PHOENIX, Oct. 20 /PRNewswire-FirstCall/ -- Inventure
Foods, Inc. (Nasdaq: SNAK), a leading specialty food
manufacturer, today reported financial results for the third
quarter ending September 25, 2010,
highlighted by the Company's net revenue growth of 13.8%, driven by
increased Healthy/Natural sales as a result of strong brand
investment in this category.
Q3 2010 Financial Results Overview
Inventure generated net revenues of $34.1
million for the third quarter of 2010, up $4.1 million, or 13.8%, compared to net revenues
of $29.9 million for the same period
in 2009.
Snack division net revenue was $22.4
million, up 7.4% from the prior year, driven primarily by an
89.5% revenue increase for Boulder Canyon™ Natural Foods.
T.G.I. Friday's® and BURGER
KING™ sales trends were an improvement over recent quarters with
flat sales for BURGER KING™ and a 1.7% reduction for T.G.I. Friday's®. This reflects the increased
support primarily in the C-Store channel which has been negatively
affected by the economy in the first half of 2010.
In the Rader Farms® division, net revenue was $11.7 million, an increase of 28.6% over the
prior year. This increase was primarily attributable to the
continued strength of Jamba™, which recorded net revenue of
$1.9 million ($2.4 million gross revenue). Excluding Jamba™,
Rader sales were up 7.4% representing strong growth on the base
business.
Consolidated net income for the quarter was $1.2 million, or $0.07 per diluted share, versus $1.3 million, or $0.07 per diluted share last year. The company
benefitted from a year long R&D tax credit review which
resulted in a gain of $0.3 million
based on a look-back of R&D activity over the last several
years.
Consolidated EBITDA was $2.6
million or 7.5% of net revenue for the quarter. A
table reconciling EBITDA to net income is presented at the end of
the condensed consolidated financial statements included in this
release.
Other key financial highlights included:
- Gross profit of $7.1 million, or
20.7% of net revenue, up 5.0% in dollars and down 1.8 percentage
points versus the prior year. The gross profit margin shortfall was
primarily attributable to the increased price of blueberries during
the harvest season as well as the slotting fee investment for
Jamba™, which should only impact gross profit in the short
term.
- SG&A was $5.4 million, an
increase of $1.2 million or 27.2%
versus last year as a result of continued aggressive investment
against both Boulder and Jamba™.
- Consolidated operating income of $1.6
million versus $2.4 million a
year ago.
2010 Year-to-Date Revenue, EPS, and EBITDA
Through the first nine months of 2010, Inventure reported net
revenues of $100.4 million compared
to $93.1 million for the first nine
months of 2009, a 7.8% increase. Diluted earnings per share
year-to-date were $0.21 versus
$0.18 during the same period in 2009,
a gain of 16.7%. EBITDA for the first nine months of 2010 was
$9.1 million, an increase of 6.4%
versus last year.
Management Commentary and Future Outlook
"We are very pleased to announce another strong quarter of
revenue growth driven by our Healthy/Natural category which grew
40.1%," said Terry McDaniel, Chief
Executive Officer of Inventure Foods. "Our sustained focus on
developing innovative Healthy/Natural products enabled a net
revenue growth of 13.8% for the quarter. The Jamba™ Smoothies
roll-out gained strength with net sales of $1.9 million, and gross sales of $2.4 million. We are now in over 6,000 retail
stores and growing. Early results have been very encouraging and we
will be determining next steps to further our launch in the fourth
quarter. Our Rader business continues to grow showing a 7.4%
increase excluding Jamba™. Boulder continues to do very well
with an increase of 89.5% over the same period last year, driven in
part by the continued success of our Rice and Bean product as well
as by a significant increase in marketing investment, and strong
support from major retailers."
"We continue to invest in our business as evidenced by SG&A
expenditures which are up by $1.2
million versus third quarter last year to support brand
growth. Although this did impact third quarter earnings, we are
confident that investing now will reap benefits for our future
growth. The $3.4 million
investment in our Bluffton plant is complete and we are already
beginning to produce products on this new extrusion line.
Investments made in our Goodyear
plant to increase capacity by 32% are on track to be completed by
the end of this year, which will add new kettles and packaging
machines and improve overall plant efficiencies."
McDaniel concluded, "Our focus remains consistent from that of
prior quarters - continued investment in both the Jamba™ and
Boulder brands while stabilizing T.G.I.
Friday's® and BURGER KING™. While private label snack sales
were down for the quarter, we expect several new private label
customers to support growth during the remainder of the year. Our
strong brand investment allows Inventure Foods to position itself
for continued robust revenue and earnings growth."
Conference Call
Inventure Foods' executive management team will host a
conference call today at 4 p.m. ET to discuss the Company's
third quarter and year-to-date 2010 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 by accessing
www.inventurefoods.com and will be archived for one year following
the event.
About Inventure Foods, Inc.
With manufacturing facilities in Arizona, Indiana and Washington, Inventure Foods is a marketer and
manufacturer of specialty brands in better-for-you and indulgent
categories under a variety of Company owned and licensed brand
names, including Boulder Canyon Natural Foods(TM), Rader Farms(R),
T.G.I. Friday's(R), BURGER KING(TM),
Jamba(TM), Poore Brothers(R), Tato Skins(R) and Bob's Texas
Style(R). For further information about Inventure Foods 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.
The statements relate to future expectations, plans, prospects and
projections, which are based upon the Company's current
expectations and assumptions, and are subject to a number of risks
and uncertainties. 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, and such other factors as are
described in the Company's filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date on which they are made. The Company undertakes no obligation
to update or revise publicly any forward-looking statement whether
as a result of new information, future developments or
otherwise.
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INVENTURE
FOODS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
25,
2010
|
|
September
26,
2009
|
|
September
25,
2010
|
|
September
26,
2009
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Net revenues
|
$ 34,072,238
|
|
$ 29,937,411
|
|
$ 100,381,412
|
|
$ 93,075,776
|
|
Cost of revenues
|
27,013,633
|
|
23,214,654
|
|
78,695,115
|
|
73,908,543
|
|
Gross
profit
|
7,058,605
|
|
6,722,757
|
|
21,686,297
|
|
19,167,233
|
|
Selling, general &
administrative expenses
|
5,446,661
|
|
4,282,591
|
|
15,372,110
|
|
13,148,891
|
|
Operating
income
|
1,611,944
|
|
2,440,166
|
|
6,314,187
|
|
6,018,342
|
|
Interest expense, net
|
232,545
|
|
267,306
|
|
630,407
|
|
681,259
|
|
Income before income taxes
|
1,379,399
|
|
2,172,860
|
|
5,683,780
|
|
5,337,083
|
|
Income tax provision
|
166,882
|
|
869,099
|
|
1,849,213
|
|
2,108,776
|
|
Net
income
|
$
1,212,517
|
|
$
1,303,761
|
|
$ 3,834,567
|
|
$ 3,228,307
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
0.07
|
|
$
0.21
|
|
$
0.18
|
|
Diluted
|
$
0.07
|
|
$
0.07
|
|
$
0.21
|
|
$
0.18
|
|
Weighted average number of
common shares:
|
|
|
|
|
|
|
|
|
Basic
|
17,936,356
|
|
17,885,440
|
|
17,907,241
|
|
17,978,031
|
|
Diluted
|
18,559,515
|
|
18,041,679
|
|
18,490,471
|
|
18,225,781
|
|
|
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INVENTURE
FOODS, INC. AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
September
25,
2010
|
|
September
26,
2009
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Current assets
|
$ 39,030,750
|
|
$ 34,217,796
|
|
Property and equipment,
net
|
27,867,986
|
|
24,094,488
|
|
Other assets, net
|
15,013,745
|
|
14,650,338
|
|
Total
assets
|
$ 81,912,481
|
|
$ 72,962,622
|
|
|
|
|
|
|
Line of credit
|
$ 10,908,108
|
|
$ 11,422,629
|
|
Other current
liabilities
|
17,190,067
|
|
15,565,318
|
|
Long-term debt
|
9,134,593
|
|
10,339,655
|
|
Other long-term
liabilities
|
7,830,194
|
|
3,440,306
|
|
Total
liabilities
|
45,062,962
|
|
40,767,908
|
|
Shareholders' equity
|
37,320,714
|
|
32,665,909
|
|
Treasury stock, at
cost
|
(471,195)
|
|
(471,195)
|
|
Total liabilities
and shareholders' equity
|
$ 81,912,481
|
|
$ 72,962,622
|
|
|
|
|
|
|
|
|
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INVENTURE
FOODS, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September
25,
2010
|
|
September
26,
2009
|
|
September
25,
2010
|
|
September
26,
2009
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Reconciliation – EBITDA
(1):
|
|
|
|
|
|
|
|
|
Reported net
income
|
$ 1,212,517
|
|
$ 1,303,761
|
|
$ 3,834,567
|
|
$ 3,228,307
|
|
Add back:
Interest, net
|
232,545
|
|
267,306
|
|
630,407
|
|
681,259
|
|
Add back: Income
tax provision
|
166,882
|
|
869,099
|
|
1,849,213
|
|
2,108,776
|
|
Add back:
Depreciation
|
949,052
|
|
894,925
|
|
2,788,550
|
|
2,533,452
|
|
Add back:
Amortization of
intangible assets
|
10,500
|
|
10,500
|
|
31,500
|
|
31,500
|
|
EBITDA
|
$
2,571,496
|
|
$ 3,345,591
|
|
$ 9,134,237
|
|
$ 8,583,294
|
|
(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.
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SOURCE Inventure Foods, Inc.
Copyright . 20 PR Newswire