BONITA SPRINGS, Fla., Nov. 14, 2018 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. IVFH, an industry-leading provider of specialty food in the foodservice and direct to 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 third quarter ended September 30, 2018.
Third Quarter Ended September 30, 2018
Third quarter 2018 revenues were $12,054,490 compared to revenues of $10,495,637 for the third quarter of 2017. The 15% increase in third quarter 2018 revenues was primarily driven by growth from the Company's subsidiary, Innovative Gourmet (www.igourmet.com).
Selling, General and Administrative ("SG&A") expenses were $3,354,315 for the third quarter of 2018, compared to $1,894,588 for the same period last year. SG&A expenses included investments to expand the capabilities of the Company's specialty foodservice and specialty food e-commerce platforms, as well as acquisition-related amortization and depreciation expenses of $294,258. In addition, SG&A expenses for the 2018 third quarter included over $300,000 in one-time acquisition and legal expenses and startup expenses associated with the July 6th acquisition of www.mouth.com.
Third quarter 2018 net income was $148,701, or $0.004 per diluted share, compared to $1,532,892 or $0.05 per diluted share for the third quarter of 2017. Cash EBITDA was $495,216 compared to Cash EBITDA of $1,673,044 for the third quarter of 2017.
The Innovative Gourmet business is a highly seasonal business, as more than 40% of its revenues are typically recorded in the fourth quarter.
Three and Nine Month Operating Highlights
- Strong year over year revenue growth of over 30% at Innovative Gourmet for the third quarter of 2018
- Multi-channel growth; e-commerce specialty food sales growth at www.walmart.com, www.jet.com and www.amazon.com
- Investments in our e-commerce platform; both via internal investments and acquisition
- Acquisition of www.mouth.com, an expert curator and online retailer of unique specialty foods from small-batch makers in the U.S. Mouth.com provides a discovery platform for new foods, producers, trends and a place to read the inspiring stories behind these small businesses. Mouth is also a unique, go-to gifting service, offering the next generation of gift boxes and monthly subscriptions, expertly curated for consumers and corporate clients, who want to give something that is distinctive, customized and upscale.
- Integration underway of key mouth.com fulfillment, customer service, procurement and other functions with Innovative Gourmet capabilities
Nine Months Ended September 30, 2018 Summary
Revenues for the nine months ended September 30, 2018, increased by approximately 15% to $34,960,037 compared to revenues of $30,494,462 for the first nine months of 2017.
SG&A expenses for the 2018 nine-month period included investments to expand the capabilities of the Company's specialty foodservice platform and specialty food e-commerce platform, as well as acquisition related amortization and depreciation expenses of over $700,000.
During the first nine months of 2018, the company incurred one-time acquisition and legal expenses and startup expenses of approximately $500,000 and income tax expenses increased $155,000.
Net income for the 2018 nine-month period was $927,492, or $0.03 per diluted share, compared to net income of $3,481,891, or $0.11 per diluted share, for the first nine months of 2017. Cash EBITDA was $2,020,486 compared to cash EBITDA of $4,365,054 for the first nine months of 2017.
Management commentary
Sam Klepfish, CEO of Innovative Food Holdings, commented, "Third quarter financial results reflected strong sales growth at Innovative Gourmet and a continuation of specialty foodservice sales trends we experienced for the first half of 2017. We currently expect specialty foodservice sales trends will remain stable for the remainder of 2018. It is important to note that for several years we have made significant progress building and scaling our leading "plug and play" specialty foodservice platform. We continue to believe that there is a significant opportunity to further expand and leverage this platform across several sales channels and we are aggressively pursuing multiple opportunities."
Mr. Klepfish continued, "I am very pleased at the initial results of our company-wide digital transformation efforts, which included the 2018 acquisitions of both www.igourmet.com and www.mouth.com. We strongly believe in the future of specialty food e-commerce and that there are significant internal and external e-commerce-based opportunities for platform companies like Innovative Food Holdings.
We are excited to add www.mouth.com to Innovative Food Holdings' growing e-commerce platform. We believe the acquisition immediately adds several unique synergistic components to our specialty food e-commerce platform, including additions in analytics and digital marketing capabilities and additional sales channels and branding opportunities. Going forward, we intend to invest in our multiple platform capabilities with the goal of further expanding sales across several channels and executing on additional synergistic opportunities within the fast growing and rapidly changing specialty food space."
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.
Specialty Foodservice:
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.
Specality Food e-commerce:
www.igourmet.com offers a wide assortment of high quality gourmet and specialty food products through its own website and through a full line of multichannel partners.
www.mouth.com an expert curator and online retailer of unique specialty foods from small-batch makers in the U.S. Mouth.com provides a discovery platform for new foods, producers, trends and a place to read the inspiring stories behind these small businesses. Mouth is also a unique, go-to gifting service, offering the next generation of gift boxes and monthly subscriptions, expertly curated for consumers and corporate clients, who want to give something that is distinctive, customized and upscale.
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
| Three Months Ended Sept 30, | Nine Months Ended Sept 30, | ||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||
| Adjusted Net Income and EPS | |||||||||
| Revenue | 12,054,490 | 10,495,637 | 34,960,037 | 30,494,462 | |||||
| Net Income | 148,701 | 1,532,892 | 927,492 | 3,481,891 | |||||
| Amortization of intangible assets (1) | 242,874 | 82,317 | 648,177 | 288,451 | |||||
| Amortization of discount on NP (2) | - | - | - | 185,018 | |||||
| Stock related expenses (3) | 24,288 | - | 47,696 | 315,968 | |||||
| Adjusted Net Income | 415,863 | 1,615,209 | 1,623,365 | 4,271,328 | |||||
| Weighted Average Shares Outstanding Diluted (4) | 33,989,715 | 33,476,756 | 33,974,321 | 30,842,167 | |||||
| Adjusted Fully Diluted EPS | $ | 0.012 | $ | 0.048 | $ | 0.048 | $ | 0.138 | |
| Three Months Ended Sept 30, | Nine Months Ended Sept 30, | ||||||||
| Cash EBITDA | 2018 | 2017 | 2018 | 2017 | |||||
| Net Income | 148,701 | 1,532,892 | 927,492 | 3,481,891 | |||||
| Interest expense, taxes & Other Income | 27,969 | 16,139 | 233,013 | (27,106 | ) | ||||
| Depreciation & amortization | 294,258 | 124,013 | 794,285 | 409,283 | |||||
| Stock related expenses (3) | 24,288 | - | 47,696 | 315,968 | |||||
| Amortization of discounts on NP (2) | - | - | - | 185,018 | |||||
| Cash EBITDA | 495,216 | 1,673,044 | 2,002,486 | 4,365,054 | |||||
| (1) Includes non cash amortization charges related to assets acquired | |||||||||
| (2) Includes non cash amortization charges mainly associated with the GAAP recording of the discount on certain notes | |||||||||
| (3) Includes stock and options based compensation and expenses | |||||||||
| (4) Full Year GAAP weighted fully diluted share count | |||||||||
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