PHOENIX, April 23, 2009 (GLOBE NEWSWIRE) -- The Inventure Group, Inc. (Nasdaq:SNAK) today reported financial results for the first quarter ended March 28, 2009.
Net revenues for the first quarter of fiscal 2009 were $29.7 million vs. $26.2 million last year, an increase of 13.6 %. The Snack Division net revenues were $19.0 million, up 14.8% vs. last year. Key drivers of the increase were Boulder Canyon(tm) Natural Foods, up 31%, T.G.I. Friday's(r), up 4.8%, BURGER KING(tm), up 4.5% and Private Label sales, up 167%. These increases were partially offset by an 8% decline in the Poore Brothers(r) brand.
Rader Farms(r) net revenues were $10.7 million, up 11.4% vs. last year.
Net income for the quarter was $0.9 million or $0.05 per share vs. $0.4 million or $0.02 per share last year.
Key Financial Metrics:
----------------------
* Gross profit was $6.1 million and 20.5% of net revenue vs. $5.1
million and 19.4% of net revenue last year. The increase was
attributable to the growth in pounds through the snack plants as
well as the positive impact of the revenue growth at Rader Farms.
These gains were partially offset by the shift to lower margin
channels as a result of the current economic environment and price
increases in certain commodities.
* Selling, general and administrative ("SG&A") expenses were $4.5
million vs. $3.8 million last year. Key drivers of the increase
were the continued investment in I.T. as well as an overall
increase in the investment in selling and marketing at Rader Farms.
* Operating income was $1.6 million or 5.4% of net revenue, an
increase of 29% and 0.6 percentage points vs. last year.
* Earnings before interest, taxes, depreciation and amortization
("EBITDA") was $2.4 million or 8.2% of net revenue, an increase of
24% and 0.7 percentage points vs. last year. A table reconciling
EBITDA to net income is presented at the end of the condensed
consolidated financial statements included in this release.
* The Company's total indebtedness was $19.5 million at the end of
the first quarter, down $1.2 million versus fiscal year end 2008
even though we invested $0.7 million in capital and $0.5 million in
stock repurchases.
"Our results continue to be strong, as we have now had five consecutive quarters of year over year earnings growth," noted Terry McDaniel, President and CEO of The Inventure Group. "This was the best first quarter in the company's history as a public company as we had double digit growth in both the top and bottom lines. In our Healthy/Natural category, Boulder Canyon continues its strong momentum with a 31% increase in net revenues over last year. Rader Farms net revenues were up 11.4%, taking our Healthy /Natural category up 18%. This category now represents 45% of total net revenue. We also grew our Indulgent/Specialty category by 10%. T.G.I. Friday's(r) business grew for the first time since 2006, fueled by new product success, expansion into the dollar store channel and a stronger base business. BURGER KING(tm) snacks continue to perform well. Our strategic push into Private Label paid off with sales increases of 167%. Operations execution was excellent as evidenced by decreased plant costs per pound versus the same period last year. We have seen some savings in fuel and certain commodities, but other commodity costs continue to increase, and improved execution helps to manage these costs.
McDaniel continued, "While we are pleased with our results, we understand the importance of maintaining our focus on cost reduction, execution, and infrastructure improvements. We believe the Company is well positioned going forward with strong, growing brands in both our Healthy/Natural and Indulgent/Specialty categories, supported by an exceptional team of associates."
About The Inventure Group, Inc.
With manufacturing facilities in Arizona, Indiana and Washington, The Inventure Group is a marketer and manufacturer of Intensely Different(tm) specialty brands in indulgent and better-for-you food categories under a variety of Company owned or licensed brand names, including T.G.I. Friday's(r), BURGER KING(tm), Rader Farms(r), Boulder Canyon(tm) Natural Foods, Poore Brothers(r), Tato Skins(r) and Bob's Texas Style(r). For further information about The Inventure Group or this release, please contact Steve Weinberger, Chief Financial Officer, at (623) 932-6200, or logon to http://www.inventuregroup.net.
The Inventure Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3283
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. 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, the potential need for additional financing, acquisition-related risks, significant competition, customer acceptance of new products, dependence upon major customers, dependence upon existing and future license agreements, general risks related to the food products industry, deteriorating economic conditions, and such other factors as are described in the Company's filings with the Securities and Exchange Commission.
THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ending
March 28, March 29,
2009 2008
---- ----
(unaudited) (unaudited)
Net revenue $ 29,718,837 $ 26,171,075
Cost of revenue 23,624,492 21,096,340
------------ ------------
Gross profit 6,094,345 5,074,735
Selling, general & administrative expenses 4,475,698 3,815,655
------------ ------------
Operating income 1,618,647 1,259,080
Interest income (expense), net (178,054) (552,911)
------------ ------------
Income before income taxes 1,440,593 706,169
Income tax provision (553,424) (294,873)
------------ ------------
Net income $ 887,169 $ 411,296
============ ============
Earnings (loss) per common share:
---------------------------------
Basic $ 0.05 $ 0.02
============ ============
Diluted $ 0.05 $ 0.02
============ ============
Weighted average number of common shares:
-----------------------------------------
Basic 18,164,223 18,810,994
============ ============
Diluted 18,164,223 18,811,208
============ ============
THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 28, March 29,
2009 2008
---- ----
(unaudited) (unaudited)
Current assets $ 26,600,402 $ 21,483,306
Property and equipment, net 24,464,303 23,821,748
Other assets, net 14,681,410 14,673,867
------------ ------------
Total assets $ 65,746,115 $ 59,978,921
============ ============
Line of credit $ 7,307,690 $ 5,119,898
Other current liabilities 14,024,986 12,680,290
Long-term debt 10,941,285 12,145,405
Other long-term liabilities 3,894,613 1,946,757
------------ ------------
Total liabilities 36,168,574 31,892,350
Shareholders' equity 30,048,736 31,068,877
Treasury Stock, at cost (471,195) (2,982,306)
------------ ------------
Total liabilities and shareholders'
equity $ 65,746,115 $ 59,978,921
============ ============
THE INVENTURE GROUP, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
(unaudited)
Quarter Ending
March 28, March 29,
2009 2008
---- ----
Reconciliation - EBITDA (1):
Reported net income $ 887,169 $ 411,296
Add back: Interest, net 178,054 552,911
Add back: Income tax expense 553,424 294,873
Add back: Depreciation 805,703 691,438
Add back: Amortization of
intangible assets 15,610 21,360
------------ ------------
EBITDA $ 2,439,960 $ 1,971,878
============ ============
(1) EBITDA is presented as a supplemental performance measure and is
not intended as an alternative to net income or any other measure
calculated in accordance with generally accepted accounting
principles. Further, EBITDA may not be comparable to similarly titled
measures used by other companies.