Financial Performance - For the twelve weeks ended April 19, 2024, total sales amounted to 47,314,adecreasefrom55,510 for the same period in 2023, representing a decline of approximately 14.8%[74] - The gross margin for the twelve weeks ended April 19, 2024, was 10,726,downfrom15,457 in the prior year, indicating a decrease of about 30.5%[74] - Operating loss for the twelve weeks ended April 19, 2024, was (3,246),comparedtoanoperatingincomeof284 for the same period in 2023, reflecting a significant decline in profitability[74] - For the twenty-four weeks ended April 19, 2024, total sales were 102,156,adecreasefrom117,132 in the same period of 2023, representing a decline of approximately 12.8%[74] - The cost of products sold for the twenty-four weeks ended April 19, 2024, was 75,392,comparedto84,609 in the prior year, indicating a decrease of about 10.9%[74] - Total Snack Food Products revenue for the twenty-four weeks ended April 19, 2024, was 74,852,anincreasefrom43,606 for the same period in 2023, representing a growth of 71.5%[76] - Total Frozen Food Products revenue for the twenty-four weeks ended April 19, 2024, was 27,304,upfrom11,904 in the prior year, indicating a growth of 128.5%[77] - Net sales in the Snack Food Products segment decreased by 15,977(17.674,852 for the twenty-four weeks ended April 19, 2024, compared to the same period in fiscal year 2023[180] - Selling, General and Administrative (SG&A) expenses decreased by 1,734(5.629,001 in the twenty-four-week period ended April 19, 2024, compared to the same period in the prior fiscal year[183] - Cost of products sold in the Snack Food Products segment decreased by 8,776(13.655,610 in the first twenty-four weeks of fiscal year 2024 compared to the same period in fiscal year 2023[182] Assets and Liabilities - Total assets as of April 19, 2024, were 164,393,comparedto170,859 as of April 14, 2023, showing a decrease of about 3.8%[74] - Total long-term debt as of April 19, 2024, was 2,340million,downfrom2,786 million as of November 3, 2023[192] - Total liabilities divided by tangible net worth was not greater than 2.0 to 1.0 at each fiscal quarter end, indicating compliance with financial covenants[192] Tax and Valuation - The effective tax rate for the second quarter of fiscal year 2024 was 29.1%, down from 34.2% in the same quarter of fiscal year 2023, reflecting a tax benefit of 367[107]−TheeffectivetaxrateforthetwelveweeksendedApril19,2024,was27.799 retained for California net operating losses, with state loss carryforwards of approximately 5,000expiringthrough2040[79]CashFlowandLiquidity−Cashprovidedbyoperatingactivitieswas1,002 million for the twenty-four weeks ended April 19, 2024, a decrease of 295millioncomparedtothesameperiodinfiscalyear2023[188]−Thecompanyanticipatesmaintainingsufficientliquiditytooperateitsbusinessforatleastthenexttwelvemonthsdespiteinflationarypressuresandcommoditycostfluctuations[186]OperationalSegments−Thecompanyhastworeportableoperatingsegments:FrozenFoodProductsandSnackFoodProducts,withsalesof27,304 and 74,852respectivelyforthetwenty−fourweeksendedApril19,2024[72]−Thecompanyevaluatessegmentperformancebasedonrevenuesandoperatingincome,withselling,generalandadministrativeexpensesallocatedbasedonrevenues[96]LeaseandFinancing−TheestimatedincrementalinterestratefortheleasewithHogshedVentures,LLC,wasapproximately5.493,052[70] - The company entered into a revolving line of credit agreement allowing borrowing up to 7,500ataninterestratebasedonthedailysimplesecuredovernightfinancingrateplus2.0385 for inventory, down from 513asofNovember3,2023[91]−Thecompanyincreaseditsnetrealizablevaluereserveby60 during the twenty-four weeks ended April 19, 2024, due to higher meat commodity costs and lower gross margins[182] Compliance and Controls - The company was in compliance with all covenants under the Wells Fargo Loan Agreements as of April 19, 2024[82] - No changes in internal controls over financial reporting during the fiscal quarter ended April 19, 2024, that materially affected internal controls[199]
