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Inventure Group Inc. Reports Operating Results (10-Q)

August 04, 2011 | About:
10qk

10qk

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Inventure Group Inc. (SNAK) filed Quarterly Report for the period ended 2011-06-25.

Inventure Foods Inc. has a market cap of $76 million; its shares were traded at around $4.21 with a P/E ratio of 16.8 and P/S ratio of 0.6. Inventure Foods Inc. had an annual average earning growth of 82.3% over the past 5 years.

Highlight of Business Operations:

Net revenues increased 24.9%, or $8.7 million, to $43.6 million for the quarter ended June 25, 2011 compared with net revenues of $34.9 million for the second quarter in 2010. Snack products segment net revenues were $24.9 million, up $1.9 million and 8.1% from prior year. Snack products segment growth was driven by net revenue increases of 23.9% for Boulder Canyon, 17.0% for T.G.I.Fridays®, and 48.2% for private label, primarily driven by pricing increases and volume growth. Frozen products segment net revenues were $18.7 million, an increase of $6.8 million or 57.7%. The frozen products segment revenue increase was driven by the continued roll-out of our Jamba® All Natural Smoothies. Jamba® net revenue for the quarter was $6.3 million. Excluding Jamba® net revenues, frozen products segment net revenues were up 11.1% for the quarter.

Consolidated net income for the quarter ended June 25, 2011 was $0.9 million, representing a $0.5 million or 37.5% decrease when compared to $1.4 million for the prior year quarter as a result of the factors discussed above. The net income for the second quarter of 2011 equated to $0.05 per basic share and fully diluted share, compared with $0.08 per basic share and $0.07 per fully diluted share in the second quarter of 2010.

For the six months ended June 25, 2011 net revenues increased $13.9 million or 21.0% to $80.3 million compared to $66.3 million in the first half of the previous year. Snack product segment net revenues were $46.7 million, up 10.0% over last years first half net revenues, led by growth in our Boulder Canyon, T.G.I.Fridays®, and private label products, resultant of pricing and volume increases. Frozen product segment net revenues were $33.6 million, up 40.5% over last years first half net revenues. The frozen products segment increase was primarily driven by our Jamba® smoothies national roll-out. Jamba® Smoothies totaled $8.4 million in net revenues for the first half of 2011, compared to $0.7 million in the previous year. Excluding Jamba® net revenues, the frozen products segment net revenue was up 8.8% for the first half of 2011.

Consolidated net income for the first half ended June 25, 2011 was $2.3 million, representing a $0.4 million or 13.6% decrease when compared to $2.6 million for the prior year first half, as a result of the factors discussed above. The net income for the first half of 2011 equated to $0.13 per basic share and $0.12 per fully diluted share, compared with $0.15 per basic share and $0.14 per fully diluted share in the first half of 2010.

Net cash provided by operating activities was $3.6 million for the six months ended June 25, 2011 and $7.6 million for the six months ended June 26, 2010. The overall $4.0 million decrease was primarily a result of our increases in accounts receivable of $5.3 million in the first six months of 2011, compared to $2.1 million in the same period in 2010, and attributable to our net revenue growth. In addition, cash used to build inventory in the first six months of 2011 was $3.4 million compared to $1.3 million in the same period in 2010. The $2.1 million year-over-year increase in inventory was the primary driver of the $0.7 million year over year increase in accounts payable and accrued liabilities.

Net cash used in investing activities, all representing capital expenditures, was $6.6 million in the first six months of 2011 compared to $3.5 million in the first six months of 2010. Capital expenditures of $6.6 million in 2011 relate to the purchase of manufacturing equipment of $5.1 million, primarily at our Goodyear facility for new kettles and packaging, $0.9 million of building improvements, and $0.6 million in furniture and office equipment. Capital expenditures of $3.5 million in the first six months of 2010 relates to manufacturing equipment of $2.8 million, primarily relating to the installation of the Jamba line, building improvements of $0.5 million and $0.2 million in furniture and office equipment. In 2011, we plan to spend approximately $10.0 million in capital expenditures, primarily at our manufacturing facilities. Capital expenditures are funded primarily by net cash flow from operating activities, cash on hand, and available credit from our credit facility.

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