Inventure Foods, Inc. (Nasdaq: SNAK) today reported record financial results for the second quarter ending June 26, 2010, highlighted by the Company's tenth consecutive quarter of year-over-year earnings growth, basic EPS increase of 33%, EBITDA gain of 21% and net revenue growth of 4.5%.
Inventure generated net revenues of $34.9 million for the second quarter of 2010, up $1.5 million, or 4.5%, compared to net revenues of $33.4 million for the same period in 2009.
Snack division net revenue was $23.1 million, up 6.3% from the prior year, driven primarily by a 56.6% net revenue increase for Boulder Canyon(TM) Natural Foods. Net revenue from T.G.I. Friday's(R) increased by 2.5% for the quarter, reversing last quarter's trend. Snack division net revenue gains were partially offset by a decline in BURGER KING(TM) of 9.7% from the prior year, reflecting continued economic weakness in the Convenience Store and Vending channels, and a 4.4% decline from the prior year in private label.
In the Rader Farms(R) division, net revenue was $11.9 million, an increase of 1.3% over the prior year. This was achieved despite a double-digit price decline that carried over from the fourth quarter of 2009 and significant investment in slotting fees for the second quarter related to the Jamba(TM) launch, which was an offset to gross revenue. Rader pounds sold were up 33% for the quarter.
Consolidated net income increased 32.6% for the quarter to $1.4 million, or $0.08 per basic share, versus $1.0 million, or $0.06 per basic share last year.
Consolidated EBITDA rose 20.8% to $3.4 million, or 9.6% of net revenue for the quarter.
Other key financial highlights included:
- Gross profit of $7.8 million, or 22.4% of net revenue, up 23.4% in dollars and up 3.4 percentage points versus the prior year.
- SG&A of $5.4 million, or 15.5% of net revenue, an increase of 23.4% in dollars and up 2.4 percentage points versus the prior year as a result of increased marketing support for both the Jamba(TM) and Boulder brands.
- Consolidated operating income of $2.4 million, a 23.3% increase versus 2009.
- Total year-to-date debt paydown of $4.5 million, with total debt of $15.4 million exiting the quarter.
"We continue to invest in our business as evidenced by new capital investment in Bluffton, the hiring of a new senior sales and marketing executive, and increased SG&A expenditures to support brand growth. We also plan additional investments in our Goodyear plant to support growth, increasing Goodyear's capacity by 32% with the addition of new kettles and packaging machines. This project should be completed by the end of this year."
McDaniel concluded, "Going forward, we will continue to invest in both the Jamba(TM) and Boulder brands while increasing our investment in T.G.I. Friday's(R) and BURGER KING(TM) to improve the trend line in our licensed snack portfolio. While private label snack sales were down for the quarter, due mainly to the timing of promotional activity, we have picked up a significant new private label customer. This product will be produced in our Bluffton plant, commence shipping in August and help our return to growth in private label during the second half of the year."
