Inventure Foods loss tops $25 million in third quarter

by Eric Schroeder
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Boulder Canyon chips
Inventure increased its distribution and velocity across key sales channels for its Boulder Canyon brand during the quarter.
 

PHOENIX — Inventure Foods, Inc. has spent the better part of 2017 focused on strategic initiatives designed to get the business back on the right track. In March, the company sold certain assets related to the frozen vegetables business primarily sold under the Fresh Frozen brand. This was followed in September by the sale of the remaining frozen products segment. Then, on Oct. 25, the company entered an agreement to be acquired by Utz Quality Foods.

As a result, earnings in the third quarter of fiscal 2017 suffered.

In the third quarter ended Sept. 30 Inventure sustained a loss of $25,372,000, which compared with a loss of $2,564,000 in the same period a year ago. Net loss from continuing operations totaled $5,472,000, which compared with $1,731,000. Revenues also were lower in the period, slipping to $27,428,000 from $28,587,000 in the same period a year ago.

 

Inventure suffered a loss of $19,900,000 from discontinued operations in the third quarter, which compared with $833,000 in the same period a year ago. Discontinued operations represent the operations of the Frozen Fruit Business, which was sold on Sept. 22, and the Fresh Frozen Business, which was sold on March 23. Discontinued operations also represents substantially all of the company’s frozen products segment. Net revenues included in discontinued operations decreased nearly 47% to $20.2 million, compared with $37.9 million in the third quarter of the prior year, primarily as a result of the sale of the Fresh Frozen Business in the first quarter of 2017, along with the Frozen Fruit Business sale during the third quarter and reduced distribution of private label and industrial fruit sales.

Terry McDaniel, Inventure Foods
Terry McDaniel, c.e.o. of Inventure Foods

“We continued to execute on our strategic initiatives; however, our consolidated financial results reflect a higher fixed cost structure that supported both our snack and frozen businesses prior to the completion of our sale of the Frozen Fruit Business late in the third quarter,” said Terry McDaniel, chief executive officer. “Our better-for-you private label snacks generated strong growth, and an increase in distribution and velocity across key sales channels for our Boulder Canyon brand was offset by a shift in the timing of retail partner promotions and club channel rotations that did not recur in the third quarter this year.”

Mr. McDaniel concluded, “As we move forward, we remain excited about the future pending combination of Inventure Foods and Utz, as we work diligently toward a targeted closing by the end of the fourth quarter of 2017.”

Inventure posted a loss of $40,428,000 in the nine months ended Sept. 30, which compared with a loss of $3,860,000 in the same period a year ago. Net revenues were $84,248,000, up from $80,956,000. 
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