Inventure Foods, Inc., a specialty food maker and marketer, reported financial results for the fourth quarter and year ending Dec., 31, 2011, highlighted by 32 percent net revenue growth and fully diluted earnings per share (EPS) of $0.04 for the quarter.
Inventure's fiscal year ends on the Saturday closest to Dec.31, which periodically results in a 53 week year. The fourth quarter and fiscal year ended Dec. 31, 2011 contained 14 weeks and 53 weeks respectively, compared to the fourth quarter and fiscal year ended Dec. 25, 2010, which contained 13 weeks and 52 weeks, respectively.
Inventure generated net revenue for the quarter ending Dec. 31, 2011 of $44.5 million, an increase of 32.3 percent versus the prior year fourth quarter, attributable to double-digit gains in both the snack and frozen divisions. Excluding the extra reporting week, net revenues for the quarter were $41.1 million, an increase of 22.3 percent.
Snack division net revenues for the quarter totaled $24.9 million, an increase of 20.6 percent compared to the prior year fourth quarter. T.G.I. Friday's® led the division with strong sales growth of 34.0 percent, while Boulder Canyon Natural Foods™ was up 20.1 percent, and private label increased 11.7 percent. These gains were partially offset by declines in the company's other smaller brands.
Frozen division net revenues, which include Jamba® All Natural Smoothies, totaled $19.5 million, an increase of 51.1 percent from the prior year period. Excluding Jamba®, frozen division sales increased 41.3 percent for the fourth quarter. Jamba® net revenues for the quarter totaled $2.4 million ($3.5 million gross), compared to net revenues of $0.8 million ($1.2 million gross) in the fourth quarter of last year.
Consolidated net income for the quarter was $0.7 million, or $0.04 per fully diluted share, compared to consolidated net income of $0.6 million, or $0.03 per fully diluted share, during the fourth quarter of 2010. Results for 2010 include a charge for the write-off of $0.6 million of old trademarks. Excluding the write-off, 2010 EPS would have been $0.05 per fully diluted share.
Consolidated Adjusted EBITDA for the quarter was $2.7 million, or 6.0 percent of net revenue, a decrease of 3.2 percent and down 220 basis points compared to the fourth quarter of last year. A table reconciling Adjusted EBITDA to net income is presented at the end of the condensed consolidated financial statements included in this release.
Other fourth quarter financial highlights include:
Gross profit of $7.7 million or 17.3 percent of revenues, was up 7.6 percent in dollars, but declined 400 basis points compared to last year. The gross margin decline was primarily affected by higher costs of goods sold in our frozen division, generated by our standard fourth quarter inventory revaluations, which were applied to higher berry inventories compared to prior year as we strategically procured additional fresh berries during the quarter to meet increased demand. Gross profit was also affected by a $1.5 million, or 37 percent increase, in above-the-line spending such as slotting fees, coupons, and trade promotions, which supported Jamba® and Boulder Canyon™.
Selling, general and administrative (SG&A) expenses were $6.3 million, or 14.1 percent of revenues, an increase of $0.8 million and decrease of 220 basis points compared to the year-ago period, excluding the trademark write-off discussed earlier. The increase in dollars was primarily due to continued investments in both Jamba® and Boulder Canyon™, including marketing, sampling, and commission expenses.
Net revenues for the year ending Dec. 31, 2011 totaled $162.2 million, an increase of 21.1 percent compared to 2010. Excluding the extra reporting week, net revenues for the fiscal year were $158.9 million, an increase of 18.6 percent.
Snack division net revenues were $95.1 million, an increase of 11.2 percent from last year. Improved results included an increase in Boulder Canyon™ net revenues of 23.3 percent, T.G.I. Friday's® net revenues of 17.3 percent, and private label net revenues of 36.6 percent.