Inventure Foods, Inc., a specialty food marketer and manufacturer, reported financial results for the second quarter ended June 30, 2012, highlighted by the company's highest reported quarterly net revenues with net income growth of 88.8 percent compared to the prior-year quarter.
Inventure generated record net revenues of $48.0 million for the second quarter, an increase of 10.1 percent, or $4.4 million versus the prior-year second quarter, primarily attributable to strong performance in the frozen segment.
Frozen segment net revenues, which includes Jamba® All Natural Smoothies, totaled $23.2 million for the quarter, up 24.1 percent over the prior-year period. Excluding Jamba®, the Frozen segment net revenues increased 58.8 percent for the quarter continuing the momentum from the first quarter due to favorable competitive pricing relative to other berries, continued category growth and new distribution.
Jamba® net revenues for the quarter totaled $3.5 million ($5.4 million gross) a decrease of 44.8 percent compared to net revenues of $6.3 million ($7.9 million gross) in the second quarter of 2011 primarily related to a prior year national Jamba® coupon event at a major warehouse retailer. Excluding this event that resulted in incremental gross revenues of approximately $3.0 million, Jamba® gross revenues were up 10.8 percent.
The snack segment second quarter net revenues were flat with $24.8 million in net revenues compared to $24.9 million the same quarter a year ago. T.G.I. Friday's® and Boulder Canyon™ Natural Foods net revenues were down 1.7 percent and 1.8 percent, respectively, offset by an increase of 10.8 percent in premium private label sales. During the second quarter of the prior year, T.G.I. Friday's® sales benefited from higher volume in anticipation of a planned price increase, which affected comparative sales growth in the current quarter. Boulder Canyon™ sales were affected by competitive pricing pressure, the timing of promotional events and planned transitions in package size during the quarter.
Consolidated net income for the quarter grew 88.8 percent and totaled $1.6 million, or $0.08 per fully diluted share, compared to $0.9 million, or $0.05 per fully diluted share, in the second quarter of 2011.
Consolidated EBITDA for the quarter was $4.0 million, or 8.2 percent of net revenue, an increase of 48.2 percent compared to the second quarter of last year. A table reconciling EBITDA to net income is presented at the end of the consolidated financial statements included in this release.
Gross profit of $9.2 million, or 19.2 percent of net revenues, increased 13.7 percent in dollars and 60 basis points compared to last year. This increase in gross margin was primarily due to improved plant performance in the snack segment and a favorable product mix in the frozen segment, which was partially offset by an increase of $0.5 million in above-the-line trade promotion spending, primarily for the Jamba® and Boulder Canyon™ brands.
Selling, general and administrative (SG&A) expenses totaled $6.4 million for the quarter, a decrease of 2.5 percent, or $0.2 million. SG&A, as a percent of net revenues, was down 170 basis points to 13.3 percent, compared to the second quarter of the prior year. This decline was largely attributable to decreased marketing and sampling expenses related to prior year's national coupon event at a major warehouse retailer for the Jamba® brand.
Net revenues for the first half of 2012 totaled $95.0 million, up 18.4 percent compared to $80.3 million during the first half of 2011. Fully diluted earnings per share of $0.17 were up 41.7 percent during the first half of 2012 compared to $0.12 during the same period in 2011. EBITDA also showed a strong increase of 28.9 percent to $8.0 million for the first half of 2012, compared to $6.2 million for the first half of 2011.