PHOENIX, April 28, 2016 (GLOBE NEWSWIRE) -- Inventure Foods, Inc., a leading specialty food marketer and manufacturer, today reported financial results for the first quarter ended March 26, 2016.
First Quarter 2016 Highlights:
- Net loss was $(1.0) million, or $(0.05) per share
- EBITDA* was $2.5 million
- Consolidated net revenues decreased 10.0% to $69.9 million
- Boulder Canyon net revenues increased 4.8%
- Rader Farms branded net revenues increased 104.6%
- Jamba net revenues increased 2.3%
- Private label fruit revenues increased 32.6%
(All comparisons above are to the first quarter of fiscal 2015)
“We are pleased with our start to 2016 and believe the sequential improvement across key financial metrics demonstrates our initial steps on our path back to profitability,” said Terry McDaniel, Chief Executive Officer of Inventure Foods. “Within the snack and frozen segments our key brands generated revenue growth compared to the first quarter of last year, with Boulder Canyon up 5% and Radar Farms brand up 105%. We remain focused on the strategic initiatives that will improve both our operational and financial performance as we progress through the year.”
First Quarter Fiscal 2016
Consolidated net revenues decreased 10.0% to $69.9 million, compared to $77.6 million in the first quarter of the prior year. Frozen segment net revenues decreased 12.4%. Excluding Fresh Frozen, frozen segment net revenues decreased 8.6%, primarily due to reduced distribution and a price decrease for the Company’s most significant frozen berry product. Snack segment net revenues decreased 5.2%, primarily as a result of decreased net revenues of licensed indulgent products, which was partially offset by increased Boulder Canyon net revenues.
Gross profit was $8.8 million, compared to a loss of $(3.7) million in the first quarter of 2015. Excluding the product recall expenses recorded in cost of revenues in the first quarter of 2015, gross profit in the first quarter of 2016 decreased $2.7 million, and as a percentage of net revenues decreased 230 basis points to 12.6% compared to 14.9% in the prior year period. This decrease in gross profit was attributable to a $3.4 million decrease in the frozen segment, offset by a $0.7 million increase in the snack segment.
Selling, general and administrative (“SG&A”) expenses were $8.1 million for the first quarter of 2016. Excluding the $0.2 million of product recall expenses recorded in SG&A in the first quarter of 2015, SG&A expenses decreased $0.8 million and as a percentage of net revenues was relatively consistent at 11.6% compared to 11.5% in the first quarter of 2015.
Interest expense was $2.4 million for the first quarter of 2016, an increase of $1.6 million, compared to $0.7 million in the prior year period as a result of increased borrowings.
Net loss was $(1.0) million, or $(0.05) per share, for the first quarter of 2016, compared to $(14.6) million, or $(0.75) per share, for the prior year period. First quarter of 2016 net loss has not been adjusted for the negative impact to earnings associated with higher kettle chip production costs of $0.5 million, pre-tax, as a result of using outsourced production capabilities in order to meet demand. Excluding the costs associated with the product recall in 2015, adjusted net income* was $1.2 million in the first quarter of 2015.
EBITDA for the first quarter of 2016 was $2.5 million compared to adjusted EBITDA* of $4.6 million for the first quarter of 2015. The first quarter of 2015 EBITDA was adjusted to exclude product recall expenses of $15.5 million and an intangible asset impairment of $9.3 million. Full report.
