Innovative Food Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results
March 31 2014 - 05:59PM
Marketwired
Innovative Food Holdings, Inc. Reports Fourth Quarter and Fiscal
Year 2013 Financial Results
Net Sales Increased 26% and Adjusted Net Income Increased 72%
for FY 2013
BONITA SPRINGS, FL--(Marketwired - Mar 31, 2014) - 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 fourth quarter
and year ended December 31, 2013. The Company will host an investor
conference call at 5:00 pm EDT today to discuss 2013 results.
Full Year 2013
Highlights Compared with Full Year 2012:
- Revenue increased 26% to $23.5 million from $18.6 million
- Operating Cash flow grew 68% to $1.35 million as compared
to $806,000 in 2012
- Operating Income grew approximately 65% to approximately
$965,000 vs approximately $586,000
- Adjusted Net Income (Net Income without
non-recurring/non-ongoing/stock related gains/losses and
amortization expenses "Adjusted Net Income") grew 72% to
approximately $1.8 million from approximately $1 million in
2012
- Adjusted EPS (EPS without non-recurring/non-ongoing/stock
related gains/losses and amortization expenses "Adjusted EPS")
grew approximately 60% to $0.28 per share in 2013 from
$0.18 per share in 2012
- Cash EBITDA (EBITDA without non-recurring gains/losses, equity
related gains/losses "Cash EBITDA") grew 65 % to over $2 million
year, from over $1.2 million in 2012
Fourth Quarter 2013
Financial and Operational Highlights:
- Q4 2013 revenue of $6.4 million, up 9% compared to $5.8 million
for Q4 2012
- December 2013 represented 53rd consecutive month of increased
month-over-month revenue
- Adjusted Net Income grew 21% to approximately $515,000 vs
approximately $423,000 in the 4th quarter of 2013
- Adjusted EPS grew over 13% to approximately $.08 per share for
Q4 2013 vs. $.07 per share in Q4 of 2012
- Cash EBITDA grew over 17% to approximately $557,000 for the
fourth quarter of 2013 vs. approximately $476,000 in Q4 2012
- Stronger balance sheet and cash position; the Company generated
more than $527,000 in operating cash flow in the fourth quarter and
ended the year with over $2 million in cash
Sam Klepfish, CEO of Innovative Food Holdings, commented, "At
the beginning of 2013, we planned to achieve several key goals:
increased revenues, higher profits, and continuing to solidify our
financial strength. We succeeded with all three of these targets in
fiscal 2013, delivering another record year. Revenues
increased 26%, as we secured new program customers, increased sales
to our current end user chefs and expanded the number of chefs with
which we have relationships. Additionally, we made strategic
progress in our direct-to-consumer business, 'For the Gourmet.'
Leveraging existing infrastructure, our focus in the online
specialty food retail and direct to consumer space, is to expand
our core business model into the consumer space and to access the
sizable consumer market with a low cost shared risk, incremental
approach.
Mr Klepfish added, "Our Food Hatch accelerator program, which is
designed to provide shareholders additional upside through a
portfolio of equity positions in early stage food related
companies, continues to provide access to new food ideas, serving
as a valuable incubator for promising seed and early stage food
related and foodtech related companies. In addition, we
believe that the potential appreciation in the value of the current
and future holdings in the Food Hatch portfolio can offer
additional shareholder upside and create additional incremental
positive capital markets opportunities for Innovative Food Holdings
shareholders in the future."
Mr Klepfish noted, "In addition, we believe that the
accomplishment of several complex, but highly important, strategic
initiatives taken in 2013 have strengthened Innovative Food
Holdings as a company and has strongly solidified our unique and
growing position in the specialty food market.
These accomplishments included:
- Despite an extremely tight and difficult small business lending
environment we were able to establish a commercial banking
relationship with one of the top 20 banks in the United States
which included a $2.0 million credit line extended to the Company.
The availability of credit, and the credibility of the banking
relationship combined with our stronger balance sheet, have led to
significantly expanded strategic and business development
opportunities.
- Additional beneficial note restructurings including
subordination of noteholders which placed the company into the
position to enter into the commercial banking relationship and
we believe, has further enhanced the company's profile for
institutional investors.
- The company purchased and moved into new headquarters further
cutting costs and expanding warehouse capabilities with room for
expansion. The building had a purchase price of $770,000 and had a
current estimated replacement value of $1.8 million.
- The Company paid down in full, the loan associated with the
purchase of Artisan Specialty Foods.
Mr. Klepfish concluded, "During the year we grew sales, cash
flow and profits ending the year with over $2.0 million in cash. In
addition to a number of key strategic initiatives targeted for
2014, our goal is to continue generating profitable sustainable
growth and significant cash flows from operations, enter into new
market segments, and expand market share through existing and new
partners in order to fuel growth in 2014, and over the longer
term."
Financial
Results Fourth quarter 2013 revenue was approximately $6.4
million, up approximately 9% as compared to $5.8 million in the
fourth quarter of 2012.
Fourth quarter Adjusted Net Income grew 21% to approximately
$515,000 and 4th quarter Adjusted EPS was $.08 per share compared
to $.07 per share in the fourth quarter of 2012, an increase of
close to 14%. Cash EBITDA, increased approximately 17% to more than
$557,000 for the fourth quarter of 2013 compared to approximately
$476,000 in the fourth quarter last year.
Full year revenue increased 26% to $23.5 million compared to
$18.6 million in the same period last year. The Company's financial
results for a portion 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.
Full year Adjusted EPS was $0.28 per share compared to $0.18 per
share in 2012, an increase of over 50%. Cash EBITDA grew 65%
to over $2 million vs. approximately $1.2 million in 2012.
Operating Cash flow increased 68% to $1.35 million and the
Company ended 2013 with over $2 million in cash on the balance
sheet.
Conference Call Information
- Date and time: Monday, March 31, 2014 at 5:00 p.m. ET
- Dial-in number: 1-877-941-8416 (domestic) or 1-480-629-9808
(international)
- Call/Conference ID: 4676395
- Replay number: Dial 1-877-870-5176 (domestic) or 1-858-384-5517
(international). Please use passcode 4676395 to access the replay.
The replay will be available until April 7, 2014.
- Webcast link: http://public.viavid.com/index.php?id=108475
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 and in our public filings. 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
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Adjusted EPS |
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2012 |
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2013 |
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2012 |
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2013 |
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FY |
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FY |
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q4 2012 |
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q4 2013 |
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Net Income (loss) |
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2,030,494 |
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(1,486,257 |
) |
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2,023,850 |
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(1,085,565 |
) |
Amortization of intangible assets (1) |
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75,323 |
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183,880 |
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39,323 |
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45,969 |
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Amortization of discount on notes payable and accrued interest |
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925,829 |
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2,322,909 |
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857,366 |
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984,975 |
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One time gain on extinguishment of debt |
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(3,797,001 |
) |
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- |
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(3,797,001 |
) |
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- |
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(Gain) loss on change in fair value of derivatives |
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517,418 |
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- |
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1,138,620 |
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- |
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Cost of warrant extension |
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842,100 |
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- |
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- |
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- |
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Stock based compensation |
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355,422 |
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372,013 |
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161,821 |
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321,351 |
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Non-recurring expenses (note 3) |
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96,958 |
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408,428 |
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- |
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248,308 |
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Adjusted Net Income |
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1,046,543 |
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1,800,973 |
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423,979 |
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515,038 |
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Weighted average shares outstanding |
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5,968,434 |
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6,500,506 |
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5,772,745 |
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6,949,666 |
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Adjusted EPS |
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0.18 |
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0.28 |
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0.07 |
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0.08 |
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Cash EBITDA |
|
2012 |
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2013 |
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2012 |
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2013 |
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FY |
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FY |
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q4 2012 |
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q4 2013 |
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Net Income (loss) |
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2,030,494 |
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(1,486,257 |
) |
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2,023,850 |
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(1,085,565 |
) |
Interest |
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131,475 |
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129,167 |
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33,935 |
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18,990 |
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Taxes |
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- |
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20,052 |
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- |
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3,052 |
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Depreciation & amortization |
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126,855 |
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262,882 |
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57,542 |
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66,824 |
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Amortization of discounts on notes payable |
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925,833 |
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2,322,909 |
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857,340 |
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984,975 |
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Gain on extinguishment of debt |
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(3,797,001 |
) |
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- |
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(3,797,001 |
) |
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- |
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(Gain) loss on change in fair value of derivatives |
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517,418 |
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- |
|
|
1,138,620 |
|
|
- |
|
Cost of warrant extension |
|
842,100 |
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- |
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- |
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- |
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Stock based compensation |
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355,422 |
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372,013 |
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161,821 |
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|
321,351 |
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Non-recurring expenses (3) |
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96,958 |
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408,428 |
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- |
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248,308 |
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Cash EBITDA |
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1,229,554 |
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2,029,194 |
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476,107 |
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557,935 |
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(1) |
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Includes non-cash amortization charges mainly associated with the
GAAP recording of the discount on certain notes |
(2) |
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Includes stock and options based compensation |
(3) |
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Included non-recurring charges related mainly to the
following: |
a) |
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The Artisan acquisition and integration |
b) |
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The subordination of existing notes and restructuring of certain
terms of notes |
c) |
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The prepayment of the Artisan acquisition loan |
d) |
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Entering into a credit line with Fifth Third Bank |
e) |
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Entering into a mortgage with Fifth Third Bank |
f) |
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The move into new facility and the warehouse build out of the new
facility |
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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 Follow us on Twitter:
@IVFHcompany
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