Innovative Food Holdings, Inc. Announces Third Quarter 2013 Results: Record Revenues and Record EBITDA
November 14 2013 - 4:58PM
Marketwired
Innovative Food Holdings, Inc. Announces Third Quarter 2013
Results: Record Revenues and Record EBITDA
Q3 2013 Net Sales Increased 17%
BONITA SPRINGS, FL--(Marketwired - Nov 14, 2013) - Innovative
Food Holdings (OTCQB: IVFH), a leading nationwide provider of
specialty foods, healthcare foods, gluten free foods, and direct
from source artisanal foods, to the professional foodservice
market, today announced financial results for the third quarter,
the period ended September 30, 2013.
Third Quarter 2013
Financial and Operational Highlights:
- Q3 2013 revenues of $6.0 million, up 17% compared to $5.1
million for Q3 2012
- Organic revenue growth of approximately 17% vs. Q3 2012
- September 2013 represented 50th consecutive month of increased
month-over-month revenue
- Operating income increased 13% to $395,796, compared to
$349,739 in Q3 2012. The year-ago period included $111,288 of
operating income due to equity related gains primarily associated
with liability accounting for derivatives. Excluding this non-cash
gain in the year-ago quarter, operating income would have been
$238,451 in Q3 2012 and the comparative gain in 2013 would have
been 66%
- Adjusted EPS (EPS without amortization and equity related
gains/losses) grew approximately 54% to $0.06 per share for Q3 2013
vs. $0.04 per share in Q3 of 2012
- Cash EBITDA (EBITDA without equity related gains/losses) grew
approximately 64% to more than $481,000 for the third quarter of
2013 vs. approximately $293,000 in Q3 2012
- The Company moved into new facilities and expanded its
warehouse capabilities through the launch of a wholly-owned Florida
warehouse and distribution facility
- Improving balance sheet and cash position; the Company
generated more than $650,000 in operating cash flow in the third
quarter
Year-to-Date 2013
Highlights:
- Revenues for the first nine months of 2013 were $17.1 million
compared to $12.8 million for the first nine months of 2012
- Operating income in 2013 increased 141.7% to $1.0 million,
compared to $433,512 in the first nine months last year.
- Year-to-date Adjusted EPS grew 86% to $0.17 per share in 2013
vs. $0.09 per share for the same period in 2012
- Cash EBITDA grew approximately 97% to approximately $1.3
million year-to-date vs. approximately $656,000 for the same period
last year 2012
Sam Klepfish, CEO of Innovative Food Holdings, commented, "The
strong third quarter results, including sales growth and strong
bottom line performance, demonstrate our positive momentum and
strong positioning in the fast-growing specialty food space. We
delivered across the board organic growth by continuing to gain
market share, bringing on new customers, adding more chefs and
increasing sales to existing customers. Our unique low
infrastructure business model, which results in low sales-related
costs, enabled us to drive solid bottom-line improvements as well.
Turning to new growth catalysts, we expect that our continuing
focus on expanding market share in the nationwide specialty foods
market through existing and new partners, to make positive
contributions in the coming quarters."
Mr. Klepfish added, "We remain focused on the sales and bottom
line growth of our core businesses. In addition, we continue to see
many unique opportunities in the evolving specialty food space and
we are continuing to invest in additional specialty food
synergistic areas relating to all our subsidiaries, which we
believe will allow us to continue to be uniquely positioned within
a growing spectrum of the specialty food market. We strongly
believe that a laser-like focus on core sales and profitability,
combined with investments in synergistic opportunities, represent
key factors to building long-term value for Innovative Food's
shareholders."
Financial
Results
Third quarter 2013 revenue was $6.0 million, up 17% as compared
to the third quarter of 2012. Gross profit was approximately $1.7
million. Total operating expenses were $1.3 million in the third
quarter of 2013 compared with total operating expenses of $908,235
in the prior year period. The Company reported operating income of
$395,796 in the third quarter of 2013, compared to $349,739 in the
third quarter of 2012. The year-ago period included $111,288
related to SGA gains associated with options liability. Excluding
non-cash, non-operational adjustments related to equity
gains/losses, operating income increased 66% to $395,796 compared
to $238,451 in the year-ago period.
Third quarter adjusted EPS was $0.06 per share compared to $0.04
per share in the third quarter of 2012, an increase of
approximately 54%. Cash EBITDA, excluding the equity related
gains/losses increased approximately 64% to more than $481,000 for
the third quarter of 2013 compared to approximately $293,000 in the
third quarter last year.
Year-to-date revenue increased 34.2% to $17.1 million compared
to $12.8 million in the first nine months last year. The Company's
financial results for a portion of the first nine months of 2012
did not include sales and profits associated with the Company's
subsidiary, Artisan Specialty Foods, which was purchased by
Innovative Food Holdings in May 2012.
Year-to-date gross profit was $4.7 million compared with gross
profit of $3.1 million for the first nine months of 2012. Total
operating expenses were $3.7 million for the first nine months of
2013 compared with total operating expenses of $2.7 million for the
same period last year.
Year-to-date Adjusted EPS was $0.17 per share compared to $0.09
per share for the first nine months of 2012, an increase of 86%.
Cash EBITDA grew 97% to approximately $1.4 million year-to-date vs.
approximately $656,000 for the same period last year.
Balance
Sheet
As of September 30, 2013, Innovative Food Holdings had more than
$1.3 million in cash and cash equivalents. Stockholders' equity
increased 34.9% to $1.6 million compared to $1.2 million as of
December 31, 2012.
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Cash EBITDA: |
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3 Months Ended Sept 30, |
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9 Months Ended Sept 30, |
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2013 |
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2012 |
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2013 |
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2012 |
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GAAP Income (Loss) |
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$ |
(337,758 |
) |
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$ |
1,600,903 |
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$ |
(400,392 |
) |
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$ |
6,644 |
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Add back: |
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Depreciation & amortization of assets, taxes: |
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85,372 |
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54,729 |
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213,058 |
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69,313 |
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Interest expense: |
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33,283 |
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39,670 |
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110,177 |
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97,540 |
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Amortization of discounts on notes payable: |
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700,271 |
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23,322 |
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1,337,934 |
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68,493 |
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EBITDA |
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$ |
481,168 |
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$ |
1,718,624 |
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$ |
1,260,777 |
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$ |
241,990 |
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Add back: |
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Non-cash SGA related to equity instruments: |
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(111,288 |
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35,662 |
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153,663 |
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Other non-cash expense (income) related to equity instruments: |
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(1,314,156 |
) |
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260,835 |
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Cash EBITDA |
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$ |
481,168 |
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$ |
293,180 |
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$ |
1,296,439 |
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$ |
656,488 |
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Pro Forma EPS: |
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3 Months Ended Sept 30, |
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9 Months Ended Sept 30, |
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2013 |
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2012 |
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2013 |
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2012 |
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GAAP Income (Loss) |
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$ |
(337,758 |
) |
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$ |
1,600,903 |
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$ |
(400,392 |
) |
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$ |
6,644 |
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Add back: |
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(Gain) Loss from change in fair value of derivative
liabilities: |
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(1,429,734 |
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(621,202 |
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Cost
of warrant extension: |
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842,100 |
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Options issued to officers and directors: |
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7,725 |
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186,299 |
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Shares issued in settlement: |
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7,302 |
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Restricted stock units issued to CEO: |
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27,937 |
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Adjusted Income (Loss) |
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$ |
(337,758 |
) |
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$ |
171,169 |
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$ |
(364,730 |
) |
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$ |
421,143 |
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Add back: |
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Amortization of discounts |
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700,271 |
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23,322 |
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1,337,934 |
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68,493 |
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Amortization of intangible assets |
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45,970 |
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36,000 |
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137,911 |
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36,000 |
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Pro forma income (loss) |
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$ |
408,483 |
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$ |
230,491 |
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$ |
1,111,115 |
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$ |
525,636 |
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Weighted-average shares outstanding: |
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6,479,385 |
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5,673,844 |
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6,405,756 |
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5,673,844 |
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Adjusted EPS |
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$ |
0.063 |
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$ |
0.041 |
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$ |
0.173 |
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$ |
0.093 |
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Follow us on
Twitter: @IVFHcompany
ABOUT INNOVATIVE FOOD HOLDINGS, INC.
Innovative Food Holdings, is a leading nationwide provider of
specialty foods, healthcare foods, gluten free foods, and direct
from source artisanal foods, to the professional foodservice
market. IVFH also markets those products directly to the consumer,
through its website at www.forthegourmet.com. Many of Innovative
Food Holdings' 7,000+ products are used on a daily basis by
approximately 30,000 of some of the leading professional chefs
across the United States.
FORWARD-LOOKING
STATEMENTS
This release contains certain forward-looking statements and
information relating to Innovative Food Holdings, Inc. (IVFH) (the
"Company") that are based on the current beliefs of the Company's
management, as well as assumptions made by, and information
currently available to, the Company. Such statements reflect the
current views of the Company with respect to future events and are
subject to certain assumptions, including those described in this
release. Should one or more of these underlying assumptions prove
incorrect, actual results may vary materially from those described
herein as "should," "could," "anticipate," "believe," "intend,"
"plan," "might," "potentially" or "expect." The Company does not
intend to update these forward-looking
statements.
Management
Contact Sam Klepfish CEO (239) 449-3235
sklepfish@innovativefoodholdings.com Investor Relations Contact
James Carbonara Regional Vice President Hayden IR Office: (646)
755-7412 James@haydenir.com
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