BONITA SPRINGS, Fla., Nov. 14, 2017 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB:IVFH) today reported financial results for the third quarter ended September 30, 2017.
Third Quarter and Nine Months Ended September 30, 2017 Financial Highlights:
- Revenue increased by 20% to $30.5 million compared to $25.4 million for the nine months of 2016
- Revenue increased over 15% to $10.5 million compared to $9.1 million for the third quarter of 2016
- GAAP Fully Diluted EPS increased by 71% to $0.113 compared to $0.066 per share for the first nine months of 2016
- GAAP Fully Diluted EPS increased by 53% to $0.046 compared to $0.03 per share for the third quarter of 2016
Sam Klepfish, CEO of Innovative Food Holdings, commented, “Our financial results for the third quarter and first nine months of 2017 reflect the overall strength of our business. We did see some effect on sales in late August and part of September, related to the unusually strong hurricane season which impacted demand from foodservice establishments across the southern United States. However, sales levels increased towards the end of September and we entered the fourth quarter with strong sales momentum. With respect to the hurricanes, while the eye of Hurricane Irma passed directly over our facility in Bonita Springs, Florida, due to our execution of contingency preparedness and recovery plans, we incurred minimal disruption and our team was back to work the following day and worked “above and beyond” to fill all sales orders. I believe that the passionate dedication and hard work by our team is a key reason for the success of Innovative Food Holdings.”
Mr. Klepfish continued, “There are significant changes occurring within the food space and we believe that the Innovative Food Holdings business model provides significant opportunities to capitalize on those changes. We will continue to focus on growing our core sales channels, and at the same time we continue to asses and aggressively pursue new synergistic market opportunities.”
Mr. Klepfish concluded, “We ended the third quarter of 2017 with a simplified capital structure, a strong balance sheet including a strong cash position, and full availability of our commercial line of credit. Given the strength of our core business as well as our strong financial position, and the multitude of potential opportunities within the rapidly changing food space, we continue to believe that Innovative Food Holdings’ shares are undervalued and we will continue to focus on driving future value for all shareholders.”
Third Quarter Summary
On a GAAP basis, revenues increased by over 15% to $10.5 million compared to revenues of $9.1 million for the third quarter of 2016. Operating Income increased 57% to $1.5 million compared to operating income of $987,000 for the third quarter of 2016. Net income increased by 77% to $1.5 million compared to net income of $866,000 for the third quarter of 2016.
Third quarter GAAP basic earnings per share increased by approximately 35% to $0.047 per share compared to $0.035 earnings per share for the third quarter of 2016. Fully Diluted GAAP earnings per share for the third quarter increased by 53% to $0.046 per share compared to $0.03 per share for the third quarter of 2016.
Cash EBITDA increased 32% to $1.67 million compared to Cash EBITDA of $1.27 million for the third quarter of 2016.
Nine Months Summary
On a GAAP basis, revenues increased by 20% to $30.5 million compared to revenues of $25.4 million for the first nine months of 2016. Operating Income increased over 66% to $3.6 million compared to operating income of $2.2 for the first nine months of 2016. Net income increased 91% to over $3.4 million compared to net income of $1.8 million for the first nine months of 2016.
For the nine months ended September 30, 2017 GAAP basic earnings per share increased by 60% to $0.117 per share compared to $0.073 earnings per share for the first nine months of 2016. Fully Diluted GAAP earnings per share for the first nine months of 2017 increased by 71% to $0.113 per share compared to $0.066 per share for the first nine months of 2016.
Cash EBITDA increased by 38% to $4.4 million compared to cash EBITDA of $3.1 million for the first nine months of 2016.
About Innovative Food Holdings
Innovative Food Holdings' (OTCQB: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.
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
| Three Months Ended Sept 30, | Nine Months Ended Sept 30, | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| Adjusted Net Income and EPS | ||||||||||||
| Revenue | 10,495,637 | 9,094,443 | 30,494,462 | 25,413,011 | ||||||||
| Net Income | 1,532,892 | 866,607 | 3,481,891 | 1,822,516 | ||||||||
| Amortization of intangible assets (1) | 82,317 | 50,567 | 288,451 | 182,201 | ||||||||
| Amortization of discount on NP (2) | - | 92,509 | 185,018 | 277,527 | ||||||||
| Stock related expenses (3) | - | 195,630 | 315,968 | 673,523 | ||||||||
| Adjusted Net Income | 1,615,209 | 1,205,313 | 4,271,328 | 2,955,767 | ||||||||
| Weighted Average Shares Outstanding Diluted | 33,476,756 | 31,619,778 | 30,842,167 | 32,044,762 | ||||||||
| Adjusted Fully Diluted EPS | $ | 0.048 | $ | 0.038 | $ | 0.138 | $ | 0.092 | ||||
| Three Months Ended Sept 30, | Nine Months Ended Sept 30, | |||||||||||
| Cash EBITDA | 2017 | 2016 | 2017 | 2016 | ||||||||
| Net Income | 1,532,892 | 866,607 | 3,481,891 | 1,822,516 | ||||||||
| Interest, net | 16,139 | 28,717 | (27,106 | ) | 88,237 | |||||||
| Depreciation & amortization | 124,013 | 88,374 | 409,283 | 302,219 | ||||||||
| Stock related expenses (3) | - | 195,630 | 315,968 | 673,523 | ||||||||
| Amortization of discounts on NP (2) | - | 92,509 | 185,018 | 277,527 | ||||||||
| Cash EBITDA | 1,673,044 | 1,271,837 | 4,365,054 | 3,164,022 | ||||||||
| (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 | ||||||||||||