MamaMancini's Holdings, Inc.

Hello, ladies and gentlemen. Thank you for standing by. Welcome to MonoLancini's fourth quarter fiscal 2022 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press the star key followed by one on your touchtone phone. If you would like to withdraw your question, please press the star followed by two. If you're using speaker equipment, please lift a handset before making your selections. This conference call is being recorded today, May 31, 2022, and the earnings press release accompanying this conference call was issued at Market Open today. On our call today is Walmart Mancini's Chairman and CEO, Carl Wolf, President and COO, Matthew Brown, and CFO, Larry Morgenstein. Before we get started, I'll read a disclaimer about forward-looking statements. This conference call may contain, in addition to historical information, forward-looking statements within the meeting of federal securities laws regarding Marlon Mancini's. Forward-looking statements include, but are not limited to, statements expressed the company's intentions, beliefs, expectations, strategies, predictions, or any other statements relating to its future earnings, activities, events, or conditions. These statements are based on current expectations, estimates, and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in this report and in other documents the company files with the U.S. Securities and Exchange Commission. In addition, such statements can be affected by risks and uncertainties related to factors beyond the company's control. Matters that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of key management personnel, availability of capital, and other major litigation regarding the company. In addition, this conference call contains time-sensitive information that reflects management's best analysis only as of the date and time of this conference call. The company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events information, or circumstances that arise after the date of this conference call. At this time, I'd like to turn our conference over to Carl Wolf, the company's chairman and chief executive officer. Carl, the floor is yours.

Thank you, operator, and thank you, everyone, for joining us today. I'd like to welcome you to our fourth quarter fiscal 2022 financials results conference call. The fourth quarter was highlighted by the acquisition of Premier Gourmet Food Manufacturer's T&L, and Olive Branch, a highly symbiotic pairing with our distribution network. We expect to generate at least 35 million in sales in fiscal 2023 from the two acquisitions. The acquisition significantly expanded our existing business in the rapidly growing fresh prepared food segment, where we believe we can achieve a substantial increase in sales in EBITDA by leveraging established national distribution partnerships. This was quickly demonstrated during the quarter with the addition of T&L products into existing relationships at Sam's Club. Integration of the acquisition has proceeded rapidly, bringing with it over 3,000 new locations for the combined company and over 10,000 spots on retailer shelves. Given our ongoing growth and the addition of revenue from the acquisitions, we believe Mama Mancini's will generate substantially over 20 million sales in the first quarter of fiscal year 2023 and approach 100 million sales run rate over the next year. This is possible through pushing warmer SQs per relationship and driving stronger sales per location with complementary products with minimal overlap. Looking ahead to continue this momentum, we see attractive multiples in the food product space and will evaluate additional acquisition opportunities that are immediately accretive and have complementary products that are good candidates for our national distribution network. Our continued new product innovations paid off in April as our first ever QV sale of the original meatballs in a cup product promptly sold out and received the notable order backlog, which we filled in the weeks following the QVC live presentation. The high protein content of 16 grams of very modest calories are attractive attributes to health-conscious consumers. This product has the potential to efficiently service the existing convenience store, supermarket, and university food service opportunities. On the margin front, we are starting to more rapidly pass along price increases to our customers with minimal lead time, which should enhance margins going forward. This margin compression compared with $748,000 in acquisition expenses and $276,000 in inventory write-offs and increased expense accruals is what drove our temporary reduction in profitability in the fourth quarter. Our growing sales are a result of our high quality and innovative new products and our effective multi-pronged marketing efforts. These have historically included radio campaigns, social media efforts, and continue work with QVC. I'd like to touch on a few of these now. On the social media side of things, we continue to maintain a robust reach, engaging new customers and encouraging repeat purchases. To date, we have over 500,000 likes and continue to geo-target likely consumers who live within a five-mile radius of specific retail locations. Our QVC efforts have seen record successes as well, with Dan Mancini live pitches driving impressive sales on their platform. As many of you are aware, we were winners for three QVC Consumer Choice Awards, Best Meatball, Best Sauce, and most of all, Most Trusted Brand. Perhaps most notably, Amama Mancini's product was named the coveted Today's Special Value Deal on QVC on December 8th, securing approximately five hours of airtime throughout the day, which drove expected sales of 2 million spread throughout fiscal 2022 and 23, inclusive of auto delivery customers over the year. QVC is North America's largest direct-to-consumer marketer and is available over 100 million homes throughout the US. In summary, the last several months were a time of foundation building for the year ahead from which our vision of Mama Mancini's as a national platform company will emerge. I'd now like to turn the call over to Larry Morgenstein, our Chief Financial Officer, to walk through some key financial details in the fourth quarter of 2022. Larry?

Thank you, Carl. Revenue for the fourth quarter of fiscal 2022 increased 38.5% to a record $13.9 million compared to $10 million in the same year-ago quarter. Revenue for fiscal 2022 increased 15.4% to a record $47.1 million compared to $40.8 million in fiscal 2021. The revenue increase for the year was a result of establishing a greater balance of major customer volume attributed to growth in sales across the strong portfolio of both national and large regional grocery chains and club stores. Gross profit decreased 26.8% to $2.4 million or 17.4% of total revenue. in the fourth quarter of fiscal 2022 compared to 3.3 million or 32.9% of total revenue in the same year ago quarter. Gross profit decreased 6.3% to 11.9 million or 25.2% of total revenue in fiscal 2022 compared to 12.7 million or 31.1% of total revenue in fiscal 2021. The decrease in gross profit in the fourth quarter is primarily due to increases in raw material, packaging, and inbound freight costs, which outpaced sales price increases during fiscal 2022 Q3 and Q4. Operating expenses totaled $3.8 million in the fourth quarter of fiscal 2022, compared to $2.4 million in the same year-ago quarter. As a percentage of sales, operating expenses increased in the fourth quarter of 2022 to 27.2% from 23.8%. Operating expenses totaled $11.8 million in fiscal 2022 compared to $9.3 million in fiscal 2021 as a percentage of sales. Operating expenses increased in fiscal 2022 at 25% of sales as compared to to 22.7% in fiscal 2021. Operating expenses in the fourth quarter increased mainly due to transportation rate increases and fuel surcharges, 0.75 million in acquisition-related expenses, 0.2 million in increased accruals for freight and marketing expenses, as well as costs associated with uplisting to the NASDAQ. Net loss for the fourth quarter of fiscal 2022 was 1.3 million, or $0.04 per diluted share as compared to a net income of $1.7 million, or $0.05 per diluted share on the same year-ago quarter. Net loss for fiscal 2022 was $0.04 million, or $0.01 per diluted share as compared to net income of $4.1 million, or $0.12 per diluted share in fiscal 2021. The decrease in net income was attributed to lower gross margin, higher freight and shipping expenses, acquisition-related expenses as well as increases in marketing accruals and tax expenses compared to a tax benefit of $0.7 million in the prior period. Cash and cash equivalents as of January 31, 2022 was $0.9 million as compared to $3.2 million as of January 31, 2021. The difference in cash balance is chiefly due to substantial use of cash to fund the acquisition made in December 2021. We do not anticipate raising additional equity this time and are confident the cash on hand combined with the cash generated from operations each quarter will be sufficient to sustain our core operations as we grow. This completes my comments. I now like to turn over the call to Matt Brown, our President and Chief Operating Officer, for an operations update. Matt?