Inventure Foods, Inc. reported financial results for the fourth quarter and fiscal year ended December 27, 2014. Q4 consolidated net revenues increased 25.3% to $73.7 million, compared to $58.9 million in the prior year period.
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The increase in net revenues was due to a 41.9% increase in the Company's healthy/natural product portfolio. Gross profit as a percent of net revenues increased 210 basis points to 20.6%, compared to 18.5% in the prior year. Selling, general and administrative (SG&A) expenses were 12.5% of net revenues and increased 110 basis points when excluding the acquisition costs in the prior year.
Net income was $3.4 million, or $0.17 diluted earnings per share for the fourth quarter of 2014, compared to $2.0 million, or $0.10 diluted earnings per share in the prior year period.
Excluding deal costs associated with the Company's Fresh Frozen acquisition in November 2013, adjusted net income was $2.8 million, or $0.14 diluted earnings per share, for the fourth quarter of 2013.
For the fourth quarter, the Company's base business delivered an earnings increase of $0.07 per diluted share, partially offset by a $0.04 per diluted share reduction in earnings associated with Fresh Frozen trade spend investments to support future sales and distribution growth.
EBITDA was $8.0 million compared to adjusted EBITDA of $5.8 million , an increase of 38.9%. Adjusted EBITDA in the fourth quarter of 2013 includes an add-back of $1.1 million associated with Fresh Frozen acquisition-related transaction costs.
Consolidated net revenues for the year ended December 27, 2014 increased 32.5% to $285.7 million, compared to $215.6 million in the prior year. Gross profit increased 36.6% to $53.1 million, compared to $38.9 million in the prior year and as a percentage of net revenues, increased 60 basis points to 18.6%.
SG&A expenses reflects a number of adjustments including the reversal of the Fresh Frozen Foods contingent consideration liability offset by estimated Jamba litigation settlement costs and fees associated with the Company's secondary offering. The net impact of these items reduced SG&A expenses by $1.9 million. In fiscal 2013 SG&A expenses included $1.4 million of acquisition-related transaction costs.
Excluding the impact of these items, SG&A expenses increased $9.5 million to $36.1 million, compared to $26.6 million in the prior year and as a percentage of net revenues, increased 30 basis points to 12.6%, compared to 12.3% in the prior year.
Fiscal 2014 net income was $10.6 million and fully diluted earnings per share was $0.53. Excluding the aforementioned items, adjusted net income increased 23.5% to $9.3 million, or $0.47 adjusted earnings per diluted share, compared to adjusted net income of $7.6 million, or $0.38 adjusted earnings per diluted share in the prior year.
Adjusted EBITDA increased 38.5% to $24.9 million compared to $18.0 million in fiscal 2013 and for our base business increased 21.1%. ■
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