Inventure Foods, Inc. (NASDAQ:SNAK) (“Inventure Foods” or the
“Company”), a leading specialty food marketer and manufacturer,
today reported financial results for the first quarter ended April
1, 2017.
First Quarter 2017
Highlights:
- Snack segment net revenues increased 5.1% to $26.2 million
- Boulder Canyon brand net revenues increased 15.3%; Boulder
Canyon snack net revenues increased 11.5%
- Snack premium private label net revenues increased 22.8%
- Gross profit as a percentage of net revenues increased 100
basis points to 17.2%
- Net loss from continuing operations was $(1.2) million, or
$(0.06) per share
- EBITDA* and Adjusted EBITDA* from continuing operations was
$2.8 million and $1.6 million, respectively
- Completed strategic sale of Fresh Frozen business
(All comparisons above are to the first quarter
of fiscal 2016)
“We are pleased with the progress we made during
the first quarter across key operational and financial areas of our
business,” commented Terry McDaniel, Chief Executive Officer of
Inventure Foods. “We made two important steps forward with the
strong frozen segment gross margin expansion and our snack segment
returned to growth driven by the strength of our Boulder Canyon
brand and our better-for-you premium private label product
offering. As we progress through the year, we are intently focused
on the execution of our strategic initiatives across the snack and
frozen segments to generate increased sales and profitability. At
the same time, our management team and Board of Directors remain
committed to maximizing value for our shareholders as we move
forward with our ongoing strategic and financial review.”
First Quarter Fiscal 2017
Consolidated net revenues decreased 13.2% to
$49.6 million, compared to $57.2 million in the first quarter of
the prior year. Frozen segment net revenues decreased 27.4% and
snack segment net revenues increased 5.1%, which is discussed
further under “Segment Review” below.
Gross profit was $8.5 million compared to $9.3
million in the first quarter of 2016 and as a percentage of net
revenues increased 100 basis points to 17.2% compared to 16.2% in
the prior year period. This decrease in gross profit was
attributable to a $0.1 million decrease in the frozen segment and a
$0.7 million decrease in the snack segment, which is discussed
further under “Segment Review” below.
Selling, general and administrative (“SG&A”)
expenses were $7.3 million an increase of $0.1 million compared to
the prior year period. SG&A expenses as a percentage of net
revenues increased to 14.6% compared to 12.5% in the first quarter
of 2016. Excluding a $1.2 million gain on settlement of escrow
recorded in SG&A in the first quarter of 2017, adjusted
SG&A expenses* increased $1.3 million, and as a percentage of
net revenues increased to 17.1% compared to 12.5% in the first
quarter of 2016. This increase is primarily a result of increased
legal fees associated with the Company’s previously announced
strategic and financial review and other legal matters, as well as
increased accrued bonus and medical expenses.
Interest expense was $2.4 million for the first
quarter of 2017, an increase of $0.4 million, compared to $2.0
million in the prior year period as a result of higher interest
rates.
Discontinued operations represents the Fresh
Frozen Foods business that was sold on March 23, 2017.
Discontinued operations generated a net loss of $12.9 million and
$1.1 million for the fiscal quarters ended April 1, 2017 and March
26, 2016, respectively. The fiscal quarter ended April 1,
2017 includes a loss on the sale of Fresh Frozen of $10.1
million.
The first quarter of 2017 EBITDA from continuing
operations* was adjusted to exclude a gain of $1.2 million related
to an escrow settlement. Adjusted EBITDA from continuing
operations* for the first quarter of 2017 was $1.6 million compared
to adjusted EBITDA from continuing operations* of $3.7 million for
the first quarter of 2016.
Net loss from continuing operations was $(1.2)
million, or a loss of $(0.06) per share, for the first quarter of
2017, compared to net income of $0.1 million, or income of $0.01
per share, for the prior year period. Adjusted net loss from
continuing operations* was $(2.6) million, or $(0.13) adjusted
diluted loss from continuing operations per share* for the first
quarter of 2017, compared to adjusted net income from continuing
operations* of $0.1 million, or $0.01 adjusted diluted income from
continuing operations per share*, for the first quarter of
2016.
Segment Review
The Company has two reportable segments: frozen
and snack. The frozen product segment includes frozen fruits, fruit
and vegetable blends, beverages, side dishes and desserts, for sale
primarily to grocery stores, club stores and mass merchandisers.
The snack segment includes manufactured potato chips, kettle chips,
potato crisps, potato skins, pellet snacks, sheeted dough products,
popcorn and extruded product for sale primarily to snack food
distributors and retailers.
Frozen Segment: Net revenues
for the first quarter of 2017 decreased 27.4% to $23.5 million,
compared to $32.3 million in the prior year period, primarily as a
result of reduced private label sales distribution and a frozen
berry market price decrease as well as a reduction in Jamba at-home
smoothie sales. For the first quarter of 2017, gross profit
was $4.7 million compared to $4.8 million and as a percentage of
net revenues increased 540 basis points to 20.2% compared to 14.8%
in the prior year period. The significant improvement in the frozen
products segment gross margin was driven by a reduction in
purchases of higher priced frozen berries and lower 2016 harvest
fruit prices.
Snack Segment: Net revenues
during the first quarter of 2017 increased 5.1% to $26.2 million,
compared to $24.9 million in the prior year period, primarily as a
result of strong increases in both Boulder Canyon and
better-for-you private label sales partially offset by reduced
license brand sales. For the first quarter of 2017, gross profit
was $3.8 million, compared to $4.5 million in the first quarter of
2016. Gross profit as a percentage of net revenues was 14.4%,
compared to 18.1% in prior year period. This decrease in snack
segment gross margin was primarily due to higher trade promotion
spending and reductions in inventory standard costs compared to the
first quarter of 2016.
Bank Waiver and Amendment
In addition, the Company also announced today
that on May 10, 2017, it received a temporary waiver and extension
of certain covenants under its term loan agreement until July
17, 2017.
*Please see the tabular reconciliations 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 terms from continuing operations:
Adjusted selling, general and administrative expenses, EBITDA,
adjusted EBITDA, adjusted net income (loss) and adjusted diluted
earnings per share to the most comparable GAAP financial
measures.
Conference CallThe Company will
hold an investor conference call today, Thursday, May 11, 2017, at
11:00 a.m. ET. To participate on the live call listeners in North
America may dial (877) 853-7702 and international listeners may
dial (408) 940-3848; the conference ID is 12189227. 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 FoodsWith
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 Foods™, Jamba®, Rader Farms®,
TGI Fridays™, Nathan's Famous®, Vidalia Brands®, Poore Brothers®,
Tato Skins®, Willamette Valley Fruit Company™, and Bob's Texas
Style® and Sin In A Tin™. For further information about Inventure
Foods, please visit www.inventurefoods.com.
Contact Katie Turner, ICR (646)
277-1200
Note Regarding Forward-looking
Statements
This press release contains forward-looking
statements, including, but not limited to, the Company’s ability to
achieve revenue and profit growth in the short or long term, its
ability to complete a strategic alternative or transaction to
increase shareholder value, its ability manage or mitigate
operational issues, and its ability to turnaround or improve its
consolidated financial performance during 2017. 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, ability to execute
strategic initiatives, ability to continue as a going concern,
general economic conditions, increases in cost or availability of
ingredients, packaging, energy and employees, price competition and
industry consolidation, 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 the Company
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
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share
data)(unaudited) |
|
|
Quarter Ended |
|
April 1,
2017 |
March 26,
2016 |
Net revenues |
$ |
49,618 |
|
$ |
57,180 |
|
Cost of revenues |
|
41,104 |
|
|
47,899 |
|
Gross profit |
|
8,514 |
|
|
9,281 |
|
Operating
expenses: |
|
|
Selling,
general & administrative expenses |
|
7,255 |
|
|
7,155 |
|
Operating income |
|
1,259 |
|
|
2,126 |
|
Non-operating
expense: |
|
|
Interest
expense, net |
|
2,362 |
|
|
2,002 |
|
Income (loss) from continuing operations |
|
(1,103 |
) |
|
124 |
|
Income tax expense |
|
(103 |
) |
|
(47 |
) |
Net income (loss) from continuing operations |
|
(1,206 |
) |
|
77 |
|
Discontinued
operations, net of taxes |
|
(12,933 |
) |
|
(1,095 |
) |
Net loss |
$ |
(14,139 |
) |
$ |
(1,018 |
) |
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
Basic income (loss) from continuing operations |
$ |
(0.06 |
) |
$ |
0.01 |
|
Basic loss from discontinued operations |
$ |
(0.66 |
) |
$ |
(0.06 |
) |
Basic loss per share |
$ |
(0.72 |
) |
$ |
(0.05 |
) |
|
|
|
Diluted income (loss) from continuing operations |
$ |
(0.06 |
) |
$ |
0.01 |
|
Diluted loss from discontinued operations |
$ |
(0.66 |
) |
$ |
(0.06 |
) |
Diluted loss per share |
$ |
(0.72 |
) |
$ |
(0.05 |
) |
|
|
|
Weighted average number
of common shares: |
|
|
Basic |
|
19,675 |
|
|
19,603 |
|
Diluted |
|
19,675 |
|
|
19,859 |
|
INVENTURE FOODS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in
thousands)(unaudited) |
|
|
April 1,
2017 |
December 31,
2016 |
|
|
|
Assets |
|
|
Current
assets: |
|
|
Cash and
cash equivalents |
$ |
1,508 |
|
$ |
776 |
|
Accounts
receivable, net allowance |
|
15,901 |
|
|
16,334 |
|
Inventories |
|
48,125 |
|
|
72,188 |
|
Other
current assets |
|
4,116 |
|
|
3,216 |
|
Total
current assets |
|
69,650 |
|
|
92,514 |
|
|
|
|
Property and equipment,
net |
|
53,148 |
|
|
65,484 |
|
Goodwill |
|
14,985 |
|
|
14,985 |
|
Trademarks and other
intangibles, net |
|
4,831 |
|
|
7,243 |
|
Other assets |
|
1,294 |
|
|
1,254 |
|
Total
assets |
$ |
143,908 |
|
$ |
181,480 |
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
Current
liabilities: |
|
|
Accounts
payable |
$ |
25,896 |
|
$ |
29,462 |
|
Accrued
liabilities |
|
6,752 |
|
|
9,533 |
|
Line of
credit |
|
27,230 |
|
|
32,761 |
|
Current
portion of term debt |
|
68,739 |
|
|
82,380 |
|
Total
current liabilities |
|
128,617 |
|
|
154,136 |
|
|
|
|
Deferred income tax
liability |
|
3,366 |
|
|
1,376 |
|
Other liabilities |
|
2,037 |
|
|
2,279 |
|
Total
liabilities |
|
134,020 |
|
|
157,791 |
|
|
|
|
Shareholders’
equity: |
|
|
Common stock |
|
201 |
|
|
200 |
|
Additional paid-in
capital |
|
36,058 |
|
|
35,721 |
|
Accumulated
deficit |
|
(25,900 |
) |
|
(11,761 |
) |
Retained
earnings |
|
10,359 |
|
|
24,160 |
|
|
|
|
Less: treasury
stock |
|
(471 |
) |
|
(471 |
) |
Total shareholders’
equity |
|
9,888 |
|
|
23,689 |
|
Total liabilities and
shareholders’ equity |
$ |
143,908 |
|
$ |
181,480 |
|
Non-GAAP Financial Measures
In addition to reporting financial results in
accordance with GAAP, the Company presents certain non-GAAP
measures in this earnings announcement to provide transparency to
investors and to assist investors 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. The Company presents EBITDA from continuing
operations and adjusted EBITDA from continuing operations because
it believes they provide useful information regarding the Company’s
ability to meet its future debt payment requirements, capital
expenditures and working capital requirements and they provide an
overall evaluation of the Company’s financial condition. The
Company also presents adjusted net income (loss) from continuing
operations, adjusted diluted income (loss) from continuing
operations per share, and adjusted SG&A expenses because it
believes they provide useful information regarding the Company’s
normal operating results and allow for better comparability with
current period operating results. These non-GAAP measures are
intended to provide additional information only and have certain
inherent limitations as analytical tools and should not be used in
isolation or as a substitute for results reported under GAAP.
Further, non-GAAP measures may not be comparable to similarly
titled measures used by other companies. Reconciliations of
non-GAAP measures to the most directly comparable GAAP measures are
provided below.
INVENTURE FOODS, INC. AND
SUBSIDIARIESNON-GAAP MEASURE
RECONCILIATION (in
thousands)(unaudited)
EBITDA from continuing operations is defined as
net income (loss) from continuing operations with interest expense,
income taxes, depreciation and amortization added back. EBITDA from
continuing operations for the first fiscal quarter of 2017 was
further adjusted to exclude the gain on escrow settlement.
These adjustments were made since they are not related to our core
business, to arrive at adjusted EBITDA from continuing operations.
The GAAP financial measure that is most directly comparable to
EBITDA from continuing operations is net cash provided by operating
activities.
|
Quarter Ended |
|
April 1,
2017 |
March 26,
2016 |
Reconciliation – EBITDA
from continuing operations: |
|
|
Reported
net income (loss) from continuing operations |
$ |
(1,206 |
) |
$ |
77 |
Add back:
Interest |
|
2,362 |
|
|
2,002 |
Add back:
Income tax expense |
|
103 |
|
|
47 |
Add back:
Depreciation |
|
1,484 |
|
|
1,454 |
Add back:
Amortization of intangible assets |
|
82 |
|
|
82 |
EBITDA from continuing
operations |
|
2,825 |
|
|
3,662 |
Adjustments: |
|
|
Less: Gain
on escrow settlement |
|
(1,236 |
) |
|
- |
ADJUSTED EBITDA from
continuing operations |
$ |
1,589 |
|
$ |
3,662 |
Adjusted net income (loss) from continuing
operations and adjusted diluted income (loss) from continuing
operations per share for the first quarter of 2017 exclude the gain
on escrow settlement. These adjustments were made in order to make
a more meaningful comparison of our 2017 operating
performance. A reconciliation of adjusted net income (loss)
from continuing operations to net income (loss) from continuing
operations is as follows (in thousands):
|
Quarter Ended |
|
April 1,
2017 |
March 26,
2016 |
Reported net income
(loss) from continuing operations |
$ |
(1,206 |
) |
$ |
77 |
Less: Gain on escrow
settlement, net of tax |
|
(1,351 |
) |
|
- |
Adjusted net income
(loss) from continuing operations |
$ |
(2,557 |
) |
$ |
77 |
Adjusted
diluted income (loss) from continuing operations per share
|
$ |
(0.13 |
) |
$ |
0.01 |
Adjusted selling, general and administrative
expenses is defined as SG&A expenses less gains from a legal
settlement with the previous owners of Fresh Frozen Foods over
purchase price holdback funds held in escrow. A
reconciliation of adjusted SG&A expenses, which exclude the
gain on escrow settlement, to SG&A expenses is as follows (in
thousands):
|
Quarter Ended |
|
April 1,
2017 |
March 26,
2016 |
|
|
|
|
|
Adjusted selling,
general and administrative expenses
|
$ |
8,491 |
$ |
7,155 |
Gain on escrow
settlement |
|
1,236 |
|
- |
Selling,
general and administrative expenses |
$ |
7,255 |
$ |
7,155 |
Poore Brothers (NASDAQ:SNAK)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Poore Brothers (NASDAQ:SNAK)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024