Inventure Foods, Inc., a specialty food maker and marketer, today reported financial results for the second quarter ending June 25, 2011, highlighted by net revenue growth of 24.9 percent and second quarter earnings of $0.05 per fully diluted share.
Inventure generated record net revenues of $43.6 million for the second quarter, an increase of 24.9 percent, or $8.7 million, versus the prior-year second quarter. Snack division net revenues posted an 8.1 percent increase over the same quarter a year ago, to $24.9 million, which was led by a 23.9 percent increase in net revenues for Boulder Canyon Natural Foods™ products. The T.G.I. Friday's® product line also experienced its third consecutive quarter of growth, increasing 17.0 percent from the prior year, which was partially offset by declines in BURGER KING™ and other smaller brands. Other key growth drivers for the division included a 48.2 percent increase in net revenues for Private Label products.
Rader division net revenues, which include Jamba® All-Natural Smoothies, totaled $18.7 million for the quarter, up 57.7 percent over the same period last year. Excluding Jamba®, Rader division net revenues increased 11.1 percent for the quarter. Jamba® net revenue for the quarter totaled $6.3 million ($7.9 million gross), which was in line with the Company's expectations.
Consolidated net income for the quarter totaled $0.9 million, or $0.05 per fully diluted share, compared to $1.4 million, or $0.07 per fully diluted share, in the second quarter of 2010.
Consolidated EBITDA for the quarter was $2.7 million, or 6.1 percent of net revenue, a decrease of 20.2 percent compared to the second quarter of last year.
Other second quarter financial highlights include:
Gross profit of $8.1 million, or 18.6 percent of net revenues, was up 2.0 percent in dollars and down 420 basis points compared to last year. Gross profit dollars and margin were affected by a 59.2 percent or $2.0 million increase mainly related to a combination of slotting fees, trade advertising and coupon expenses for the Jamba® and Boulder Canyon™ brands. The gross profit decrease as a percentage of net revenues was also negatively impacted by the higher cost of berries relative to the prior year, which benefited from a bumper 2009 berry harvest.
Selling, general and administrative (SG&A) expenses totaled $6.5 million for the quarter, or 15.0 percent of net revenues, an increase of $1.0 million and down 80 basis points compared to last year. This increase was also attributable to investments in both the Boulder Canyon™ and Jamba® brands.
Through the first six months of 2011, Inventure reported net revenues of $80.3 million compared to $66.3 million for the first six months of 2010, a 21.0 percent increase. Fully diluted earnings per share for the first half of 2011 were $0.12 versus $0.14 during the same period in 2010, a decrease of 14.3 percent. EBITDA for the first half of 2011 totaled $6.2 million, a decrease of 5.8 percent versus last year.
"Our second quarter 2011 results were consistent with our expectations, and are highly reflective of the strong commitment and support we continue to provide our brands," said Terry McDaniel, chief executive officer of Inventure Foods in a prepared statement. "We successfully executed on each of our growth initiatives for Boulder Canyon™, Jamba®, and T.G.I. Friday's®. We are very pleased with the progress and results of our nationwide Jamba® At-Home Smoothie rollout, with gross revenues totaling $7.9 million for the quarter and $10.4 million year-to-date. We are committed to leveraging our sales momentum with continued targeted spending in critical slotting, demonstrations and other promotional efforts as we continue to secure new distribution across the United States and Canada. The second quarter results also included a national Jamba coupon event at a major warehouse retailer, which resulted in incremental revenues of approximately $3 million, while giving the brand national exposure and trial.