Financial Position - Cash and cash equivalents totaled $2,277 as of April 18, 2025, down from $10,230 as of November 1, 2024[26] - Total assets as of April 18, 2025, amounted to $152,443 million, compared to $164,393 million as of April 19, 2024, indicating a decrease of 7.2%[62] - As of April 18, 2025, total debt is $2,340, with long-term debt amounting to $1,702 after reclassification of $1,239 of equipment note payable to current notes payable[77] Inventory and Sales - Total inventories increased to $40,055 as of April 18, 2025, compared to $33,338 as of November 1, 2024, with finished goods rising to $23,010 from $20,391[47] - The reserve for slow-moving and obsolete inventory was $1,201 as of April 18, 2025, up from $1,115 as of November 1, 2024[47] - The Company reported total sales of $50,639 million for the twelve weeks ended April 18, 2025, compared to $47,314 million for the same period in 2024, representing a year-over-year increase of 4.9%[62] - For the twenty-four weeks ended April 18, 2025, total sales reached $103,184 million, an increase from $102,156 million in the prior year, reflecting a growth of 1%[68] - The Company’s segment for Frozen Food Products generated sales of $27,842 million for the twenty-four weeks ended April 18, 2025, compared to $27,304 million in the same period of 2024, marking a growth of 2%[63] Expenses and Income - Promotional allowances deducted from sales for the twelve weeks ended April 18, 2025, were $4,219, compared to $3,871 for the same period in 2024, reflecting a 9% increase[34] - The gross margin for the twelve weeks ended April 18, 2025, was $11,071 million, up from $10,726 million in the prior year, indicating an increase of 3.2%[62] - Operating income for the twelve weeks ended April 18, 2025, was a loss of $3,187 million, compared to a loss of $3,246 million in the same period of 2024, showing a slight improvement[62] - A price increase on products is planned to offset higher costs for meat commodities, alongside efforts to reduce selling, general, and administrative expenses[80] Tax and Liabilities - The Company’s effective tax rate was 27.2% for the second quarter of fiscal year 2025, down from 28.5% in 2024, reflecting a tax benefit of $1,301 million[71] - The estimated liabilities for self-insured workers' compensation and employee healthcare are subject to inherent uncertainties, which may lead to significant changes in future periods[24] - The company has retained a valuation allowance of $99 million against certain California net operating losses, with state loss carryforwards of approximately $5,000 million expiring through 2040[72] Credit and Compliance - The company has a line of credit with Wells Fargo Bank, N.A. allowing borrowing up to $7,500, with $2,000 borrowed on May 20, 2025[39] - The company has a revolving line of credit facility allowing borrowing up to $7,500 until November 30, 2025, with an interest rate of the daily simple secured overnight financing rate plus 2.0%[74] - The company was in violation of the Fixed Charge Coverage Ratio covenant as of April 18, 2025, which was waived for that fiscal quarter[78] - The company does not anticipate compliance with the Fixed Charge Coverage Ratio covenant during the third and fourth fiscal quarters of 2025, potentially impacting liquidity[80] - The company is discussing potential solutions with Wells Fargo Bank regarding the amendment or renewal of the revolving line of credit[80] Regulatory and Accounting - The company adopted ASU No. 2016-13 on November 4, 2023, which did not have a material impact on the financial statements[42] - The company has been subject to audits for federal income tax returns for fiscal years 2021 through 2023 and state income tax returns for 2020 through 2023[73] - Walmart accounted for 29.7% of sales and 25.2% of accounts receivable as of April 18, 2025, compared to 28.4% and 25.1% respectively in 2024[29] - Dollar General represented 14.1% of sales and 24.2% of accounts receivable as of April 18, 2025, compared to 14.5% and 22.1% in 2024[29]
Bridgford Foods (BRID) - 2025 Q2 - Quarterly Report