Innovative Food Holdings Reports Second Quarter 2018 Financial Results

BONITA SPRINGS, Fla., Aug. 14, 2018 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. IVFH, an industry-leading provider of specialty food in the foodservice and consumer markets, whose platforms provide chefs and consumers direct access to the highest quality specialty food products across the United States, today reported financial results for the second quarter ended June 30, 2018.

Second Quarter Ended June 30, 2018 Summary

On a GAAP basis, revenues increased by over 14% to $11.99 million compared to revenues of $10.51 million for the second quarter of 2017.  The increases were primarily driven by revenues from the Company's subsidiary, Innovative Gourmet (www.igourmet.com). Net income declined from $1,214,362 to $330,243 for the second quarter of 2018. The change in net income was driven mainly by increases in income tax expenses of $155,000, increases in SGA expenses which include investments into expanding the capabilities of the company's specialty food platform, as well as acquisition related amortization and depreciation expenses of over $110,000. The company also made investments into expanding Innovative Gourmet's platform, including investments in its facility and operations, which contributed to net losses of over $325,000 at Innovative Gourmet. The Innovative Gourmet business is a highly seasonal business as more than 40% of its revenues are typically recorded in the fourth quarter. Innovative Food Holdings' Cash EBITDA was $784,774 compared to Cash EBITDA of $1,549,871 for the second quarter of 2017. Fully Diluted GAAP earnings per share for the second quarter was $.01 per share compared to $.04 per share for the second quarter of 2017.

Six Months Ended June 30, 2018 Summary

On a GAAP basis, revenues increased by approximately 15% to approximately $22.9 million compared to revenues of approximately $19.9 million for the first six months of 2017. Net income decreased to $778,791 compared to net income of $1,948,999 for the first six months of 2017. The change in net income for the first six months of 2018 was driven mainly by one time legal and acquisition related costs of over $200,000, increases in income tax expenses of $155,000, increases in SGA expenses which include investments into expanding the capabilities of the company's specialty food platform, as well as acquisition related amortization and depreciation expenses of over $200,000. The company also made investments into expanding Innovative Gourmet's platform, including investments in its facility and operations, which contributed to net losses of over $425,000 at Innovative Gourmet for the first six months of 2018. Fully Diluted GAAP earnings per share for the first six months of 2018 decreased to $0.023 per share compared to $0.07 per share for the first six months of 2017. Cash EBITDA decreased to $1.5 million compared to cash EBITDA of $2.69 million for the first six months of 2017.

Management commentary

Sam Klepfish, CEO of Innovative Food Holdings, commented, "Our financial results reflect strong sales growth at Innovative Gourmet (www.igourmet.com) and modest but steady case sales growth at our largest subsidiary of over 4% case growth for the 2^nd quarter and over 6% case growth for the first six months of 2018. These case sales increases were offset by declines in average order size due mainly to product mix and pricing strategies. We believe that these order trends are likely to continue through the remainder of 2018. We continue to believe that there are numerous growth opportunities within the specialty foodservice space and we will continue to aggressively focus on bringing those opportunities to fruition." 

Mr. Klepfish continued, "Innovative Gourmet's revenues exceeded our expectations, including an approximately 23% year over year revenue increase for the second quarter of 2018. Sales growth was driven mainly by investments in operational enhancements including investments into inventory optimization. The longer-term goal is to enhance and expand Innovative Gourmet's E-Commerce marketing capabilities, with a focus on improvements in key eCommerce metrics including customer conversion and unique visitors."

Mr. Klepfish concluded, "We remain strongly optimistic in regard to future opportunities within the specialty food space.  We intend to continue to focus on expanding Innovative Food Holdings' capabilities through both internal investments in our platforms and through synergistic acquisition opportunities which have the potential to add significant value to our multifaceted specialty food platform.  We believe that this strategy provides significant growth opportunities for Innovative Food Holdings. We will continue to focus on executing on those opportunities with a goal of building value for all Innovative Food Holdings shareholders."

About Innovative Food Holdings

Innovative Food Holdings' IVFH industry-leading specialty food platforms in the foodservice and consumer markets provide chefs and consumers direct access to the highest quality specialty food products across the United States.

In the direct-to-chef foodservice market, Innovative Food Holdings' automated direct-to-chef platform offers efficient, cost effective, and transparent direct sourcing and distribution of over 7,000 specialty food products delivered daily to thousands of chefs nationwide.

In the direct to consumer market, Innovative Gourmet offers a wide assortment of high quality gourmet and specialty food products through www.igourmet.com, and through a full line of omnichannel partners.

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.

Management Contact
Ronit Wallerstein
Investor Relations Analyst
(718) 645-1755
rwallerstein@ivfh.com