PHOENIX, May 7, 2015 (GLOBE NEWSWIRE) -- Inventure Foods, Inc., a leading specialty food marketer and manufacturer, today reported financial results for the first quarter ended March 28, 2015.
Net revenues increased 15.0% to $77.6 million, compared to $67.5 million in the prior year period. The increase in net revenues was due to a 17.6% increase in frozen segment net revenues and a 10.1% increase in snack segment net revenues.
Gross profit was $(3.7) million, compared to gross profit of $11.6 million in the prior year period. The Company recorded $15.3 million of additional charges to cost of revenues in the first quarter of 2015 related to the product recall, outlined in additional detail below. Excluding the product recall*, gross profit was $11.6 million and as a percent of net revenues decreased 220 basis points to 14.9% compared to 17.1% in the prior year. This decline is primarily due to planned slotting and promotional expenses, as well as increased freight costs and a shift in product and channel mix.
Net loss was $14.6 million, or $0.75 diluted loss per share, compared to net income of $1.6 million, or $0.08 diluted earnings per share. The Company recorded product recall charges of $9.9 million, net of tax, or $0.51 diluted earnings per share, and an intangible asset impairment charge of $5.9 million, net of tax, or $0.30 diluted earnings per share in the first quarter of 2015. Excluding the impact of the product recall*, net income was $1.2 million, or $0.06 diluted earnings per share for the first quarter of 2015. Net income in the first quarter of 2015 includes approximately $1.5 million, or$0.05 per diluted share, in planned incremental slotting and promotional trade spend investments.
Adjusted EBITDA was $4.6 million, compared to EBITDA of $5.1 million in the prior year period.
Snack Segment:
Net revenues during the first quarter increased 10.1% to $26.3 million, compared to $23.9 million in the prior year period. Gross profit increased $0.1 million, or 1.9%, to $3.8 million, compared to $3.7 million in the prior year period. As a percentage of net revenues, first quarter gross profit decreased 120 basis points to 14.4% compared to the prior year period primarily as a result of product sales and channel mix and higher freight cost. View the full report here.
