Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 36

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 the credit losses related to the bankruptcy filing of one of our customers, Big Lots, in the amount of
$364. Healthcare costs have increased due to unfavorable claim trends. Wages and bonus increased due to increases in hourly wages. Outside
storage decreased primarily as a result of the need for less warehouse capacity to store products. Travel expenses increased due to participation
in food shows and in-person business meetings. None of the changes individually or as a group of expenses in “Other SG&A”
were significant enough to merit separate disclosure. The major components comprising the increase of “Other SG&A” expenses
were higher outside consulting fees and office supplies.

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Selling,
General and Administrative Expenses-Frozen Food Products Segment

SG&A
expenses in the Frozen Food Products segment decreased by $95 (1.4%) to $6,571 in the first twenty-four-week period of fiscal year 2025
compared to the same twenty-four-week period in the prior fiscal year. The overall decrease in SG&A expenses was due to lower product
advertising, including broker commissions, partially offset by higher travel expenses.

Selling,
General and Administrative Expenses-Snack Food Products Segment

SG&A
expenses in the Snack Food Products segment increased by $292 (1.3%) to $22,627 in the first twenty-four-week period of fiscal year 2025
compared to the same twenty-four-week period in the prior fiscal year. Most of the increase was due to higher healthcare costs, higher
provision for bad debt and higher travel expense partially offset by lower vehicle repairs.

Income
Taxes-Consolidated

Income
tax for the twenty-four weeks ended April 18, 2025, and April 19, 2024, respectively, was as follows:

    April 18, 2025  
    April 19, 2024 
  
    (Benefit on) provision for income taxes 
    $(1,368) 
    $(367)

    Effective tax rate 
     21.6% 
     27.6%

We
recorded a benefit on income taxes of $1,368 for the twenty-four-week period ended April 18, 2025, and a benefit on income taxes of
$367 for the twenty-four-week period ended April 19, 2024, related to federal and state taxes, based on the Company’s expected
annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory