PHOENIX, Oct. 26, 2011 /PRNewswire/ -- Inventure Foods,
Inc. (Nasdaq: SNAK), a leading specialty food maker and marketer,
today reported financial results for the third quarter ending
Sept. 24, 2011, highlighted by net
revenue growth of 10.1% and continued sales momentum and trade
support for the Company's Jamba® All-Natural Smoothies
national roll-out.
Third Quarter 2011 Financial Results
Inventure generated net revenue of $37.5
million for the third quarter, an increase of 10.1%, or
$3.4 million, versus the prior-year
third quarter. Snack division net revenue posted a 4.8%
increase over the same quarter a year ago to $23.5 million, which was led by a 10.3% increase
in net revenues for Boulder Canyon Natural Foods™ products, and a
60.3% increase in Private Label products. Net revenues for
T.G.I.Friday's® and BURGER KING™
were virtually flat for the quarter. These items were
partially offset by declines in the Company's other smaller brands.
Frozen division net revenue, which includes Jamba®
All-Natural Smoothies, totaled $14.0
million for the quarter, up 20.3% over the prior year
quarter. Excluding Jamba®, Frozen division net revenues
increased 10.3% for the quarter. Jamba® net revenues for the
quarter totaled $3.3 million
($5.1 million gross), which continue
to meet the Company's expectations.
Consolidated net loss for the quarter was $0.2 million, or a $0.01 loss per fully diluted share, compared to
consolidated net income of $1.2
million, or $0.07 per fully
diluted share, during the third quarter of 2010.
Consolidated EBITDA for the quarter totaled $1.0 million, a decrease of 61.2% compared to the
third quarter of last year. A table reconciling EBITDA to net
income (loss) is presented at the end of the consolidated financial
statements included in this release.
Other third quarter financial highlights include:
- Gross profit of $6.4 million, or
17.1% of net revenues, was down 9.7% in dollars and down 375 basis
points compared to the same period last year. Gross profit
dollars and margin were impacted by a $1.8
million, or 62.8%, increase in slotting fees, trade
advertising, and coupon expenses, nearly all of which continue to
support the Jamba® and Boulder Canyon™ brands. Snack division
gross margins were lower as the Company worked through capacity
constraints at its Goodyear plant
as part of the facility's ongoing capital improvements program.
- Selling, General and Administrative (SG&A) expenses totaled
$6.6 million for the quarter, or
17.6% of net revenues, an increase of $1.1
million and 155 basis points compared to last year. This
increase is attributable to the Company's continued Jamba® and
Boulder Canyon™ investment, including increases in sampling,
marketing and commission expenditures.
Year to Date 2011 Net Revenue, EPS and EBITDA
Through the first nine months of 2011, Inventure reported a
17.3% increase in net revenues of $117.8
million, compared to $100.4
million for the first nine months of 2010. Fully
diluted earnings per share for the first nine months of 2011 were
$0.11 versus $0.21 during the same period in 2010, a decrease
of 47.6%. EBITDA for the first nine months of 2011 was
$7.2 million, a decrease of 21.4%
versus last year.
Management Commentary and Future Outlook
"I am pleased with our overall execution during the third
quarter, as we continued to deliver net revenue growth in both our
Snack and Frozen divisions," said Terry
McDaniel, Chief Executive Officer of Inventure Foods.
"Although our third quarter results delivered negative
earnings, we executed a number of significant planned initiatives
which are in line with our expectations.
"Our decision earlier this year to roll-out our Jamba® At-Home
Smoothies nationally has involved the significant strategic
expenditures necessary for an effective launch. Our continued
investment in Jamba® has increased overall ACV to 55%, up
significantly from 30% just last quarter, and delivered gross
revenue of $5.1 million for the
quarter and $15.4 million year to
date. We also continue to roll out our most recent flavor,
Caribbean Passion, which has been met with great response from
retailers. Given the strong retail reception thus far, we
will begin shipping our fifth item in the line, Orange Dream
Machine, during the fourth quarter. Our Jamba® Smoothies were
recently recognized in "Every Day with Rachel Ray" magazine as the best make at
home smoothie product. We increased our consumer and public
relations efforts in support of the launch and should see further
expansion for the brand both in existing customers and new
customers.
"Our Snack division revenues and margins experienced constrained
capacity during the quarter, as we shut down the Goodyear plant on several occasions to install
newer and more efficient equipment. I am pleased to report
that the first two phases of the installation are now complete, and
we expect improvement going forward. Our Boulder Canyon™
brand continued to grow with a 10% net revenue increase, despite a
large retail consumer program shifting from the third quarter last
year to the fourth quarter of this year, and despite production
shortages due to the Goodyear
effort. In addition, we continued to develop our premium
private label program, with 60% net revenue growth.
"We remain focused on delivering innovative products in line
with consumer trends. We are very encouraged by the trade's
strong interest in our recent release of Nathan's Famous® branded
snacks, and we are pleased with the initial metrics on our Boulder
Canyon Garden Select Vegetable Crisps. We also have several
exciting extrusion product initiatives underway for 2012."
McDaniel concluded: "I am pleased with the execution to date of
our strategic plan in 2011, and we should be seeing the payback of
our investments in the near term."
Conference Call
Inventure Foods' executive management team will host a
conference call today at 11 a.m. ET
to discuss the Company's third quarter 2011 results and comment on
its future outlook. To participate in the conference call,
please call (877) 853-7702 toll-free, or (408) 940-3848 for
international callers. A live webcast of the call will also
be available at www.inventurefoods.com and will be archived for one
year following today's event.
About Inventure Foods, Inc.
With manufacturing facilities in Arizona, Indiana and Washington, Inventure Foods, Inc. (Nasdaq:
SNAK) is a manufacturer and marketer of Intensely Different™ food
brands under a variety of owned or licensed brand names, including
Boulder Canyon Natural Foods™, Jamba®, Rader Farms®, T.G.I.Friday's®, Nathan's Famous®, BURGER KING™,
Poore Brothers®, Tato Skins®, and Bob's Texas Style®. For
further information about Inventure Foods, please visit
www.inventurefoods.com.
Statements contained in this press release that are not
historical facts are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Because such statements include risks and uncertainties, actual
results may differ materially from those expressed or implied by
such forward-looking statements. Factors that may cause
actual results to differ from the forward-looking statements
contained in this press release and that may affect the Company's
prospects in general include, but are not limited to, general
economic conditions, increases in cost or availability of
ingredients, packaging, energy and employees, price competition and
industry consolidation, ability to execute strategic initiatives,
product recalls or safety concerns, disruptions of supply chain or
information technology systems, customer acceptance of new products
and changes in consumer preferences, food industry and regulatory
factors, interest rate risks, dependence upon major customers,
dependence upon existing and future license agreements, the
possibility that we will need additional financing due to future
operating losses or in order to implement the Company's business
strategy, acquisition-related risks, the volatility of the market
price of the Company's common stock, and such other factors as are
described in the Company's filings with the Securities and Exchange
Commission.
|
|
INVENTURE
FOODS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
24,
2011
|
|
September
25,
2010
|
|
September
24,
2011
|
|
September
25,
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Net revenues
|
$ 37,518,334
|
|
$ 34,072,238
|
|
$ 117,768,352
|
|
$ 100,381,412
|
|
Cost of revenues
|
31,111,745
|
|
26,981,184
|
|
95,333,715
|
|
78,503,854
|
|
Gross
profit
|
6,406,589
|
|
7,091,054
|
|
22,434,637
|
|
21,877,558
|
|
Selling, general &
administrative expenses
|
6,615,271
|
|
5,479,110
|
|
18,669,356
|
|
15,563,371
|
|
Operating income
(loss)
|
(208,682)
|
|
1,611,944
|
|
3,765,281
|
|
6,314,187
|
|
Interest expense, net
|
227,316
|
|
232,545
|
|
645,047
|
|
630,407
|
|
Income
(loss) before income taxes
|
(435,998)
|
|
1,379,399
|
|
3,120,234
|
|
5,683,780
|
|
Income tax provision
(benefit)
|
(245,186)
|
|
166,882
|
|
1,044,980
|
|
1,849,213
|
|
Net income
(loss)
|
$
(190,812)
|
|
$
1,212,517
|
|
$ 2,075,254
|
|
$ 3,834,567
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.01)
|
|
$
0.07
|
|
$
0.11
|
|
$
0.21
|
|
Diluted
|
$
(0.01)
|
|
$
0.07
|
|
$
0.11
|
|
$
0.21
|
|
Weighted average number of
common shares:
|
|
|
|
|
|
|
|
|
Basic
|
18,139,674
|
|
17,936,356
|
|
18,072,579
|
|
17,907,241
|
|
Diluted
|
18,139,674
|
|
18,559,515
|
|
18,732,535
|
|
18,490,471
|
|
|
|
|
|
|
|
|
|
|
|
|
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INVENTURE
FOODS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
September
24,
2011
|
|
December
25,
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Current assets:
|
|
|
|
|
Cash
|
$
1,366,226
|
|
$
980,547
|
|
Accounts receivable, net
allowance
|
14,814,595
|
|
11,703,056
|
|
Inventories
|
36,395,586
|
|
21,814,930
|
|
Deferred income tax
asset
|
557,620
|
|
621,801
|
|
Other current
assets
|
1,911,221
|
|
1,295,837
|
|
Total current
assets
|
55,045,248
|
|
36,416,171
|
|
|
|
|
|
|
Property and equipment,
net
|
33,277,142
|
|
28,007,869
|
|
Goodwill
|
11,616,225
|
|
11,616,225
|
|
Trademarks and other
intangibles, net
|
2,043,660
|
|
2,075,160
|
|
Other assets
|
729,714
|
|
705,442
|
|
Total
assets
|
$ 102,711,989
|
|
$ 78,820,867
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$ 14,375,482
|
|
$ 7,707,475
|
|
Accrued
liabilities
|
12,030,104
|
|
6,452,845
|
|
Current portion of
long-term debt
|
3,040,182
|
|
1,692,193
|
|
Total current
liabilities
|
29,445,768
|
|
15,852,513
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
9,009,411
|
|
11,567,800
|
|
Line of credit
|
19,044,381
|
|
9,096,892
|
|
Interest rate swaps
|
862,874
|
|
649,389
|
|
Deferred income tax
liability
|
3,096,565
|
|
3,337,290
|
|
Other liabilities
|
675,389
|
|
527,325
|
|
Total
liabilities
|
62,134,388
|
|
41,031,209
|
|
Shareholders' equity:
|
|
|
|
|
Common stock
|
185,362
|
|
183,729
|
|
Additional paid-in
capital
|
27,398,106
|
|
26,557,191
|
|
Accumulated other
comprehensive loss
|
(436,761)
|
|
(306,902)
|
|
Retained
earnings
|
13,902,089
|
|
11,826,835
|
|
|
41,048,796
|
|
38,260,853
|
|
|
|
|
|
|
Less: treasury
stock
|
(471,195)
|
|
(471,195)
|
|
Total shareholders'
equity
|
40,577,601
|
|
37,789,658
|
|
Total liabilities
and shareholders' equity
|
$ 102,711,989
|
|
$ 78,820,867
|
|
|
|
|
|
|
|
INVENTURE
FOODS, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
(unaudited)
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
24,
2011
|
|
September
25,
2010
|
|
September
24,
2011
|
|
September
25,
2010
|
|
|
|
|
|
|
|
|
|
|
Reconciliation – EBITDA
(1):
|
|
|
|
|
|
|
|
|
Reported net income
(loss)
|
$ (190,812)
|
|
$ 1,212,517
|
|
$ 2,075,254
|
|
$
3,834,567
|
|
Add back: Interest,
net
|
227,316
|
|
232,545
|
|
645,047
|
|
630,407
|
|
Add back: Income tax
provision (benefit)
|
(245,186)
|
|
166,882
|
|
1,044,980
|
|
1,849,213
|
|
Add back:
Depreciation
|
1,196,709
|
|
949,052
|
|
3,380,913
|
|
2,788,550
|
|
Add back: Amortization
of
intangible
assets
|
10,500
|
|
10,500
|
|
31,500
|
|
31,500
|
|
EBITDA
|
$
998,527
|
|
$
2,571,496
|
|
$ 7,177,694
|
|
$ 9,134,237
|
|
|
|
|
|
|
|
|
|
(1) EBITDA is presented as a supplemental performance
measure and is not intended as an alternative to net income or any
other measure calculated in accordance with generally accepted
accounting principles. Further, EBITDA may not be comparable to
similarly titled measures used by other companies.
SOURCE Inventure Foods, Inc.