Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 108

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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12, 2024 had credit
losses related to the bankruptcy filing of one of our customers, Big Lots, in the amount of $364, which did not recur. Healthcare costs
have increased due to unfavorable claim trends. 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 storage unit fees for the direct store delivery route system and higher wages
and bonus partially offset by lower outside consulting fees.

Selling,
General and Administrative Expenses-Frozen Food Products Segment

SG&A
expenses in the Frozen Food Products segment decreased by $232 (7.6%) to $2,831 in the third twelve-week period of fiscal year 2025 compared
to the same twelve-week period in the prior fiscal year. The overall decrease in SG&A expenses was due to a decrease in product advertising,
including broker commission, partially offset by higher healthcare costs and hourly wages.

Selling,
General and Administrative Expenses-Snack Food Products Segment

SG&A
expenses in the Snack Food Products segment increased by $395 (3.5%) to $11,777 in the third twelve-week period of fiscal year 2025 compared
to the same twelve-week period in the prior fiscal year. Most of the increase was due to higher wages and bonuses on increased sales
volume and higher healthcare expenses.

Income
Taxes-Consolidated

Income
tax for the twelve weeks ended July 11, 2025, and July 12, 2024, respectively, was as follows:

    July
    11, 2025  
    July
    12, 2024 
  
    Benefit
    on income taxes 
    $(915) 
    $(752)

    Effective tax rate 
     35.8% 
     29.8%

We
recorded a benefit on income taxes of $915 for the twelve-week period ended July 11, 2025, and a benefit on income taxes of $752 for
the twelve-week period ended July 12, 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 rate of approximately 26.4% due to non-deductible
meals and entertainment, non-taxable gains and losses on life insurance policies, and state income taxes.

Results
of Operations for