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Tattooed Chef Reports Second Quarter 2021 Financial Results August 12 , 2021 Branded Sales Increased 62 % to $ 33.1 Million , or 65 % of Total Revenue Updates 2021 Outlook PARAMOUNT , Calif . , Aug. 12 , 2021 ( GLOBE NEWSWIRE ) Tattooed Chef , Inc. ( Nasdaq : TTCF ) ( " Tattooed Chef " or the " Company " ) , a leader in plant - based foods , today announced financial results for the three months ended June 30 , 2021 . " The growth we have experienced in the first half of 2021 is a testament to the strength of the Tattooed Chef brand and the ability of our team to execute , " said Sam Galletti , President and CEO of Tattooed Chef . " We are firing on all cylinders , winning distribution in leading national retailers like Kroger , Publix , and Albertsons , and our velocities are outperforming the competition . By the end of the third quarter , we expect our branded Tattooed Chef products will be in over 12,000 retail stores , exceeding our previous goal of 10,000 stores . Furthermore , with the acquisition of Foods of New Mexico in May , we have ample production capacity to achieve over $ 500 million in revenue , and a strong innovation pipeline to stay ahead of the curve . I have never been more excited about the future of Tattooed Chef . " Sarah Galletti , Chief Creative Officer and " The Tattooed Chef " , added , " We are still in the early innings of growth as we prepare to expand Tattooed Chef beyond the frozen aisle and into refrigerated and ambient products later this year or early next year . With our new manufacturing capabilities for Mexican food products , meat alternatives and alternative tortillas , I am confident our innovation ideas will really resonate with consumers and I am excited about all the future opportunities for growth . " Financial Highlights for the Second Quarter of 2021 Compared to the Second Quarter of 2020 • Revenue was $ 50.7 million , a 45.9 % increase compared to $ 34.8 million in the prior year period ; Tattooed Chef branded product revenue was $ 33.1 million , an increase of 62.3 % compared to $ 20.4 million in the prior year period . • Gross profit was $ 8.0 million , or 15.7 % gross margin , compared to $ 3.7 million , or 10.8 % gross margin , in the prior year period . • Net loss was $ 53.2 million compared to net income of $ 1.3 million in the prior year period . This loss includes a one - time , non - cash expense of $ 46.0 million resulting from a valuation allowance on a deferred tax asset due to additional investments . • Adjusted EBITDA was negative $ 5.9 million compared to Adjusted EBITDA of positive $ 2.0 million in the prior year period . Adjusted EBITDA is a non - GAAP financial measure defined under " Non - GAAP Measures . " Please see " Adjusted EBITDA Reconciliation " at the end of this press release . Second Quarter 2021 Results Revenue increased by $ 16.0 million , or 45.9 % , to $ 50.7 million in the three months ended June 30 , 2021 compared to $ 34.8 million in the three months ended June 30 , 2020. The revenue increase was primarily driven by a $ 12.7 million increase in " Tattooed Chef " branded products , partially offset by a $ 1.3 million decrease in private label products and legacy products for select private label retailers . The recent acquisition of Foods of New Mexico , which closed on May 14 , 2021 , contributed $ 4.3 million in revenue in the second quarter . The increase in Tattooed Chef branded products resulted from expansion in the number of U.S. distribution points , as well as increased volume at existing retail customers with our current portfolio of products and new product introductions . Gross profit was $ 8.0 million in the three months ended June 30 , 2021 compared to $ 3.7 million in the three months ended June 30 , 2020. Gross margin in the three months ended June 30 , 2021 was 15.7 % compared to 10.8 % in the three months ended June 30 , 2020. The increase in gross margin was primarily due increased Tattooed Chef sales volume , improved production capacity , and the ability to take advantage of economies of scale . Operating expenses increased $ 13.8 million to $ 15.9 million in the three months ended June 30 , 2021 compared to $ 2.1 million in the three months ended June 30 , 2020. The increase in operating expenses was primarily due to promotional expenses of $ 3.2 million , marketing expenses of $ 2.9 million , and professional services including legal and accounting of $ 2.6 million . The Company expects operating expenses to decrease as a percentage of revenue over time as many relatively fixed operating expenses will be spread over increased revenue . The Company is also heavily investing in the Tattooed Chef brand in order to increase distribution , raise brand awareness , and drive sales in the new stores that are launching the products . The costs that the Company is investing today should produce realized benefits in the future . Net loss was $ 53.2 million in the three months ended June 30 , 2021 compared to net income of $ 1.3 million in the prior year period . There was a one - time , non - cash expense of $ 46.0 million included in the second quarter of 2021 resulting from a valuation allowance on a deferred tax asset due to the Company's additional investments . Adjusted EBITDA was negative $ 5.9 million in the three months ended June 30 , 2021 , compared to Adjusted EBITDA of positive $ 2.0 million in the