The Inventure Group, Inc. (Nasdaq: SNAK), a leading specialty food manufacturer, today reported record financial results for the first quarter ending March 27, 2010, highlighted by a 9th consecutive quarter of year over year earnings growth, EPS increase of 40%, EBITDA gain of 32% and net revenue growth of 6%.
Consolidated net revenue for the first quarter ending March 27, 2010 was $31.4 million, an increase of 5.6% versus last year's quarter.
Rader Farms delivered an exceptionally strong quarter with net revenue of $12.0 million, an increase of 12.5% versus last year despite a double digit price decrease implemented in the fourth quarter of 2009. Total Rader pounds were up 39%, partially attributable to new distribution and organic growth as a result of the price decrease.
Snack division net revenue was $19.3 million, up 1.8% from the prior year. Key growth drivers included a 36.0% net revenue increase for Boulder Canyon(TM) Natural Foods, and ongoing robust demand for premium private label products which delivered an 11.1% revenue increase. Snack division revenue gains were partially offset by declines in T.G.I. Friday's(R) of 7.5% and BURGER KING(TM) of 14.0%. These declines reflect softness in Convenience Store and Vending channels, both of which have been negatively impacted by the weak economy.
"As anticipated, 2010 is off to an excellent start for the Company," said Terry McDaniel, Chief Executive Officer of The Inventure Group. "On the heels of a record year in 2009, we have now proudly delivered our 9th consecutive quarter of year over year earnings growth and continue to enhance EBITDA, gross profits and operating margins. Our diversification into the healthy/natural segment continues to pay dividends as we achieved impressive results in both our Boulder Canyon and Rader Farms divisions. Growth in Boulder Canyon is directly attributable to continued investments in our people, products and promotion spending as well as strong growth in our Rice and Bean product. Our success with Rader Farms is attributable to increased velocity with current customers as well as new distribution gains. Also, in line with our strategic growth plans, our premium private label products have been an important revenue contributor and continue to experience strong demand."
McDaniel continued: "Recognizing that T.G.I. Friday's(R) and BURGER KING(TM) did not deliver revenue growth in line with recent historical levels, we remain fully committed to growing these brands and are confident that new product development and growing distribution channels will offset any negative trends in specific channels."