US: Inventure Foods H1 profits climb

Inventure Foods Reports Second Quarter 2012 Results
Net Revenues up 10.1% - Net Income up 88.8%
PHOENIX, Aug. 2, 2012 /PRNewswire/ -- Inventure Foods, Inc. (Nasdaq: SNAK), a leading specialty food marketer and manufacturer, today reported financial results for the second quarter ended June 30, 2012, highlighted by the Company's highest reported quarterly net revenues with net income growth of 88.8% compared to the prior-year quarter.

Second Quarter 2012 Financial Results

Inventure generated record net revenues of $48.0 million for the second quarter, an increase of 10.1%, or $4.4 million versus the prior-year second quarter, primarily attributable to strong performance in the Frozen segment.

Frozen segment net revenues, which includes Jamba® All Natural Smoothies, totaled $23.2 million for the quarter, up 24.1% over the prior-year period. Excluding Jamba®, the Frozen segment net revenues increased 58.8% for the quarter continuing the momentum from the first quarter due to favorable competitive pricing relative to other berries, continued category growth and new distribution. Jamba® net revenues for the quarter totaled $3.5 million ($5.4 million gross) a decrease of 44.8% compared to net revenues of $6.3 million ($7.9 million gross) in the second quarter of 2011 primarily related to a prior year national Jamba® coupon event at a major warehouse retailer. Excluding this event that resulted in incremental gross revenues of approximately $3.0 million, Jamba® gross revenues were up 10.8%.

The Snack segment second quarter net revenues were flat with $24.8 million in net revenues compared to $24.9 million the same quarter a year ago. T.G.I. Friday's® and Boulder Canyon^TM Natural Foods net revenues were down 1.7% and 1.8%, respectively, offset by an increase of 10.8% in premium private label sales. During the second quarter of the prior year, T.G.I. Friday's® sales benefited from higher volume in anticipation of a planned price increase, which affected comparative sales growth in the current quarter. Boulder Canyon^TM sales were affected by competitive pricing pressure, the timing of promotional events and planned transitions in package size during the quarter.

Consolidated net income for the quarter grew 88.8% and totaled $1.6 million, or $0.08 per fully diluted share, compared to $0.9 million, or $0.05 per fully diluted share, in the second quarter of 2011.

Consolidated EBITDA for the quarter was $4.0 million, or 8.2% of net revenue, an increase of 48.2% compared to the second quarter of last year. A table reconciling EBITDA to net income is presented at the end of the consolidated financial statements included in this release.

Other second quarter financial highlights included:

Gross profit of $9.2 million, or 19.2% of net revenues, increased 13.7% in dollars and 60 basis points compared to last year. This increase in gross margin was primarily due to improved plant performance in the Snack segment and a favorable product mix in the Frozen segment, which was partially offset by an increase of $0.5 million in above-the-line trade promotion spending, primarily for the Jamba® and Boulder Canyon^TM brands.
Selling, General and Administrative (SG&A) expenses totaled $6.4 million for the quarter, a decrease of 2.5%, or $0.2 million. SG&A, as a percent of net revenues, was down 170 basis points to 13.3%, compared to the second quarter of the prior year. This decline was largely attributable to decreased marketing and sampling expenses related to prior year's national coupon event at a major warehouse retailer for the Jamba® brand.
First Half 2012 Net Revenues, EPS and EBITDA

Net revenues for the first half of 2012 totaled $95.0 million, up 18.4% compared to $80.3 million during the first half of 2011. Fully diluted earnings per share of $0.17 were up 41.7% during the first half of 2012 compared to $0.12 during the same period in 2011. EBITDA also showed a strong increase of 28.9% to $8.0 million for the first half of 2012, compared to $6.2 million for the first half of 2011.

Management Commentary & Future Outlook

"We are pleased to report our highest quarterly net revenues in the Company's history, and we are proud of the continued growth and success of our innovative products," said Terry McDaniel, Chief Executive Officer of Inventure Foods.

"Our Healthy Natural portfolio increased 17.7% from the second quarter of 2011 and now represents 61% of total revenue, reiterating a continued consumer interest in better-for-you offerings. Our revenue growth was led by continued strong sales in our Frozen segment with a 58.8% increase in frozen fruit sales from the prior-year quarter."

"The diversity of our products and distribution channels provides us with a solid platform to benefit from the strong performance of certain products while continuing to enhance and grow other products. Boulder Canyon^TM sales were down in the quarter due to packaging transitions and increased price competition, we continue to focus on expanding this brand."

"We continue to offer innovative new products expanding the Jamba® "at home" Smoothies line with a new pair of superfruit smoothies featuring non-fat Greek yogurt. Pomegranate Pick-Me-Up^TM and Acai Super-Antioxidant^TM are the first smoothies in the Jamba® "at home" line to feature Greek yogurt in the formulation. In addition, we recently launched our Jamba® Multigrain Fruit Crisps, Cranberry Crave and Blueberry Blast."

"Also, during the first half of 2012 we decreased our total debt levels by $6.4 million with cash from operations and continue to strengthen our balance sheet."

Mr. McDaniel concluded, "We remain focused on the growth of our innovative products through the continued execution of our strategic plan. We are excited for new opportunities as we leverage the success realized in the first half of 2012 and seek to add continued value to our shareholders through sustainable long-term growth."

Original source: Inventure Foods