PHOENIX, Feb. 28, 2013 /PRNewswire/ -- Inventure
Foods, Inc. (Nasdaq: SNAK), a leading specialty food marketer and
manufacturer, today reported financial results for the fourth
quarter and year ended December 29,
2012 highlighted by record annual net revenues of
$185.2 million and annual fully
diluted earnings per share of $0.38.
Two factors impacted the comparability of the Company's 2012
fourth quarter and fiscal year as compared to the 2011 fourth
quarter and fiscal year. First, the fourth quarter of 2011
contained an additional reporting week. Inventure's fiscal
year ends on the Saturday closest to December 31, which periodically results in a 53
week year. The fourth quarter and fiscal year ended
December 29, 2012 contained 13 weeks
and 52 weeks respectively, compared to the fourth quarter and
fiscal year ended December 31, 2011,
which contained 14 weeks and 53 weeks respectively. Second,
the sale of the DSD business, which was effective November 5, 2012, impacted net revenues as the
Company no longer sells third-party partner brands and sells
company-owned brands to the new distributor at a lower
cost.
Fourth Quarter Highlights
For the fourth quarter of 2012 compared to the fourth quarter of
2011:
- Adjusted for comparability, net revenues increased
approximately 8.5%
- Gross profit increased 15.2% to $8.9
million.
- Gross margin increased 310 basis points to 20.4%.
- Completed a new distribution agreement with Snyder's-Lance,
including the sale of the DSD business, resulting in a gain of
$1.1 million during the quarter.
- Diluted earnings per share were $0.12 or $0.08
excluding the gain on the sale of the DSD business.
- EBITDA increased 88.6% to $5.0
million. Excluding the gain on the sale of the DSD
business, Adjusted EBITDA increased 47.5% to $3.9 million, or 9.1% of net revenues. A
table reconciling Adjusted EBITDA to net income is presented at the
end of the consolidated financial statements included in this
release.
Full Year Highlights
For the full year 2012 compared to the full year 2011:
- Adjusted for comparability, net revenues increased
approximately 17.2%.
- Gross profit increased 22.4% to $36.9
million.
- Gross margin increased 130 basis points to 19.9%.
- Record diluted earnings per share totaled $0.38 or $0.34
excluding the gain on the sale of the DSD business.
- EBITDA increased 74.0% to $17.1
million. Excluding the gain on the sale of the DSD
business, Adjusted EBITDA increased 62.8% to $16.0 million, or 8.7% of net
revenues.
- Borrowings decreased $8.1 million
during the year.
Quarter Overview
Consolidated net revenues for the fourth quarter were
$43.5 million, a decrease of 2.1%,
compared to $44.5 million during the
prior-year period. Adjusted for comparability, net revenues
increased 8.5%. Net revenues during the fourth quarter of
2012 were supported by a 10.3% growth, or 21.0% increase on a
comparable week basis, in the healthy/natural portfolio over the
prior-year period. Gross profit increased 15.2% to
$8.9 million, compared to
$7.7 million in the prior-year
period. Gross profit margin improved 310 basis points to
20.4% from 17.3% last year, primarily in the Snack segment as a
result of operational efficiencies, favorable materials costs, and
the Company benefited from the sale of our lower margin DSD
business. Selling, general and administrative expenses
remained relatively consistent with the prior year at 14.1% of net
revenues. Net income increased 218.8% to $2.4 million, while fully diluted earnings per
share were $0.12, and EBITDA
increased 88.6%, to $5.0 million, or
11.6% of net revenues. Excluding the gain on the sale of the
DSD business, net income grew 123.6%, totaling $1.7 million, while fully diluted earnings per
share were $0.08 and Adjusted EBITDA
increased 47.5% to $3.9 million, or
9.1% of net revenues.
Snack segment net revenues of $21.5
million in the quarter were down 13.6%, compared to
$24.9 million during the prior-year
period. Adjusted for comparability, Snack segment net
revenues decreased 3.1%. On a comparable basis, T.G.I. Friday's® net revenues decreased 9.2%
during the quarter, partially offset by a 33.1% increase in sales
of premium private label products. On a comparable basis,
Boulder Canyon sales were up 9.8% in the fourth quarter.
Frozen segment net revenues, which include Jamba® All Natural
Smoothies, totaled $22.0 million
for the quarter, an increase of 12.6% over the prior-year
period. Adjusted for comparability, Frozen segment net
revenues increased 23.7%. Net revenues for the Frozen
segment, excluding Jamba, increased 13.4% for the quarter due to
continued growth in branded and private label frozen fruit
sales. On a comparable week basis, Jamba sales increased
15.1% over the prior year-period to $2.6
million.
Full Year Overview
Consolidated net revenues for the year ended December 29, 2012 were $185.2 million, an increase of 14.1%, compared to
$162.2 million during the prior-year
period. Adjusted for comparability, net revenues increased
17.2%. This revenue growth was largely driven by a 26.8%, or
30.0% on a comparable week basis, growth in the healthy/natural
portfolio. Gross profit increased 22.4% to $36.9 million, compared to $30.1 million in the prior-year period. Net
income increased 164.4% to $7.4
million, while fully diluted earnings per share were
$0.38, and EBITDA for the full year
increased 74.0% to $17.1 million, or
9.3% of net revenues. Excluding the gain on the sale of the
DSD business, net income grew 139.5% to $6.7
million, while fully diluted earnings per share totaled
$0.34 and Adjusted EBITDA increased
62.8% to $16.0 million.
Snack segment net revenues were $94.4
million, a decrease of 0.7% from last year. Adjusted
for comparability, Snack segment net revenues increased 2.1% for
the year. Adjusted for comparability, T.G.I. Friday's and premium private label sales
increased 3.5% and 20.4%, respectively, and Boulder Canyon sales
were relatively flat in 2012.
Frozen segment net revenues totaled $90.8
million in the current year, an increase of 35.2%, or 38.8%
on a comparable basis, from the prior year. Adjusted for
comparability, net revenues for the Frozen segment, excluding
Jamba, increased 49.4% during 2012 due to continued growth in
branded and private label frozen fruit sales. Jamba net
revenues for the full year 2012 totaled $13.8 million, and were relatively flat in 2012
on a comparable week basis.
Management Commentary & Future Outlook
"We communicated a strategic vision beginning in 2011 that
included key investments in our facilities, brands and also our
operations," said Terry McDaniel,
Chief Executive Officer of Inventure Foods, Inc. "As we close
out 2012, a year of double-digit growth in year-over-year net
revenues as well as new records for annual net revenues and
earnings, we remain encouraged by our team's delivery of our
strategic plan. Our results are a testament to the diversity
of our brand portfolio and the distribution channels for each of
our brands. We are also excited that this success has not
gone unrecognized, having been named as one of the best small
companies in America by Forbes magazine. Additionally, Consumer
Reports recently awarded our Boulder Canyon Hummus chip product
with its highest rating, while our Nathan's Famous Honey Mustard
Crinkle-Cut Fries received the 'Best New Product' award by
Convenience Store News."
"As we look forward, we will continue to make the necessary
investments to strengthen our brand portfolios," continued
McDaniel. "We've made significant strides in building our
healthy/natural portfolio and remain optimistic as we expand
existing channels. Our ability to provide consumers
innovative and first-to-market products is further underscored by
our recent announcement of the exclusive licensing agreement with
Seattle's Best Coffee to market
and manufacture a healthier and affordable line of delicious,
at-home frozen coffee drinks."
"2012 was a year of solid execution on our strategic plan, which
has positioned us well to reap the benefits and further expand our
base business throughout this coming year. Our consistent
revenue and earnings growth over the past several years also
provide further indication that our Company and our strategy remain
on track to deliver sustainable long-term growth for our
shareholders," McDaniel concluded.
Conference Call
Inventure Foods' executive management team will host a
conference call today at 11 a.m. ET
to discuss the Company's fourth quarter and full year 2012 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 marketer and manufacturer of specialty food brands in
better-for-you and indulgent categories under a variety of Company
owned and licensed brand names, including Boulder Canyon Natural
Foods®, Jamba®, Rader Farms®, T.G.I.
Friday's®, Nathan's Famous®, Vidalia Brands®, 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 and divestiture-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
|
|
Twelve
Months Ended
|
|
December 29,
2012
|
|
December 31,
2011
|
|
December 29,
2012
|
|
December 31,
2011
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net
revenues
|
$
43,542,299
|
|
$
44,464,066
|
|
$
185,179,427
|
|
$
162,232,418
|
Cost of
revenues
|
34,670,013
|
|
36,764,776
|
|
148,287,408
|
|
132,098,490
|
Gross profit
|
8,872,286
|
|
7,699,290
|
|
36,892,019
|
|
30,133,928
|
Selling,
general & administrative expenses
|
6,133,413
|
|
6,254,986
|
|
25,547,728
|
|
24,924,343
|
Operating income
|
2,738,873
|
|
1,444,304
|
|
11,344,291
|
|
5,209,585
|
Gain on
sale of DSD business
|
(1,101,320)
|
|
-
|
|
(1,101,320)
|
|
-
|
Interest
expense, net
|
150,937
|
|
239,863
|
|
764,066
|
|
884,910
|
Income before income taxes
|
3,689,256
|
|
1,204,441
|
|
11,681,545
|
|
4,324,675
|
Income tax
provision
|
1,325,188
|
|
462,858
|
|
4,232,911
|
|
1,507,838
|
Net income
|
$
2,364,068
|
|
$
741,583
|
|
$
7,448,634
|
|
$
2,816,837
|
|
|
|
|
|
|
|
|
Earnings
per common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.12
|
|
$
0.04
|
|
$
0.40
|
|
$
0.16
|
Diluted
|
$
0.12
|
|
$
0.04
|
|
$
0.38
|
|
$
0.15
|
Weighted
average number of common shares:
|
|
|
|
|
|
|
|
Basic
|
19,074,588
|
|
18,212,534
|
|
18,821,495
|
|
18,109,548
|
Diluted
|
19,683,937
|
|
19,274,115
|
|
19,573,533
|
|
19,198,868
|
INVENTURE FOODS, INC. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
|
|
December
29,
2012
|
|
December 31,
2011
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
419,480
|
|
$
664,488
|
Accounts receivable, net
allowance
|
17,547,036
|
|
15,741,758
|
Inventories
|
27,071,004
|
|
31,682,080
|
Deferred income tax
asset
|
1,029,830
|
|
766,805
|
Other current assets
|
1,323,296
|
|
1,526,818
|
Total
current assets
|
47,390,646
|
|
50,381,949
|
|
|
|
|
Property
and equipment, net
|
34,050,806
|
|
33,182,331
|
Goodwill
|
11,616,225
|
|
11,616,225
|
Trademarks
and other intangibles, net
|
2,009,849
|
|
2,033,160
|
Other
assets
|
826,348
|
|
761,258
|
Total assets
|
$
95,893,874
|
|
$
97,974,923
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
12,178,221
|
|
$
14,891,297
|
Accrued liabilities
|
8,414,607
|
|
9,531,942
|
Current portion of long-term
debt
|
1,646,175
|
|
3,025,011
|
Total
current liabilities
|
22,239,003
|
|
27,448,250
|
|
|
|
|
Long-term
debt, less current portion
|
6,897,321
|
|
8,595,109
|
Line of
credit
|
10,117,149
|
|
15,183,910
|
Deferred
income tax liability
|
3,967,812
|
|
3,550,560
|
Interest
rate swaps
|
766,218
|
|
843,635
|
Other
liabilities
|
807,123
|
|
743,909
|
Total liabilities
|
44,794,626
|
|
56,365,373
|
|
|
|
|
Shareholders' equity:
|
|
|
|
Common
stock
|
195,711
|
|
186,312
|
Additional
paid-in capital
|
29,660,227
|
|
27,675,786
|
Accumulated other comprehensive loss
|
(377,801)
|
|
(425,025)
|
Retained
earnings
|
22,092,306
|
|
14,643,672
|
|
51,570,443
|
|
42,080,745
|
|
|
|
|
Less:
treasury stock
|
(471,195)
|
|
(471,195)
|
Total
shareholders' equity
|
51,099,248
|
|
41,609,550
|
Total
liabilities and shareholders' equity
|
$
95,893,874
|
|
$
97,974,923
|
INVENTURE FOODS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
RECONCILIATION
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Twelve
Months Ended
|
|
December 29,
2012
|
|
December 31,
2011
|
|
December 29,
2012
|
|
December 31,
2011
|
Reconciliation – Net Income to Adjusted
EBITDA:
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net
income
|
$
2,364,068
|
|
$
741,583
|
|
$
7,448,634
|
|
$
2,816,837
|
Interest,
net
|
150,937
|
|
239,863
|
|
764,066
|
|
884,910
|
Income tax
provision
|
1,325,188
|
|
462,858
|
|
4,232,911
|
|
1,507,838
|
Depreciation
|
1,204,339
|
|
1,220,669
|
|
4,677,637
|
|
4,601,582
|
Amortization of
intangible assets
|
2,499
|
|
10,500
|
|
23,311
|
|
42,000
|
EBITDA(1)
|
$
5,047,031
|
|
$
2,675,473
|
|
$
17,146,559
|
|
$
9,853,167
|
Adjustment:
|
|
|
|
|
|
|
|
Gain on sale of DSD
business
|
(1,101,320)
|
|
-
|
|
(1,101,320)
|
|
-
|
Adjusted
EBITDA(1)
|
$
3,945,711
|
|
$
2,675,473
|
|
$
16,045,239
|
|
$
9,853,167
|
|
(1)
Adjusted EBITDA is adjusted to exclude the gain on the sale of the
DSD business. 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. We define Adjusted EBITDA as net income from
continuing operations plus (i) net interest expense, (ii) income
tax provision, (iii) depreciation, and (iv) amortization of
intangible assets, as further adjusted to eliminate the impact of
certain items that we do not consider indicative of our ongoing
operating performance. This further adjustment is reconciled above.
In evaluating Adjusted EBITDA, you should be aware that in the
future, we may incur expenses that are the same, or are similar to
some of the adjustments in the presentation. Our presentation of
Adjusted EBITDA should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items. We present Adjusted EBITDA because we believe it assists
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance.
Because of the inherent limitations of Adjusted EBITDA as an
analytical tool, Adjusted EBITDA should not be considered in
isolation or as a substitute for performance measures calculated in
accordance with GAAP. Further, EBITDA may not be comparable to
similarly titled measures used by other companies.
|
SOURCE Inventure Foods, Inc.