PHOENIX, Oct. 22, 2008 (GLOBE NEWSWIRE) -- The Inventure Group, Inc. (Nasdaq:SNAK) today reported financial results for the third quarter ended September 27, 2008. Net revenues for the third quarter of fiscal 2008 were $29.8 million, representing an increase of 17.5% compared to the third quarter of fiscal 2007. The Snack Division net revenues increased 16.7%, led by net revenues increases in the Kettle Potato Chip business of 34% led by increased sales of Boulder Canyon branded products, Poore Brothers Kettle branded products and private label chips. Additionally, $1.7 million of net revenue from BURGER KING(tm) snacks was recognized while the 3rd quarter of last year had no such net revenues. These increases were partially offset by T.G.I. Friday's(r) salted snacks, which decreased 6% as compared to the 3rd quarter of last year. The Rader Farms division continues to perform very strongly with net revenues up 19.2% compared to the 3rd quarter of last year.
Net Revenues on a year-to-date basis were $85.2 million, up 30.6% vs. last year. Rader Farms contributed $29.5 million, up 17.5% on a stand alone basis, and the Snack Division contributed $55.7 million, up 5.6% vs. last year.
Key Financial Metrics:
* Gross profit was $7.1 million for the quarter, representing an
increase of 58% compared to $4.5 million of gross profit
recognized in the same period last year. Key drivers include
Rader Farms(r), which contributed $2.8 million of gross profit as
compared to $1.9 million in the third quarter of last year and
the Snack Division where gross profit of $4.3 million for the
quarter was 67% higher and 6.5 points higher as a percentage of
net revenue than the $2.6 million of gross profit recognized in
the same period last year, primarily attributable to increased
volume, price increases implemented at the beginning of the year
coupled with lower plant costs on a per pound basis.
* Selling, general and administrative ("SG&A") expenses for the
quarter increased $1.0 million as compared to the third quarter
of fiscal 2007 and also increased as a percentage of net revenues
to 16.7% as compared to 15.6% in the same period of last year.
* Operating income of $2.1 million for the quarter was 295% higher
and 5 percentage points higher as a percentage of net revenue
than the $0.5 million of operating income recognized in the third
quarter of fiscal 2007.
* Net income was $1.1 million for the quarter, or 6 cents per share,
an increase of $1.1 million compared to $41,429 and 0 cents per
share for the same period last year.
* Net income was $2.2 million for the first nine months of fiscal
2008, or 12 cents per share, an increase of 367% compared to $0.5
million and 2 cents per share in the same period last year.
* Earnings before interest, taxes, depreciation and amortization
("EBITDA") was $2.8 million for the third quarter, an increase
of 134% and 4.7 percentage points as a percent of net revenue
compared to the same period last year. EBITDA for the first nine
months of fiscal 2008 was $6.7 million, an increase of 127% and
3.4 percentage points as a percentage of net revenue as compared
to the first nine months of the prior year. A table reconciling
EBITDA to net income is presented at the end of the condensed
consolidated financial statements included in this release.
"Our results continue to be very strong," noted Terry McDaniel, President and CEO of The Inventure Group. "We delivered another $2.8 million of EBITDA in the quarter bringing the first nine months EBITDA to $6.7 million which is higher than any full year's EBITDA since it went public in 1996.
"Our Rader Farms Division continues to deliver strong results in both top and bottom lines. In fact, revenue growth for the quarter was 19.2% vs. last year and 17.5% year-to-date on a stand alone basis.
"Our Snack Division had the best quarter in recent memory with net revenues up 16.7% in the quarter led by our Kettle Potato Chip business which was up 34% driven by continued growth in Boulder Canyon, Poore Brothers and private label. Under the warehouse snack segment of our Snack Division, BURGER KING snacks contributed $1.7 million in net revenue for the quarter. BURGER KING(tm) snacks continue to be on track to be our most successful product launch since we introduced T.G.I. Friday's(r) Cheddar and Bacon in 2000. On a Year-to Date basis Burger King net revenues were $4.1 million. We also added Onion Rings in July and recognized $0.3 million in net revenues for this new Burger King snack for the quarter."
McDaniel continued, "At our last quarterly review we identified the 20% volume decline in T.G.I. Friday's(r) as a concern in our warehouse snack segment. While we haven't totally reversed the decline, we made some headway in the third quarter as our net revenues from this brand declined by only 6%, and total Bluffton, Indiana produced products were up 9% for the quarter. We continue to work with the T.G.I. Friday's(r) group to extend our product offerings into new categories and channels of distribution. Additionally, we believe that the new TGIF branded products currently scheduled for roll out in December and January will strengthen this category.
"We are also keeping very focused on costs for the balance of this year and next. While we have seen some reductions in commodity costs from the peak a few months ago, overall costs are still expected to be higher in '09 than they were this year and our point of view is to continue to drive cost savings and efficiencies wherever possible.
"In summary, our recent performance reflects significant improvement over the last several years and we're on track to deliver record results for this fiscal year. Our Rader Farms(r) business is strong and growing and our Boulder Canyon All Natural kettle chip business continues to grow at double digit rates. We believe that the performance of these businesses validates our strategic move into healthier, natural brands, and will continue to provide strong growth for the company as it becomes an even larger part of our total business. In fact, this segment represents 44% of total Branded sales for the quarter. We also believe that our indulgent/niche snack segment will be aided by increased activity on TGI Friday's(r), continued growth in BURGER KING(tm) and the launch of new and innovative products."
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(r), BURGER KING(tm), Rader Farms(r), Boulder Canyon(tm) Natural Foods, Poore Brothers(r), Tato Skins(r) and Bob's Texas Style(r). 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.
The Inventure Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3283
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, and such other factors as are described in the Company's filings with the Securities and Exchange Commission.
THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ended Nine Months Ended
------------------------ ------------------------
Sept 27, Sept 29, Sept 27, Sept 29,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenue $29,822,135 $25,372,397 $85,241,866 $65,278,389
Cost of revenue 22,710,078 20,876,973 67,753,250 53,324,358
----------- ----------- ----------- -----------
Gross profit 7,112,057 4,495,424 17,488,615 11,954,031
Selling, general &
administrative
expenses 4,994,732 3,959,539 12,776,064 10,462,822
----------- ----------- ----------- -----------
Operating income 2,117,325 535,885 4,712,552 1,491,209
Interest expense,
net 318,890 408,856 1,000,127 564,821
----------- ----------- ----------- -----------
Income before
income taxes 1,798,435 127,029 3,712,425 926,388
Income tax
provision 695,197 85,600 1,475,350 447,673
----------- ----------- ----------- -----------
Net income $ 1,103,238 $ 41,429 $ 2,237,075 $ 478,715
=========== =========== =========== ===========
Earnings per
common share:
--------------
Basic $ 0.06 $ 0.00 $ 0.12 $ 0.02
=========== =========== =========== ===========
Diluted $ 0.06 $ 0.00 $ 0.12 $ 0.02
=========== =========== =========== ===========
Weighted average
number of
common shares:
---------------
Basic 18,750,919 19,285,759 18,790,591 19,297,135
=========== =========== =========== ===========
Diluted 18,741,958 19,290,538 18,782,224 19,317,235
=========== =========== =========== ===========
THE INVENTURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept 27, Dec 29,
2008 2007
---- ----
(unaudited) (unaudited)
Current assets $28,409,482 $22,572,697
Property and equipment, net 24,256,395 23,436,753
Other assets, net 14,688,515 14,681,269
----------- -----------
Total assets $67,354,392 $60,690,719
=========== ===========
Line of credit $ 9,318,350 $ 7,452,309
Other current liabilities 14,809,976 11,486,331
Long-term debt 11,551,554 12,445,383
Other long-term liabilities 1,589,418 1,574,727
----------- -----------
Total liabilities 37,269,298 32,958,750
Shareholders' equity 33,231,200 30,713,543
Treasury Stock, at cost (3,146,106) (2,981,574)
----------- -----------
Total liabilities and
shareholders' equity $67,354,392 $60,690,719
=========== ===========
THE INVENTURE GROUP, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION
(unaudited)
Quarter Ended Nine Months Ended
------------------------ ------------------------
Sept 27, Sept 29, Sept 27, Sept 29,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Reconciliation
- EBITDA (1):
Reported
net income $ 1,103,238 $ 41,429 $ 2,237,075 $ 478,715
Add back:
Interest, net 318,890 408,856 1,000,127 564,821
Add back:
Income tax
expense 695,197 85,600 1,475,350 447,673
Add back:
Depreciation 676,134 620,656 2,015,655 1,426,408
Add back:
Amortization of
intangible
assets 10,502 43,877 18,082 51,933
----------- ----------- ----------- -----------
EBITDA $ 2,803,961 $ 1,200,418 $ 6,746,289 $ 2,969,550
=========== =========== =========== ===========
(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.