Inventure Foods, Inc. reported financial results for the fourth quarter and year ended Dec. 29, 2012 highlighted by record annual net revenues of $185.2 million and annual fully diluted earnings per share of $0.38.
Consolidated net revenues for the fourth quarter were $43.5 million, a decrease of 2.1 percent, compared to $44.5 million during the prior-year period. Adjusted for comparability, net revenues increased 8.5 percent. Net revenues during the fourth quarter of 2012 were supported by a 10.3 percent growth, or 21.0 percent increase on a comparable week basis, in the healthy/natural portfolio over the prior-year period. Gross profit increased 15.2 percent to $8.9 million, compared to $7.7 million in the prior-year period. Gross profit margin improved 310 basis points to 20.4 percent from 17.3 percent last year, primarily in the Snack segment as a result of operational efficiencies, favorable materials costs, and the company benefited from the sale of our lower margin direct store delivery business. Selling, general and administrative expenses remained relatively consistent with the prior year at 14.1 percent of net revenues. Net income increased 218.8 percent to $2.4 million, while fully diluted earnings per share were $0.12, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 88.6 percent, to $5.0 million, or 11.6 percent of net revenues. Excluding the gain on the sale of the direct store delivery business, net income grew 123.6 percent, totaling $1.7 million, while fully diluted earnings per share were $0.08 and Adjusted EBITDA increased 47.5 percent to $3.9 million, or 9.1 percent of net revenues.
Snack segment net revenues of $21.5 million in the quarter were down 13.6 percent, compared to $24.9 million during the prior-year period. Adjusted for comparability, Snack segment net revenues decreased 3.1 percent. On a comparable basis, T.G.I. Friday's® net revenues decreased 9.2 percent during the quarter, partially offset by a 33.1 percent increase in sales of premium private label products. On a comparable basis, Boulder Canyon sales were up 9.8 percent in the fourth quarter.
Frozen segment net revenues, which include Jamba® All Natural Smoothies, totaled $22.0 million for the quarter, an increase of 12.6 percent over the prior-year period. Adjusted for comparability, Frozen segment net revenues increased 23.7 percent. Net revenues for the Frozen segment, excluding Jamba, increased 13.4 percent for the quarter due to continued growth in branded and private label frozen fruit sales. On a comparable week basis, Jamba sales increased 15.1 percent over the prior year-period to $2.6 million.
Consolidated net revenues for the year ended Dec. 29, 2012 were $185.2 million, an increase of 14.1 percent, compared to $162.2 million during the prior-year period. Adjusted for comparability, net revenues increased 17.2 percent. This revenue growth was largely driven by a 26.8 percent, or 30.0 percent on a comparable week basis, growth in the healthy/natural portfolio. Gross profit increased 22.4 percent to $36.9 million, compared to $30.1 million in the prior-year period. Net income increased 164.4 percent to $7.4 million, while fully diluted earnings per share were $0.38, and EBITDA for the full year increased 74.0 percent to $17.1 million, or 9.3 percent of net revenues. Excluding the gain on the sale of the DSD business, net income grew 139.5 percent to $6.7 million, while fully diluted earnings per share totaled $0.34 and Adjusted EBITDA increased 62.8 percent to $16.0 million.
Snack segment net revenues were $94.4 million, a decrease of 0.7 percent from last year. Adjusted for comparability, Snack segment net revenues increased 2.1 percent for the year. Adjusted for comparability, T.G.I. Friday's and premium private label sales increased 3.5 percent and 20.4 percent, respectively, and Boulder Canyon sales were relatively flat in 2012.
Frozen segment net revenues totaled $90.8 million in the current year, an increase of 35.2 percent, or 38.8 percent on a comparable basis, from the prior year. Adjusted for comparability, net revenues for the Frozen segment, excluding Jamba, increased 49.4 percent during 2012 due to continued growth in branded and private label frozen fruit sales. Jamba net revenues for the full year 2012 totaled $13.8 million, and were relatively flat in 2012 on a comparable week basis.
"We communicated a strategic vision beginning in 2011 that included key investments in our facilities, brands and also our operations," Terry McDaniel, chief executive officer of Inventure Foods, Inc said in a prepared statement. "As we close out 2012, a year of double-digit growth in year-over-year net revenues as well as new records for annual net revenues and earnings, we remain encouraged by our team's delivery of our strategic plan. Our results are a testament to the diversity of our brand portfolio and the distribution channels for each of our brands. We are also excited that this success has not gone unrecognized, having been named as one of the best small companies in America by Forbes magazine. Additionally, Consumer Reports recently awarded our Boulder Canyon Hummus chip product with its highest rating, while our Nathan's Famous Honey Mustard Crinkle-Cut Fries received the 'Best New Product' award by Convenience Store News."
"As we look forward, we will continue to make the necessary investments to strengthen our brand portfolios," continued McDaniel. "We've made significant strides in building our healthy/natural portfolio and remain optimistic as we expand existing channels. Our ability to provide consumers innovative and first-to-market products is further underscored by our recent announcement of the exclusive licensing agreement with Seattle's Best Coffee to market and manufacture a healthier and affordable line of delicious, at-home frozen coffee drinks."
"2012 was a year of solid execution on our strategic plan, which has positioned us well to reap the benefits and further expand our base business throughout this coming year. Our consistent revenue and earnings growth over the past several years also provide further indication that our Company and our strategy remain on track to deliver sustainable long-term growth for our shareholders," McDaniel concluded.
