MamaMancini's Holdings, Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Mama Mancini's first quarter fiscal 2023 earnings conference call. During today's presentation, all participants will be in a listen-only mode. Following the presentation, the conference will be opened for questions. If you have a question, please press the star followed by the one on your touchtone phone. If you would like to withdraw your question, please press the star followed by the 2. If you're using speaker equipment, please lift the handset before making your selections. This conference is being recorded today, June 15, 2022, and the earnings press release accompanying this conference call was issued earlier this morning. On our call today is Mama 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 meaning of federal securities laws regarding Mama Mancini's. Forward-looking statements include, but are not limited to, statements that express 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 which the company files with the U.S. Securities and Exchange Commission. In addition, such statements could 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 any major litigation regarding the company. This call also includes the following GAAP measure, adjusted EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with GAAP. In addition, the company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to and not as a substitute for or superior to measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, please see the reconciliation table shown in the earnings press release that Cross the Wire at Market opened today. 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. If you require operator assistance, please press star then zero on your touchtone phone. At this time, I'd like to turn the call 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 first quarter 2023 financial results conference call. Since our last call was a few weeks ago, we are limiting our comments today. The first quarter of fiscal 2023 saw record first quarter revenues for Mama Mancini's reinforced by our recent acquisitions and bringing us significantly closer to our goal of 100 million annualized sales run rate by year end. As shared in our fourth quarter fiscal 2022 earnings call a few weeks ago, We have a strong growing preference in the fresh prepared food segment. To support these initiatives, we are focusing on product innovation based on customer feedback, creating promising favorites such as our new original meatballs in a cup product, which quickly sold out in its first ever QVC showing to better meet our customers' multifaceted needs. This product has the potential to efficiently service the exciting convenience store, supermarket, and university food service opportunities. On the financial front, with non-recurring acquisition related expenses largely behind us, we return to profitability and are beginning to enhance margins by rapidly passing along price increases to our customers. From an industry perspective, this phenomenon is new and unique to the inflationary environment we find ourselves in. but it should serve to fortify our margin profile going forward, regardless of future commodity cost increases. In addition, as commodity costs normalize and our input costs come down, we expect to further enhance long-term margins through the defense of our recent price increases. 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 continued work with QVC. I'd like to touch on a few of these now. As you already know that we often hit 500,000 plus likes on our social media and some campaigns have several million views. Looking ahead to continue this momentum, We continue to see attractive multiples in the food product space and will evaluate additional acquisition opportunities that are immediately accreted and have complimentary products that are good candidates for our national distribution network. 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 now would like to turn the call over to Larry Morgenstein, our Chief Financial Officer, to walk through some key financial details from the first quarter of 2023. Larry?

Thank you, Carl. Revenue for the first quarter of fiscal 2023 increased 111.7% to a record $21.8 million as compared to $10.3 million in the same year-ago quarter. The revenue increase for the quarter was primarily a result of the first quarter of from the December 2021 acquisition of T&L Created Solids, Inc. and our branch, LLC. Gross profits increased to $3.9 million, or 17.7% of total revenues in the first quarter of fiscal 2023, as compared to $3.3 million, or 32.4% of total revenue in the same year-ago quarter. The margin compression was caused by inflation of raw materials packaging, and freight costs, as well as lower margins in the T&L Creative Salads and Howard Branch LLC business lines, partially offset by the lower overhead of the acquired businesses. Management believes the balance between inflated raw material costs and the company's price increases will normalize in the second quarter, returning gross profits to its historical range. Operating expenses totaled $3.6 million in the first quarter of fiscal 2023, as compared to $2.5 million in the same year-ago quarter, as a percentage of sales operating expenses totaled 16.5% in the first quarter of fiscal 2023, as compared to 24.2% in the same year-ago quarter. Operating expenses in the first quarter increased mainly due to transportation rate increases, fuel surcharges, and acquisition-related expenses. Net income for the first quarter of fiscal 2023 totaled $0.1 million or $0 cents per share as compared to a net income of $0.6 million or $0.02 cents per diluted share in the same year-ago quarter. Adjusted EBITDA, a non-GAAP term, totaled $0.7 million for the first quarter of 2023 as compared to $1.1 million in the same year-ago quarter. Cash and cash equivalents as of April 30, 2022, was 0.9 million as compared to 0.9 million at January 31, 2022. This completes my comments. I would like to turn the call over to Matt Brown, our President and Chief Operating Officer, for an operations update. Matt?