Reports 7th Consecutive Quarter of Year-Over-Year Earnings Growth,
New Distribution Gains PHOENIX, Oct. 21 /PRNewswire-FirstCall/ --
The Inventure Group, Inc. (NASDAQ:SNAK), a leading specialty snack
food manufacturer, today reported financial results for the third
quarter ended September 26, 2009, highlighted by a seventh
consecutive quarter of year-over-year earnings growth, an 18% net
profit increase, EBITDA growth of 19% and new distribution gains.
3Q 2009 Consolidated Financial Results Overview Net income in the
third quarter of 2009 was $1.3 million up 18% compared to $1.1
million for the same period in 2008. This represents the highest
third quarter earnings in the Company's history. Diluted earnings
per share were $0.07, an increase of 17% compared to $0.06 in the
same quarter of 2008. Earnings before interest, taxes, depreciation
and amortization (EBITDA) in the third quarter of 2009 was $3.35
million, an increase of 19% versus last year. A table reconciling
EBITDA to net income is presented at the end of the condensed
consolidated financial statements included in this release. Net
revenue in the third quarter of 2009 was $29.9 million, up 0.4%
compared to $29.8 million for the same period in 2008. The Snack
Division contributed 3.9% of net revenue growth while the Rader
Division net revenue declined by 6.8% vs. last year. On the Snack
side, Boulder Canyon(TM) was a key driver behind revenue growth
with an increase of 8% versus last year. This quarter's net revenue
growth rate was slower than previous quarters as Inventure ramped
up investment in Trade spending in securing new distribution. Other
Snack division growth drivers included T.G.I. Friday's®, up 11.3%
vs. 2008, and a 61% increase in Private Label sales vs. last year.
These gains were offset by a decline in Poore Brothers® which was
impacted by last years' pipeline fill of Inventure's first national
account and the loss of low margin Food Service business as well as
a decline in the BURGER KING(TM) brand. As anticipated, Rader Farms
net revenues were down 6.8% for the quarter. The abundance of fresh
berries at discounted prices adversely affected sales, evidenced by
the fact that July/August sales were down while September sales
were up double digits as the retail trade sold through fresh
product. Operating income in the third quarter was $2.44 million or
8% of net revenue, an increase of 15% compared to $2.12 million or
7% of net revenue for the same period in 2008. Selling, general and
administrative (SG&A) expenses in the third quarter decreased
to 14.3% of net sales versus 16.7% of net sales in the same period
last year, attributed to Inventure's ability to leverage greater
economies of scale and continued commitment to cost control
initiatives. 2009 Year To Date - Revenue, EPS and EBITDA Through
the first nine months of 2009, Inventure reported net sales of
$93.1 million, an increase of 9.2% compared to net sales of $85.2
million for the same period in 2008. Net earnings per diluted share
for the first nine months of 2009 were $0.18 versus $0.12 during
the same period in 2008, reflecting a gain of 50%. EBITDA for the
first nine months of 2009 was $8.6 million, an increase of 27% vs.
last year's EBITDA of $6.8 million. Management Commentary &
Future Outlook "We are pleased to report our 7th consecutive
quarter of year-over-year earnings growth," said Terry McDaniel,
President and CEO of The Inventure Group. "Our team continues to
deliver profitable growth as illustrated by an 18% rise in net
income and a 19% EBITDA increase in the third quarter of 2009. With
respect to our Snack division, Boulder Canyon(TM) continues to
perform very well. We have invested in new trade programs resulting
in securing both a new national account which will begin shipping
this month and a premier regional supermarket chain which will
start shipping late fourth quarter of this year. We are also very
pleased with the continued turnaround of the T.G.I. Friday's® brand
with an 11.3% net revenue increase for the quarter and 6.5% on a
year to date basis. Our premium private label business continues to
perform very well with revenue growth in the quarter of 61%. While
BURGER KING(TM) sales did not meet expectations for the quarter, we
are excited to report international distribution expansion of its
ready-to-eat snack chips to include 17 new countries throughout the
Middle East, Asia and Europe on top of the 30+ countries where
BURGER KING(TM) snack chips are currently sold. We are also
launching our next generation of BURGER KING(TM) Fries product in
early first quarter of 2010 and remain very committed to the growth
of this brand." McDaniel continued: "Although bottom line growth
performed well, our top line did experience a slow down in growth
from previous quarters due largely to Rader Farms. As previously
reported, Rader Farms' revenue was impacted by pricing pressure in
light of a strong berry crop throughout the industry. Despite Rader
sales being down for the quarter, the month of September returned
to positive revenue growth vs. last year . In addition, we are able
to offset any impact of sales softness by delivering a record crop
well above our original forecast. Going forward, although we've
reduced prices we remain confident on future growth in unit sales
because of lower prices and we have picked up an additional $3-4
million of new business through new customers and expanded
divisions of current customers commencing early first quarter of
2010. We are also on track to launch our new Jamba(TM) Smoothie
product late in the First Quarter of 2010. Initially, we intend to
roll this out into 5 key Jamba Juice® markets supported by a strong
consumer and trade program." McDaniel concluded: "Our innovative
product pipeline, unique manufacturing capabilities and proven
ability to profitably expand distribution has positioned Inventure
for continued growth for the remainder of 2009 and should provide a
performance kick start for 2010. It's undoubtedly an exciting time
in our company and we have the utmost confidence that our strategic
plan along with our exceptional caliber of employees will
effectively build upon the success we've enjoyed over the past
several years." Conference Call The Inventure Group's executive
management team will host a conference call today at 4 p.m. ET to
discuss the Company's third quarter results and comment on its
outlook for the remainder of 2009 and into 2010. To participate in
the conference call, please call toll-free (888) 778-9069 or (913)
312-0409 for international callers. A live webcast of the call will
also be available by accessing http://www.inventuregroup.net/ and
will be archived for one year following the event. 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®,
BURGER KING(TM), Rader Farms®, Boulder Canyon(TM) Natural Foods,
Poore Brothers®, Tato Skins® and Bob's Texas Style®. 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/. 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 CONDENSED CONSOLIDATED
STATEMENTS OF INCOME Quarter Ended Nine Months Ended -------------
----------------- Sept 26, Sept 27, Sept 26, Sept 27, 2009 2008
2009 2008 -------- -------- -------- -------- (unaudited)
(unaudited) (unaudited) (unaudited) Net revenue $29,937,411
$29,822,135 $93,075,776 $85,241,866 Cost of revenue 23,214,654
22,710,078 73,908,543 67,753,250 ---------- ---------- ----------
---------- Gross profit 6,722,757 7,112,057 19,167,233 17,488,616
Selling, general & administrative expenses 4,282,591 4,994,732
13,148,891 12,776,064 --------- --------- ---------- ----------
Operating income 2,440,166 2,117,325 6,018,342 4,712,552 Interest
expense, net 267,306 318,890 681,259 1,000,127 ------- -------
------- --------- Income before income taxes 2,172,860 1,798,435
5,337,083 3,712,425 Income tax provision 869,099 695,197 2,108,776
1,475,350 ------- ------- --------- --------- Net income $1,303,761
$1,103,238 $3,228,307 $2,237,075 ========== ========== ==========
========== Earnings per common share: -------------- Basic $0.07
$0.06 $0.18 $0.12 ===== ===== ===== ===== Diluted $0.07 $0.06 $0.18
$0.12 ===== ===== ===== ===== Weighted average number of common
shares: -------- Basic 17,885,440 18,750,919 17,978,031 18,790,591
========== ========== ========== ========== Diluted 18,041,679
18,750,919 18,225,781 18,790,591 ========== ========== ==========
========== THE INVENTURE GROUP, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS Sept 26, Sept 27, 2009 2008 ---- ----
(unaudited) (unaudited) Current assets $34,217,796 $28,409,483
Property and equipment, net 24,094,488 24,256,395 Other assets, net
14,650,338 14,688,514 ---------- ---------- Total assets
$72,962,622 $67,354,392 =========== =========== Line of credit
$11,422,629 $9,318,350 Other current liabilities 15,565,318
14,809,976 Long-term debt 10,339,655 11,551,554 Other long-term
liabilities 3,440,306 1,589,418 --------- --------- Total
liabilities 40,767,908 37,269,298 Shareholders' equity 32,665,909
33,231,200 Treasury stock, at cost (471,195) (3,146,106) --------
----------- Total liabilities and shareholders' equity $72,962,622
$67,354,392 =========== =========== THE INVENTURE GROUP, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION (unaudited) Quarter Ended Nine Months Ended
------------- ----------------- Sept 26, Sept 27, Sept 26, Sept 27,
2009 2008 2009 2008 ---- ---- ---- ---- Reconciliation - EBITDA
(1): Reported net income $1,303,761 $1,103,238 $3,228,307
$2,237,075 Add back: Interest, net 267,306 318,890 681,259
1,000,127 Add back: Income tax expense 869,099 695,197 2,108,776
1,475,350 Add back: Depreciation 893,984 676,134 2,532,197
2,015,655 Add back: Amortization of intangible assets 15,610 10,502
46,831 18,082 ------ ------ ------ ------ EBITDA $3,349,760
$2,803,961 $8,597,370 $6,746,289 ========== ========== ==========
========== (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. DATASOURCE: The
Inventure Group Inc. CONTACT: Steve Weinberger, Chief Financial
Officer , The Inventure Group, Inc., +1-623-932-6200 Web Site:
http://www.inventuregroup.net/
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