Bridgford Foods (US:BRID)2023-01-25 16:00Financial Performance - Net sales for fiscal year 2022 increased by $25,468 (10.6%) compared to the prior fiscal year, driven by an 8.5% increase in selling price per pound and a 3.0% increase in unit sales volume [388]. - In the Frozen Food Products segment, net sales increased by $14,744 (35.5%), primarily due to a 28.1% increase in unit sales volume and an 8.5% increase in selling price per pound [389]. - The Snack Food Products segment saw net sales increase by $10,724 (5.4%), attributed to an 8.5% increase in selling price per pound, despite a 2.6% decrease in unit sales volume [390]. - Cost of products sold increased by $4,791 (2.5%), with gross margin improving from 21.4% to 27.1% during fiscal year 2022 [393]. - SG&A expenses increased by $5,107 (8.5%) in fiscal year 2022, with significant increases in wages and bonus expenses, fuel expenses, and product advertising [399]. - The gross margin for the Frozen Food Products segment decreased from 28.8% to 26.9%, while the Snack Food Products segment's gross margin increased from 19.8% to 27.1% [395][396]. Tax and Compliance - The effective tax rate for fiscal year 2022 was 26.6%, up from 24.4% in fiscal year 2021, with a tax provision of $16,341 recorded [405]. - The company was in compliance with all covenants under the Wells Fargo Loan Agreements as of October 28, 2022 [424]. Liquidity and Cash Flow - The company anticipates maintaining sufficient liquidity to operate for at least the next twelve months, despite potential challenges in increasing product prices due to consumer sensitivity [407]. - For the fifty-two weeks ended October 28, 2022, net cash used in operating activities was $7,830, an increase of $1,838 compared to the previous year [409]. - The cash conversion cycle increased to 83 days for the fifty-two weeks ended October 28, 2022, compared to 74 days for the previous year [410]. - Net cash provided by investing activities was $56,345 for the fifty-two weeks ended October 28, 2022, significantly up from a net cash used of $6,469 in the previous year [412]. - The company reported proceeds from the sale of property, plant, and equipment of $60,115 for the fifty-two weeks ended October 28, 2022 [412]. - Total debt as of October 28, 2022, was $4,913, down from $37,069 as of October 29, 2021 [417]. Future Outlook and Risks - Management expects inflation trends to continue impacting operating results through fiscal year 2023 [426]. - Expected future liability related to the construction of the new Chicago processing facility is approximately $125 as of October 28, 2022 [428]. Accounting and Disclosure - The company has disclosed its policies on credit risk, revenue recognition, and the recoverability of long-lived assets in the Consolidated Financial Statements [432]. - Various accounting standard-setting bodies have been active in issuing statements and interpretations that may impact the company's financial position [433]. - The evaluation of disclosure controls indicates potential limitations in achieving stated goals under future conditions, which may lead to undetected misstatements [431]. - The company has no off-balance sheet arrangements as of October 28, 2022 [427]. Pension and Returns - The company did not contribute towards its defined benefit pension plan during fiscal years 2021 and 2022 [411]. - The company recorded a decrease in returns activity compared to the previous fiscal year, indicating improved sales performance and customer satisfaction [389].