Inventure Foods Reports Second Quarter 2017 Financial Results
Source Inventure Foods
PHOENIX, Aug. 09, 2017 (GLOBE NEWSWIRE) -- Inventure Foods, Inc. (NASDAQ:SNAK) (“Inventure Foods” or the “Company”), a leading specialty food marketer and manufacturer, today reported financial results for the second quarter and six months ended July 1, 2017.
Second Quarter 2017 Highlights:
- Snack segment net revenues increased 11.6% to $30.7 million
- Boulder Canyon brand net revenues increased 11.2%; Boulder Canyon snack net revenues increased 9.4%
- Snack private label net revenues increased 34.5%
- Snack segment gross profit as a percentage of net revenues increased 150 basis points to 21.2%
- Frozen segment gross profit as a percentage of net revenues increased 330 basis points to 17.4%
- Net loss from continuing operations was $(1.0) million, or $(0.05) per share
- EBITDA* and Adjusted EBITDA* from continuing operations was $3.0 million and $4.0 million, respectively
(All comparisons above are to the second quarter of fiscal 2016)
“Our second quarter financial results reflect another sequential quarterly improvement in our operating and financial results and we are pleased with our continued progress,” commented Terry McDaniel, Chief Executive Officer of Inventure Foods. “The second quarter benefited from positive demand for our snack products as evidenced by the strength of the Boulder Canyon brand and premium private label sales growth, as well as an increase in both our snack and frozen segment gross profit margin as compared to the prior year. Going forward, our management team and Board of Directors remain diligently focused on our ongoing strategic and financial review to maximize value for our shareholders.”
Second Quarter Fiscal 2017
Consolidated net revenues decreased 11.1% to $51.4 million, compared to $57.8 million in the second quarter of the prior year. An 11.6% increase in snack segment net revenues was offset by a 31.7% decrease in frozen segment net revenues which is discussed further under “Segment Review” below.
Gross profit was $10.1 million compared to $9.7 million in the second quarter of 2016 and as a percentage of net revenues increased 290 basis points to 19.7% compared to 16.8% in the prior year period. This increase in gross profit was attributable to a $1.1 million increase in the snack segment, partially offset by a $0.7 million decrease in the frozen segment, which is discussed further under “Segment Review” below.
Selling, general and administrative (“SG&A”) expenses were $8.7 million an increase of $1.1 million compared to the prior year period. SG&A expenses as a percentage of net revenues increased to 16.9% compared to 13.2% in the second quarter of 2016. Excluding a $1.0 million of professional fees associated with the Company’s ongoing strategic review in the second quarter of 2017, adjusted SG&A expenses* remained flat, and as a percentage of net revenues increased to 14.9% compared to 13.2% in the second quarter of 2016 as a result of increased expenses associated with other legal, medical and accrued bonus costs.
Interest expense was $2.4 million for the second 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.
The second quarter of 2017 EBITDA from continuing operations* was adjusted to exclude $1.0 million related to professional fees associated with the ongoing strategic review. Adjusted EBITDA from continuing operations* for the second quarter of 2017 was $4.0 million compared to $3.7 million for the second quarter of 2016.
Net loss from continuing operations was $(1.0) million, or a loss of $(0.05) per share, for the second quarter of 2017, compared to net income of $61,000, or income of $0.01 per share, for the prior year period. Adjusted net income from continuing operations* was $37,000, or $0.00 adjusted diluted income from continuing operations per share* for the second quarter of 2017, compared to adjusted net income from continuing operations* of $61,000, or $0.01 adjusted diluted income from continuing operations per share*, for the second quarter of 2016.
Year-to-Date Fiscal 2017
Consolidated net revenues decreased 12.2% to $101.0 million for the six months ended July 1, 2017, compared to $115.0 million in the prior year period. Snack segment net revenues increased 8.5% and frozen products segment net revenues decreased 29.5%.
Net loss from continuing operations was $(2.2) million, or $(0.11) loss per share, for the first six months of 2017, compared to net income of $0.1 million, or $0.01 diluted income per share, in the prior year period. Excluding a tax effected gain of $1.3 million related to an escrow settlement and tax effected professional fees associated with the ongoing strategic review of $1.1 million, adjusted net loss from continuing operations* was $(2.4) million, or $(0.12) adjusted diluted loss from continuing operations per share*, for the first six months of 2017.
Adjusted EBITDA* was $5.6 million for the first six months of 2017, compared to $7.3 million in the prior year period.
