The Inventure Group, Inc. Announces Record Third Quarter 2009 Results

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.

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(R), 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(R) 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.

"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(R) 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."