BONITA SPRINGS, Fla., May 15, 2018 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB:IVFH), an industry-leading provider of specialty food in the foodservice and consumer markets, whose platform provides chefs and consumers direct access to the highest quality specialty food products across the United States, today reported financial results for the first quarter ended March 31, 2018.
On a GAAP basis, revenues increased by over 15% to $10.9 million compared to revenues of $9.5 million for the first quarter of 2017. The increases were driven by revenues from Innovative Gourmet (www.igourmet.com) and by record first quarter revenues from Innovative Food Holdings’ specialty foodservice platform.
Net income was $448,500 compared to net income of $734,600 for the first quarter of 2017. The change in net income was driven mainly by costs associated with Innovative Gourmet, including acquisition costs and Innovative Gourmet’s operating losses. The Innovative Gourmet business is a highly seasonal business as more than 40% of its revenues are typically recorded in the 4th quarter. Net income for the first quarter also includes over $200,000 in one time legal and acquisition related costs. Cash EBITDA was $722,496 compared to Cash EBITDA of $1.1 million for the first quarter of 2017. Fully Diluted GAAP earnings per share for the first quarter was $0.013 per share compared to $0.026 per share for the first quarter of 2017.
Sam Klepfish, CEO of Innovative Food Holdings, commented, “Our financial results for the first quarter reflect planned investments in digital transformation, personnel and other areas of our specialty foodservice business. Revenues were also impacted by inclement weather in the first quarter and by pricing strategies targeted at gaining market share and increasing the number of our end users of our specialty foodservice programs.”
Mr. Klepfish continued, “With respect to our recent acquisition completed in the first quarter, Innovative Gourmet’s first quarter revenues exceeded our expectations, including an approximate 30% year over year increase in revenues for the month of March. Furthermore, we are excited to have initiated the leveraging of certain key operational and sales synergies between Innovative Gourmet and other IVFH subsidiaries. Along those lines, we are pleased to announce that in May, we launched, together with our foodservice partner, a new regional specialty foodservice program. The program offers a full line of both dry and perishable specialty foodservice products to chefs and other foodservice customers in the Pennsylvania area directly from Innovative Gourmet’s warehouse.”
Mr. Klepfish concluded “There are significant changes occurring within the specialty food space, including changes related to specialty food e-commerce. We believe that Innovative Food Holdings’ specialty food platform with its wide range of specialty food capabilities, provides exceptional opportunities to capitalize on those changes. In 2018, we will continue to increase investments in our specialty food platform, and in both digital and ecommerce initiatives. At the same time, we will continue to asses and aggressively pursue new synergistic market opportunities across all areas of our specialty foods business.”
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.
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. Operated by industry veterans, www.igourmet.com is a trusted resource for millions of gourmet food shoppers.
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 Dec 31, | ||||
| 2018 | 2017 | |||
| Adjusted Net Income and EPS | ||||
| Revenue | 10,916,544 | 9,485,164 | ||
| Net Income | 448,548 | 734,637 | ||
| Amortization of intangible assets (1) | 189,146 | 103,067 | ||
| Amortization of discount on NP (2) | - | 92,509 | ||
| Stock related expenses (3) | 8,787 | 160,896 | ||
| Adjusted Net Income | 646,481 | 1,091,109 | ||
| Weighted Average Shares Outstanding Diluted (4) | 33,725,720 | 31,854,060 | ||
| Adjusted Fully Diluted EPS | $ | 0.019 | $ | 0.034 |
| Three Months Ended Dec 31, | ||||
| Cash EBITDA | 2018 | 2017 | ||
| Net Income | 448,548 | 734,637 | ||
| Interest, net | 26,748 | 23,690 | ||
| Depreciation & amortization | 238,413 | 130,407 | ||
| Stock related expenses (3) | 8,787 | 160,896 | ||
| Amortization of discounts on NP (2) | - | 92,509 | ||
| Cash EBITDA | 722,496 | 1,142,139 | ||
| (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) End of Quarter GAAP weighted fully diluted share count | ||||