Bridgford Foods (US:BRID)2026-01-28 22:27Financial Performance - Net sales for fiscal year 2025 increased by $7,341 (3.3%) compared to the prior fiscal year, driven by a 3.7% increase in selling price per pound [80]. - The Frozen Food Products segment saw a decrease in net sales by $363 (0.6%), primarily due to a 2.7% decline in unit sales volume [81]. - The Snack Food Products segment experienced an increase in net sales by $7,704 (4.7%), attributed to a 4.2% rise in selling price per pound [84]. - Cost of products sold increased by $19,106 (11.4%), leading to a decrease in gross margin from 25.2% to 19.3% [85]. - SG&A expenses rose by $1,012 (1.6%), with notable increases in outside consulting fees and healthcare costs [89]. - The net loss for the fiscal year 2025 was $13,359, significantly higher than the net loss of $3,381 for fiscal year 2024 [99]. Tax and Liquidity - The effective tax rate for fiscal year 2025 was 26.0%, down from 27.9% in the prior year, reflecting a tax benefit of $4,692 [94]. - Management is exploring options to enhance liquidity, including potential real estate mortgages, to ensure operational stability amid economic uncertainties [98]. - As of October 31, 2025, the company had $1,121 in current debt on equipment loans and $5,500 available under its revolving line of credit [96]. Cash Flow and Investments - For the fifty-two weeks ended October 31, 2025, net cash used in operating activities was $5,692, a decrease of $5,195 compared to the previous year [99]. - The cash conversion cycle improved to 68 days for the fifty-two weeks ended October 31, 2025, down from 84 days in the previous year [100]. - Net cash used in investing activities was $3,392 for the fifty-two weeks ended October 31, 2025, compared to $3,833 in the previous year [102]. - Additions to property, plant, and equipment totaled $3,597 for the fiscal year 2025, including $2,683 related to production facilities [103]. - Net cash used in financing activities was $270 for the fifty-two weeks ended October 31, 2025, a decrease from $1,148 in the previous year [104]. Debt and Financial Obligations - As of October 31, 2025, total debt was $3,794, with long-term debt amounting to $673 [108]. - The company was in violation of the quick ratio covenant as of October 31, 2025, which was subsequently waived by Wells Fargo [110]. - The company has a revolving credit facility allowing borrowing up to $7,500, with an interest rate of 6.77% as of October 31, 2025 [109]. - Aggregate contractual maturities of debt include $3,121 due in fiscal year 2026 and $673 due in fiscal year 2027 [111]. Market Conditions - The company anticipates continued inflationary pressures impacting all operating segments, particularly in labor and material costs [98]. - The company is focusing on increasing product sales volume through private-label arrangements and has implemented multiple price increases to offset higher meat commodity costs [96].