TOFUTTI Announces 2010 Results

TOFUTTI BRANDS TOF issued its results for the fiscal year ended January 1, 2011 today. Net sales for the fiscal year ended January 1, 2011 were $17,713,000, a decrease of $904,000, or 5%, from the Company's net sales of $18,617,000, for the fiscal year ended January 2, 2010. The reduction in sales was caused by the continuing difficult general economic conditions and the discontinuance of a number of slower moving, less profitable products during 2010. Although the discontinuance of these slower moving items contributed to reduced sales in fiscal 2010, it also contributed to an improvement in the gross profit percentage for the year. Tofutti's gross profit percentage increased slightly to 31% in fiscal 2010 from 30% in fiscal 2009. For fiscal 2010, the Company's income before income taxes decreased to $802,000 from $835,000 in fiscal 2009, primarily as a result of lower revenues and gross profit, which was partially offset by a reduction in operating expenses. Net income for fiscal 2010 decreased to $462,000 ($0.09 per share) compared to $506,000 ($0.10 per share) for fiscal 2009, primarily as a result of a reduction in operating profit and an increase in income taxes. Income taxes for the 2010 fiscal period were $340,000 compared to $329,000 in fiscal 2009, and the Company's income tax rate was 42% for the 2010 year compared to 39% in the 2009 fiscal year.