Bridgford Foods (US:BRID)2021-05-27 16:00Sales Performance - For the twenty-four weeks ended April 16, 2021, the Company reported an increase in sales due to strong consumer demand for food items during the COVID-19 pandemic [28]. - Total sales for the twelve weeks ended April 16, 2021, were $50,477, an increase from $42,999 for the same period in 2020, representing a growth of approximately 17.5% [65][70]. - For the twenty-four weeks ended April 16, 2021, total sales reached $105,170, up from $89,641 for the same period in 2020, marking an increase of about 17.3% [66][73]. Financial Position - As of April 16, 2021, the Company had total inventories of $31,106,000, an increase from $29,296,000 as of October 30, 2020, with finished goods valued at $19,895,000 [51]. - Total assets as of April 16, 2021, were $152,579, an increase from $144,217 as of April 17, 2020, representing a growth of approximately 5.5% [65][70]. - The company reported a total of $1,317 in the present value of future minimum lease payments as of April 16, 2021 [57][58]. Revenue and Expenses - The Company’s revenue recognition follows ASC Topic 606, with revenue recognized upon the transfer of control to customers [39]. - The gross margin for the twelve weeks ended April 16, 2021, was $10,587, compared to $12,910 for the same period in 2020, indicating a decrease of about 17.9% [65][70]. - Operating loss for the twelve weeks ended April 16, 2021, was $(2,311), compared to an operating income of $220 for the same period in 2020, reflecting a significant decline [65][70]. - SG&A expenses for the twelve weeks ended April 16, 2021, totaled $12,906, compared to $12,694 for the same period in 2020, showing a slight increase of about 1.7% [65][70]. - The cost of products sold for the twenty-four weeks ended April 16, 2021, was $80,032, compared to $61,677 for the same period in 2020, indicating an increase of approximately 29.6% [66][73]. Debt and Credit - The line of credit with Wells Fargo Bank was increased to $15,000,000, with $2,000,000 borrowed under this line as of April 16, 2021 [48]. - The company maintains a line of credit with Wells Fargo Bank, N.A. for up to $15,000 million, with an outstanding balance of $2,000 million as of April 16, 2021 [81]. - Total long-term notes payable for equipment amounted to $22,414 million as of April 16, 2021, down from $24,692 million in October 2020 [84]. - The company borrowed a total of $33,450 million under various equipment loan agreements with Wells Fargo Bank, N.A. [83]. - The Company has not experienced any losses in cash accounts held with financial institutions, indicating no significant credit risk [31]. Taxation - The company's effective tax rate for Q2 fiscal 2021 was 19.7%, significantly improved from 164.1% in Q2 fiscal 2020 [79]. - The company has a federal net operating loss carry forward of approximately $2,818 million and state net operating loss carry forwards of approximately $4,233 million as of April 16, 2021 [79]. - The company generated a taxable loss of $24,505 million for the tax year 2019, which can be carried back to offset taxable income from previous years [77]. - The CARES Act allows the company to carry back net operating losses incurred in certain tax years to generate refunds of previously paid income taxes [77]. - The company has filed a federal income tax return for tax year 2018, carrying back a taxable loss of $9,900 million to tax years 2013, 2014, and 2015 [77]. - The company is subject to income tax audits for fiscal years 2016 through 2019 in various jurisdictions [80]. Future Outlook - The Company expects future business impacts from the pandemic, including risks related to supply chain constraints and market volatility [28]. - The Company maintains an allowance for doubtful accounts, which is reviewed quarterly for adequacy [31]. - The Company’s accounts receivable from Wal-Mart accounted for 37.6% of consolidated sales as of April 16, 2021, slightly down from 37.7% in the prior year [36]. - The estimated incremental interest rate for the Hogshed lease was approximately 1.6% [56]. - The company has two reportable operating segments: Frozen Food Products and Snack Food Products, with total sales of $50,477 for the twelve weeks ended April 16, 2021 [62][65].