PHOENIX, Oct. 31, 2013 /PRNewswire/ -- Inventure
Foods, Inc. (Nasdaq: SNAK), a leading specialty food marketer and
manufacturer, today reported financial results for the third
quarter ended September 28,
2013.
Third Quarter 2013 Highlights
For the third quarter of 2013 compared to the third quarter of
2012:
- Net revenues increased 17.0% to a record $54.5 million, or 19.7% adjusting for the prior
year sale of the Company's DSD business.
- Diluted earnings per share were $0.11, compared to $0.09.
- Signed letter of intent to purchase Fresh Frozen Foods, LLC, a
frozen vegetable processor.
Quarter Overview
Consolidated net revenues for the 2013 third quarter were
$54.5 million, an increase of 17.0%
compared to the prior year, or an increase of 19.7% adjusting for
the prior year sale of Inventure's DSD business. The increase
in net revenues for the quarter was largely driven by a 20.8%
increase in the healthy/natural portfolio over the prior-year
period. Gross profit increased $0.6
million to $10.1 million,
compared to $9.5 million in the prior
year. Gross profit margin declined 190 basis points to 18.4%
from 20.3% last year, primarily due to a decrease in sales of
T.G.I.Friday's® products.
Selling, general and administrative expenses of $6.4 million remained relatively consistent to
the prior year expense of $6.5
million, but decreased 230 basis points as a percentage of
net sales compared to prior year. Net income increased
$0.4 million to $2.1 million compared to $1.7 million in the prior year.
Consolidated EBITDA increased 26.3% to $5.2
million, or 9.6% of net revenues.
Frozen segment net revenues increased 20.5% to $27.5 million. Net revenues for frozen
berries increased 33.0% for the quarter due to continued sales
growth of branded frozen fruit, primarily due to the addition of
Willamette Valley Fruit Company. Net revenues from frozen
beverages decreased 33.8% compared to prior year, largely due to
decreased Jamba sales in the Club channel and slower growth of the
frozen beverage category.
Snack segment net revenues of $27.0
million were up 13.6%, or 18.8% excluding the impact of the
sale of the DSD business. Boulder Canyon Natural Foods® net
revenues increased 27.5%, offset by an 18.6% decrease in sales of
T.G.I. Friday's. Net revenues
of co-packed products increased almost 9 times over the prior year
with the addition of the new co-packing agreement earlier this
year.
Year-to-Date Overview
Consolidated net revenues for the nine months ended September 28, 2013 were $156.7 million. Consolidated net revenues
increased 10.7%, or 12.7% adjusting for the prior year sale of the
DSD business. The year-to-date increase in net revenues was
largely driven by an 18.2% increase in the healthy/natural
portfolio. Gross profit remained relatively consistent with
the prior-year period at $28.0
million and decreased 190 basis points compared to prior
year. Net income decreased 9.3% to $4.6 million, compared to net income of
$5.1 million in the prior year.
Fully diluted earnings per share for the first nine months of 2013
were $0.23, versus $0.26 during the same period in 2012.
Consolidated EBITDA decreased 1.8% to $11.9
million, or 7.6% of net revenues.
Management Commentary & Future Outlook
"We are pleased with another quarter of record net revenues,
realizing double-digit growth in both our healthy/natural and
indulgent portfolios," said Terry
McDaniel, Chief Executive Officer of Inventure Foods, Inc.
"Our healthy/natural products represented 63% of net revenues and
sales growth of 20.8%. The strength of our frozen fruit
business allows us to consistently perform well against industry
averages in the category, with a 33% increase in the quarter versus
the prior year. The addition of Willamette Valley Fruit
Company to our family of brands has also proven to be a great
operations play, adding to the growth of our frozen berry business
in the third quarter. When coupled with our planned
acquisition of Fresh Frozen Foods, we create a formidable presence
in the frozen business that we believe can drive solid sales and
profit growth into the future."
"Our Boulder Canyon brand continued its strong performance,
growing 27.5% over last year, its fourth consecutive quarter of
growth, reflecting the successful launch of several new products
this year. In frozen beverages, we also continue to gain
market share with our Jamba-At-Home® smoothies with the
introduction of the Green Fusion flavor and our recently introduced
Seattle's Best Frozen Coffee
Blends. The overall frozen beverage category has dropped over
the last two quarters, but we are pleased with our sell through and
anticipate continued share gains in our market-leading Jamba
products and the introduction of our new Seattle's Best Coffee branded products."
"Our indulgent portfolio had net revenues of $20.2 million, up 17.7% from prior year, on a
comparable basis. This growth was driven by strong
contributions from our co-packing and premium private label
businesses as well as continued growth of our Vidalia brand.
This growth helped to offset continued softness in our
T.G.I. Friday's brand, which was
down 18.6% for the quarter. We remain committed to the return
to growth of this important product line, and have been making
progress by launching several new products during the year
with more slated for the fourth quarter and early 2014."
McDaniel concluded, "We believe that the investments we have
made so far this year in our brands, product assortment, facilities
and strategic acquisitions will continue to position us well for
driving shareholder value."
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 2013 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, Washington and Oregon, 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®, Seattle's Best
Coffee®, Rader Farms®, T.G.I.
Friday's®, Nathan's Famous®, Vidalia Brands®, Poore
Brothers®, Tato Skins®, Willamette Valley Fruit
Company™ 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
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
Quarter
Ended
|
Nine Months
Ended
|
|
September 28, 2013
|
September 29, 2012
|
September 28, 2013
|
September 29, 2012
|
Net
revenues
|
$
54,514
|
$
46,601
|
$
156,728
|
$
141,637
|
Cost of
revenues
|
44,458
|
37,130
|
128,711
|
113,617
|
Gross profit
|
10,056
|
9,471
|
28,017
|
28,020
|
Selling, general
& administrative expenses
|
6,395
|
6,535
|
20,241
|
19,415
|
Operating income
|
3,661
|
2,936
|
7,776
|
8,605
|
Interest expense,
net
|
250
|
179
|
641
|
613
|
Income before income taxes
|
3,411
|
2,757
|
7,135
|
7,992
|
Income tax
provision
|
1,263
|
1,017
|
2,524
|
2,907
|
Net income
|
$
2,148
|
$
1,740
|
$
4,611
|
$
5,085
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
Basic
|
$
0.11
|
$
0.09
|
$
0.24
|
$
0.27
|
Diluted
|
$
0.11
|
$
0.09
|
$
0.23
|
$
0.26
|
Weighted average
number of common shares:
|
|
|
|
|
Basic
|
19,473
|
19,031
|
19,329
|
18,737
|
Diluted
|
19,843
|
19,690
|
19,746
|
19,537
|
INVENTURE FOODS,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
September
28, 2013
|
December
29, 2012
|
|
(unaudited)
|
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash equivalents
|
$
819
|
$
419
|
Accounts receivable, net allowance
|
22,228
|
17,547
|
Inventories
|
41,505
|
27,071
|
Deferred income tax asset
|
848
|
1,030
|
Other current assets
|
1,072
|
1,323
|
Total
current assets
|
66,472
|
47,390
|
|
|
|
Property and
equipment, net
|
40,419
|
34,051
|
Goodwill
|
14,763
|
11,616
|
Trademarks and other
intangibles, net
|
5,862
|
2,010
|
Other
assets
|
948
|
827
|
Total assets
|
$
128,464
|
$
95,894
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
Accounts payable
|
$
12,733
|
$
12,178
|
Accrued liabilities
|
17,424
|
8,415
|
Current portion of long-term debt
|
2,785
|
1,646
|
Total
current liabilities
|
32,942
|
22,239
|
|
|
|
Long-term debt, less
current portion
|
14,013
|
6,897
|
Line of
credit
|
17,380
|
10,117
|
Deferred income tax
liability
|
4,019
|
3,968
|
Interest rate
swaps
|
577
|
766
|
Other
liabilities
|
2,849
|
808
|
Total liabilities
|
71,780
|
44,795
|
|
|
|
Shareholders'
equity:
|
|
|
Common
stock
|
198
|
196
|
Additional paid-in
capital
|
30,516
|
29,660
|
Accumulated other
comprehensive loss
|
(262)
|
(378)
|
Retained
earnings
|
26,703
|
22,092
|
|
57,155
|
51,570
|
|
|
|
Less: treasury
stock
|
(471)
|
(471)
|
Total shareholders'
equity
|
56,684
|
51,099
|
Total liabilities and
shareholders' equity
|
$
128,464
|
$
95,894
|
INVENTURE FOODS,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
RECONCILIATION
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Quarter Ended
|
Nine Months
Ended
|
|
September 28,
2013
|
September 29,
2012
|
September 28,
2013
|
September 29,
2012
|
Reconciliation –
EBITDA(1):
|
|
|
|
|
Reported net
income
|
$
2,148
|
$
1,740
|
$
4,611
|
$
5,085
|
Add back: Interest,
net
|
250
|
179
|
641
|
613
|
Add back: Income tax
provision
|
1,263
|
1,017
|
2,524
|
2,907
|
Add back:
Depreciation
|
1,478
|
1,196
|
4,023
|
3,474
|
Add back: Amortization
of intangible assets
|
83
|
3
|
88
|
21
|
EBITDA
|
$
5,222
|
$
4,135
|
$
11,887
|
$
12,100
|
(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.