Inventure earnings fall 37% in second quarter
July 28, 2011
by Eric Schroeder
PHOENIX — Earnings at Inventure Foods, Inc. in the second quarter fell 37% as the company invested heavily in promotional efforts to bring on new customers. Net income during the quarter ended June 25 was $859,884, equal to 5c per share on the common stock, down from $1,375,653, or 8c per share, in the same period a year ago.
Sales for the quarter were $43,609,336, up 25% from $34,912,985 during the same period of the previous 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. “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.”
Inventure’s snack division net revenue increased 8% over the same quarter a year ago to $24.9 million, which was led by a 24% increase in revenues and continued strong demand for Boulder Canyon Natural Foods products. The snack division also experienced a third consecutive quarter of growth in the T.G.I. Friday’s brand, which increased 17% from the prior year. Other growth drivers for the division included a 48% gain in private label products, which offset declines in Burger King and other smaller brands.
Rader division net revenue, which includes Jamba smoothies, totaled $18.7 million for the quarter, up 58% over the prior-year period. Excluding Jamba, Rader division net revenues increased 11% for the quarter. Jamba net revenue for the quarter totaled $6.3 million, which the company said was in line with its expectations.
“As we grow our existing brands and businesses, we also continue to bring new and innovative products to market, further augmenting our portfolio of brands,” Mr. McDaniel said. “Our Intensely Different portfolio of food products expanded during the first half of 2011 as we added a new Boulder Canyon product, Garden Select Vegetable Crisps, and a new Jamba At-Home Smoothie flavor, Caribbean Passion. For the back half of the year, our product pipeline includes an innovative T.G.I. Friday’s item as well as other new and exciting products.
“In summary, we have been able to successfully execute our strategic plans during the first half of the year and are well positioned to leverage the ongoing investments in our brands, products, and people as we move forward into the second half of the year.”
For the first six months of fiscal 2011 Inventure posted income of $2,266,066, or 13c per share, down 14% from $2,622,050, or 15c per share, in the same period of fiscal 2010. Net sales rose 21% to $80,250,018.