,000 retail locations across the United States [4]. - 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 [4].

Company Overview - Mama's Creations, Inc. is a leading national marketer and manufacturer of fresh deli prepared foods, available in over 10,000 grocery, mass, club, and convenience stores across the United States [4] - 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 [4] Upcoming Investor Conferences - Management will participate in the ICR Conference 2025 on January 14, 2025, at 2:30 p.m. Eastern time in Orlando, FL, and the 37th Annual Roth Conference from March 16-18, 2025, in Dana Point, CA [3][2] - Adam L. Michaels, Chairman and CEO, will host a presentation and one-on-one meetings at both conferences [2] Strategic Focus and Growth Initiatives - The company is focused on ongoing operational improvements and new sales wins to position itself for robust growth and repeatable profitability in fiscal 2026 [3] - A full leadership team is now in place, and the company is actively seeking potential acquisition opportunities that are incremental to its business [3] - These initiatives are designed to solidify the company's position as the premier deli solutions provider in the nation [3]

Core Insights - Mama's Creations, Inc. reported third-quarter fiscal 2025 results with revenue growth but a decline in earnings per share [1][4] Financial Performance - Total revenues increased by 10% year over year to $31.5 million, surpassing the Zacks Consensus Estimate of $30.4 million, driven by effective pricing strategies and volume gains [5] - Quarterly earnings were reported at 1 cent per share, missing the Zacks Consensus Estimate of 4 cents and down 80% from 5 cents in the prior-year period [4] - Gross profit decreased by 17.6% to $7.1 million, with gross margin contracting by 750 basis points to 22.6% compared to 30.1% in the same quarter last year, primarily due to rising commodity costs and construction-related impacts [6] Operational Efficiency - The company completed significant capital expenditures aimed at doubling grilled chicken throughput and enhancing operational efficiency, despite facing temporary construction challenges [2] - Operating expenses rose by 10.5% year over year to $6.6 million, with operating expenses as a percentage of sales remaining relatively flat at 20.8% [8] Cash Flow and Debt Management - As of the end of the fiscal third quarter, the company had cash and cash equivalents of $9.3 million and total shareholders' equity of $23 million, with total debt at $6.3 million [10] - The company has paid down $2.5 million of debt year to date, and net cash flow from operations for the nine months ended October 31, 2024, was $6 million [10]

Core Viewpoint - Mama's Creations, Inc. reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.04 per share, representing a 75% earnings surprise [1] - The company posted revenues of $31.52 million for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 3.69% and showing an increase from $28.65 million year-over-year [2] Group 1: Earnings Performance - The earnings for the same quarter last year were $0.05 per share, indicating a decline in earnings year-over-year [1] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is $0.06, with revenues expected to be $32.1 million [7] Group 2: Revenue Performance - Mama's Creations, Inc. has topped consensus revenue estimates four times over the last four quarters [2] - The company has shown significant revenue growth compared to the previous year, with a revenue increase from $28.65 million to $31.52 million [2] Group 3: Stock Performance and Outlook - Shares of Mama's Creations, Inc. have increased by approximately 92.9% since the beginning of the year, outperforming the S&P 500's gain of 26.9% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the industry, specifically the Food - Miscellaneous sector, is favorable, ranking in the top 33% of over 250 Zacks industries [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 10% to $31.5 million compared to $28.7 million in the same quarter last year, driven by successful pricing actions and volume gains [44] - Gross profit totaled $7.1 million, representing 22.6% of total revenues, down from $8.6 million or 30.1% in the same year-ago quarter, primarily due to commodity cost increases and construction-related impacts [45][46] - Net income for Q3 2025 was $0.4 million or $0.01 per diluted share, down from $2 million or $0.05 per diluted share in the same year-ago quarter [48] - Adjusted EBITDA for Q3 2025 was $1.7 million, compared to $3.5 million in the same year-ago quarter [48] Business Line Data and Key Metrics Changes - Prepared Foods have become the most important perimeter category for retailers and wholesalers, with 66% of retailers planning to increase their assortment of Prepared Foods [11] - The company is consistently growing its market share in the deli prepared meals segment, which is growing at more than 5%, while Mama's Creations is growing around three times that rate [10] Market Data and Key Metrics Changes - The company has seen significant growth in the West region, with over 47% of sales now occurring west of the Ohio River [26] - The Northeast region experienced a decline of 12.6%, attributed to a focus on pulling back unprofitable sales from a legacy business [88][96] 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 the 4 Cs (cost, controls, culture, and catapult) has been implemented to improve operational efficiency and drive growth [8][13] - The company is exploring M&A opportunities to consolidate in the fragmented Prepared Foods market, supported by a strong balance sheet [53][118] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deli space as grocery stores invest in Grab-and-Go food offerings, driven by inflation pushing consumers towards alternatives [52] - The company anticipates that normalized gross margins will hover in the high 20% range, with long-term goals targeting low 30% margins through strategic CapEx investments and operational improvements [50] Other Important Information - The company has completed significant CapEx investments, including doubling chicken capacity at the Farmingdale facility, which is expected to improve labor efficiencies and reduce costs [36][37] - The company has seen a 75% increase in marketing investment this quarter, reflecting a return to norms and addressing historical underinvestment [30] Q&A Session Summary Question: Expectations for Q4 revenue trends - Management acknowledged traditional Q4 softness but expressed confidence due to recent customer wins and stronger trade programs [56][59] Question: Improvements in commodity pricing and margin impact - Management confirmed that construction-related impacts are behind them and noted slight improvements in chicken pricing, with expectations for better procurement numbers [60][62] Question: Revenue performance drivers and regional performance - Management highlighted balanced portfolio performance across various customers and regions, with the Northeast decline attributed to pulling back unprofitable sales [88][96] Question: Impact of pricing on revenue growth - Pricing accounted for approximately 10% of the revenue growth, with the majority driven by volume [104][106] Question: M&A activity and market multiples - Management indicated a healthy pipeline for M&A opportunities but emphasized a disciplined approach to avoid overpaying [118][120]

Third Quarter Revenues Increase 10% to $31.5 Million; Completion of Strategic CapEx Projects and New Senior Hires Position Company for Robust Revenue and Margin Growth EAST RUTHERFORD, NJ, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Mama’s Creations, Inc. (NASDAQ: MAMA), a leading national marketer and manufacturer of fresh deli prepared foods, has reported its financial results for the third quarter ended October 31, 2024. Financial Summary:   Three Months Ended October 31,$ in millions 2024  2023  % Change Revenu ...

Revenue Performance - Net sales increased by approximately 10% to $31.5 million for the three months ended October 31, 2024, compared to $28.6 million for the same period in 2023[164] - Net sales for the nine months ended October 31, 2024, increased by approximately 17.2% to $89.7 million from $76.6 million in the prior year[172] Cost and Profitability - Costs of sales rose by approximately 22% to $24.4 million, representing 77% of net sales for the three months ended October 31, 2024, up from 70% in the prior year[165] - Gross profit margin decreased to 23% for the three months ended October 31, 2024, down from 30% in the same period of 2023[166] - Costs of sales for the nine months ended October 31, 2024, increased by approximately 26% to $68.3 million, representing 76% of net sales[173] - Gross profit margin for the nine months ended October 31, 2024, was 24%, down from 29% in the same period of 2023[175] Operating Expenses - Operating expenses increased by approximately $622 thousand to $6.6 million for the three months ended October 31, 2024, primarily due to higher advertising and payroll expenses[168] - Operating expenses increased by 19% to $18.5 million for the nine months ended October 31, 2024, largely due to a one-time legal settlement and increased advertising expenses[176] Net Income - Net income for the three months ended October 31, 2024, was approximately $0.4 million, a decrease from $2.0 million in the same period of 2023[163] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended October 31, 2024, was approximately $6.0 million, compared to $4.9 million in the same period of 2023[185] - Net cash used in financing activities for the nine months ended October 31, 2023 was approximately $2.3 million, including $1.3 million for Term Loan payments, $0.9 million for line of credit payments, and $0.2 million for finance leases[189] - The company believes its cash resources will be sufficient to meet cash requirements for at least the next twelve months, but may require additional funding for growth[190] - There is no assurance that additional financing will be available on acceptable terms, which may necessitate a change in growth strategy[191]