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Bridgford Foods (BRID) - 2023 Q2 - Quarterly Report
BRIDBridgford Foods (BRID)2023-05-25 16:00

Financial Performance - The net income for the twelve weeks ended April 14, 2023, was 1,081,adecreasefrom1,081, a decrease from 1,112 for the same period in 2022, reflecting a decline of about 2.8%[244] - The provision for income taxes for the twelve weeks ended April 14, 2023, was 562,comparedto562, compared to 457 for the same period in 2022, representing an increase of about 22.9%[243] Sales and Promotions - For the twelve weeks ended April 14, 2023, promotional allowances deducted from sales were 4,520,comparedto4,520, compared to 3,862 for the same period in 2022, representing an increase of approximately 17%[69] Working Capital and Credit - As of April 14, 2023, the company had 67,920innetworkingcapitaland67,920 in net working capital and 15,000 available under its revolving line of credit with Wells Fargo Bank, N.A.[243] - The company borrowed a total of 18,000underitsrevolvinglineofcredit,whichwaspaidoffonJune7,2022,usingproceedsfromthesaleofrealproperty[243]CashFlowandCycle−Thecashconversioncycleincreasedfrom72daysforthetwenty−fourweeksendedApril15,2022,to80daysforthetwenty−fourweeksendedApril14,2023,primarilyduetohigherdayssalesoutstanding[245]CapitalExpenditures−Thecompanyrecordedatotalof18,000 under its revolving line of credit, which was paid off on June 7, 2022, using proceeds from the sale of real property[243] Cash Flow and Cycle - The cash conversion cycle increased from 72 days for the twenty-four weeks ended April 15, 2022, to 80 days for the twenty-four weeks ended April 14, 2023, primarily due to higher days sales outstanding[245] Capital Expenditures - The company recorded a total of 1,132 in additions to property, plant, and equipment for the twelve weeks ended April 14, 2023, compared to 629forthesameperiodin2022,indicatinganincreaseofapproximately80629 for the same period in 2022, indicating an increase of approximately 80%[246] Compliance and Internal Control - As of April 14, 2023, the company was in violation of the net income after taxes covenant, which was subsequently waived[250] - The company has implemented remediation steps to improve internal control over financial reporting, expecting to resolve the material weakness prior to the end of fiscal year 2023[233] Real Estate Transactions - The company received approximately 60,000 in gross proceeds from the sale of real property located at 170 N. Green Street in Chicago on June 1, 2022[243]