BONITA SPRINGS, Fla.,
March 31, 2015 /PRNewswire/
-- Innovative Food Holdings, Inc. (OTCQB: IVFH), a leading,
direct, nationwide provider of specialty food in the direct to chef
market and the nationwide leader in the direct to consumer freshly
prepared specialty meal space announced today financial
results for the fourth quarter and year ended December 31, 2014. The results include the impact
of the Company's August 2014
acquisition of the nationwide leader in the direct to consumer,
daily gourmet meal sector, The Fresh Diet®, Inc. ("The Fresh
Diet"). The Company will hold a conference call today at
5 p.m. ET to discuss the results.
2014 Financial Highlights:
- Total Revenue of $30.8 million,
an increase of approximately 37% compared to the same period in
2013
- Revenues associated with the direct-to-chef business,
("Specialty foodservice") revenue was $25.8
million, an approximate 15% increase compared to 2013
- Specialty foodservice Adjusted EBITDA (EBITDA excluding
non-cash and one-time charges) increased over 40% year over year to
approximately $2.8 million
On August 15, 2014 the Company
acquired The Fresh Diet, America's No. 1 fresh gourmet specialty
daily meal delivery company, which operates the industry leading
direct to consumer specialty meal platform. The Fresh Diet's
platform includes highly efficient preparation and logistics
infrastructure, as well as a comprehensive network of same-day and
next-day last mile food delivery capabilities to over 570 cities
and towns across the United
States. The combination of Innovative Food Holdings'
specialty food platform with the specialty food last-mile
capabilities of The Fresh Diets' platform has created the first
fully, vertically integrated, source-to-table specialty food
company. The Fresh Diet is operated as a wholly-owned subsidiary of
Innovative Food Holdings, Inc.
The Fresh Diet business highlights include:
- New leadership including Bryan Janeczko, an experienced
Chief Executive Officer with extensive deep domain expertise and
demonstrated success in the fresh meal space
- Improvement in digital marketing metrics including: website
traffic, new visitors to the website, ad click rates, website leads
and lead conversion rate all improved versus the year-ago
period
- Committed customers are staying longer, decreasing churn rate
under new leadership
- Platform wide delivery accuracy rate of
above 99%
- Operating at five-sigma in production with overall production
accuracy of 99.98%
Sam Klepfish, CEO of Innovative
Food Holdings commented, "We delivered another year of record
organic revenue growth and record Adjusted EBITDA in our direct to
chef business. Our recently acquired direct to consumer
subsidiary, The Fresh Diet, contributed to top line growth for
total combined 2014 sales of approximately $31 million."
Mr. Klepfish continued, "The Fresh Diet team had built a solid
and growing business prior to the acquisition by Innovative Food
Holdings; at the same time, it had faced significant challenges as
it transitioned from a fast growing startup company, with a focus
on revenue growth at all costs, to a data driven, process driven
business, with a focus on profitable long term revenues. With that
in mind, I believe that Innovative Food Holdings' ability to
recruit and retain top talent with the domain expertise and
reputation of Bryan Janeczko, has
created the long term potential to grow sales and profits of The
Fresh Diet, even beyond our initial expectations. In the few short
weeks that Bryan has been on the team there has been a laser-like
focus on growing The Fresh Diet brand, employing data-driven, short
and long term revenue focused decision making, and bringing in high
caliber marketing, sales, and culinary talent to The Fresh Diet
leadership team.
Mr. Klepfish continued, "To summarize, we have made good
progress in just a few months in working towards transforming The
Fresh Diet into a data-minded, e-commerce marketing-driven leader
in the health and wellness category. In addition, by effectively
leveraging the management, resources, and core expertise of
Innovative Food Holdings, we believe we can take advantage of the
opportunity to benefit from additional synergies, enabling us to
transition this segment of our business to profitability."
Fourth Quarter 2014 Financial Results
Fourth quarter 2014 total revenue was approximately $10 million, up 64% as compared to $6.1 million in the fourth quarter of 2013.
Innovative Food Holdings' Specialty foodservice revenue grew
approximately 13% to $6.8 million.
Adjusted EBITDA for the Specialty foodservice segment increased 35%
year over year to $737,731 for the
4th quarter.
The Fresh Diet acquisition resulted in a GAAP loss for the
quarter ended December 31, 2014.
Costs associated with The Fresh Diet include several accounting,
legal and other charges, including over $1.1
million in a non-cash, GAAP-related charge associated with
accounting for the acquisition of The Fresh Diet. This GAAP related
charge had the effect of lowering GAAP revenues by over
$1.1 million without any
corresponding decrease in GAAP expenses. In addition, as expected,
The Fresh Diet's transition to a metric-driven business with a key
focus on long-term, profitable revenues, contributed to the loss in
the fourth quarter.
As a result, Innovative Food Holdings reported a GAAP loss of
$3.7 million for the quarter ended
December 31, 2014 compared to a GAAP
loss of approximately $1.0 million
for the quarter ended December 31,
2013.
The Fresh Diet Financial information
The fourth quarter of 2014 included the contribution of The
Fresh Diet, which was acquired on August 15,
2014 and as a result the fourth quarter of 2013 included no
contribution from this acquisition. Revenues attributed to The
Fresh Diet in this quarter were $3.1
million and results reflect the focus on profitable revenues
described above. Furthermore, certain accounting adjustments,
including over $875,000 in
acquisition related GAAP amortization charges, had the direct
effect of lowering The Fresh Diet GAAP revenues by over
$875,000 without any corresponding
decrease in GAAP expenses.
Full Year 2014 Financial Results
For the year ended December 31,
2014 total revenue was $30.8
million, an increase of approximately 37% compared to
2013.
Total net GAAP loss for the year ended 2014 was $3.7 million compared to a net loss of
$1.4 million in the same period of
2013. GAAP EPS for 2014 was $(0.32) per share compared to
$(0.23) per share in the year ago
period. Adjusted EPS for 2014 was $0.10 per share compared to $0.28 per share in 2013. Adjusted EBITDA was
$1.4 million in 2014 compared to
approximately $2 million in 2013.
Innovative Food Holdings' revenues for the Specialty foodservice
segment grew to $25.8 million, an
increase of approximately 15% compared to the prior period.
Adjusted EBITDA for the Specialty foodservice segment increased
over 40% year over year to approximately $2.8 million from $2
million a year ago.
Total Operating Cash flow for the year ended December 31, 2014 was $940,046 as compared to approximately
$1,354,881 in 2013.
The Company paid down $666,667 of
its commercial loan with Fifth Third Bank, and ended the year with
over $3.0 million in cash. In
addition the Company had the full availability of its $1 million line of credit with Fifth Third
Bank.
Conference call information:
- Date and time: Tuesday, March 31,
2015 at 5:00 p.m. ET
- Dial-in number: 1-888-523-1225 (domestic) or 1-719-325-2323
(international)
- Call/Conference ID: 2669131
- Replay number: Dial 1-877-870-5176 (domestic) or 1-858-384-5517
(international). Please use passcode 2669131 to access the replay.
The replay will be available until April 7,
2015.
- Webcast
link: http://public.viavid.com/index.php?id=113736
About Innovative Food Holdings
Innovative Food Holdings' subsidiaries distribute the highest
quality, specialty foods to foodservice businesses nationwide and
offer freshly prepared meals and ingredients to consumers across
the country through a proprietary specialty food platform.
In the foodservice space, the Company's industry leading
specialty food foodservice direct to chef distribution programs
offer over 7,000 specialty food, direct from source, organic,
artisanal and gluten free products, which are used on a daily basis
by thousands of leading professional chefs across the United States.
In the direct to consumer channel, The Fresh Diet®, Inc.
(www.thefreshdiet.com) is the nationwide leader in the freshly
prepared gourmet meal sector, using the finest specialty
ingredients. The meals are delivered directly, from kitchen to
doorstep to consumers in 12 states, 44 metropolitan areas and over
570 cities and towns across the country using The Fresh Diet®
platform. The Fresh Diet® is a wholly owned subsidiary of
Innovative Food Holdings.
Forward-Looking Statements
This release contains certain forward-looking statements and
information relating to Innovative Food Holdings, Inc. (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. Information
about other parties was supplied to the Company by other parties
and we accept no responsibility for its accuracy.
Contact:
|
|
Management
Contact
|
Investor Relations
Contact
|
Ronit
Wallerstein
|
James
Carbonara
|
Investor Relations
Analyst
|
Regional Vice
President, Hayden IR
|
(718)
645-1755
|
(646)
755-7412
|
rwallerstein@ivfh.com
|
james@haydenir.com
|
Innovative Food
Holdings and subsidiaries
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
FY
|
FY
|
|
q4 2014
|
q4 2013
|
Net Income
(loss)
|
(3,730,948)
|
(1,486,257)
|
|
(3,733,918)
|
(1,085,565)
|
Amortization of
intangible assets (1)
|
446,014
|
183,880
|
|
37,114
|
45,969
|
Amortization of
discount on notes payable (2)
|
707,698
|
2,322,909
|
|
99,157
|
984,975
|
Deferred Revenue
Adjustment (3)
|
1,164,563
|
|
|
876,222
|
|
Stock based
compensation (4)
|
1,662,798
|
372,013
|
|
1,501,943
|
321,351
|
Non-recurring
expenses (5) (6)
|
567,373
|
408,428
|
|
444,864
|
248,308
|
Fresh Diet Legacy
Costs (7)
|
295,877
|
|
|
221,745
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
1,113,375
|
1,800,973
|
|
(552,873)
|
515,038
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
11,421,690
|
6,500,506
|
|
20,834,910
|
6,949,666
|
|
|
|
|
|
|
Adjusted
EPS
|
0.10
|
0.28
|
|
(0.03)
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
FY
|
FY
|
|
q4 2014
|
q4 2013
|
Net Income
(loss)
|
(3,730,948)
|
(1,486,257)
|
|
(3,733,918)
|
(1,085,565)
|
Interest
|
116,372
|
129,167
|
|
100,917
|
18,990
|
Taxes
|
|
20,052
|
|
|
3,052
|
Depreciation &
amortization
|
630,086
|
262,882
|
|
126,436
|
66,824
|
Amortization of
discounts on notes payable (2)
|
707,698
|
2,322,909
|
|
99,157
|
984,975
|
Stock based
compensation (4)
|
1,662,798
|
372,013
|
|
1,501,943
|
321,351
|
Non-recurring
expenses (5) (6)
|
567,373
|
408,428
|
|
444,864
|
248,308
|
Fresh Diet Legacy
Costs (7)
|
295,877
|
|
|
221,745
|
|
Deferred Revenue
Adjustment (3)
|
1,164,563
|
|
|
876,222
|
|
Adjusted
EBITDA
|
1,413,819
|
2,029,194
|
|
(362,634)
|
546,211
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) amortization of
certain acquired assets
|
|
(2) Includes non-cash
amortization charges mainly associated with the GAAP recording of
the discount on certain notes
|
(3) A GAAP non cash
entry related to valuation of acquired deferred revenue
|
(4) Includes stock
and option based compensation
|
|
(5) for 2013
Included non-recurring charges related mainly to the
following:
|
|
a) The Artisan
acquisition and integration
|
|
b) The subordination
of existing notes and restructuring of certain terms of
notes
|
c) The prepayment of
the Artisan acquisition loan
|
|
|
d) Entering into
a credit line with Fifth Third Bank
|
|
|
e) Entering into a
mortgage with Fifth Third Bank
|
|
|
f) The move into new
facility and the warehouse build out of the new facility
|
|
(6) for 2014
Including non recurring charges mainly related to the
following:
|
|
a) Consists mainly of
acquisition, legal, other service providers expenses related to
Fresh Diet
|
(7) costs related to
Fresh Diet operations associated with old expenses,
commitments
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/innovative-food-holdings-reports-fourth-quarter-and-full-year-2014-financial-results-300058785.html
SOURCE Innovative Food Holdings, Inc.