Inventure Foods Reports Second Quarter 2014 Results

Inventure Foods Reports Second Quarter 2014 Results

                  Revenues Increased 33.9% to $71.9 Million;
                       Earnings per Diluted Share $0.12

PHOENIX, July 31, 2014 (GLOBE NEWSWIRE) -- Inventure Foods, Inc. (Nasdaq:SNAK)
("Inventure Foods"), a leading specialty food marketer and manufacturer, today
reported financial results for the second quarter and six months ended June
28, 2014.

Second Quarter 2014 Highlights

  oNet revenues increased 33.9% to $71.9 million.
  oEBITDA* increased 79.7% to $6.4 million.
  oDiluted earnings per share were $0.12.

Year-to-Date Fiscal 2014 Highlights

  oNet revenues increased 36.3% to $139.4 million.
  oEBITDA* increased 72.8% to $11.5 million.
  oDiluted earnings per share were $0.20.

"We reported very strong second quarter EBITDA growth of 79.7% fueled by a
strong net revenue increase of 33.9%," said Terry McDaniel, Chief Executive
Officer of Inventure Foods. "Our healthy/natural line increased 57.5%, and now
represents over 80% of our business. Our overall success this quarter was
driven by 79.1% growth of our Boulder Canyon brand, 13.9% growth in frozen
berries and the addition of our newly acquired Fresh Frozen Foods business.
During the second quarter, we generated a 170 basis point improvement in gross
margin, largely driven by a 470 basis point improvement in our snack segment.
The continued strong execution of our 2014 strategic initiatives allowed us to
deliver another strong quarter of double digit earnings growth."

(All comparisons above are to the second quarter and first six months of 2013)

________________________
*Please see the tabular reconciliation of financial measures prepared in
accordance with United States generally accepted accounting principles
("GAAP") to non-GAAP financial measures included at the end of this press
release for the definition and information concerning certain items affecting
comparability and reconciliations of the non-GAAP term EBITDA to the most
comparable GAAP financial measures.

Second Quarter Fiscal 2014

Net revenues increased 33.9% to $71.9 million, compared to $53.7 million in
the prior year period. The increase in net revenues was due to a 57.5%
increase in the healthy/natural product portfolio, partially offset by the
Company's decision to discontinue approximately $1.5 million in lower margin
sales. Gross profit as a percent of net revenues increased 170 basis points to
18.7%, compared to 17.0% in the prior year. This increase is due to a 470
basis point improvement in the Company's snack segment as a result of improved
product and channel mix with stronger emphasis on higher margin branded
products.

Selling, general and administrative expenses increased $2.1 million, or 31.0%,
to $9.0 million, compared to $6.9 million in the prior year period. As a
percentage of net revenues, selling, general and administration expenses
decreased 20 basis points to 12.6%, compared to 12.8% in the prior year
period. The Company continued to leverage the fixed cost portion of SG&A
expenses.

Net income was $2.5 million, or $0.12 diluted earnings per share for the
second quarter of 2014, compared to $1.4 million, or $0.07 diluted earnings
per share for the second quarter of 2013.

Year to Date Fiscal 2014

Consolidated net revenues for the six months ended June 28, 2014 increased
36.3% to $139.4 million, compared to $102.2 million in the prior year period.
Gross profit increased 39.3% to $25.0 million, compared to $18.0 million in
the prior-year period. This was primarily driven by margin enhancements within
the Company's snack segment. Net income increased 65.2% to $4.1 million,
compared to net income of $2.5 million in the prior year. Fully diluted
earnings per share for the first six months of 2014 were $0.20, versus $0.13
during the same period in 2013.Consolidated EBITDA increased 72.8% to $11.5
million, or 8.3% of net revenues.

Segment Review

The Company has two reportable segments: frozen and snack. The frozen product
segment includes frozen fruits, vegetables and beverages, for sale primarily
to groceries, club stores and mass merchandisers. The snack segment includes
manufactured potato chips, kettle chips, potato crisps, potato skins, pellet
snacks, sheeted dough products, cereal and extruded product for sale primarily
to snack food distributors and retailers.

Frozen Segment: Net revenues during the second quarter increased 58.1% to
$44.1 million, compared to $27.9 million in the prior year period. Gross
profit increased $2.7 million, or 59.7%, to $7.1 million, compared to $4.4
million in the prior year period. As a percentage of net revenues, gross
profit increased 20 basis points to 16.1%.

Net revenues for the first six months increased 60.9% to $87.8 million,
compared to $54.6 million in the prior year period. Gross profit increased
$5.5 million, or 59.1% to $14.9 million, compared to $9.4 million in the prior
year period.

Snack Segment: Net revenues during the second quarter increased 7.6% to $27.7
million, compared to $25.8 million in the prior year period.Gross profit
increased $1.7 million, or 35.6%, to $6.4 million, compared to $4.7 million in
the prior year period. As a percentage of net revenues, gross profit
increased 470 basis points to 22.9%.

Net revenues for the first six months increased 8.2% to $51.6 million,
compared to $47.7 million in the prior year period. Gross profit increased
$1.5 million, or 17.6%, to $10.1 million, compared to $8.6 million in the
prior year period.

Mr. McDaniel concluded, "Our team successfully executed on our ongoing
initiative to generate healthy EBITDA growth through a focus on strong sales
growth, enhancing margins and leveraging the capabilities of our acquired
businesses.Going forward, we remain focused on the successful execution of
our strategic initiatives to further strengthen our brand portfolios, expand
our margin profile and increase profitability long-term. We fully expect the
momentum we have built in the first half to continue for the balance of the
year."

Conference Call

The Company will hold an investor conference call today, Thursday, July 31,
2014, at 11:00 a.m. Eastern time. To participate on the live call listeners in
North America may dial (877) 853-7702 and international listeners may dial
(408) 940-3848. In addition, the call will be broadcast live over the Internet
hosted at the "Investor Relations" section of the Company's website at
www.inventurefoods.com and will be archived online for one year.

About Inventure Foods

With manufacturing facilities in Arizona, Indiana, Washington, Oregon and
Georgia, Inventure Foods, Inc. (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™, Fresh Frozen™ and Bob's Texas Style®. For
further information about Inventure Foods, please visit
www.inventurefoods.com.

Note Regarding Forward-looking Statements

This press release contains forward-looking statements, including, but not
limited to, our ability to improve business profitability to support our
future growth, execute our ongoing initiative to generate healthy EBITDA
growth through a focus on strong sales growth, enhancing margins and
leveraging the capabilities of our acquired businesses, expand our
distribution and further explore new product categories, execute our strategic
initiatives to further strengthen our brand portfolios, expand our margin
profile and increase profitability long-term. 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 from time to time in the Company's filings with the
Securities and Exchange Commission.All forward-looking statements are based
on information available to the Company as of the date of this news release,
and the Company assumes no obligation to update such statements.

INVENTURE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
                                                       
                                    Quarter Ended      Six Months Ended
                                    June 28, June 29, June 28,  June 29,
                                     2014   2013   2014    2013
Net revenues                         $71,852 $53,677 $139,361 $102,214
Cost of revenues                     58,396  44,541  114,342  84,253
Gross profit                         13,456   9,136    25,019    17,961
Selling, general & administrative    9,024   6,889   17,422   13,846
expenses
Operating income                     4,432    2,247    7,597     4,115
Interest expense, net                584     171     1,254    391
Income before income taxes           3,848    2,076    6,343     3,724
Income tax provision                 1,376   669     2,274    1,261
Net income                           $2,472  $1,407  $4,069   $2,463
                                                                
Earnings per common share:                                       
Basic                                $0.13   $0.07   $0.21    $0.13
Diluted                              $0.12   $0.07   $0.20    $0.13
                                                                
Weighted average number of common                                
shares:
Basic                                19,468  19,307  19,453   19,257
Diluted                              19,960  19,702  19,942   19,698

                                      

INVENTURE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                     
                                          June 28,   December 28,
                                           2014     2013
                                          (unaudited) 
Assets                                                
Current assets:                                      
Cash and cash equivalents                 $878       $910
Accounts receivable, net allowance         21,814     23,618
Inventories                                49,755     43,086
Deferred income tax asset                  740        755
Other current assets                       2,299      1,223
Total current assets                       75,486     69,592
                                                     
Property and equipment, net                55,953     50,140
Goodwill                                   23,064     23,064
Trademarks and other intangibles, net      25,022     25,624
Other assets                               1,638      1,671
Total assets                               $181,163   $170,091
                                                     
Liabilities and Shareholders' Equity                  
Current liabilities:                                  
Accounts payable                           $20,404    $19,380
Accrued liabilities                        11,207     10,121
Current portion of long-term debt          6,128      6,110
Total current liabilities                  37,739     35,611
                                                     
Long-term debt, less current portion       58,808     61,865
Line of credit                             13,425     3,223
Deferred income tax liability              4,203      4,188
Interest rate swaps                        449        526
Other liabilities                          2,300      5,525
Total liabilities                          116,924    110,938
                                                     
Shareholders' equity:                                 
Common stock                               199        198
Additional paid-in capital                 31,929     30,960
Accumulated other comprehensive loss       (198)     (244)
Retained earnings                          32,780     28,710
                                          64,710     59,624
                                                     
Less: treasury stock                       (471)      (471)
Total shareholders' equity                 64,239     59,153
Total liabilities and shareholders' equity $181,163   $170,091



INVENTURE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
(in thousands)
(unaudited)
                                                  
                        Quarter Ended            Six Months Ended
                        June 28,    June 29,    June 28,    June 29,
                         2014         2013        2014        2013
Reconciliation – EBITDA                                       
^(1):
Reported net income      $2,472       $1,407      $4,069      $2,463
Add back: Interest, net  584         171        1,254      391
Add back: Income tax     1,376       669        2,274      1,261
provision
Add back: Depreciation   1,705       1,332      3,321      2,545
Add back: Amortization   301         3          602        5
of intangible assets
EBITDA                   $6,438       $3,582      $11,520     $6,665
                                                             
^(1) This press release includes the financial measure "EBITDA".This
measurement is deemed a "non-GAAP financial measure" under the rules of the
SEC, including Regulation G.This non-GAAP financial measure may be determined
or calculated differently by other companies.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.

CONTACT: John Mills/Katie Turner, ICR (646) 277-1200

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