Bridgford Foods (US:BRID)2022-06-05 16:00Inventory and Sales Performance - For the twenty-four weeks ended April 15, 2022, total inventories increased to $40,935,000 from $36,771,000 as of October 29, 2021, representing an increase of approximately 5.9%[45] - For the twelve weeks ended April 15, 2022, total sales reached $59.986 million, a significant increase from $50.477 million in the same period in 2021, representing a growth of approximately 18.5%[58] - For the twenty-four weeks ended April 15, 2022, total sales were $124.072 million, compared to $105.170 million for the same period in 2021, representing a growth of approximately 18%[59] - The company reported a total of $47.509 million in sales for Snack Food Products for the twelve weeks ended April 15, 2022, compared to $41.623 million for the same period in 2021, representing an increase of approximately 14.2%[58] Financial Performance - The gross margin for the twelve weeks ended April 15, 2022, was $16.682 million, compared to $10.587 million for the same period in 2021, indicating an increase of about 57.5%[58] - The gross margin for the twenty-four weeks ended April 15, 2022, was $33.075 million, compared to $25.138 million for the same period in 2021, indicating an increase of about 31.6%[59] - Operating income for the twelve weeks ended April 15, 2022, was $1.504 million, up from an operating loss of $2.311 million in the same period in 2021, marking a turnaround of approximately $3.815 million[58] - SG&A expenses for the twelve weeks ended April 15, 2022, totaled $15.178 million, compared to $12.906 million for the same period in 2021, reflecting an increase of approximately 17.6%[58] Assets and Liabilities - Total assets as of April 15, 2022, amounted to $162.323 million, compared to $152.579 million as of April 16, 2021, reflecting an increase of about 6.4%[58] - The company’s total assets for the Frozen Food Products segment were $14.484 million as of April 15, 2022, compared to $10.559 million as of April 16, 2021, reflecting an increase of about 37%[59] - As of April 15, 2022, the total debt was $42,042 million, with long-term debt amounting to $38,596 million[76] - The Company maintains a revolving credit facility with a borrowing limit of $25,000 million, with an interest rate of the bank's prime rate or SOFR plus 2.0%[71] Lease and Asset Management - The company leases warehouse and office facilities through month-to-month rental agreements, opting not to recognize lease assets and liabilities for terms of 12 months or less[47] - The company recorded a right-of-use asset and corresponding liability for warehouse storage space of $494,000 as of April 15, 2022[49] - Future minimum lease payments total $890,000, with present value of future minimum lease payments recorded as $836,000 as of April 15, 2022[51] - Additions to property, plant, and equipment (PP&E) for the twelve weeks ended April 15, 2022, were $249 thousand, compared to $2,607 thousand for the same period in 2021, showing a decrease of about 90.4%[58] Tax and Compliance - The effective tax rate for the second quarter of fiscal 2022 was 32.7%, compared to 23.2% for the same period in 2021[69] - As of April 15, 2022, the Company has a federal NOL carry forward of approximately $10,336 million and state NOL carry forwards of approximately $8,109 million[69] - The Company was in compliance with all covenants under the Wells Fargo Loan Agreements as of April 15, 2022[78] - The main financial covenants include a total liabilities to tangible net worth ratio not greater than 2.5 to 1.0 and a quick ratio not less than 0.85 to 1.0[77] COVID-19 Impact and Risk Management - The company expects future business impacts from the COVID-19 pandemic, with risks related to shifts in demand, market volatility, and supply chain constraints[24] - The company has not experienced any losses in cash accounts and believes it is not exposed to significant credit risk regarding cash and cash equivalents[27] Other Financial Transactions - On June 1, 2022, the Company completed a real estate transaction for $60,000 million, using approximately $19,000 million of the proceeds to repay the bridge loan[80] - The bridge loan had an outstanding principal balance of $18,651 million as of April 15, 2022[76] - The Company prepaid $18,651 million in equipment loans utilizing proceeds from the new bridge loan[73] - The Company received a $575 million payment of income tax receivable from the IRS on May 16, 2022[79]