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

August 09, 2012 | About:
10qk

10qk

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Inventure Group Inc. (SNAK) filed Quarterly Report for the period ended 2012-06-30.

Inventure Foods, Inc. has a market cap of $116.7 million; its shares were traded at around $5.75 with a P/E ratio of 31.7 and P/S ratio of 0.7. Inventure Foods, Inc. had an annual average earning growth of 14.5% over the past 10 years.

Highlight of Business Operations:

Net revenues increased 10.1%, or $4.4 million, to $48.0 million for the quarter ended June 30, 2012 compared with net revenues of $43.6 million for the second quarter in 2011. Snack products segment net revenues were relatively flat during the quarter at $24.8 million, compared to $24.9 from prior year. T.G.I. Fridays® and Boulder Canyon Natural Foods net revenues were down 1.7% and 1.8%, respectively, offset by an increase of 10.8% in premium private label sales. Boulder Canyon sales were impacted by competitive pricing pressure, timing of promotion events and planned transitions in package size during the quarter. During the second quarter of the prior year ,T.G.I. Fridays® sales benefited from higher volume in anticipation of a planned price increase, which affected comparative sales growth in the current quarter. Frozen products segment net revenues were $23.2 million, an increase of $4.5 million or 24.1%. The frozen products segment revenue increase was driven by favorable competitive pricing relative to other berries, continued category growth and new distribution. Jamba® net revenues for the quarter were $3.5 million which was down versus the prior year as we did not repeat a coupon event at a major warehouse retailer. Excluding Jamba® net revenues, frozen products segment net revenues were up 58.8% for the quarter.

Gross profit for the quarter increased $1.1 million or 13.7% to $9.2 million, and increased as a percentage of net revenues to 19.2% for the quarter ended June 30, 2012 as compared to 18.6% in the second quarter of 2011. Snack products segment gross profit of $5.4 million increased $0.2 million or 3.0% and increased as a percentage of net revenues to 21.7% as compared to 21.0% in 2011. This increase in gross margin was primarily due to improved plant performance in the Snack segment. The frozen products segment gross profit of $3.8 million was up $1.0 million or 33.2%, and increased as a percentage of net revenues to 16.4% from 15.3%. This increase in gross profit dollars and net revenue percentages for the quarter are primarily attributable to favorable product mix.

For the six months ended June 30, 2012 net revenues increased $14.8 million or 18.4% to $95.0 million compared to $80.2 million in the first half of the previous year. Snack product segment net revenues were $49.0 million, up 5.1% over last years first half net revenues, led by growth in our T.G.I. Fridays®, Boulder Canyon and private label products. Frozen product segment net revenues were $46.0 million, up 37.0% over last years first half net revenues. The frozen products segment increase was primarily driven by increased volume and new distribution of fruit sales. Jamba® Smoothies totaled $7.0 million in net revenues for the first half of 2012 which was down versus the prior year as we did not repeat a coupon event at a major warehouse retailer. Excluding Jamba® net revenues, the frozen products segment net revenue was up 54.7% for the first half of 2012.

Gross profit for the six months ended June 30, 2012 was $18.5 million, or 19.5% of net revenues, compared to $16.0 million, or 20.0% of net revenues, for the prior year. Snack products segment gross profit of $10.5 million increased $0.9 million or 9.1% and increased as a percentage of net revenues to 21.4% as compared to 20.6% in 2011. Snack products segment gross profit growth for the first half was driven primarily by strong volumes in our more profitable brands and improved plant performance. The frozen products segment gross profit of $8.1 million was up $1.6 million or 25.6%, and decreased as a percentage of net revenues to 17.5% from 19.1%. The decrease in gross margin for the first half was primarily attributable to our increased spending on trade promotion, slotting fees, and coupon expense supporting the Jamba® brand, partially offset by favorable product mix.

Net cash provided by operating activities was $10.8 million for the six months ended June 30, 2012 and $3.6 million for the six months ended June 25, 2011. The overall $7.2 million increase was primarily a result of less cash used to build inventory in the first six months of 2012, which resulted in an increase of $5.9 million, compared to a decrease of $3.4 million in the same period in 2011, and attributable to our net revenue growth. The $9.4 million year-over-year increase in inventory was the primary driver of the $9.3 million year-over-year decrease in accounts payable and accrued liabilities.

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