- 2013 Record Revenue of $33.3 million,
up 15%
- Investments to Facilitate Future Growth
and Support New Plant
Hot Mama’s Foods, Inc. (OTCQB:HOTF), a leading specialty food
manufacturer, co-packer and private label resource for innovative
organic, all-natural, and gourmet foods, has announced its
financial results for the 2013 fiscal year. A Form 10-K was filed
with the Securities and Exchange Commission on April 8, 2014.
Commenting on the financial results, Matthew Morse, Chief
Executive Officer stated, “2013 was a year with several key
accomplishments and investments to support future growth. We
successfully tapped the equity capital markets, acquired a new
state-of-the art production facility, added several new products
and expanded the executive management team.”
Mr. Morse further commented, “Revenue for 2013 was a record high
$33.3 million, although profitability was impacted as we made the
necessary investments to facilitate future growth. Our focus on
innovation and high quality resonates with our customers and I am
pleased that we added several new customers and products to our mix
last year. Our new plant, with the ability to produce several
categories of fresh food products, provides even more opportunities
for us to add new products and continue to drive growth for the
company. As we look forward to 2014 and beyond, we feel very good
about our ability to achieve sustainable top line and bottom line
growth.”
2013 Financial Overview. For the year ended December 31,
2013, Hot Mama’s Foods’ revenue increased 15.2% to $33.3 million
compared to $28.9 million in 2012. Sales continue to be driven by
Hummus products which grew 17.3% in 2013 and accounted for 71% of
revenue, up from 68% in 2012. Salsa sales represented 12% of total
company revenue in both 2013 and 2012. Higher volumes reflect
effective marketing campaigns as well as increased customer demand
for Hot Mama’s higher quality products. Looking ahead, revenue
growth will be driven by additional product offerings as well as
increased sales to existing customers.
Gross profit of $4.9 million was flat with the prior year, due
primarily to higher raw material and labor costs. Gross profit as a
percent of sales was 14.9% in 2013 compared to 17.2% in 2012.
Ongoing productivity enhancements at the plant level along with the
new state-of-the art production facility should contribute to an
improved cost structure.
Selling General & Administrative (SG&A) costs, which
includes stock-based compensation, were $6.9 million, up 61.8% from
$4.3 million in 2012, primarily reflecting one time grants of stock
related to the company’s September 2013 merger. Excluding the
stock-based compensation expense, SG&A increased 22.7% in 2013,
with the increase primarily attributable to an increase in payroll
as the company expanded its executive and leadership ranks, as well
as costs associated with the aforementioned merger. The Company
also incurred a restructuring charge of $79,000 in 2013 related to
an operational review to improve efficiency and reduce overhead. As
a result of all these actions, profitability was impacted as the
company made the necessary investments to support future
growth.
The Company reported a per share loss of $0.07 in 2013, compared
to net income per share of $0.02 in 2012. Stock-based compensation
expense and other one-time costs associated with the merger
amounted to approximately $0.06/share in 2013.
SUBSEQUENT EVENT
In early 2014, the company began production at its new 120,000
square foot facility in Wheeling, IL. This additional plant was
needed to fulfill existing business, support expected demand as
well as expand production capabilities. This plant with state of
the art equipment will enable the company to produce a wider range
of fresh food products. Additionally, the Springfield, MA plant is
being re-tooled to provide production of an even greater
diversified portfolio to include sauces, butters, fresh and frozen
entrees and sides and other specialty food products.
ABOUT HOT MAMA’S FOODS
Hot Mama's Foods is a leading specialty food manufacturer,
co-packer and private label resource for innovative organic,
all-natural, and gourmet foods. The Company has proven expertise in
developing and manufacturing top quality salsas, sauces, pesto,
hummus, salads, dips, prepared deli salads, and many other gourmet
foods. Hot Mama’s Foods is one of the largest producers of hummus
and salsa in the United States. The Company’s products are USDA
Certified, Certified Organic, and independently audited. Hot Mama’s
provides versatile, highly time-sensitive services to discerning
food retailers, foodservice customers and food brokers nationwide.
Hot Mama’s Foods also develops, produces and sells fresh salsas,
hummus and other fresh food products under its own label – Hot
Mama’s Foods. The Company has state-of-the-art production
facilities in Springfield, MA and Elk Grove Village, IL.
Hot Mama’s Foods was formed in Wendell, Massachusetts, in 1984,
as a maker of a variety of fresh salsa recipes, distributed
directly to small local retailers by its owner-operator. In 1991,
the Company was purchased from its founder by Matthew Morse and
maintained as a sole-proprietorship until its incorporation on
January 29, 1999 under the name Lansal, Inc. under the laws of the
Commonwealth of Massachusetts.
The Company has experienced rapid growth in recent years. Since
2008, revenue has increased slightly over 100%. Growth has been
driven by increased market penetration, additional product
offerings, and, in part, by promotional and marketing efforts
increasing awareness of the hummus category in particular.
Additional information about the Company can be found at
www.hotmamasfoods.com and at the SEC’s web site www.sec.gov.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements
other than statements of historical facts included in this press
release are forward-looking statements. These statements relate to
future events or to the Company’s future financial performance, and
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. Investors should not
place any undue reliance on forward-looking statements since they
involve known and unknown, uncertainties and other factors which
are, in some cases, beyond the Company’s control which could, and
likely will, materially affect actual results, levels of activity,
performance or achievements. Any forward-looking statement reflects
the Company’s current views with respect to future events and is
subject to these and other risks, uncertainties and assumptions
relating to operations, results of operations, growth strategy and
liquidity. Such risks, uncertainties and other factors, which could
impact the Company and the forward-looking statements contained
herein, are included in the Company’s filings with the Securities
and Exchange Commission. The Company assumes no obligation to
publicly update or revise these forward-looking statements for any
reason, or to update the reasons actual results could differ
materially from those anticipated in these forward-looking
statements, even if new information becomes available in the
future.
HOT MAMA’S FOODS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except share and
per share amounts)
For the years ended December 31, 2013
2012 Net revenues $ 33,322 $ 28,931 Cost of
goods sold 28,365 23,960 Gross profit
4,957 4,971 Operating expenses: Selling, general and
administrative 6,930 4,284 Restructuring charge 79 -
Total operating expenses 7,009 4,284
Income (loss) from operations (2,052 ) 687 Other income
(expense): Interest expense (151 ) (137 ) Gain on sale of fixed
asset 19 - Total other expense (132 )
(137 ) Income (loss) before income taxes (2,184 ) 550
Provision (benefit) for income taxes (775 )
231 Net income (loss) (1,409 ) 319 Net
income (loss) attributable to non-controlling interest (44 )
(33 ) Net income (loss) attributable to Hot Mama’s
Foods, Inc. $ (1,365 ) $ 352 Basic and diluted income (loss)
per common share $ (0.07 ) $ 0.02 Weighted average number of
shares outstanding Basic and diluted 19,467,161
18,512,303
Hot Mama’s Foods, Inc.Matthew Morse, Chairman & CEO,
413-737-6572orSTRATEGIC ADVISOR:Strategic Universal
Advisors, LLCStan Altschuler, President, 212-838-1510
Hot Mamas Foods (GM) (USOTC:HOTF)
Historical Stock Chart
From May 2024 to Jun 2024
Hot Mamas Foods (GM) (USOTC:HOTF)
Historical Stock Chart
From Jun 2023 to Jun 2024