Bridgford Foods (BRID) - 2024 Q4 - Annual Report

Financial Performance - Net sales in fiscal year 2024 decreased by $27,991 (11.1%) compared to the prior fiscal year, driven by a decline in unit sales volume and promotional activity[83]. - Net sales in the Frozen Food Products segment increased by$ 770 (1.3%) in fiscal year 2024, primarily due to higher selling prices per pound despite a decrease in unit sales volume[84]. - Net sales in the Snack Food Products segment decreased by $28,761 (14.8%) in fiscal year 2024, attributed to lower sales through the direct-store-delivery distribution channel and inflationary pressures on consumer spending[85]. - The company recorded a net loss of$ 3,381 for the fiscal year 2024, compared to a net income of $3,474 in the prior fiscal year[99]. Cost and Expenses - Cost of products sold decreased by$ 13,962 (7.7%) during fiscal year 2024, while gross margin decreased from 28.0% to 25.2%[87]. - Selling, general and administrative expenses decreased by $3,118 (4.8%) in fiscal year 2024, primarily due to lower wages and bonuses related to reduced sales[91]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash used of$ 497 in fiscal year 2024, a decrease of $4,482 compared to the previous year[99]. - The cash conversion cycle was 84 days for the fiscal year 2024, slightly up from 83 days in the prior fiscal year[100]. - The company maintained a revolving line of credit with Wells Fargo Bank, allowing borrowing up to$ 7,500 until November 30, 2025, with $1,084 of current debt on equipment loans as of November 1, 2024[96]. Investment Activities - Net cash used in investing activities for the 52 weeks ended November 1, 2024, was$ (3,833) million, compared to $(2,376) million for the 53 weeks ended November 3, 2023[102]. - Additions to property, plant, and equipment totaled$ 3,902 million for the 52 weeks ended November 1, 2024, up from $2,603 million for the 53 weeks ended November 3, 2023[103]. - The company incurred$ 755 million in expenditures related to projects in process for production facilities in Chicago and Statesville during the 52 weeks ended November 1, 2024[104]. Financing Activities - Net cash used in financing activities was $(1,148) million for the 52 weeks ended November 1, 2024, compared to$ (2,234) million for the 53 weeks ended November 3, 2023[105]. - Total long-term debt decreased to $1,702 million as of November 1, 2024, from$ 2,786 million as of November 3, 2023[109]. - The company has a revolving credit facility allowing borrowing up to $7,500 million, with an interest rate based on the daily simple secured overnight financing rate plus 2.0%[110]. - As of November 1, 2024, the company was in compliance with all covenants under the Wells Fargo Loan Agreements[112]. Economic Outlook - The effective tax rate increased to 27.9% in fiscal year 2024 from 22.7% in fiscal year 2023, influenced by various non-deductible items[95]. - The company expects inflation trends to continue impacting operating results through fiscal year 2025, affecting costs for labor, freight, and materials[113]. - The company has no off-balance sheet arrangements as of November 1, 2024[114]. - There were no other debt or contractual obligations reported as of November 1, 2024[115].