Inventure loss tops $20 million in fiscal 2015

by Eric Schroeder
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Boulder Canyon snacks, Inventure Foods
Despite losses, Inventure's Snack segment experienced growth, driven by strong Boulder Canyon performance.

PHOENIX — The effects of a product recall early last year related to Fresh Frozen vegetables and Select Jamba “At Home” smoothie kits led to a full-year loss at Inventure Foods, Inc. in fiscal 2015. The company sustained a loss of $20,783,000 in the year ended Dec. 26, 2015, which compared with income of $10,561,000, equal to 54c per share on the common stock, in fiscal 2014.

Excluding the costs of the product recall, related recall insurance recovery, the impairment of the intangible, the bridge loan and debt extinguishment costs, Inventure posted an adjusted net loss of $1,400,000 in fiscal 2015, which compared with adjusted net income of $9,300,000 a year earlier.

Net revenues for fiscal 2015 totaled $282,558,000, down 1.1% from $285,663,000 in fiscal 2014.

Inventure’s snack segment includes potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal and extruded product. During fiscal 2015, gross profit for the snack segment was $17.6 million, down from $20.8 million a year ago, while revenues increased 9% to $115.4 million from $106.1 million.

Inventure Foods frozen vegetables and biscuits
Inventure’s frozen product segment includes frozen fruits, vegetables, beverages and desserts.

Inventure’s frozen product segment includes frozen fruits, vegetables, beverages and desserts. During fiscal 2015, gross profit for the frozen segment was $2.7 million, which compared with $32.3 million a year ago. Revenues in the segment decreased 7% to $167.2 million from $179.5 million.

For the fourth quarter ended Dec. 26, 2015, Inventure recorded a loss of $2,460,000, which compared with income of $3,408,000, or 17c per share, in the same period a year ago. Net revenues totaled $68,664,000, down from $73,746,000.

Terry McDaniel, Inventure Foods
Terry McDaniel, c.e.o. of Inventure Foods
“We continued to experience operational challenges in the quarter. However, we were still able to end the year with a solid increase in the Snack segment with net revenues up approximately 9%, driven by strong Boulder Canyon and premium private label growth,” said Terry McDaniel, chief executive officer. “We continue to believe the headwinds we’ve experienced in our business are transitory, and we expect to see improvement in our consolidated business as we progress through 2016. Going forward, our team remains focused on regaining momentum in Fresh Frozen and better meeting customer demand through increased Boulder Canyon capacity. We believe we have the right long-term strategy in place to achieve increased distribution and volume growth across our frozen and snack brand portfolios.”
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